Sales of grounded Boeing jets lift off at Dubai Airshow

Abu Dhabi’s flagship carrier Etihad told the Dubai Airshow this week it will partner with Boeing to launch what it described as one of the world’s most fuel-efficient long-haul aircraft. (AP)
Updated 20 November 2019

Sales of grounded Boeing jets lift off at Dubai Airshow

  • Saudi Arabian budget airline Flynas confirms deal to buy ten long-range Airbus narrow-body planes

DUBAI: Boeing’s 737 MAX took center stage at the Dubai Airshow on Tuesday as airlines announced plans to order up to 50 of the jets worth $6 billion at list prices despite a global grounding in place since March.

Kazakhstan flag carrier Air Astana said it had signed a letter of intent to order 30 Boeing 737 MAX 8 jets for its Fly Arystana subsidiary.

Air Astana, which operates Airbus and Embraer jets in its main network, said it was confident in Boeing’s ability to resolve problems with the MAX.

Global regulators banned commercial flights of Boeing’s fastest-selling jet in March after two fatal accidents.

Plans for the jet’s return to commercial service have been pushed back to early 2020 as Boeing finalizes software and training revisions that need regulatory approval.

“We are making flying affordable for the people of Kazakhstan,” Air Astana Chief Planning Officer Alma Aliguzhinova said, adding that budget carrier Fly Arystana would start taking the jets in late 2021.

The airline plans to hold 15 aircraft directly and may finance the rest through a lease transaction, she said, adding that Air Astana would not change the composition of its main fleet.

Separately, another airline signed a firm order for 10 Boeing 737 MAX 7 and 10 Boeing MAX 10 jets, a person familiar with the matter said. The airline’s name was not disclosed.

Boeing has used the past two major industry events to try to secure market momentum for the grounded MAX, which is seen as key to the planemaker’s financial health over the coming decade.

A letter of intent between Boeing and British Airways owner IAG for 200 jets, which grabbed the spotlight at the Paris Airshow in June, has yet to be finalized as the European holding company discusses the fleet change with subsidiaries that use Airbus for medium-haul operations.

In other business coinciding with the largest Middle East air show on Tuesday, Saudi budget airline Flynas agreed to buy 10 long-range Airbus A321XLR jets.

The airline’s chief executive had said on Monday that Flynas was in talks to exercise purchasing options for some or all of 40 Airbus A320neo narrow-body jets.. Airbus unveiled a provisional order in Dubai for eight of its small A220 jets from Air Senegal. Britain’s easyJet exercised options for 12 more Airbus A320neo aircraft.

Also coinciding with the show, leasing giant GECAS was expected to confirm an order for 25 Airbus planes, including 12 A330neo jets powered by engines from Rolls-Royce, a competitor to GECAS parent company General Electric.

However, there were no immediate signs that Dubai’s Emirates was ready to finalize a provisional order for 40 Boeing 787 Dreamliners.


German economy stagnating despite signs of industrial rebound

Updated 16 December 2019

German economy stagnating despite signs of industrial rebound

  • Indicators at the start of the fourth quarter point to subdued private consumption even though disposable incomes continue to rise
  • Bundesbank says households’ real disposable income fell due to a slowdown in employment growth

BERLIN: The German economy is more or less stagnating, the economy ministry said on Monday, adding there are initial signs that an industrial recession could be coming to an end as orders stabilize.
The ministry also said in its monthly report that indicators at the start of the fourth quarter pointed to subdued private consumption even though disposable incomes continued to rise.
Consumption has helped keep Europe’s biggest economy humming by compensating for weak exports. Trade tensions this year pushed the German manufacturing sector into a recession but the overall economy narrowly escaped the same fate.
“Industrial production has probably not reached the trough,” the ministry said. “But orders and sales have stabilized at a low level. This suggests that industry has gradually stabilized and could pick up slightly in the New Year.”
There are fears that should the manufacturing sector continue to shrink; the slowdown could spread to an otherwise resilient services sector.
IHS Markit’s flash composite Purchasing Managers’ Index (PMI) for December on Monday confirmed the diverging trends: manufacturing activity slipped and services rose.
Markit said the rate of decline in new orders and exports was stabilizing, giving hope for the manufacturing sector.
The German central bank said last week that Germany faced another sluggish year despite a likely rebound in exports as households see their spending power shrink. The Bundesbank said households’ real disposable income fell due to a slowdown in employment growth.
It trimmed its growth forecast for this year to 0.5 percent and halved its prediction for 2020 to 0.6 percent.
In another grim sign for the economy, the BGA trade association said on Monday that wholesalers planned to cut investments and their tendency to hire new staff had decreased despite expectations that their nominal revenue will rise by 2.3 percent to €1.3 billion this year.