Boeing Powers in Front of Rival With Orders Worth GBP 8bn

By JANE BRADLEY

PLANE maker Boeing has signed two massive deals to supply aircraft to China and Dubai, leaving arch rival Airbus trailing in its slipstream.

The United States firm reported a GBP 6 billion order from Dubai’s Emirates Airlines for 42 long-range 777 jet aircraft, with an option for a further 20.

And the Chinese government said it was buying 70 Boeing 737 jets, worth about GBP 2.3bn, adding that it could order another 80 of the aircraft.

The latter deal is said to be the largest in Chinese aviation history and was hailed by sources in China as a promising sign for future co-operation between China and the US.

The Dubai deal marks a major boost for Boeing in the Middle East, where it is competing fiercely with rival Airbus in a fast-growing aviation market relatively unchallenged by rocketing fuel prices and terror threats.

Airbus responded by announcing the signing of its own GBP 1.68bn deal with Kuwaiti leasing firm Alafco for 12 of its A350 aircraft.

And Kuwaiti no-frills carrier Jazeera Airways also announced it had signed up to buy six Airbus A320s but did not disclose the price.

All the deals were announced at the Dubai Air Show.

China is seen as a key country in coming years for aeroplane makers because it is expected to become the world’s second-biggest aviation market by 2025.

Boeing currently makes up to two-thirds of the present aircraft fleet in the Far East country, which is forecast to need more than 3000 new aircraft over the next 20 years. Rival Airbus holds a 28 per cent share.

Earlier this year, Boeing announced it was selling 60 of its 787 “Dreamliner” jets to China for around GBP 4.1bn.

Bosses at Emirates, a crucial customer for both aircraft manufacturers, refused to say whether it would choose Airbus or Boeing as the supplier for its new mid-sized plane.

Emirates chairman Sheikh Ahmed bin Saeed al-Maktoum, who has previously provided strong support for Airbus when he purchased 43 of the company’s superjumbo A380 aircraft in a record order, said: “Regarding the 787 and the A350, we haven’t decided yet which way we will go.”

He added he was upbeat about his airline’s future.

“Global air travel demand has been resilient, with particularly strong growth in the Middle East region and Asia, where burgeoning economies have led to vigorous trade and tourism exchanges.”