Airbus Books Bittersweet $16 Billion Deal With Emirates
November 18 2019 - 7:02AM
Dow Jones News
By Ben Katz
DUBAI -- Airbus SE secured a $16 billion order for its A350
wide-body jets from Emirates Airline, a significant commitment for
one of its biggest jets but less than an earlier promise by the
Mideast carrier to buy $21 billion worth of Airbus planes.
In February, Emirates sealed a looser agreement to buy a higher
number of jets to replace orders for the A380, the superjumbo jet
that Airbus said that month it would stop making in 2021. Emirates
was the plane's biggest buyer by far, and it has formed the basis
for the carrier's strategy based on long-haul jets and mega
hubs.
At the Dubai Air Show on Monday, Emirates said it would now take
50 A350s instead of its initial plan for 40 A350s and 30 A330neos.
The Neo, a re-engined version of an earlier model, is Airbus's most
recent addition to its wide-body offering. Airbus has struggled
though to drum up a significant backlog for the plane, a rival to
Boeing Co.'s 787 Dreamliner.
Still, the deal is an important win for Airbus at a time when
demand for wide-body aircraft is slowing. Airbus has already walked
back plans to raise production rates for its A350. Boeing has cut
production of its 787, citing trade tensions and a lack of demand
from China.
In a separate blow to the U.S. manufacturer, Abu Dhabi's Etihad
Airways said earlier Monday that it was planning to take 20 fewer
aircraft from Boeing than it had counted on. Etihad has been
through its own strategy overhaul and fleet review after suffering
losses in the past three years amid oil-price volatility, bad
investments and increased competition.
Etihad Chief Executive Tony Douglas said the carrier plans to
have a fleet of only 51 787s by 2023, from 36 now. Etihad
previously canceled the majority of its own backlog for Airbus's
A350s and deferred deliveries of the remainder.
(END) Dow Jones Newswires
November 18, 2019 06:47 ET (11:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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