DUBAI, Nov 13 (Reuters) – Dubai’s airline said on Monday it would buy more than $50 billion of Boeing jets as competition intensifies to secure dwindling supplies of long-range jets and anticipate an increase in international travel. The company competed against emerging rivals in the region for orders.
Government-owned Emirates and sister airline flydubai have secured 125 Boeing (BA.N) widebody jets for the start of the Dubai Air Show, while Europe’s Airbus (AIR.PA) We are now waiting to order a jet plane.
Monday’s 777X order includes 55 of the future 400-seat version known as the 777-9 and 35 of the smaller 777-8.
Emirates has also contracted for five additional 787 Dreamliners, and Flydubai has ordered 30 of the same type as its first order for the long-range aircraft.
Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates and flydubai, said: “Together, these orders represent a significant investment that reflects Dubai’s commitment to the future of aviation.”
The aviation and tourism industries are vital to Dubai’s economy, which is less rich in oil than many neighboring states. The government aims to double the size of the economy over the next 10 years.
Industry officials said the order raised the risk of competition for airlines as Saudi Arabia expands its fleet and Turkish and Indian carriers plan to move more connecting traffic away from the Gulf. .
“They say we’re the big elephant in the room, and we’re proving that they’re a big company,” said Steven F. Udvar-Hazy, executive chairman of Air Lease Corporation (AL.N). said after two announcements in Dubai.
Demand for the industry’s biggest jets, which dominate the region’s airports, is booming after a prolonged cyclical downturn and the subsequent fallout from the coronavirus pandemic on long-haul travel.
Airlines around the world are looking to buy about 700 to 800 new jets, including 200 to 300 of the world’s largest jets, to catch up on fleet renewal plans set aside during the pandemic, industry officials said. It is estimated that they are negotiating behind the scenes.
But Air Lease Corp’s Udvar Hagee questioned whether there was room to accommodate all the capacity. “They are fighting for the same passengers,” he added.
Turkish Airlines (THY) (THYAO.IS) suddenly appeared on the program’s agenda on Saturday with information from the state-run Anadolu news agency that it is in talks to buy up to 355 Airbus planes.
Airbus announced that “Airbus and Turkish Airlines have reached an agreement in principle to order large commercial aircraft.” “We have ratified this agreement and will be contacting you in the coming days.”
One Middle East official described the prospect of Turkey’s order as a “bold move” that would take place in the backyard of a Gulf rival.
Few reservations
Other important orders appear to be in the works, but it is unlikely that any competition will take place publicly in Dubai.
Saudi Arabia’s newest airline, Riyadh Air, said it is still in talks with aircraft manufacturers to order narrow-body jets.
Saudia Airlines Group plans to order around 150 narrow-body aircraft for Saudia Airlines and Low-Cost Fly Deal, the group’s vice president of fleet management told Asharq TV.
Previous Dubai Airshows have seen enthusiastic announcements from Emirates and other Gulf carriers.
Saudi Arabia established Riyadh Airways as part of its plan to turn the kingdom into a major aviation hub dominated by Dubai and Doha, Qatar.
Dubai is holding a biennial aerospace contest against the backdrop of the Israeli-Hamas war in the Gaza Strip. The war has increased demand for weapons, closed airspace, and increased flight times and higher airfares for some airlines.
Travel analytics firm ForwardKeys said on Friday that flight bookings have fallen around the world since Oct. 7, including a 26% drop in bookings to the Middle East.
Daniel Silke, director of the Cape Town-based Political Futures consultancy, said: “There is sufficient statistical evidence that ticket sales to the region are significantly down, at least in the short term. There is,” he said.
Analysts say the war in Gaza is also likely to intensify demand for arms, which has surged over the past year and a half as the United States and its allies rearm Ukraine against Russia. Ta. But few large-scale arms deals are expected to take place at the show.
Reporting by Tim Hepher, Alexander Cornwell and Pesha Magid.Edited by: Hugh Lawson, Lisa Shoemaker, Sri Navaratnam, Sharon Singleton
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