Qatar Airways upgrades Airbus A350 order

Updated 04 December 2012
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Qatar Airways upgrades Airbus A350 order

LONDON: Qatar Airways has upgraded an order for Airbus A350 aircraft to larger variants, a move that includes new backing for a model designed to compete with Boeing Co’s mini-jumbo.
The European planemaker, part of EADS, announced the move as the airline said it preferred the two largest models of A350 for its business model, confirming a trend toward more seats to cope with regular increases in passenger traffic.
The A350 comes in three models — the two smallest compete with Boeing’s 787 Dreamliner while the largest, the 350-seat A350-1000, aims for a crucial niche dominated by the 777.
Many experts see the lucrative market for jets just below 400 seats as the next major battleground between the world’s top planemakers. Boeing is looking at revamping its 777 design.
Airbus said Qatar Airways had upgraded its order for the largest A350-1000 variant to 37 planes from 20 and increased its order for the base model, the A350-900, by three planes to 43, confirming what aviation sources had previously told Reuters.
However these are not net new orders, since the same airline has scrapped an order for the A350-800, the smallest variant which faces speculation about its future due to weak sales.
The upgraded order will net Airbus an extra $ 2.8 billion at list prices. In volume, Qatar’s A350 order remain at 80 units.
Qatar Airways is the launch customer for the future A350 and is also a major user of the 777, Boeing’s most profitable plane.
Airbus said separately it had won approval from European authorities to deploy drag-reducing wingtip devices that will allow airlines to cut fuel bills by more than it had expected.
The so-called sharklets, which are made from composite materials and are 2.4 meters tall, are upward-slanting wingtips designed to help narrowbody A320 aircraft fly further on the same amount of fuel.
“The certification of Airbus’ sharklets is a milestone which paves the way for airlines to benefit from savings in fuel of around 4 percent,” Tom Williams, executive vice president of programs at Airbus, said in a statement. “That’s better than we’d anticipated.”
Airbus had previously targeted a net fuel saving of 3.5 percent with the devices, part of a package of improvements that together with new engines are designed to save airlines about 15 percent in fuel bills on the future revamped A320neo plane.

The approval applies to Airbus’ A320 family of planes powered by CFM56 engines from CFM International, a venture between General Electric and France’s Safran.
Airbus has also been testing the sharklets on A320s powered by International Aero Engines’ V2500 engine.
Airbus and Boeing are focusing on wing enhancements as key selling points for their latest revamped models, with tens of billions of dollars of sales for both firms at stake each year.


Dubai Aerospace signs $480 million loan deal

Updated 21 May 2018
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Dubai Aerospace signs $480 million loan deal

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
DAE, a government-controlled company set up in 2006, has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year.
The acquisition tripled the Dubai aircraft leasing and maintenance company’s portfolio to about 400 aircraft worth more than $14 billion.
The $480 million loan, which includes both conventional and Islamic finance tranches, has a so-called “accordion facility” allowing it to be increased to up to $800 million.
With the loan, the company’s unsecured revolving credit facilities increase to between $1.125 billion and $1.445 billion, depending on final size of the latest deal, Firoz Tararpore, DAE’s chief executive, said in a statement.
“On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26 percent to a range of 31-34 percent.”
Last year, the company issued $2.3 billion in senior bonds split across three tranches last year, partly to finance the AWAS acquisition.
Tarapore said in an interview last week that DAE was in talks to buy a near-record total of 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.
Al Ahli Bank of Kuwait coordinated the latest loan deal and was also the lead arranger and joint bookrunner together with First Abu Dhabi Bank, while Noor Bank joined the deal as lead arranger.