DUBAI, 13 November 2007 — Dubai Air Show 2007 witnessed several major deals yesterday with one hundred aircraft for Dubai Aerospace Enterprise (DAE), 49 planes for Air Arabia and 22 aircraft for Saudi Airlines.
European airplane maker Airbus dealt a powerful blow to US rival Boeing Co. when it snatched a series of major orders, worth more than $49 billion at list prices at the show.
Saudi Arabian Airlines has signed a Memorandum of Understanding (MOU) for 22 Airbus A320 jets as part of the fleet modernization plans, with an allowance to raise the order by eight.
The agreement marks a period of rapid expansion of the aviation market in the region with Saudia experiencing unprecedented demand for air travel.
The order is significant as it marks the first time Saudi Arabian Airlines have placed an order with Airbus in some two decades. Previously, Saudi Arabian Airlines were the launch customer for the Airbus A300-600, which was delivered in 1984.
“Investing in a new fleet of Airbus single aisle aircraft enables us to benefit from an aircraft that is unquestionably right for our needs and for those of our passengers, one that combines cabin comfort with operational cost-efficiency, while enabling us to grow,” Khalid Al-Molhem, director general of Saudi Arabian Airlines, said in a statement.
DAE Capital, the aircraft leasing and financing division of Dubai Aerospace Enterprise (DAE), has signed a memorandum of understanding to buy 100 aircraft from Airbus. The order is for 70 A320 Family and 30 A350 XWB Family aircraft. It has signed a total $13.5 billion letter of intent with Airbus for the purchase.
DAE also signed a letter of intent for the purchase of 100 aircraft valued at approximately $13.7 billion with Boeing commercial airplane company.
The price incorporates an associated deal with General Electric (GE) for 70 CFM56-7B engines for the 737s, GEnx-engines to power five Boeing 747-8 Intercontinental and further GE90-115B engines to power 10 Boeing 777-300ER aircraft. The engines are together valued at more than $1.9 billion of the $13.7billion.
Sheikh Ahmed ibn Saeed Al-Maktoum, chairman, DAE, said “we are confident that DAE Capital will quickly become a leader in the aircraft leasing business, globally.”
Air Arabia has signed an agreement with Airbus for the acquisition of up to 49 A320 aircraft. The carrier has signed a firm contract for 34 Airbus A320 aircraft with an option for 15 more. The Sharjah-based airline, which made the announcement during the show, has yet to specify the engines to be installed on its new fleet.
The deal, whose total book value approaches $3.5 billion at list prices, will more than triple the size of Air Arabia’s fleet, and underlines its stated ambition to increase its total operating fleet to over 50 aircraft by 2015 and become a world-leading airline.
“Our vision is to be one of the world’s leading low-cost carriers in terms of profit margins, innovation, reputation and operational excellence,” said Sheikh Abdullah ibn Mohammed Al-Thani, chairman, Air Arabia.
Moreover, Abu Dhabi-based Saraya Aviation has purchased three Gulfstream G450 business jets to add to its elite air carrier, providing long range flights for its new charter flight operation, that will cater for Saraya customers, interested travelers, corporate executives and government officials traveling across the world. Operations of Saraya Aviation will commence on board of its existing air fleet in 2008.
Saraya Aviation has branch offices in Dubai, Amman and Riyadh. However, its charter aircraft will be based at various airports according to demand. Saraya Aviation is an air-charter company within Saraya, a real estate development and asset management company.
While addressing a press conference yesterday held at Airport Expo in Dubai, Tom Enders, Airbus president and CEO, said that air traffic in the Middle East is growing faster than international norms.
“UAE is today among the top 10 countries investing in new aircraft. The Middle East will see a yearly traffic growth of eight percent, fourth in the list after China, India and Eastern Europe. Consequently, the Middle East has emerged as a key center for international air traffic. Over the last ten years Dubai has evolved as one of the top ten hubs for international traffic” he said.
“Airbus aircraft are enjoying a continuing high demand from more than 330 customers and operators. Our order-book is steadily growing. In October we passed the impressive landmark of 8,000 total order-intakes. We are currently building on an unprecedented backlog of clearly more than 3,000 aircraft, ensuring business continuity at record production rates for at least the next five years” he said.
“A total of 13 A380s are to be delivered in 2008 and we shall continue to ramp-up to reach four aircraft per month in 2010. Four per month is the current maximum capacity we are planning for. In this context you should remember that one A380 represents about eight A320s in terms of workload. This should give you an idea of what we have in front of us,” he said.
Boeing and LCAL yesterday announced the leasing company has placed an order for six additional 787-8 Dream-liners, expanding its fleet to 21 of the advanced-technology aircraft.
The deal, worth approximately $972 million at list prices, previously was listed on the Boeing Orders and Deliveries website and attributed to an unidentified customer.
Dubai-based LCAL was established in 2005 as an aircraft leasing company with its business based exclusively with the Boeing 787 Dream-liner. The company was the first leasing company to order 787s in 2005 and will be the first leasing company to take delivery of the 787 Dreamliner in 2009.
“The Boeing 787 Dreamliner will set the new standard in operator and passenger preference for decades to come, while taking a significant step to address the environmental issue,” said Steve Clarke, LCAL president and chief operating officer.