Abu Dhabi’s Etihad Airways restructures Airbus, Boeing jet orders

Etihad had placed orders for 26 A321neos, 40 A350-900s and 22 A350-1000s, as well as eight 777-8s and 17 777-9s. (File/AFP)
Updated 14 February 2019

Abu Dhabi’s Etihad Airways restructures Airbus, Boeing jet orders

  • Etihad has committed to take delivery of five Airbus A350-1000s and 26 A321neos plus six Boeing 777-9s “over the coming years”
  • It has ordered more aircraft, mostly in 2013 when it went on a jet-buying spree

ABU DHABI: Etihad Airways said on Thursday it has agreed with Airbus and Boeing to restructure a “large portion” of its orders, in what appeared to be a major cut in long-haul jet orders.
The Abu Dhabi-owned airline said in a statement that it has committed to take delivery of five Airbus A350-1000s and 26 A321neos plus six Boeing 777-9s “over the coming years.”
However, it has ordered more aircraft, mostly in 2013 when it went on a jet-buying spree, and said in the statement that the “balance of the remaining orders will be defined at a later time through rescheduling, restructuring or reduction.”
According to Etihad documents and the manufacturers’ websites, Etihad had placed orders for 26 A321neos, 40 A350-900s and 22 A350-1000s, as well as eight 777-8s and 17 777-9s.
The airline said it will also continue to take delivery of Boeing 787 Dreamliners, but did not say how many it would take.
Etihad has so far received 28 of 71 Dreamliners it has ordered, according to Boeing’s website.
Etihad said it had reached agreements with Airbus and Boeing to not disclose details of the order changes.
The airline’s announcement comes after a lengthy strategy review that began in 2016 after it piled billions of dollars into a failed strategy of buying minority stakes in other airlines.
Etihad has reported losses in excess of $3 billion and thousands of employees have left, including long-serving chief executive James Hogan, since the review started.
Etihad’s new boss Tony Douglas said last year the airline was now focused on flying passengers to and from Abu Dhabi, rather than competing to be a major intercontinental airline.


Huawei's third-quarter revenue jumps 27% as smartphone sales surge

Updated 16 October 2019

Huawei's third-quarter revenue jumps 27% as smartphone sales surge

  • American companies, significantly disrupting its ability to source key parts
  • Huawei was all but banned by the United States in May from doing business with American companies

SHENZHEN, SHANGHAI: Huawei Technologies Co. Ltd’s third-quarter revenue jumped 27%, driven by a surge in shipments of smartphones launched before a trade blacklisting by the United States expected to hammer its business.
Huawei, the world’s biggest maker of telecom network equipment and the No. 2 manufacturer of smartphones, was all but banned by the United States in May from doing business with American companies, significantly disrupting its ability to source key parts.
The company has been granted a reprieve until November, meaning it will lose access to some technology next month. Huawei has so far mainly sold smartphones that were launched before the ban.
Its newest Mate 30 smartphone — which lacks access to a licensed version of Google’s Android operating system — started sales last month.
Huawei in August said the curbs would hurt less than initially feared, but could still push its smartphone unit’s revenue lower by about $10 billion this year.
The tech giant did not break down third-quarter figures but said on Wednesday revenue for the first three quarters of the year grew 24.4% to 610.8 billion yuan.
Revenue in the quarter ended Sept. 30 rose to 165.29 billion yuan ($23.28 billion) according to Reuters calculations based on previous statements from Huawei.
“Huawei’s overseas shipments bounced back quickly in the third quarter although they are yet to return to pre-US ban levels,” said Nicole Peng, vice president for mobility at consultancy Canalys.
“The Q3 result is truly impressive given the tremendous pressure the company is facing. But it is worth noting that strong shipments were driven by devices launched pre-US ban, and the long-term outlook is still dim,” she added.
The company said it has shipped 185 million smartphones so far this year. Based on the company’s previous statements and estimates from market research firm Strategy Analytics, that indicates a 29% surge in third-quarter smartphone shipments.
Still, growth in the third quarter slowed from the 39% increase the company reported in the first quarter. Huawei did not break out figures for the second quarter either, but has said revenue rose 23.2% in the first half of the year.
“Our continued strong performance in Q3 shows our customers’ trust in Huawei, our technology and services, despite the actions and unfounded allegations against us by some national governments,” Huawei spokesman Joe Kelly told Reuters.
The US government alleges Huawei is a national security risk as its equipment could be used by Beijing to spy. Huawei has repeatedly denied its products pose a security threat.
The company, which is now trying to reduce its reliance on foreign technology, said last month that it has started making 5G base stations without US components.
It is also developing its own mobile operating system as the curbs cut its access to Google’s Android operating system, though analysts are skeptical that Huawei’s Harmony system is yet a viable alternative.
Still, promotions and patriotic purchases have driven Huawei’s smartphone sales in China — surging by a nearly a third compared to a record high in the June quarter — helping it more than offset a shipments slump in the global market.