Airbus to launch new A321 with nearly 200 orders: sources

Airbus’s A321XLR is set to be the longest-range narrow-body jetliner as airlines look to maximize the flexibility of more fuel-efficient, single-aisle aircraft. (Courtesy Airbus)
Updated 17 June 2019

Airbus to launch new A321 with nearly 200 orders: sources

  • The Paris Air Show is traditionally a slugging match between Airbus and Boeing sales teams
  • But analysts expect this year’s show to be relatively subdued

PARIS: Airbus will launch a long-range version of its A321neo jet at the Paris Air Show on Monday, aiming to carve out new routes for airlines with smaller planes and steal a march on rival Boeing’s plans for a possible new mid-market jet.
The European planemaker will announce close to 200 orders for the new model — the A321XLR — over the week, sources familiar with the matter told Reuters.
The aerospace industry’s biggest annual event, which alternates with Britain’s Farnborough Airshow, is traditionally a slugging match between Airbus and Boeing sales teams in the $150 billion a year commercial aircraft market.
But analysts expect this year’s show to be relatively subdued, with slowing economies, trade tensions and geopolitical uncertainty unsettling airlines, highlighted by a profit warning from Germany’s Lufthansa late on Sunday.
Airbus and Boeing are also grappling with their own problems. The US planemaker strives to bring its top-selling 737 MAX jet back into service after its grounding following two fatal crashes. Airbus, meanwhile, is occupied with a long-running corruption scandal.
Boeing boss Dennis Muilenburg on Sunday said he expected to announce orders for wide-body jets at the show but his main focus at the event is safety.
Analysts expect anything from 400 to 800 commercial aircraft orders and commitments at the show, compared with 959 at Farnborough last year, though it can be hard to identify truly new business against firmed-up commitments and switched models.
Airbus’s A321XLR is set to be the longest-range narrow-body jetliner as airlines look to maximize the flexibility of more fuel-efficient, single-aisle aircraft.


Its range of 4,500 nautical miles will leapfrog the out-of-production Boeing 757 and nudges it into the long-jump category occupied by more costly wide-body jets.
It also eats into a range category targeted by a possible mid-market twin-aisle jet — the NMA — under review by Boeing.
But there is a debate over whether passengers will enjoy flying longer distances in medium-haul planes and at what price.
In particular, the rise of the single-aisle, long-distance jet involves revisiting years of industry marketing about the benefit of roomier cabins to counter jet lag on long trips.
Boeing’s Muilenburg on Sunday said that the A321XLR would only “scratch an edge” of the market segment targeted by the NMA.


S&P downgrades trio of Dubai developers as pandemic hits property and retail

Updated 10 July 2020

S&P downgrades trio of Dubai developers as pandemic hits property and retail

  • Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices

RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.