Airbus, Boeing Take Equal Share of Gulf Orders
By Alex Delmar-Morgan, The Wall Street Journal | Nov. 16, 2011
Persian Gulf airlines showed few signs of tightening their purse strings at the 2011 Dubai Air Show, defying an uncertain global economic environment in a week that will be remembered for Emirates Airlines' record US$18 billion deal with Boeing Co. and a public tirade against Airbus by Qatar Airways.
A return to crude-oil prices over US$100 a barrel, renewed fears about global recession and political instability in parts of the Middle East have made it a tough year for the aviation industry, but the deep pockets of Gulf airlines overcame suggestions that the 2011 air show would be a muted affair compared with previous years.
Boeing and Airbus, a unit of European Aeronautic Defence & Space Co., came in about equal on the deal front, with Boeing winning on firm orders and Airbus coming top in commitments.
Chicago-based Boeing racked up US$18.56 billion of new orders in the week, almost entirely due to its US$18 billion signing with Emirates for 50 777-300ERs, the largest single deal in its history. Archrival Airbus's A320-neo, the fastest-selling jet in aviation history, drove Airbus's deal book, helping it net US$13.71 billion of firm orders and US$20.5 billion in commitments.
Airbus Middle East President Habib Fekih conceded Wednesday that the European plane maker had been worried ahead of the air show that orders would prove lackluster. Indeed, thanks to Qatar Airways' colorful chief executive, Akbar Al Baker, the Middle East's premier aviation event wasn't short of drama.
Minutes after canceling a press conference for an expected multibillion-dollar deal with Airbus on Tuesday, Mr. Al Baker used a briefing with rival Boeing to say Airbus was "still learning about how to make airplanes," and he was "pessimistic" about a deal with the company. Later Tuesday, Qatar Airways placed an order with Airbus for 50 A320neos and five A380s superjumbos in a US$6.4 billon deal.
Still, the Qatar Airways boss said the airline remained unhappy with the delayed A350-1000 and expected some improvement from Airbus.
Airbus irked some customers in June when it said it would increase the size and power of the A350-1000, delaying the aircraft's launch to 2017 from 2015.
Aribus Chief Operating Officer John Leahy lamented the A350 delivery schedule. "I wish I had the A350 to sell now," he said. "It is what it is; if you need lift now, you're not going to buy a 350, you are going to buy a [Boeing] 777."
Aviation Lease & Finance Co. of Kuwait and Aviation Capital Group, a U.S. leasing company, snapped up US$7.3 billion worth of Airbus A320-neos between them, with U.S.-based low-cost carrier Spirit Airlines making commitments for 75 A320s.
Boeing made its first 787 Dreamliner sale of the year, selling six of the lightweight, carbon composite aircraft to Oman Air in a US$1.16 billion deal.
Airbus is upbeat on the Middle East, where it expects demand for 1,920 more aircraft over the next 20 years and predicts the region's air traffic will grow at the fastest pace in the world over the same period, at 7.4%. "We're really bullish on the Middle East because the Middle East is bullish on aviation," Mr. Leahy said.