UAE. Emirates Airline today stunned the aviation world by announcing the biggest aircraft order in civil aviation history. The Dubai-based carrier revealed it had signed contracts for 120 Airbus A350s, 11 A380s, and 12 Boeing 777-300ERs, worth an estimated US$34.9 billion in list prices.
Emirates Chairman and Chief Executive H.H. Sheikh Ahmed bin Saeed Al-Maktoum announced the massive order at the 10th Dubai Airshow where he signed the contracts with Airbus President and CEO Tom Enders and Boeing Commercial Airplanes Vice President Middle East and Africa Sales Lee Monson.
The agreement with Airbus comprises firm orders for 50 A350-900s and 20 A350-1000s, plus 50 options for the A350-900s. The first A350 will be delivered to Emirates in 2014.
 |
H.H. Sheikh Ahmed bin Saeed Al-Maktoum: “This is a massive investment which reflects our confidence in the future of air transport, and our confidence in Dubai” |
Emirates also firmed up orders on the eight A380s for which it had signed letters of intent earlier this year, and placed firm orders for an additional three of the double-decker aircraft, bringing its total firm order for the A380s to 58.
The contract with Boeing is for 12 firm orders of the 777-300ERs, valued at US$3.2 billion. With this new order, Emirates now has 57 Boeing 777s pending delivery and is set to become the world’s largest 777 operator in the next few years.
Sheikh Ahmed also inked agreements today with Sir John Rose, Chief Executive of Rolls Royce for the Trent XWB engines to power Emirates’ new A350s; with Bruce Hughes, President of the Engine Alliance for the GP7200 to power its additional A380s; and with Scott Donnelly, President and CEO of GE Aviation for GE90 engines to power Emirates’ 777-300ERs.
In total, Emirates’ firm aircraft and engine orders announced today are worth US$23.4 billion – a value that increases to US$34.9 billion if the 50 options are included. This is the largest-ever aircraft commitment in civil aviation made by any airline in a single order.
Sheikh Ahmed said: “Emirates is committing close to US$35 billion today for new aircraft. Our total order includes 93 aircraft on firm order and 50 on option. Once again, Emirates is making aviation history.
“Emirates’ total order book now stands at 246 aircraft, all wide body, and worth over US$60 billion. This is a massive investment which reflects our confidence in the future of air transport, and our confidence in Dubai.”
He added: “In 2003, our plan was for Emirates to have 100 aircraft by 2010. We have already surpassed that target. Growth and demand has exceeded the most optimistic projections. Dubai is investing billions to secure its future as a leading centre for business, tourism, and air transport on the global stage.
“Likewise, Emirates is investing in a fleet for the future, in order to support Dubai’s development, as well as the growth of air travel demand around the world.
“The new aircraft we have ordered today are all of the latest technology – they are greener and more efficient to operate. At the same time, they will allow Emirates to continue setting the gold standard in service. We intend to invest millions of dollars more to develop cutting-edge in-flight products to match our cutting-edge aircraft fleet.”
BOOST FOR TRAVEL RETAILERS
The news has tremendously positive commercial repercussions for Emirates inflight duty free operations, which are currently experiencing a boom. Vice-President Duty Free Services John Sime told The Moodie Report today that he welcomed the aircraft order news, which he said would help drive an already booming business further. “It’s certainly going to keep us very busy well into the future,” he said.
October’s inflight sales were up +72% year-on-year to AED11.4 million (US$3.1 million) and for the year-to-date business has risen +49%.
Dubai Duty Free will be another major beneficiary of Emirates’ expansion. The travel retailer is already on course to reach US$1 billion in sales next year, up from US$712 million in 2006 and a likely US$830 million in 2007.
With the new Concourse 2 and T3 opening in 2008 and the new Dubai World Central International Airport in Jebel Ali set to commence operations in 2009, today’s news is the commercial icing on the cake for one of the industry’s outstanding players.
About Emirates
Based in Dubai, Emirates is one of the world’s most successful, and rapidly-expanding airlines. Its all wide-body fleet of 111 aircraft criss-cross the globe, serving 97 cities in 61 countries.
Emirates is currently the only airline to operate non-stop flights to six continents from one hub. Although owned by the government of Dubai, Emirates is financially independent and receives no subsidies or protection. It operates and competes with more than 110 airlines operating in Dubai under the city’s “˜Open skies’ regime.
In its last full financial year, Emirates reported its 19th consecutive year of profits at US$844 million, and carried 17.5 million passengers.
MORE STORIES ON EMIRATES AIRLINE
Emirates posts half-year record; profits soar by +99% amid surge in demand – 08/11/07
Montegrappa takes flight on Emirates and rides aboard The Smile Train – 24/09/07
Alpha Australia secures Emirates catering contract – 21/09/07
