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Emirates places $26b order to Boeing

Emirates kicked off the region’s biggest Airshow on Sunday with an order for 50 Boeing 777s, which the US-based aircraft maker described as its biggest single order in dollar terms in history. Emirates announced orders and commitments valued at $26 billion for Boeing Co’s777 planes.

The agreement includes firm orders for 50 aircraft valued at $18billion, and the rest as options.

Deliveries will start in 2015, and the Dubai-based carrier will retire some older aircraft,” he said. The airline is considering a variety of financing options, including EU and US export credit.

The deal, announced by Emirates Chairman Shaik Ahmed bin Saeed Al Maktoum, is for an extended-range version of the 777-300. Emirates already has 95 777s in service, which is the most of any carrier.

Chicago-based Boeing Co said the deal is the largest single aircraft order in dollar terms in its history. “It sustains a lot of jobs in the United States — several thousand,” said Jim Albaugh, president and CEO of Boeing Commercial Airplanes.

Before Sunday’s order, Emirates already had 40 of the planes booked. That means it now has nearly as many of the twin-aisle planes on order as it already operates.

Emirates is the Middle East’s largest carrier. Its young fleet also includes Airbus A330s, A340s and the double-decker A380.

Emirates has bolstered its long-haul fleet with Boeing aircraft and Airbus SAS’s double-decker A380, for which the Middle East carrier is the largest customer, with 90 orders in total. The 777 is Boing’s most profitable programme, and the company is increasing monthly production to keep up with demand.

The carrier remains committed to the Airbus A350, which will compete with the Boeing 787 Dreamliner as well as the 777, Emirates said at the press briefing today. Airbus said last week that entry into service of the mid-sized variant of the 350 will be as much as six months late and come in the first half of 2014, after already delaying the largest variant, the A350-1000 earlier this year to add more thrust.

The airline also reached an agreement with DAE Capital to lease nine new Boeing 777 freighter son long-term basis. These aircraft are from DAE’s order book with Boeing and will deliver in the 2012-15 time frame, according to a statement.

“This agreement ensures Emirates SkyCargo will receive a pipeline of new, state-of-the-art freighter aircraft over the next four years. Emirates SkyCargo continues to build on its leadership position in the global cargo market and these aircrafts will play an important role in this growth,” Shaikh Ahmed said.

DAE managing director Khalifa H. AI Daboos said: “DAE is delighted to be able to further deepen its existing relationship with Emirates and deliver one of the most modern, technologically advanced freighter aircraft to assist Emirates as it seeks to serve increasing demand for global air cargo.”