Emirates to Buy Boeing 777s
In Deal Valued at $9.7 Billion
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
November 20, 2005 8:47 a.m.
Emirates announced on Sunday that it had agreed to buy 42 long-range Boeing Co. 777 airplanes, in a deal valued at $9.7 billion at list price.
The order is for 24 Boeing 777-300ER, 10 777-200LR and eight 777 freighters, with the first airplanes scheduled for delivery in 2007. Emirates has taken purchase rights for an additional 20 airplanes, the carrier said.
The deal was announced by Emirates Chairman Sheik Ahmed bin Saeed al-Maktoum on the first day of the Dubai Air Show, in the United Arab Emirates. He Sheikh Ahmed said the that all of the twin-engine, wide-body aircraft would be powered by General Electric Co. GE-90 engines in a deal valued at $2.5 billion.
Emirates said it hoped to use the Boeing 777 to develop more European and Asian routes. The 777-200LR is the model Boeing used earlier this month to set a world distance record flying nonstop from Hong Kong to London by traveling across the U.S., covering a distance of 13,422 statute miles in 22 hours, 42 minutes. It will also allow Emirates to start nonstop flights to long-range destinations on the U.S. West coast and in South America, said Sheikh Ahmed.
Industry analysts had been expecting Emirates to place orders with both Boeing and European rival Airbus Industries at the Dubai air show. Sheikh Ahmed said his fast-growing airline had yet to decide on whether it will buy the Airbus A350 or the Boeing 787.
The Middle Eastern airline, which earlier this month posted a 7% increase in net profit for the first half of the year, is the largest customer for Airbus's giant double-deck A380, with orders for 45 of the planes valued at about $12 billion. It has another 45 wide-body jetliners on order from Airbus and Boeing.
The Emirates orders are just a few of what could be a busy week on the sales front for both manufacturers. Indian carrier Kingfisher Airlines has indicated that it expects to announce orders for $2 billion of airplanes from Airbus, and a handful of other orders from leasing companies and others are also in various stages of completion, say people familiar with the sales campaigns.
Separately Sunday, the Chinese government said that China has signed a deal to buy 70 Boeing 737 airliners with a catalog value of $4 billion and will soon agree to purchase 80 more. The announcement coincided with a visit to Beijing by President Bush.
In Deal Valued at $9.7 Billion
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
November 20, 2005 8:47 a.m.
Emirates announced on Sunday that it had agreed to buy 42 long-range Boeing Co. 777 airplanes, in a deal valued at $9.7 billion at list price.
The order is for 24 Boeing 777-300ER, 10 777-200LR and eight 777 freighters, with the first airplanes scheduled for delivery in 2007. Emirates has taken purchase rights for an additional 20 airplanes, the carrier said.
The deal was announced by Emirates Chairman Sheik Ahmed bin Saeed al-Maktoum on the first day of the Dubai Air Show, in the United Arab Emirates. He Sheikh Ahmed said the that all of the twin-engine, wide-body aircraft would be powered by General Electric Co. GE-90 engines in a deal valued at $2.5 billion.
Emirates said it hoped to use the Boeing 777 to develop more European and Asian routes. The 777-200LR is the model Boeing used earlier this month to set a world distance record flying nonstop from Hong Kong to London by traveling across the U.S., covering a distance of 13,422 statute miles in 22 hours, 42 minutes. It will also allow Emirates to start nonstop flights to long-range destinations on the U.S. West coast and in South America, said Sheikh Ahmed.
Industry analysts had been expecting Emirates to place orders with both Boeing and European rival Airbus Industries at the Dubai air show. Sheikh Ahmed said his fast-growing airline had yet to decide on whether it will buy the Airbus A350 or the Boeing 787.
The Middle Eastern airline, which earlier this month posted a 7% increase in net profit for the first half of the year, is the largest customer for Airbus's giant double-deck A380, with orders for 45 of the planes valued at about $12 billion. It has another 45 wide-body jetliners on order from Airbus and Boeing.
The Emirates orders are just a few of what could be a busy week on the sales front for both manufacturers. Indian carrier Kingfisher Airlines has indicated that it expects to announce orders for $2 billion of airplanes from Airbus, and a handful of other orders from leasing companies and others are also in various stages of completion, say people familiar with the sales campaigns.
Separately Sunday, the Chinese government said that China has signed a deal to buy 70 Boeing 737 airliners with a catalog value of $4 billion and will soon agree to purchase 80 more. The announcement coincided with a visit to Beijing by President Bush.
