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Dubai 2007: Airbus and Boeing seal $60bn in Dubai deals

Dubai's two flagship aviation businesses - Emirates Airline and Dubai Aerospace Enterprise - concluded over $60 billion worth of business with Airbus and Boeing at the show as the city state storms ahead with its strategy to be the market leader in every sector in which it competes.

The deals - all announced by DAE and Emirates chairman Sheikh Ahmed bin Saeed Al-Maktoum, comprised firm orders for 93 aircraft for Emirates and letters of intent for 200 Airbus and Boeing aircraft signed by DAE Capital - the leasing arm of the UAE-based aviation services company.

Emirates' order - worth $34.9 billion - includes 70 Airbus A350 XWBs plus 50 options, 11 more A380s and 12 additional Boeing 777-300ERs. The A350 deal, which comes after a long-running evaluation programme involving the 787, comprises 50 A350-900s and 20 A350-1000s. Deliveries will begin in 2014, with the aircraft partly destined to replace Emirates' A330-200s. The latter fleet has been in service for almost a decade and will go through a refurbishment programme over the next 12 months.

The A380 package includes the previously announced firming up of eight options as well as three additional orders, taking its backlog for the A380 to 58.

DAE's deal is valued at $27.2 billion and is divided 50/50 between the two airframers. It comprises 70 A320 family aircraft, 30 A350s, 70 737s, five 747-8Fs, 10 777-300ERs and 15 787s. Deliveries of the Boeings start in 2010 and the Airbuses in 2013.

In the meantime, DAE Capital has "kick-started" its entry into the leasing business with two deals to acquire used aircraft, says chief executive Bob Genise. Deals include a $500 million sale and leaseback package covering eight Emirates A330s and the agreement to buy 20 aircraft worth $1 billion from lessor GE Commercial Aviation Services.

Under its $500 million deal with UAE carrier Emirates, DAE Capital has acquired eight of the airline's Airbus A330-200s in a split purchase and leaseback deal. The GECAS deal comprises a mix of A320 family aircraft and 737s that are a year and half old on average and are on lease to 11 customers in 10 countries. These lease terms average more than seven years.

 

 




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