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AIR SHOW: Airbus And Boeing Get Equal Share Of Gulf Orders

Wednesday, Nov 16, 2011

DUBAI (Zawya Dow Jones)--Gulf airline companies 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 $18 billion deal with Boeing Co. (BA) and a public tirade against Airbus by Qatar Airways .

A return to triple-digit crude oil prices, 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.

Planemakers Boeing and Airbus were about equal on deals, with the former winning on firm orders and the latter coming top in commitments.

Seattle-based Boeing received $18.56 billion of new orders in the week, almost entirely due to its $18 billion blockbuster signing with Emirates for 50 777-300ERs, the largest single deal in its history. Airbus ' A320-neo, the fastest selling jet in aviation history, drove its deal book, helping it net $13.71 billion of firm orders and $20.5 billion in commitments.

An Airbus executive conceded Wednesday that it had been worried ahead of the air show that orders would prove lackluster. "The problem was that we had a very good Bourget [Paris Air Show] show with a lot of orders thanks to the [A320] neo in particular and, to be honest, some of us were concerned that maybe we would not have enough [orders] for the Dubai Air Show," said Airbus Middle East president Habib Fekih.

Qatar Airways ' colorful chief executive, Akbar Al Baker, ensured the Middle East's premier aviation event wasn't short of drama. Minutes after canceling an expected billion dollar announcement with Airbus on Tuesday, Al Baker used a briefing with rival Boeing to publicly humiliate the European aircraft manufacturer, accusing them of "still learning about how to make airplanes."

He said he was pessimistic about a deal with the company, yet later that afternoon he placed an order with Airbus for 50 A320neos and five A380 superjumbos in a $6.4 billon deal. The Qatar Airways boss also said the airline was "unhappy" with the delayed A350-1000 and expected some improvement from Airbus .

Airbus customer chief operating officer John Leahy hit back, saying: "I clearly need to get the sales team to Doha to explain the plane in more detail. We're very happy with our new A350-1000 design. If anyone doesn't understand it, we'll explain it better."

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. But 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."

Lessors Aviation Lease & Finance Co. of Kuwait and Aviation Capital Group, a U.S. leasing company, snapped up $7.3 billion worth of Airbus A320-neos between them, with the California-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 $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," said Airbus ' Leahy.

   -By Alex Delmar-Morgan, Dow Jones Newswires; +974 6659 9818;   alex.delmar-morgan@dowjones.com 
 

Copyright (c) 2011 Dow Jones & Co.

(END) Dow Jones Newswires

16-11-11 1638GMT