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Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 12:56 am

This is fresh news : Emirates has just ordered 25 B777s , 3 A330s , 8 A340-600s , 7 A340-500s and 15 A380s!!!

To have the link go on the aviation news section of this site.
Best aviation news in months!

Cheers SAA-SAl Big grin
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 1:24 am


Excellent news!, When start the deliveries of those new planes?

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 1:57 am

A much needed booost for the industry, no doubt. No if only KLM can figure out who they want to merge with, so they can order the 747 classic replacements.  Smile
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 2:01 am

Here's a source:

Emirates in $15 bln plane deals with Airbus, Boeing
(UPDATE: Rewrites throughout)

By Bradley Perrett and Sami Aboudi

DUBAI, Nov 4 (Reuters) - Dubai airline Emirates gave a massive boost to the world's civil aircraft industry on Sunday, announcing $15 billion in deals for planes from Boeing Co (NYSE:BA - news) and EADS affiliate Airbus SAS [ARBU.UL].

As other carriers scramble to ground planes and defer deliveries, Emirates' announcements cover 51 wide-body aircraft, including an order for 15 Airbus A380 superjumbos that adds to seven of those planes it had previously planned to buy.

``These are difficult times for the airline industry, but the dynamics of the business requires us to plan ahead,'' Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum told reporters at the Dubai air show.

The government-owned carrier bolstered the slow-selling A340-600line of Europe's Airbus by saying it would buy eight of that model. Emirates also topped up its fleet of A330 twin jets with an order for three.

Boeing of the United States scored a deal for 25 units of its successful 777 model, which Emirates valued at $6.6 billion.

British aero-engine maker Rolls-Royce Plc (quote from Yahoo! UK & Ireland: RR.L) gained from the A330 and A340-600 deals but will compete against U.S. rivals General Electric Co (NYSE:GE - news) and Pratt & Whitney (NYSE:UTX - news) to supply turbofans for the other aircraft.

The airline, the fastest growing carrier in the Middle East, said it would raise the purchase funds ``without a dollar in subsidy from any source''.

Although the carrier put a $15 billion value on the deals, such announcements are usually based on catalog prices, which are routinely discounted -- especially when the manufacturers are having trouble finding buyers, as now.

A top source close to the transaction told Reuters that Emirates had secured all 22 A380s, plus options on 10 more, on the favourable terms that have been offered to launch customers of that aircraft, which will not enter service until 2006.


Airbus chief executive Noel Forgeard said his company had now collected signed orders for 70 of the 555-seat A380s.

``I am happy to confirm that by the turn of next year we will have 100 orders for the A380,'' he said. Other airlines have said they would buy A380s but have not yet signed contracts.

Emirates' enormous acquisition program helps fill out Airbus and Boeing production schedules that have been looking fairly thin, because the September 11 attacks have deterred passengers and left airlines with too many planes.

But Forgeard and Boeing commercial sales chief Seddik Belyamani both said that Emirates was not taking aircraft they had originally earmarked for other carriers.

The first of the planes -- three A330s for which Emirates signed an order -- will arrive from 2003, executives said.

Deliveries of the 777s, for which Emirates has not yet signed a definitive contract, would begin in 2004 and would be be followed in 2005 by the first of the A340-600s, which also await a formal order.

Sheik Ahmed signed a contract to buy 22 A380s at the show, including the seven that the carrier has planned to buy sinceJuly 2000. The first planes will arrive in 2006.


Few industry executives have expected any airline to commit itself to as many as 22 A380s at this early stage in the program, since the enormous aircraft could be profitably employed only on heavily trafficked routes.

Qantas Airways Ltd (Australia:QAN.AX - news) of Australia was previously the biggest buyer of the plane with an order for 12.

Emirates has previously bought 21 777s, some of which are in service. Even though they are very modern planes, Sheik Ahmed said some of the current 777s would be replaced as new planes arrived, and the airline expected to have 37 in service by 2010.

Executives said Sunday's 777 order gave Emirates the option of choosing between several variants, including the expensive 777-300ER version.

European Aeronautic Defence & Space Co NV (EADS), based in Germany and France, owns 80 percent of Airbus. British defence contractor BAE Systems Plc (quote from Yahoo! UK & Ireland: BA.L) holds the rest.

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 2:11 am

Wow. I'm totally surprised. Good news, for sure.

But where the hell are they going to use 22 A380s?????


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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 2:57 am


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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 3:12 am

Great news for Boeing.

RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 3:16 am

Are the 777s LR (-200)/ER (-300) version?
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 5:12 am

I simply cannot believe that this order is based on ANY realistic analysis of future growth. I think this guy has millions of dollars to burn and is most likely taking advantage of the current slump to displace any serious regional rivals with a massive spending campaign. I'm speechless but nevertheless happy for Airbus and Boeing. Both desperately needed this type of firm commitment. Even though Airbus has been quiet regarding the effects of the downturn, there is no doubt that they are suffering as badly as Boeing. This order defies all logic so as always I will reserve judgement until every last aircraft has been delivered and paid for.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 5:27 am

Remember that they are going to operate to some slot-restricted airports, therefore, they going to need aircraft with larger capacities than they already have.

One release I've seen states:

“Landing slots at airports like Heathrow, Frankfurt and Hong Kong are at a premium. Our new fleet, with more seats, greater comfort and facilities, and lower costs, is vital to helping us hold down fares. We are ordering the aircraft of tomorrow -- whose time has come today.”

Emirates has always aimed to ‘fit horses to courses” to match differing aircraft to the widely differing routes on its fast-growing network from Dubai, ranging from Doha and Muscat at one end of the scale to North America and Australia on the other.

Emirates will use the A380s on routes from Dubai to London, Frankfurt, Singapore and other cities in Europe, Asia, North America and the Pacific."

The A380s come in from 2006....that leaves 4-5 years for air travel to have the current "slump", recovery to pre-September 11 levels and eventual growth.

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 5:33 am

Two thoughts: Emirates is not a member of any of the big airline alliances. Are they likely to be courted in the near future?

Is Emirates planning to displace the other carriers of the Gulf region? In particular, they seem to be planning on capitalizing on Gulf Air's weakness.

Can any experts on Middle East aviation comment?

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 5:34 am

They're crazy. Looks to me like they're trying to outgun Qatar Airways.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 7:02 am

One of the first things I learned when I went into this business is to read between the lines for anything that Emirates does. If you take things at face value with them, there is very little logic behind their actions.

What is interesting to note is that Sheikh Maktoum is quoted in almost all articles about this, but Maurice Flanagan is not. This leads me to believe that this might be a politically motivated purchase, rather than an operationally motivated one.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 7:09 am

Okay DarnellJ, here's more of the release that I've got!

Emirates is well-placed to order the massive new fleet after 15 years of profits, earned by an unwavering commercial focus, clamp on costs, and innovative marketing campaigns to counter high fuel prices, fare wars and fierce competition on all routes.

Maurice Flanagan CBE, Emirates’ Group Managing Director, said: “Dubai has a worldwide reputation as a major trading and tourism hub, and a regional centre of information technology.

“Paradoxically Dubai’s open skies policy, under which any airline that wants to do so can fly here, has helped to make us a success. We are always conservative in our plans, launching flights only where we know we can and will succeed. That approach remains firmly in place.”

Isn't he from round Manchester? If so, looks like another local boy (!) done good for himself!


RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 7:16 am

David, thank you for Maurice's quotes. They seem to be diplomatic as usual.

Also, Maurice is Irish, a dead giveaway from his accent.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 7:12 pm

Accents are mysterious our block of flats, there was a girl who was born in Watford but had a thick Scottish accent!

Or can we forget Jan Molby the Swede who played for Liverpool and his "perfect" Scouse accent!

Therefore, a little investigation is needed into Maurice's background!

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Just Fantastic

Mon Nov 05, 2001 7:36 pm

If there's no logic in Emirates's actions I'm wondering how they have managed to become so successful since they have started...

And if other carriers in the region (Gulf Air) are weak or whatever then it's not EK's fault. EK just offers a worldclass product, comprised by an excellent service, a young fleet and a modern and efficent hub. They just provide what the customers demand and therefore passenger numbers rise.

There's no reason to criticise them, they are a fine carrier and currently they even give a badly wounded industry new hope. I find that just fantastic.

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 8:32 pm

...and if you look at Dubai Airport and the projected capacity increases, they mean business.

Yet one question remains:
How do they plan to fill these aircraft with passengers?
Emirates is currently in terms of long-distance services, something like a "primus inter pares". Traffic originated in the Emirates is not enough. It must be Sheikh al-Maktoums long-term strategy to convert Dubai into one of the largest tourist ressort worldwide, as oil reserves will be gone in about 25 years.
Anyway: Good news for the aviation business.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 9:09 pm

Sorry guys if this Q isnt with the flow,

but I was wondering who will take the first A380 now? Will it be Emirates or SIA? Initially it was SIA as they had the bigger order. But now the tables have turned, and I'm wondering whether Airbus will favour EK more to be their launch customer.
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 9:22 pm

Andreas wrote:How do they plan to fill these aircraft with passengers?

Perhaps the 380s won't be `filled' with todays economy seats. 1st class Cabins and economy sleeper seats maybe?
If you have the same capacity as a 744, but with 100% load factors you can still make money and dominate the market.
Just ruminating over the sheer apparent audacity of this order. Perhaps EK simply isn't as cowed as the rest of the airline world. Who says for sure the rest have got it right?
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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 9:25 pm

Looks like they are going to take on SQ !!, I mean if they start flight to the USA and more to Asia and Australia they can be the new leader in hub flights. You know, Australia to Europe via Dubai, Aisa to Europe etc.

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RE: Emirates Orders 58 Widebodies!

Mon Nov 05, 2001 10:42 pm

This is really great news. I shall definitely fly Emirates one day!
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