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 CLOSE TO ORDERS FOR 100 A380s
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.
HUGE A380 BUY UNEXPECTED
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.