(Nov 17): Less than three weeks after Boeing Co unveiled another delay for its flagship 777X airliner, Emirates is doubling down on the giant aircraft by placing another major order for 65 units.
The deal, which Emirates valued at US$38 billion ($49.47 billion), was announced on the first day of the Dubai Air Show, confirming an earlier Bloomberg News report. The accord gives Boeing an early edge over arch-rival Airbus SE, which is also hoping to finally land a deal with Emirates for its competing A350-1000 plane.
The purchase cements Emirates’ status as the biggest operator of Boeing’s largest aircraft, as it looks to renew its fleet of current-generation 777s and eventually phases out its behemoth Airbus A380s. The airline said it has an option to convert the order announced on Monday to a larger variant that’s still under development, underscoring the company’s aggressive growth plans.
Boeing announced on Oct 29 that entry into service of the giant jet wouldn’t happen until 2027 amid certification delays, putting it seven years behind its original schedule. Deliveries of the first 777X aircraft will commence in the second quarter of that year, Emirates said.
Emirates has topped up its order book for the widebody jetliner before. Including freighters, Emirates now has a total order book of 280 777X aircraft. The plane is exclusively powered by engines made by General Electric Co. Customers typically get significant discount on list prices if they buy planes in large quantities.
The deal with Boeing might come at the expense of Airbus, which is still trying to win over Emirates for its A350-1000 model that competes with the 777X. Emirates president Tim Clark has been critical of the A350-1000’s engines, saying they require too much maintenance in the hot and harsh climate where Emirates operates.
See also: Emirates dashes hope for new Airbus A350 order amid engine woes
Two years ago at the biennial show, Clark committed to only a small number of Airbus’s smaller A350-900 jet and shunned the larger -1000 variant, while ordering more 777X aircraft.
Emirates has built its global fleet around widebody aircraft that it funnels through its Dubai hub. The company is the biggest operator of Airbus’s out-of-production A380 double decker, as well as Boeing’s current-generation 777 model.
Clark has been vocal in his frustration with both plane-makers, and the size of his fleet gives him considerable influence. Rolls-Royce Holdings plc, whose engines power the Airbus A350, has vowed to pour more resources into an upgrade of the turbine after Clark called it “defective” two years ago.
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Boeing unveiled an additional US$4.9 billion charge late last month tied to the delay of the 777X. Because of the tardy delivery, Emirates has been forced to extend the life of its existing fleet with the help of a complex and costly retrofit programme of its A380s and 777 planes.
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