Boe­ing inks $1.3bn Ethiopian Air­lines deal for 777 freighters

Bom­bardier wins $2.2bn CSeries or­ders from Egyp­tAir

Kuwait Times - - Business -

DUBAI: Boe­ing Co inked a $1.3 bil­lion deal yes­ter­day to sell four 777 freighters to Ethiopian Air­lines as an aircraft provider to a Kuwaiti car­rier re­sum­ing op­er­a­tions ten­ta­tively agreed to buy 25 Air­bus A320­neos. Chicago-based Boe­ing and Ethiopian, Africa’s largest cargo op­er­a­tor, made the an­nounce­ment at the bi­en­nial Dubai Air Show, which con­tin­ues through to­mor­row.

Boe­ing 777 freighters have a list price of $325.7 mil­lion. How­ever, air­lines and man­u­fac­tur­ers typ­i­cally ne­go­ti­ate dis­counts on such deals. Later yes­ter­day, Air­bus an­nounced the ten­ta­tive sale of the A320­neos to Golden Fal­con Avi­a­tion, the exclusive air­plane provider to Wataniya Air­ways. Wataniya, a pri­vate com­pany, re­sumed op­er­a­tions in July af­ter the com­pany folded in 2011 over fi­nan­cial dif­fi­cul­ties amid the Arab Spring protests that gripped the Mideast.

At list price, the 25 A320­neos would be worth $2.7 bil­lion. Two-en­gine, sin­gle-aisle A320­neos can seat a max­i­mum of 180 pas­sen­gers. This year’s air show has seen less sales than in past years. The only ma­jor deal an­nounced so far came Sun­day, when long-haul car­rier Emirates pur­chased 40 Boe­ing 787-10 Dream­lin­ers in a $15.1 bil­lion deal.

So far, there’s been lit­tle news for Air­bus, which has pinned hopes of con­tin­u­ing pro­duc­tion of its A380 dou­ble-decker jumbo jet on Emirates, the world’s largest op­er­a­tor of the aircraft. Re­ports cir­cu­lated be­fore the air show that a ma­jor A380 sale would be com­ing.

Air­bus em­ploy­ees even filled a news con­fer­ence on Sun­day, ex­pect­ing the A380 sale, in­stead to find state-owned Emirates mak­ing the deal with Boe­ing in front of Dubai’s ruler, Sheikh Mo­hammed bin Rashid Al-Mak­toum.

Emirates now re­lies solely on the Air­bus 380 and the Boe­ing 777 for its flights, mak­ing it the largest op­er­a­tor of both. It now has 165 Boe­ing 777s in its fleet to­day and took pos­ses­sion of its 100th A380 ear­lier this month.

Egyp­tAir deal

Cana­dian aircraft maker Bom­bardier said yes­ter­day it had agreed to sell up to 24 CSeries aircraft to Egyp­tAir for a to­tal price tag of nearly $2.2 bil­lion. Ac­cord­ing to a let­ter of in­tent signed be­tween both com­pa­nies, the Egyp­tian car­rier placed 12 firm or­ders for CS300 planes and took out pur­chase rights for an­other 12, Bom­bardier said in a state­ment re­leased dur­ing the Dubai air show.

“We un­der­took a thor­ough eval­u­a­tion process of our fleet and re­alised that the CS300 would fit per­fectly into our busi­ness plans and growth strat­egy,” Egyp­tAir CEO Safwat Musal­lam said in the state­ment. Bom­bardier Com­mer­cial Aircraft Pres­i­dent Fred Cromer said the deal “con­firms the need for right-sized aircraft in the Mid­dle East. We are con­fi­dent that our small sin­gle-aisle C Se­ries is ideally-suited to serve the hot tem­per­a­ture en­vi­ron­ments of the re­gion”. The deal is the se­cond firm or­der for Bom­bardier aircraft since last month’s an­nounce­ment that Euro­pean plane maker Air­bus would take over Bom­bardier’s CSeries pro­gram.

The pre­vi­ous sale cov­ered 31 aircraft for an uniden­ti­fied Euro­pean client. Bom­bardier’s sin­gle-aisle CSeries pro­gram cov­ers the 100 to 150-seat seg­ment and is com­prised of the CS100 model and the larger CS300. Egyp­tAir, founded in 1932, is the old­est air­line in the Mid­dle East and Africa, and Egypt’s national air­line, fly­ing to 70 des­ti­na­tions in 60 coun­tries. Bom­bardier in Oc­to­ber ceded con­trol of the CSeries to Air­bus, aban­don­ing hope of as­cend­ing into the top ech­e­lons of pas­sen­ger aircraft man­u­fac­tur­ing along­side ri­vals Air­bus and Boe­ing, but se­cur­ing US mar­ket ac­cess for its new jet­lin­ers.

The Euro­pean aircraft man­u­fac­turer took a 50.1-per­cent stake in the CSeries pro­gram in ex­change for us­ing its sales and mar­ket­ing heft to lift CSeries sales. The CSeries is the first new de­sign in the 100 to 150-seat cat­e­gory in more than 25 years, and only re­cently started to roll off assem­bly lines. —Agen­cies

DUBAI: Crown Prince of Dubai, Sheikh Ham­dan bin Mo­hammed bin Rashid Al-Mak­toum (right), looks at an Eurofighter Typhoon fighter jet dur­ing the Dubai Air­show yes­ter­day in the United Arab Emirates. —AFP

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