Boeing sees opportunity in Emirates’ bid to cut fuel costs
Boeing is talking to Emirates, the world’s biggest operator of the Airbus A380 superjumbo, about a possible sale of its rival 747-8, giving a boost for the jet whose sales have faltered.
Emirates’ need for better fuel economy on its largest jets had created an opportunity for Boeing, which is pitching the passenger version of an updated 747, known as the -8I or Intercontinental, said John Wojick, senior vice-president for sales and marketing at the Chicago manufacturer’s commercial airplane unit.
The talks give Dubai-based Emirates leverage as it pushes Airbus to upgrade its A380 with fuel-efficient engines, said an aerospace analyst at Teal Group, Richard Aboulafia.
“It would keep the -8I going through the decade and deliver an unpleasant blow to the A380 that’s long overdue,” he said.
Emirates’ possible interest comes as Boeing fights hard to land new customers for the 747-8, even using trade-ins of older models to seal deals. Boeing has landed just 51 orders for the passenger version of the jet, which currently is only operated by Deutsche Lufthansa, one of four customers.
Until Emirates surfaced, Boeing’s brighter sales prospects included the Pentagon. The US Air Force is planning to upgrade its all-747 Presidential aircraft fleet by 2023 and has also begun studying whether to replace the “Doomsday” fleet, four 747-200 jets hardened against nuclear blasts that provide a mobile military command.
Boeing’s talks with Emirates are at an early stage, and Wojick didn’t say how many aircraft the carrier might want to buy.
Speaking in Doha, Qatar, at the annual general meeting of the International Air Transport Association, he said: “We’re talking to anybody who has the size and capacity requirement. We’d love to be able to get the airplane into Emirates.”
Emirates president Tim Clark said he was focused on his major order for the Boeing 777X, which he announced last year.
Even with 90 superjumbos still to be delivered, Emirates is prepared to buy additional double-decker jumbos should Airbus commit to adding new engines with better fuel efficiency, Emirates chief commercial officer Thierry Antinori said last month.
Airbus chief operating officer John Leahy, also in Doha for the meeting, said: ‘‘Tim Clark has made it clear he’d like to have a re-engined A380. We take comments from our largest customers seriously but there are no negotiations under way.’’
Wojick said Boeing already offered some benefits through the 747-8, the latest version of the jet that pioneered long-range travel in the 1970s. The Intercontinental uses less fuel and has lower operating costs than its Airbus rival.
“The new engines they’re pressing Airbus to put on their plane, we’ve already got four of them,” Wojick said.
Aboulafia cautioned against putting too much stock in Emirates’ exploration of the 747-8, which carries 467 passengers to the A380’s 525, saying it could be a move to pressure Airbus to re-engine the A380.