Emirates Airlines, Dubai’s flag carrier, has placed a massive order and commitment with Boeing company for airplanes worth $26 billion at the Dubai Air Show.
The agreement includes firm orders for 50 Boeing 777 jetliners valued at $18 billion, and the rest as options. The options include to buy 20 more of the twin-aisle aircraft and other agreements.
The deal is hailed as the largest commercial order by value in the American planemaker’s history.
“This order represents a milestone…it is the single largest dollar value (order) in the Boeing history,” Emirates Chairman Sheikh Ahmed bin Saeed al Maktoum said at a press conference, before signing the deal with Boeing representatives in the presence of Dubai’s ruler, Sheikh Mohammed bin Rashid al Maktoum.
One of the reasons cited for choosing Boieng 777 was that it served very well in terms of seat cost, especially when the fuel price has been quite high. Emirates’ profit in this year first half nose dived 76%, due to the high fuel cost.
The airline is considering a variety of financing options, including EU and US export credit and Islamic finance, he said.
Middle Eastern carriers, especially Emirates has been leading efforts to challenge Western and Asian carriers by establishing the region as a major East-West hub.
Sources: Bloomberg, Reuters