 |
Emirates Airline's $15bn Plane Order
Dubai's Emirates airline has ordered 58 new wide-body aircraft worth about $15bn, despite a major slump in the global aviation business,
"This is one of the biggest orders in aviation history," a Emirates spokesman told BBC News Online.
The order includes 25 Boeing 777s worth $6.6bn, while15 more Airbus A380 super jumbos and confirmation of an existing seven, eight A340-600s and three A330s is valued at $8.4bn.
"While Boeing have signed only a letter of intent, for Airbus these are firm contracts for the A380s. It's a very important deal," said an Airbus spokeswoman.
The airline had previously said it planned to increase its fleet from about 34 to 100 aircraft by 2010.
The orders come as the airline industry faces a major downturn due to the global economic slump and the 11 September attacks on the US.
"The timing of this order, hard on the heels of recent events, is no coincidence. We are determined not to allow present difficulties to deflect our resolve," Emirates chairman Sheik Ahmed bin Saeed Al Maktoum said in a statement.
The International Labour Organisations estimates 200,000 jobs have be cut in the sector since the attacks.
Powered by Rolls-Royce
Aero engine maker Rolls-Royce will be a major beneficiary with the announcement of a $50m order for the Airbus 330 engines with another $250m due imminently.
"A good steer is that the orders will go to Rolls Royce," said the Emirates spokesman from Dubai.
The Emirates fleet currently uses mainly Rolls Royce engines but also some from United Technologies, a joint venture between General Electric and Pratt and Whitney.
A Rolls-Royce spokesman said he was "delighted" by the confirmation of the orders but said they would not change the 5,000 job cuts made in October.
"This doesn't affect the announcement we made a few weeks ago. The work for these new aircraft have been factored into our calculations," the Rolls Royce spokesman said.
The deal is also a big boost for BAE Systems, a 20% stake holder in Airbus.
After Boeing cut 30,000 jobs in the wake of the 11 September attacks, Airbus last month said they were freezing investment rather than cutting jobs.
"But we also said that everything with the A380 project, recruitment and development, would go ahead," she said.
Airbus has now collected signed orders for 70 of the 555-seat A380s, with a target of 100 by the end of the first quarter next year.
European Aeronautic Defence & Space (EADS), based in Germany and France, owns the other 80% of Airbus.
In This Section
|