Airbus Lands $35B Emirates Order

Airbus came out on top in the latest battle with rival Boeing, securing a $35B deal from Dubai's Emirates airline on the first day of the Dubai Air Show on Sunday. The order included 70 A350s with options for 50 more and 11 of the A380 superjumbo aircraft. Emirates is the biggest purchaser of the A380, with the current order giving it a backlog of 58. Emirates said it chose Airbus over Boeing because the 787-9 "wasn't suitable." Emirates said it would be willing to talk to Boeing when the 787-10, a longer-range and bigger version of the 787-9, is available. One analyst called the sale a "tremendous win" for the A350, saying it "validates the program and is exactly what it needs to get it off the ground." Following the sale, Airbus raised this year's expectations for orders of the A350XWB jet to 300 and its total forecasted aircraft orders to 1,100. It said 450 aircraft would be delivered this year. Emirates didn't totally shun Boeing, however, ordering 12 of its long-range 777-300ERS worth $3.2B. Boeing also landed a $13.5B order for 57 aircraft, including 30 of the 787 Dreamliners, from Qatar Airways. According to the Arab Air Carriers Organization, Arab airlines are expected to increase their combined fleet by some 66% to 900 aircraft by 2015 from 550 in 2006.

Sources: Reuters I, II, III, Bloomberg, Thomson Financial,
Commentary: Boeing Tops Airbus in Q3 Orders • Airbus Finally Delivers First A380 • Aerospace and Defense Update: 'The Bears Are Going to be Wrong'
Stocks to watch: BA. ETFs: ITA, PPA
Earnings call transcript: Boeing Co. Q3 2007

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