Emirates to hold talks with Airbus, Boeing over new order


After cancelling its $16B order for 70 Airbus A350 jets two weeks ago, Dubai's Emirates airline is now looking to begin talks with Airbus (EADSF) and rival Boeing (BA +0.2%) for a new contract.

Emirates is looking for a purchase of 50 to 70 regional jets, such as the A350 or 787 Dreamliner, to operate its routes in the Middle East.

The carrier will discuss the options with Airbus and Boeing in late 2014 or 2015.

Comments (5)
  • sddd
    , contributor
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    Clarke has stated that Emirates will revisit the segment late this year/early 2015 with a competetive evaluation between the 787 and a350. No doubt this is a play to obtain the most advantageous pricing from both manufacturers, something every smart carrier would pursue.

     

    IMO there will be an advantage to the 789 in this match-up. Emirates needs an aircraft in this segment; the fact that they abandoned 50 a359's that were in the books with set manufacturing slots indicates that the "competition" is more to control pricing than to compare performance.
    24 Jun 2014, 12:36 PM Reply Like
  • lee0x
    , contributor
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    Boeing the has the superior products here. So the question is how low will Airbus go to retain Emirates? Airbus will practically be giving it away for free to keep this customer. It just scream a "BUY" opportunity for Boeing.
    25 Jun 2014, 02:43 PM Reply Like
  • sddd
    , contributor
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    It certainly will be interesting. The a350 will no doubt be a fine aircraft for its application, as will the 789. It is also quite possible that this is the first tangible example of carriers' bet hedging. When Emirates ordered its a350's the 787 was surrounded by controversy and delays; now the -9 is certified the playing field is changed. There may be other carriers who (unlike Emirates) ordered both to follow in canceling one or the other and rationalizing their orders.

     

    I do believe Airbus could still win the competition, either via direct data or wildly advantageous pricing. Regardless Emirates wins as it will see a deeper discount on a re-order from Airbus or a stellar deal from Boeing.
    25 Jun 2014, 03:11 PM Reply Like
  • DurhamBudFox
    , contributor
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    Why cancel the a350 and reorder it? You don't and neither will Emirates. They will probably get the 789 or 787-10.
    1 Jul 2014, 02:54 PM Reply Like
  • sddd
    , contributor
    Comments (264) | Send Message
     
    It's not an unthinkable concept, particularly if Emirates has decided they might get a better unit price for the a350. It's most likely they'll move to the 78x platform now that the 777X's are in their fleet planning, but EK isn't going to give Boeing a hunting license by being a sole source. The 777X purchase modifies their fleet scheduling over the coming decade as applicable to the shift in assets to shorter medium range routes.

     

    As for cancel/reorders, Etihad did just that in 2011 when it cancelled four 787's only to reorder even more later that same year. EY's reasons were different, but anything can happen if its to the carrier's benefit.
    1 Jul 2014, 05:28 PM Reply Like
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