Business

A380 Flying Palace Deal Leads Dubai Bonanza for Airbus

posted: 12 November 2007 05:33 pm ET

: Air Arabia, which already operates 10 leased Airbus A320s, announced an order for another 34 A320s on Nov. 12, 2007 at the Dubai Airshow. The airline, the first and largest low-cost airline in the Middle East region, also optioned another 15 A320s. It didn;t announce an engine selection for the aircraft, but its existing A320s are powered by CFM56-5B engines. Credit: Airbus S.A.S.
: At a Nov. 12 ceremony at the Dubai Airshow, HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud signs the official purchase contract for an Airbus A380 Flying Palace, becoming the first customer for the world's largest VVIP aircraft. On the prince's left sits John Leahy, Airbus' sales chief. Credit: Airbus S.A.S.
: On Nov. 11, 2007, Emirates Airlines became the biggest customer for the Airbus A350 XWB with a firm order for 50 A350-900s and 20 A350-1000s, in a deal announced on the opening day of the 2007 Dubai Airshow. The rapidly growing Dubai carrier -- which aims to become the world's largest long-haul airline in coming decades -- also optioned 50 more A350 XWBs, as well as confirming orders for 11 more A380s to take its total buy of the superjumbo type to 58 aircraft. Credit: Airbus S.A.S. 2007/computer rendering by Fixion - HCSGM

The first confirmed order for the A380 Flying Palace, the VVIP version of the world's largest passenger jet, provided one of several highlights for Airbus today as its order momentum from the first day of the Dubai Airshow continued into the show's second day.

HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, chairman of Kingdom Holding company, signed a firm order with Airbus for an A380 Flying Palace. This made the prince the first publicly confirmed customer for the VIP version of the new double-deck airliner.

When it was widely reported early in 2007 that an unnamed customer had signed a letter of intent for an A380 Flying Palace, it was thought to have been the Emir of Dubai. Now it appears likely that the customer was Prince Alwaleed.

The prince's A380 Flying Palace will be powered by Rolls-Royce Trent 900 engines. It will undergo cabin outfitting at a completion center yet to be named.

In addition to the VVIP A380 deal, three other Middle East customers announced high-profile commitments for Airbus aircraft today at the Dubai Airshow, to add to the manufacturer's orders yesterday for up to 131 widebody aircraft from Emirates Airlines and up to 38 A320-family narrowbodies from Saudi Arabia's National Air Services.

Air Arabia in big order for A320s

Today, existing A320 operator Air Arabia signed a firm contract for 34 Airbus A320s and took options on 15 more. The airline, which was the first low-cost carrier in the Middle East and remains the largest, is based at Sharjah International Airport in the United Arab Emirates.

Air Arabia's new order will more than treble the number of aircraft in its fleet, and underlines its stated ambition to increase its fleet to more than 50 aircraft by 2015. It has yet to specify the engines for these aircraft -- but the 10 leased A320s that it already operates are powered by CFM56-5B engines.

Saudi Arabian Airlines to renew fleet with A320s

Meanwhile, Saudi Arabian Airlines, Saudi Arabia's national airline, has signed a memorandum of understanding (MOU) for 22 Airbus A320s as part of its fleet modernisation program. The agreement allows the airline to increase its order by eight further A320s. Saudi Arabian also agreed to lease a further 10 new A320s, powered by CFM56-5B engines, from GE Capital Aviation Services.

The agreement marks a period of rapid expansion for the aviation market in the region, with Saudi Arabian Airlines experiencing unprecedented demand for air travel, said Airbus. The airline's order was particularly significant for Airbus, as it marked the first time in more than two decades that Saudi Arabian Airlines had agreed to order aircraft from the manufacturer. The airline's last Airbus deal was to become the launch customer for the A300-600, Saudi Arabian receiving its first A300-600 in 1984.

DAE Capital orders 70 A320s and 30 A350 XWBs

Today another, potentially huge, commitment came Airbus' way from DAE Capital, the aircraft leasing and financing division of Dubai Aerospace Enterprise (DAE). Headquartered in Dubai, DAE manages a number of activities, including airport development and operations, engineering, manufacturing and services. DAE Capital signed an MOU today to buy 100 aircraft from Airbus, split between 70 A320-family and 30 A350 XWB-family aircraft.

DAE Capital also announced today it was ordering 100 Boeing aircraft, including 70 Boeing 737s, 10 777-300ERs and five 747-8F freighters. The leasing company didn't officially confirm what the other 15 aircraft would be, but it is nearly certain they will be Boeing 787s.

A350 XWB firm orders near 300 aircraft

If Emirates Airlines and DAE Capital firm all of the commitments they have announced at the Dubai Airshow for A350 XWBs, the A350-family orderbook will grow by 150 aircraft.

Emirates' commitment yesterday included a firm order for 70 A350 XWBs. Since Airbus had recorded firm orders for 214 A350s on its Web site as of Oct. 31, the firm portion of the Emirates deal should increase the official orderbook for the A350 XWB -- not due to fly until 2013 -- to 284 aircraft.

In addition to the MOU and option commitments for 80 further A350 XWBs announced at Dubai, Airbus already holds MOU and option commitments on a sizeable number of further A350 XWBs. The exact number isn’t clear from the manufacturer's recent deal announcements or from its Web site, but it is likely that Airbus has received firm orders and lesser commitments for at least 400 A350 XWBs.

As of Oct. 31, Airbus recorded a firm-order total of 5,574 A320-family aircraft. This did not include Air Arabia's order today for 34 aircraft, National Air Services' order yesterday for 20, or the Saudi Arabian Airlines or DAE Capital commitments for 92 A320-family aircraft.

In addition to today's firm order for the A380 Flying Palace, Airbus has sold more than 40 widebodies for VIP and government service worldwide. Additionally, sales of the Airbus Corporate Jetliner Family, comprising the A318 Elite, ACJ and A320 Prestige, recently passed the 100-order mark.

C Jet orders A319 ACJ

Airbus announced a new order for the A319-based ACJ at the Dubai show, Hong Kong-based C Jet Ltd. becoming a customer for one aircraft. The ACJ will have a luxurious interior based on the A320 Prestige-cabin concept, which features a lounge, dining area, private office, bedroom and en suite bathroom with shower. C Jet's ACJ will be managed by Hong Kong-based BAA Jet Management Ltd., which already has ordered an ACJ and an A318 Elite for itself.