Boeing Reveals Order Blizzard at Dubai Airshow

posted: 12 November 2007 05:53 pm ET

: One of the big deals that Boeing confirmed at the 2007 Dubai Airshow was Qatar Airways' previously unannounced order for 30 Boeing 787s, along with options on 30 more Dreamliners. Fast-growing Qatar Airways also added another five Boeing 777Fs to a an order for 22 777s -- two 777Fs, 14 777-300ERs and six 777-200LRs -- that it placed in 2006. Credit: Boeing Photo
: At the 2007 Dubai Airshow, Boeing revealed that Dubai-based leasing company Low Cost Aircraft Leasing (LCAL) had added six more Boeing 787s to its orderbook for the type, taking LCAL's total 787 buy to 21 aircraft. Its order announcement at the show was more than matched, however, by another Dubai leasing company, DAE Capital, which ordered 70 Boeing 737NGs, 10 Boeing 777-300ERs and five Boeing 747-8Fs. DAE Capital also committed to 100 Airbus aircraft, and looks likely to add an order for 15 Boeing 787s in the near future. Credit: Boeing Photo
: Emirates Airlines added to its already huge orders and lease agreements for Boeing 777s at the 2007 Dubai Airshow by announcing an order for 12 more 777-300ERs. The type will be the backbone of the airline's long-haul fleet, said Emirates CEO, HH Sheikh Ahmed bin Saeed Al-Maktoum. Credit: Boeing Photo

An order from new Dubai-based leasing company DAE Capital for 85 aircraft is just one of a blizzard of new Boeing deals that Middle East customers have announced in the first two days of the 2007 Dubai Airshow.

DAE Capital is the new leasing arm of Dubai Aerospace Enterprise (DAE), which was established in February 2006. The leasing company announced orders for 70 Next-Generation 737 jets, 10 Boeing 777-300ERs and five Boeing 747-8F freighters.

It also looks set to order additional Boeing aircraft: the company's CEO, aircraft leasing veteran Bob Genise, said today that the deals formed "part of a 100-aircraft order from Boeing, (which) demonstrates our aim to quickly establish DAE Capital as a world-class aircraft leasing business."

DAE Capital to add 787 order soon?

So there appears a strong chance that DAE Capital soon will announce an order for 15 additional Boeing aircraft. In all likelihood the order will be for the hot-selling 787, since DAE Capital today signed a memorandum of understanding committing to 30 Airbus A350 XWBs (as well as for 70 Airbus A320-family aircraft, the rival to Boeing's 737 family). Airbus is developing the A350 XWB family, which won’t enter service until 2013, specifically to compete with the 787 and its larger sibling the 777-300ER.

DAE Capital's two announced Boeing deals include engine orders valued at more than $1.7 billion at list prices. Its 737s will be powered (like all current-production 737NGs) by CFM56-7B engines, which for DAE Capital's 70 aircraft have a total list price of $945 million. The Dubai company's new 737s will be delivered from 2010 to 2015.

Both the 777-300ER and the 747-8F are offered only with General Electric Engines. Like all other 777-300ERs, DAE Capital's new 777s will have GE90-115B engines, while its 747-8Fs will be powered by GEnx engines. The total list-price value for the company's widebody engine deals is $770 million, according to GE Aircraft Engines.

LCAL adds to 787 buy

Meanwhile, another Dubai-based leasing company that is an existing Boeing 787 customer, Low Cost Aircraft Leasing (LCAL), took the opportunity provided by the Dubai Airshow to announce that it had increased its firm order for the type from 15 aircraft to 21.

Boeing had previously listed LCAL's new six-aircraft deal, worth approximately $972 million at list prices, on the Boeing Orders and Deliveries Web site, attributing the order to an unidentified customer. LCAL was established in 2005 as an aircraft leasing company with its business based exclusively on the Boeing 787 Dreamliner. It was the first leasing company to order 787s, in 2005, and in 2009 will become the first leasing company to take delivery of the 787.

LCAL selected Rolls-Royce's Trent 1000 engine for a number of its 787s, and is negotiating with GE to equip other 787s in its fleet with GEnx engines.

Since the 787's launch in April 2004, 51 customers have placed orders for 736 aircraft, making it one of the fastest-selling commercial airplanes in aviation history.

Qatar Airways confirmed as big 787 customer

One new customer is Qatar Airways, which held a signing ceremony at the Dubai Airshow today to mark a new order for 30 787 Dreamliners and five 777 Freighters. The deal is valued at over $6.1 billion at list prices. The airplanes were previously listed on Boeing's Orders & Deliveries Web site as for an unidentified customer.

In 2006, Qatar Airways announced orders for 14 777-300ERs, six 777-200LRs and two 777 Freighters. The airline is scheduled to receive its first 777-300ER later this month, the aircraft will flying direct on its ferry flight from Seattle to Doha, Qatar.

By today, 12 customers had ordered 82 777 Freighters, with the type scheduled to enter service in the fourth quarter of 2008. The 777 Freighter is based on the 777-200LR passenger model and is designed to facilitate easy interlining with the Boeing 747F freighter fleet.

The Middle East has been experiencing continued strong air cargo growth and accounts for 5.8 percent of the world's tonnage into, out of, and within the region. Over the past two years, Qatar has boasted one of the Gulf States' highest GDPs and will use its new 777F fleet to stimulate continuing economic growth.

Qatar Airways is one of only five airlines in the world with a Five Star ranking awarded by Skytrax, an independent industry monitoring agency. The airline is one of the world's fastest growing carriers and is expected to carry more than 10 million passengers during the current financial year.

Emirates adds 12 more 777-300ERs

Yesterday, on the opening day of the Dubai Airshow, Emirates announced an order for 12 777-300ERs. The approximate value of the airplane deal is $3.2 billion at list prices. The airplane order was previously listed on Boeing's Orders & Deliveries website as unidentified.

Emirates' current Boeing fleet is made up of 30 Boeing 777-300ERs, two Boeing 777-200LRs, 12 Boeing 777-300s, nine Boeing 777-200s and eight Boeing 747Fs. The airline has numerous additional 777s on order: Emirates' current backlog of orders for the 777 will result in nearly one 777 a month on average rolling off Boeing's Everett assembly line for the airline throughout the next five years.

"The 777s will form the backbone of our long-range fleet, allowing Emirates to serve more far-away cities in the Americas, Far East and Australasia with nonstop flights from Dubai. Already, Emirates' Boeing 777 aircraft can be seen on six continents," said HH Sheikh Ahmed bin Saeed Al-Maktoum, Emirates' chairman and chief executive.

Emirates' global network includes 97 cities on six continents, including 10 cargo-only destinations. The airline will begin direct service to Houston on Dec. 3.

The 777-300ER is the world's largest twin-engine jetliner. It is capable of carrying 365 passengers up to 7,930 nautical miles (14,685 kilometers). The 777-300ER and the 777-200LR are two new longer-range 777 models that Boeing introduced to offer airlines additional flexibility in serving long-haul nonstop routes that passengers demand. To date, Boeing has received more than 1,000 orders for the 777 from 53 customers worldwide.