Source: AFP Author: Ben Perry 07/15/2008
Subject Concerned: Aircraft Airlines
On July 14, FlyDubai kicked off the Farnborough Airshow by announcing a US$4 billion deal for 54 single-aisle Boeing 737 passenger jets as Gulf states reap the benefits of soaring oil prices.
New low-cost carrier FlyDubai, in its first aircraft deal, said it had agreed a firm order for 50 737-800s from the US aerospace giant and the leasing of four more of the mid-range jets from Babcock & Brown Aircraft Management, for a total of EUR2.52 billion.
"I am delighted to sign this announcement for 54 next-generation Boeing 737-800s on behalf of FlyDubai," the group's chairman Sheikh Ahmed bin Saeed al-Maktoum said. The 737-800 can carry 189 passengers.
Boeing and its European rival Airbus are seeking orders for their fuel-efficient aircraft amid rocketing oil prices, but Canadian planemaker Bombardier stole the limelight by announcing that it planned to launch its eco-friendly CSeries single-aisle passenger jet in 2013 - a plane it promised would "deliver dramatic energy savings."
German airline Lufthansa said it was interested in buying 30 CSeries jets, adding it could increase the order to 60, which would earn Bombardier a total of US$2.8 billion.
For oil-producing Gulf states such as the United Arab Emirates, rocketing fuel prices present extra revenues to snap up aircraft. Etihad Airways, the national carrier of the UAE, placed an order for 45 Boeing aircraft worth US$9 billion at the southern England show.
Saudi Arabian Airlines announced that it would buy eight wide-bodied Airbus A330s in a deal worth US$1.6 billion at catalog price.