PARIS 2007: Airbus forgets its woes with order bonanza
By Mike Martin
Airbus put its problems to one side yesterday as it announced a staggering $45.7 billion worth of deals with eight different customers.In one day, the firm shattered its previous best total for an entire air show, signing paper for 339 aircraft (219 in firm deals and 120 based on MOUs).
With more announcements planned, some observers see Airbus possibly breaking the 400 aircraft barrier for deals unveiled at an air show during the coming week. Its previous best air show sales total was 280 aircraft at Paris two years ago.
John Leahy, Airbus chief operating officer customers, says: “It’s not been a bad start for a show, considering the bad publicity we have had lately. I don’t think this volume of orders has ever happened on one day before. It says we are back on track.”
In a day of wall-to-wall press conferences, a flood of orders and commitments were revealed. They included 13 new A380 superjumbos for three airlines: Emirates (eight), Qatar Airways (three) and Air France (two). The formal signing of the massive $16bn order by Qatar Airways for 80 A350 XWB aircraft also took place. An $8 billion order came from US Airways for 92 aircraft, including 22 A350XWBs and a mix of A320s and A330-200s.
Emirates – which now has a total of 55 A380s on order – said it was getting its follow-on order in quickly as it believes that once the aircraft enters service later this year it will prompt a rush of orders.
The $45.7billion order
“We saw a need for the additional eight, plus the four we ordered recently, because that is the number we know we need,” says Tim Clark, president of Emirates Airline. “We believe that as the aircraft comes to market and into service the orders will come in so we wanted to get our order in now.”
The letter of intent for the additional eight aircraft, valued at about $2 billion, was signed by HH Sheikh Ahmed Bin Saeed Al Maktoum, chairman of Emirates Group, and Louis Gallois, Airbus president and chief executive. Asked about Emirates’ progress on the evaluation of the Airbus A350 XWB and its rival, the Boeing 787, Sheikh Ahmed said: “We will take a decision in the next few months.”
Fellow Arabian Gulf airline Qatar Airways has firmly made up its mind over the merits of the A350 XWB, formally signing the $16bn order for 80 of the aircraft (20 A350-800s, 40 A350-900s and 20 A350-1000s). The airline is the launch customer for the -1000 variant. Deliveries are set to begin in August 2013 and will progressively replace the airline’s Airbus A330s.
First revealed
While the A350XWB order had been first revealed just prior to Paris, the $750 million order for three additional A380s came as a surprise. Asked if Qatar Airways was concerned about the reliability of deliveries of the A350 XWB in light of the major delivery problems surrounding the A380, chief executive Akbar Al Baker says he is confident of Airbus’ ability to deliver. “I think six years from now is enough time for them to develop and define this aircraft.”
US Airways waded in with a major order for 92 aircraft worth $8bn. It will include 22 A350 XWBs, a mix of -800s and -900s; 60 A320s and 10 A330-200s. With first delivery in 2014, US Airways becomes the launch customer for the type in North America. It has chosen Rolls-Royce engines to power its A350s.
The A330-200 aircraft will be used as an interim solution for US Airways pending the arrival of the A350s. The operator also has the option to switch the order to the A330-300 or the longer-range A340s.
Next up was Kuwait and Dubai-based Jazeera Airways with a $2.4bn order for 30 A320 single-aisle aircraft. The aircraft will be added to the airline’s existing fleet of five A320s, with another five due for delivery. “We have very ambitious growth plans at Jazeera Airways and Airbus has been a good partner for us all the way,” says Marwan Boodai, chairman and chief executive, Jazeera Airways. “We started operating in October 2005 with our first A320 aircraft and now we operate five.”
GE Commercial Aviation Services (GECAS) also signed a firm contract with Airbus for 60 additional A320 Family aircraft, worth an estimated $4.8bn.
ALAFCO, the Kuwait-based international aviation lease and finance company, signed a firm contract for 12 A350 XWBs. In addition, ALAFCO also ordered seven A320s.
Airbus crowned an extraordinary day with news of a $1.8bn order for 25 A320 aircraft from Russian domestic carrier S7 Airlines, formerly known as Sibir).
Late yesterday, news emerged that Air France has signed anMOU for two new A380s and 18 A320-family aircraft, worth an estimated $1.85bn. Also yesterday, Tunisian carrier Nouvelair signed a $140m contract for two A320s.
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