Boeing takes the lead in Dubai with a command of Emirates

by Tim Hepher and Alexander Cornwell

DUBAI (Reuters) – Emirates announced an order of 15 billion ($12,86 billion euros) for 40 Boeing (NYSE:BA) Dreamliner 787, leaving Airbus (PA:AIR) waiting for a contract for its super jumbo A380, while the air Show Dubai opened its doors in a climate of tensions in the Middle East.

The president of the first airline in the region, sheikh Ahmed bin Saeed el Maktoum, said that Emirates had chosen the latest version of the large holder of the american company, after having compared to the A350 Airbus.

Delegates were told that this was a serious setback for Airbus, which is seeking to regain the favours of Dubai following the cancellation of an order of 70 aircraft A350 in 2014.

The problems of the aircraft manufacturer does not stop there: the hope of an order of 16 billion dollars for its super jumbo A380 has not materialized, forcing Airbus to continue negotiations to try to close the sale.

Airbus expects a boost for the A380, which, after years of service, sees his success not in the favor of long-haul less large in size, but also effective.

Emirates should announce orders for a total of $ 30 billion to share between Airbus and Boeing, and the announcement has caught the representatives of the european group.

The leaders of Airbus remain in Dubai to negotiate.

“Emirates was discussing with Airbus about it. There are no promises,” said a source in the Gulf.

The signature of an agreement may depend on the willingness of Airbus to buy A380 intended to be removed from the fleet of Emirates, has reported a source close to the folder.

The president of Emirates had stated in the beginning of the month in Hamburg that it hoped to sign an agreement in Dubai with Airbus for the delivery of A380 aircraft.

The 40 Dreamliners worth $ 12.5 billion, but Boeing has stated that the total contract value was $ 15.1 billion, the delivery of other equipment is provided. The deliveries will commence in 2022 and Emirates has not yet chosen between the engines that General Electric (NYSE:GE) and Rolls-Royce (LON:RR).

This matter was concluded, despite a context of political tensions in the Middle East, which weighs on the business community.

Following a crisis between Qatar and its neighbours in the Gulf, including united arab Emirates, Qatar Airways, who had opened the fair in Dubai four years ago with the announcement of a huge order with Emirates, is not present this year.

For its part, saudi Arabia has recently made a spectacular wave of arrests for corruption, reaching the highest circles of power and the royal family.

And, differentiating from its competitors, which tend to remove first class seats, Emirates is close to Mercedes-Benz to launch first class suites in its airplanes, inspired by the interiors of luxury cars.

In addition, Azerbaijan Airlines announced an order for five Boeing 787-8 Dreamliners, and two freighters.

The united arab Emirates have also announced a contract of six billion dirhams (1.4 billion euros) with Lockheed Martin to upgrade 80 combat aircraft F-16, as well as a contract of 35 million dirhams (8.2 million euros) with Thales (PA:TCFP) Communications & Security for the army.

(Juliette Rouillon for the French service)