DUBAI: Abu Dhabi’s Etihad Airways is in talks to order as many as 75 Airbus jets, including around 50 of the European planemaker’s long-haul A350, industry sources said yesterday.
The roughly $16bn order, expected to be announced at the Dubai Airshow today, may include approximately 25 smaller A320neos, the sources said.
Etihad and Airbus declined to comment. Airbus is developing the A350 to compete with Boeing’s 787 Dreamliner and the proposed new 777X. The Abu Dhabi carrier has already bought 35 A320s and 12 A350s. Industry sources have said Etihad is also expected to order around 55 Boeing jets worth $18bn from Boeing at the show, including 25 of its latest long-haul jet, the 777X..
Both Airbus and Boeing are expected to expand industrial partnerships with Abu Dhabi’s state investment fund Mubadala, whose aerospace division is seeking to be a major supplier for advanced carbon-composite parts.
Through its Strata subsidiary, it already makes parts for both plane-makers and is seeking to become a centre of excellence for aircraft tail sections known as empennage.
The week-long aviation show is expected to be dominated by Boeing as it launches its latest long-haul jet, code-named 777X.
However, Airbus is hoping to get commitments for its A350s, A320neos, A330 as well as possibly the A380 superjumbo. Emirates is the largest customer for the superjumbo with 90 planes and has said it is interested in buying another 30, while leasing company Doric Lease Corp also says it expects to finalise an order soon.
Taking advantage of deep pockets and a geographically strategic position between East and West, Gulf airlines are expanding rapidly and diverting long-haul traffic from airlines in Europe, the United States and parts of Asia.
Meanwhile, Boeing said it holds nearly 40 percent of the lucrative sales market in the Middle East and aims to increase its share.
“Today we probably have close to 40 percent” of the Middle East market, compared with 60 percent for European competitor Airbus, said Marty Bentrott, a regional sales chief for Boeing.
Boeing lagged behind in the region for several years because it had not “realised that this part of the world” could play a key role in the aerospace industry, Bentrott said.
“We went through a period of time ... being less competitive than we needed to be and we lost some opportunities,” he said and added that while Boeing holds just under 30 percent of the market in medium-haul planes, it was in a “much stronger position” than Airbus in the long-haul sector where it held around 60 percent.
Reuters/AFP
