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New aircraft deliveries to boost UAE aviation

UAE carriers set to receive more than 50 planes worth billions of dollars in 2015

Emirates expects 26 deliveries worth around $10 billion at list prices and the aircraft will include: 15 a380s, 10 Boeing 777 and one Boeing 777 freighter in 2015.

Dubai — The UAE aviation sector will continue to sustain upward trends in terms of opening of more routes and increase in frequencies with the induction of more than 50 planes this year, according to industry sources.

Dubai-based airlines — Emirates and flydubai — will lead the table with the possible deliveries of 33 aircraft worth around $10.5 billion at list prices.

Sharjah-based Air Arabia is looking for six Airbus A320 aircraft worth around $563 million at list prices this year.

Etihad Airways, which expects 204 aircraft by the end of 2025, is also likely to induct a minimum double-digit number in its fleet this year.

“We have started the deliveries from the fourth quarter of 2014,” according to the Abu Dhabi-based airline.
Last year, Emirates airline received 27 deliveries worth around $10 billion at list prices. The airline balanced the aircraft induction into its growing fleet by adding 13 Airbus A380s, 12 Boeing 777-300ERs and two 777 Freighters. Emirates’ total fleet size stands firm at 232 aircraft at present.

In 2015, the airline expects 26 deliveries worth around $10 billion at list prices. It is set to induct 15 superjumbos, 10 Boeing 777 and one 777 Freighter. As many as 286 aircraft worth $138 billion are still in pending as of December 11, 2014.

“2015 will be a pivotal year for Emirates fleet requirements,” Saj Ahmad, chief analyst at London-based StrategicAero Research, told Khaleej Times.

Referring to the June 2014 cancellation of Airbus A350s order, he said Emirates is looking for an appropriate replacement and may announce its final decision by year-end.

“As the countdown to the Dubai Air Show has already started, Emirates is again exploring the best options including the A350-900 and the Boeing 787-10,” he said.

“With oil prices on the slide, Emirates looks poised to smash through the $1 billion profit barrier by the time it reports full-year earnings in early May. Emirates benefits not just from the dual economies of scale from its huge Boeing 777-300ER and Airbus A380-800 fleets, but that these jets are new, fuel-efficient and lower the cost per seat per passenger,” Ahmad added.

In 2014, Emirates received its 50th A380 on July 10 and 100th Boeing 777-300ER on October 29.
Dubai-based low-cost airline flydubai received eight Next-Generation Boeing 737-800 aircraft in 2014 worth around $746.4 million at list price and its fleet size reached 43 aircraft by the end of last month.

This year, the carrier will receive the remaining seven Boeing 737s from its 2008 order of 50 aircraft worth $4 billion at list prices.

Since its inaugural flight back in June 2009, in less than six years, flydubai has matched the number of destinations by Air Arabia and now sports a 43-strong fleet of 737-800s.

“Flydubai benefits with the 737-800 having more capacity, lower fuel burn, increased range, higher residual value, increased investor attractiveness for funding and lower operating costs,” he said.

Flydubai’s latest aircraft order includes 75 Boeing 737 MAX 8 and 11 Next-Generation Boeing 737-800 aircraft and valued $8.8 billion. The Dubai carrier retains purchase rights for an additional 25 737 MAX 8 aircraft. The first aircraft, Next-Generation Boeing 737-800s from this order, will be delivered between 2016 and 2017. Deliveries of the first Boeing 737 MAX will commence in the second half of 2017 and continue until the end of 2023.

“The airline is looking to double its 737 MAX orders and wants to operate more than 200 airplanes going into the next decade. And with a move to Dubai World Central’s Al Maktoum International Airport on the cards, the immense capacity will allow the airline to fulfil its long-term ambitions as being the world’s fastest growing airline,” he said.

During 2014, Air Arabia received nine Airbus A320 aircraft worth nearly $845 million at list price. Air Arabia Group fleet size reached 38 aircraft by the end of 2014.

Air Arabia will likely be looking to augment its growing A320 fleet with either the A320neo or 737 MAX as it aims to place an order in 2015. While starting the low cost model in the UAE and wider GCC, Air Arabia has been overtaken as the biggest low cost airline out of the UAE by flydubai.

“Air Arabia will be looking to maintain its steady and judicious growth plans with six more A320s in 2015 taking the fleet up to 41 airplanes operating on 89 city pairs. The big challenge ahead for Air Arabia is how it responds to flydubai’s immensely successful hybrid product which adds business class and higher fare and higher yield passengers,” Ahmad said.

Abu Dhabi’s Etihad Airways received 16 aircraft in the first three quarters of 2014. The airline also received its first A380 and 787 Dreamliner last month. The airline didn’t provide total aircraft delivery numbers for 2014 and 2015 but said it will receive 204 aircraft starting from fourth quarter of 2014 until 2025.

Its future deliveries include 71 Boeing 787 Dreamliner, nine Airbus A380s, 62 Airbus A350, 34 A320, 25 Boeing 777 among others. By the end of 2015, Etihad Airways will have five A380s in operation, with plan to introduce the aircraft on the Sydney and New York’s JFK routes.

Etihad, like Qatar Airways, has been a bit late to the game in receiving its Airbus A380s, but the flagship “Residence by Etihad” product has won over customers and plaudits alike. Etihad will be bolstering its long haul fleet with more 787-9s and as the biggest airline customer for the 787 to-date, this machine will form the backbone of its long haul international operations on routes that were previously difficult to launch without such a fuel efficient airplane.

“As an early adopter for the 777X and 787-10, Etihad is leveraging the strength of its modern and young fleet. It is most likely that the airline will rack up yet another profitable year in 2014,” Ahmad said.

“Going forward, the 787-9 will be instrumental in driving down Etihad’s fuel costs and despite the current decline in oil prices, the efficiency of the 787-9 will become even more apparent as the lower fuel costs make the jet one of the most economical machines in the sky with no direct rival. This sort of attribute is a key for Etihad’s expansion, particularly as it grows its footprint in Latin America and beyond,” he added.