• Home
• /
• Aviation

Etihad order to kickstart $50b Gulf jet spree

Etihad Airways, the national airline of the UAE, is close to placing an order that could kick off a $50 billion jet-buying spree from the Gulf as the region’s carriers flex their muscles in an industry hit by weak margins and high fuel prices.

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.

Abu Dhabi-based Etihad is expected to buy dozens of Boeing jets, including the revamped 777X mini-jumbo and a repeat order for its 787 Dreamliner, sources familiar with the matter said.

The deal could be worth $18 billion at list prices and comes as Etihad prepares to celebrate the 10th anniversary of its maiden flight on November 12, highlighting the Middle East’s emergence as a fast-growing global travel hub.

If confirmed, Etihad’s order could pre-empt a widely expected blockbuster deal for 100 or more 777X jets from Dubai’s Emirates, which has said it may announce a large order when it hosts the Dubai Airshow next month.

The deals are still under negotiation and could change in size and timing, said the sources, who spoke on condition of anonymity because they are not authorized to speak publicly. Boeing’s European rival, Airbus, is also competing for the business.

Together with an order from Germany’s Lufthansa in September, the latest business is likely to ramp up competition between planemakers by allowing Boeing formally to launch the new version of its long-range 777X twin-engine jetliner.

Two people familiar with the matter said that Etihad is looking to buy 25 to 30 of the revamped 777X.