Dubai Airshow: Day of record $90B deals forged

Dubai - Airbus cops biggest-ever single order; Boeing gets mammoth flydubai deal

The fourth day of the Dubai Airshow saw total deals worth more than $90 billion, including two mammoth aircraft purchase orders for both Airbus and Boeing valued at $76.5 billion.
While European aircraft maker Airbus secured on Wednesday the biggest-ever single order in its history for 430 A320neos valued at $49.5 billion - besides firming up orders for 90 aircraft of the same family - its trans-Atlantic rival Boeing inked a landmark $27 billion deal with Dubai's low-cost carrier flydubai for 225 aircraft in its 737 Max family in what is billed as the largest-ever single-aisle jet order - by number of aeroplanes and total value - from a Middle East carrier.
The penultimate day saw Airbus striking three deals involving a total of 535 aircraft. The first deal inked with US investor Bill Franke was for the supply of 430 medium-range A320 family of aircraft to US investment firm Indigo Partners, which is based in Phoenix, Arizona.
The second Airbus deal was with Dublin-based CDB Aviation Lease Finance DAC for 90 Airbus A320neo family aircraft. The value of the deal was not disclosed, but is estimated to be well above $10 billion if the average unit price range of $116 million of the first deal is taken as a yardstick. The third Airbus deal involved 15 Airbus 320neo was announced at the air show by AerCap Holdings and Egyptair. They reached agreement on the long-term operating lease of 15 Airbus A320neo aircraft. These aircraft are from AerCap's order book with Airbus and are scheduled to deliver in 2020. The value of the deal, although was not disclosed officially, is estimated to be above $2 billion.
AerCap is also behind a leasing deal to provide EgyptAir with six Boeing 787-9 Dreamliner aircraft, which will start operating in 2019.
Other deals adding to the order value tally on the fourth day of the largest aviation industry showcase in the region included a $1.9 billion LEAP-1A engine and services agreement signed between Gulf Air and CFM.
Another deal announcement was by the UAE Armed Forces for the purchase of five CN-295 military transport aircraft and related services from Spain's Airbus Defence and Space company for $250 million
Major-General Ishaq Saleh Al Baloushi, head of the Executive Administration of Industries and Development of Defence Capabilities at the UAE Defence Ministry, announced the deal.
Wednesday's flydubai-Boeing deal is the third aircraft order placed by the Dubai-based airline with Boeing in its eight-year history and follows orders placed in 2008 and 2013. Flydubai said the new aircraft order would support its continued expansion within a geographic area that is home to 2.5 billion people.
Michele van Akelijen, managing director of organisers Tarsus F&E LLC Middle East, said the most memorable deals on Wednesday underlined that Dubai Airshow is the place where the global industry comes to do business.
"These deals are certainly breathtaking in their scope and size. The rapidly growing aviation sector here in Dubai supports more than a quarter of a million jobs and contributes more than $22 billion to the local economy - or 19 per cent of total employment in Dubai, and 28 per cent of the city's GDP. These figures will continue to grow given all the business we are seeing this week."
- issacjohn@khaleejtimes.com