Boeing Undone In Dubai By Airbus’s $50 Billion Jet Deal

The $20 billion mega deal of Boeing Co was dethroned by rival plane maker Airbus SE as the later secured the largest ever commercial plane transaction in its history – an almost $50 billion deal with at the Dubai Air Show for single-aisle aircraft.

Airbus had been trailing its rival at the Gulf expo and this deal marked a turnaround of sorts of the company after Wednesday’s deal for 430 A320neo planes that was struck with U.S. investor Indigo Partners. And after securing aircraft deal for about 16,000 aircrafts and lifting the European planemaker at a comparable level with Boeing, this deal is also seen as a crowning achievement for sales chief John Leahy. He is slated to retire soon.

Boosting of fleets for its low-cost carriers, by upgrading the narrow body aircrafts, from Denver to Budapest will be possible for Indigo Partners, led by Bill Franke by the deal with Airbus.

On the other hand, Boeing also managed to secure a deal for 175 737 Max planes in a deal that would have otherwise dominated most other airshows. The 737 Max planes is the main competitor for the A320. The deal was made with FlyDubai.

While reversing expectations that orders would trail deliveries in 2017, Airbuses. Backlog was pushed to over 7,000 as the Indigo deal resulted in more than doubling the previous order by the planemaker for the year which was at about 290 aircraft as of Oct. 31.

Airbus was earlier defeated in the competition for the A380 superjumbo as this model has not been able to secure any follow up deal with local carrier Emirates at the Dubai show and the huge A320 win reduces the pain from that defeat somewhat. Sources have earlier said that the airplane maker and the airliners have been in discussions for the deal for about 36 additional double-deckers priced at $15.7 billion.

With total bookings of just 317 units, foe Airbus, the A380 has turned out to be a fringe product.

According to an official statement, more than 50 of the largest Max 10s have been ordered to Boeing for its 737 model deal with FlyDubai. The Max 8s and 9s made up the rest of the order. Options on 50 more aircrafts is available to the airlines that is expected to assimilate to a greater degree with Emirates in the coming months.

Airbus was snubbed by Emirates on the first day of the show as the later made placed a surprise $15 billion order with Boeing for its 787 wide-body jets after having considered the A350 of the European planemaker.

(Adapted form Bloomberg)

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