A series of blockbuster orders placed yesterday underlined Dubai’s status as capital of the commercial aircraft megadeal, chief among them being an order for 150 Boeing 777X aircraft placed by Emirates (termed a “commitment”)–effectively launching the new larger variant of the popular long-range twinjet. Emirates’s 777X order, which consists of 115 -9Xs and 35 -8Xs, was not entirely unexpected as the carrier played a leading role in defining the aircraft, but yesterday marked the largest product launch in commercial airline history (by dollar value) for any OEM.
The rulers in the Arabian Gulf region strive for bigger and better in practically every pursuit they undertake, and that includes air transport. So when Boeing drew its plans for its proposed new 777X, its considerations no doubt included the needs of those in the Middle East, who are some of the biggest customers for the current 777.
Airline industry organizations have welcomed new legislation introduced in the U.S. Congress that would prevent the U.S. Customs and Border Protection (CBP) agency from opening a customs preclearance facility in the UAE.
The spectacular rise of Emirates and its Gulf rivals confounded the expectations of mature carriers in the U.S. and Europe. These fifth- and sixth-freedom carriers have limitless ambitions and enjoy the revenues won through hydrocarbon abundance to back them up. But personalities have also played a role and one thing is sure: the Ruler of Dubai has made himself a pivotal player on the world’s aviation stage.
“Etihad Airways is the fastest-growing airline in the history of commercial aviation,” said James Hogan, president and CEO, upon the announcement that Etihad will begin nonstop flights to Los Angeles from Abu Dhabi beginning June 1, 2014.
Next week’s Dubai Airshow, running from November 17 to 21, is set to provide yet more evidence of the soaring ambitions of the Gulf region’s air carriers, and Boeing’s new 777X twinjet seems set to be the main beneficiary of their relentless fleet expansion plans.
Billing itself as the fastest-growing airline in the history of commercial aviation, Etihad Airways keeps doing everything in its power to maintain momentum. Last week it announced the June 1 launch of nonstop flights to Los Angeles from Abu Dhabi, supported by the purchase of five Boeing 777-200LRs from Air India. By the end of the year, Etihad plans to expand its fleet to 87 airplanes, including the five Air India jets and 14 new widebodies delivered by Boeing and Airbus this year.
Clearance of Etihad Airways’s $380 million investment in Jet Airways by India’s Foreign Investment Promotion Board (FIPB) last week has paved the way for completion of the deal. The airlines now await approval from the Cabinet Committee on Economic Affairs (CCEA), which oversees foreign investment proposals of more than $200 million, and security clearances of foreign nationals.
Etihad Airways will take a 49-percent stake in Serbian national airline JatAirways under the terms of a deal with the government of Serbia announced Thursday that includes the award of a five-year management contract to Etihad. The deal also calls for Abu Dhabi-based Etihad to match a $40 million capital injection in the airline by the Serbian government with a loan facility that would convert into equity on January 1 of next year.