News / Economy

    $100 Billion Boeing Bonanza to Dominate Dubai Airshow

    Reuters
    Boeing looks set to dominate next week's Dubai Airshow with more than $100 billion of deals as it aims to launch its latest long-haul jet with up to 250 potential orders from as many as five airlines, industry sources said.

    The U.S. planemaker is pressing ahead with the launch of its 777X mini-jumbo despite uncertainty over where it will be made, with workers at the existing 777 plant outside Seattle holding a ballot over a new employment contract on Wednesday.

    Bulging civil and military bank balances in the Gulf remain a magnet for Western aerospace executives as they seek to tap thriving demand for jetliners and combat aircraft that offer some respite from defense cuts at home.

    A widely expected potential order for as many as 150 of the new 777X passenger jets from Dubai flag carrier Emirates could come close to matching the $62 billion of deals amassed at the last Dubai show two years ago.

    “Dubai's success is related to its airlines. It's a global hub now and Dubai did this by buying planes and constantly renewing its fleet,” said John Sfakianakis, chief investment strategist at Riyadh-based asset management firm Masic. “Abu Dhabi, Qatar and Saudi Arabia are also investing billions in aviation to be able to connect to the world. These states have to continue to invest if they want to expand.”

    After playing cat and mouse with rival Airbus in the market for big twin-engined jets, industry sources say that Boeing is expected to launch the 777X on Sunday with the record Emirates deal and 25 jets for Abu Dhabi's Etihad.

    Depending on final negotiations, which historically provide some last-minute drama at such shows, Boeing also could announce orders for dozens of 777X jets from Qatar Airways and Hong Kong's Cathay Pacific during the Middle East's largest business event, which runs from Nov. 17 to 21.

    The 777X launch is expected to include confirmation of a tentative 34-plane order from Germany's Lufthansa.

    Whether Boeing can reach around 250 launch orders depends partly on uncertainty over whether it can close a potential deal for around 20 777X with Cathay, but the new plane is heading for a haul of above 200 orders, according to industry experts.

    Spur for growth

    Leading Gulf airlines have made Boeing's long-distance 777 warhorse and other big jets a spur for growth as they redraw the world's aviation and logistics map around the Gulf.

    The revamped 777X is the largest twinjet yet designed and will come in two versions, seating 350 to 406 people. It is Boeing's response to the Airbus A350-1000, which will seat 350 in three classes or about 380 people in two classes.

    Boeing has had to overcome disagreement among potential buyers over the design of the 777X, with Gulf airlines pushing for high capacity with the stamina of four-engined jets. But a person familiar with the design said it may suffer restrictions on payload for the longest trips from the Gulf.

    The U.S. company hopes the airshow will also mark a turning point for the 787 Dreamliner after its temporary grounding this year because of melting batteries. Industry sources expect orders to top 1,000 in Dubai as Etihad buys a further 30, while Airbus is in negotiations to sell competing models of its A350.

    The latest medium-haul aircraft will also be in focus as Flydubai places a $7.8 billion order for 75 of the revamped Boeing 737 MAX and Airbus negotiates to sell A320neos to airlines that may include Etihad, industry sources said.

    A380 seeks lift

    Qatar Airways, which has complained about the reliability of its 787s, has said it may buy more Airbus A330s.

    But Airbus, which outsold Boeing in the first nine months of the year, will be looking to end a dearth of orders this year for its A380, the world's largest airliner.

    Doric Lease Corp aims to firm up an order for 20 of the superjumbos “soon”, its top executive told Reuters last month.

    The European company co-operates closely with the largest A380 customer Emirates, which has consistently said it could buy up to 30 more of the aircraft once it unlocks extra capacity in its network to handle the double-decker jets.

    Next week's show will fill an area the size of the U.S. Pentagon at the new Dubai World Central airport, where airline bosses will rub shoulders with arms merchants and royalty.

    Western defense companies have long viewed the Middle East as among the world's most lucrative markets but are facing unfamiliar challenges as divisions grow between Washington and Gulf allies over Iran nuclear talks set to resume on Nov 20.

    “The political situation with Iran is so fluid that today's friends and allies may be tomorrow's distant partners,” said Theodore Karasik, research director at Dubai think-tank INEGMA.

    The United Arab Emirates is moving closer to a long-awaited decision on whether to buy up to 60 UK-backed Eurofighter Typhoons or French Rafale fighters. It is also expected to buy 25 Lockheed Martin F-16 fighters, sources familiar with the deal told Reuters.

    “These countries may be in disagreement with the U.S. over Iran, Syria and other issues, but their military relationship remains strong,” said Karasik.

    You May Like

    Former US Envoys Urge Obama to Delay Troop Cuts in Afghanistan

    Keeping troop levels up during conflict with both Taliban and Islamic State is necessary to support Kabul government, they say

    First Lady to Visit Africa to Promote Girls' Education

    Michele Obama will be joined by daughters and actresses Meryl Streep and Freida Pinto

    Video NYSE Analyst: Brexit Will Continue to Place Pressure on Markets

    Despite orderly pricing and execution strategy at the New York Stock Exchange, analyst explains added pressure on world financial markets is likely

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Brexit Vote Plunges Global Markets Into Uncharted Territoryi
    X
    June 24, 2016 9:38 PM
    British voters plunged global markets into unknown territory after they voted Thursday to leave the European Union. The results of the Brexit vote, the term coined to describe the referendum, caught many off guard. Analysts say the resulting volatility could last for weeks, perhaps longer. Mil Arcega reports.
    Video

    Video Brexit Vote Plunges Global Markets Into Uncharted Territory

    British voters plunged global markets into unknown territory after they voted Thursday to leave the European Union. The results of the Brexit vote, the term coined to describe the referendum, caught many off guard. Analysts say the resulting volatility could last for weeks, perhaps longer. Mil Arcega reports.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.
    Video

    Video Tunisian Fishing Town Searches for Jobs, Local Development Solutions

    As the European Union tries to come to grips with its migrant crisis, some newcomers are leaving voluntarily. But those returning to their home countries face an uncertain future.  Five years after Tunisia's revolution, the tiny North African country is struggling with unrest, soaring unemployment and plummeting growth. From the southern Tunisian fishing town of Zarzis, Lisa Bryant takes a look for VOA at a search for local solutions.
    Video

    Video 'American Troops' in Russia Despite Tensions

    Historic battle re-enactment is a niche hobby with a fair number of adherents in Russia where past military victories are played-up by the Kremlin as a show of national strength. But, one group of World War II re-enactors in Moscow has the rare distinction of choosing to play western ally troops. VOA's Daniel Schearf explains.
    Video

    Video Experts: Very Few Killed in US Gun Violence Are Victims of Mass Shootings

    The deadly shooting at a Florida nightclub has reignited the debate in the U.S. over gun control. Although Congress doesn't provide government health agencies funds to study gun violence, public health experts say private research has helped them learn some things about the issue. VOA's Carol Pearson reports.
    Video

    Video Trump Unleashes Broadside Against Clinton to Try to Ease GOP Doubts

    Recent public opinion polls show Republican Donald Trump slipping behind Democrat Hillary Clinton in the presidential election matchup for November. Trump trails her both in fundraising and campaign organization, but he's intensifying his attacks on the former secretary of state. VOA National Correspondent Jim Malone reports.
    Video

    Video Muslim American Mayor Calls for Tolerance

    Syrian-born Mohamed Khairullah describes himself as "an American mayor who happens to be Muslim." As the three-term mayor of Prospect Park, New Jersey, he believes his town of 6,000 is an example of how ethnicity and religious beliefs should not determine a community's leadership. Ramon Taylor has this report from Prospect Park.
    Video

    Video Internal Rifts Over Syria Policy Could Be Headache for Next US President

    With the Obama administration showing little outward enthusiasm for adopting a more robust Syria policy, there is a strong likelihood that the internal discontent expressed by State Department employees will roll over to the next administration. VOA State Department correspondent Pam Dockins reports.
    Video

    Video Senegal to Park Colorful ‘Cars Rapide’ Permanently

    Brightly painted cars rapide are a hallmark of Dakar, offering residents a cheap way to get around the capital city since 1976. But the privately owned minibuses are scheduled to be parked for good in late 2018, as Ricci Shryock reports for VOA.
    Video

    Video Florida Gets $1 Million in Emergency Government Funding for Orlando

    The U.S. government has granted $1 million in emergency funding to the state of Florida to cover the costs linked to the June 12 massacre in Orlando. U.S. Attorney General Loretta Lynch announced the grant Tuesday in Orlando, where she met with survivors of the shooting attack that killed 49 people. Zlatica Hoke reports.
    Video

    Video How to Print Impossible Shapes with Metal

    3-D printing with metals is rapidly becoming more advanced. As printers become more affordable, the industry is partnering with universities to refine processes for manufacturing previously impossible things. A new 3-D printing lab aims to bring the new technology closer to everyday use. VOA's George Putic reports.
    Video

    Video Big Somali Community in Minnesota Observes Muslim Religious Feast

    Ramadan is widely observed in the north central US state of Minnesota, which a large Muslim community calls home. VOA Somali service reporter Mohmud Masadde files this report from Minneapolis, the state's biggest city.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9036
    JPY
    USD
    102.32
    GBP
    USD
    0.7297
    CAD
    USD
    1.3005
    INR
    USD
    68.004

    Rates may not be current.