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

    Video Democrats Clinton, Kaine Offer 'Very Different Vision' Than Trump

    In a jab at Trump, Clinton says her team wants to 'build bridges, not walls'; Obama Hails Kaine's record; Trump calls Kaine a 'job-killer'

    Turkey Wants Pakistan to Close Down institutions, Businesses Linked to Gulen

    Thousands of Pakistani students are enrolled in Gulen's commercial network of around two dozen institutions operating in Pakistan for over two decades

    AU Passport A Work in Progress

    Who will get the passport and what the benefits are still need to be worked out

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movementi
    X
    July 22, 2016 11:49 AM
    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Poor Residents in Cleveland Not Feeling High Hopes of Republican Convention

    With the Republican Party's National Convention underway in Cleveland, Ohio, delegates and visitors are gathered in the host city's downtown - waiting to hear from the party's presidential candidate, Donald Trump. But a few kilometers from the convention's venue, Cleveland's poorest residents are not convinced Trump or his policies will make a difference in their lives. VOA's Ramon Taylor spoke with some of these residents as well as some of the Republican delegates and filed this report.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video With Yosemite as Backdrop, Obama Praises National Parks

    Last month, President Barack Obama and his family visited some of the most beautiful national parks in the U.S. Using the majestic backdrop of a towering waterfall in California's Yosemite National Park, Obama praised the national park system which celebrates its 100th anniversary this year. He talked about the importance of America’s “national treasures” and the need to protect them from climate change and other threats. VOA’s Julie Taboh reports.
    Video

    Video Counter-Islamic State Coalition Plots Next Steps

    As momentum shifts against Islamic State in Iraq, discussions are taking place about the next steps for driving the terrorist group from its final strongholds. Secretary of State John Kerry is hosting a counter-IS meeting at the State Department, a day after defense ministers from more than 30 countries reviewed and agreed upon a course of action. VOA Pentagon correspondent Carla Babb reports.
    Video

    Video Russia's Participation at Brazil Olympic Games Still In Question

    The International Olympic Committee has delayed a decision on whether to ban all Russian teams from competing in next month's Olympic Games in Brazil over allegations of an elaborate doping scheme. The World Anti-Doping Agency recently released an independent report alleging widespread doping by Russian athletes at the 2014 Winter Olympics in Sochi. So far, only Russian track and field athletes have been barred from the Summer Games in Brazil. VOA's Zlatica Hoke has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.
    Video

    Video Millennials Could Determine Who Wins Race to White House

    With only four months to go until Americans elect a new president, one group of voters is getting a lot more attention these days: those ages 18 to 35, a generation known as millennials. It’s a demographic that some analysts say could have the power to decide the 2016 election. But a lot depends on whether they actually turn out to vote. VOA’s Alexa Lamanna reports.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9079
    JPY
    USD
    106.10
    GBP
    USD
    0.7636
    CAD
    USD
    1.3106
    INR
    USD
    67.076

    Rates may not be current.