Dubai Air Show News

Dubai Aerospace leaps into leasing business with order for 200 aircraft

Dubai orders propel Airbus to record year

Air Arabia banks on A320

Saudi Arabian places first Airbus order in more than 20 years

Nas air fills out fleet with E-Jets
Additional stories
Dubai News from November 12

(Left to right) Bob Genise, CEO of DAE Capital; MD Omar bin Suleiman; Boeing Commercial Airplanes President Scott Carson; DAE Group CEO Bob Johnson, and GE Aviation CEO Scott Donnelly pose at the Boeing signing of DAE's bold venture into aircraft leasing.

Dubai Aerospace leaps into leasing business with order for 200 aircraft

Dubai Aerospace Enterprise, which aims to make its mark in just about every aspect of commercial aviation, served notice here of its intention to "quickly become a leader in the aircraft leasing business" with the signing of letters of intent for 200 Airbus and Boeing aircraft worth just over $27 billion.

Adding to the words of DAE Chairman Ahmed bin Saeed Al-Maktoum, MD Omar bin Suleiman said, "In six short months, DAE Capital has built a business from scratch through its strong management team and clear vision of becoming one of the top leasing companies globally."

The Boeing order is for 70 737NGs, five 747-8 freighters, 10 777-300ERs and 15 787s, while Airbus received a commitment for 70 A320s and 30 A350 XWBs. Boeing's order was valued at $13.7 billion at list prices, with the Airbus aircraft worth around $13.5 billion. Deliveries of the Boeing aircraft will start in 2010 and continue through 2018, with Airbus deliveries beginning in 2013 and ending in 2022. Airbus President and CEO Tom Enders said he expects DAE to close on its deal before year end.

DAE said it already has reached a $1.2 billion accord with Rolls-Royce on the Trent XWBs needed to power the A350s, while GE announced that DAE's 777-300ERs will be powered by the GE90-115B and its 747-8s will use the GEnx. Those orders are valued at $770 million at list prices. CFM International, meanwhile, announced a CFM56-7B contract covering the 70 737s worth about $945 million at catalog rates. Those aircraft should deliver in 2010-15, CFM said.

DAE Capital CEO Bob Genise said the orders "will help us meet the demand for new aircraft, particularly in the Middle East and Asia, over the next decade or more." He told media here that no customers have been secured so far and that efforts to lease the aircraft will start closer to the delivery date. He expects approximately 25% of the leases to be to operators in the Gulf region with 35% coming from the Asia/Pacific, 15% from the US and the balance from Europe.

DAE Capital is one of DAE's six segments that eventually will be based at the new Dubai World Central airport being constructed at Jebel Ali. The other divisions are DAE Airports, DAE Engineering, DAE Manufacturing, DAE Services and DAE University, the combination of which is designed to "allow customers to benefit from a world class shared knowledge and service pool," DAE said.
by Geoffrey Thomas

Dubai orders propel Airbus to record year

Airbus's impressive haul at the Dubai Air Show has ensured that it will set a new orders record, CCO John Leahy told media here yesterday. It had sold 1,021 aircraft at the end of October, and with significant orders from Dubai Aerospace Enterprise, Emirates, Saudi Arabian Airlines, Air Arabia and National Air Services during the show's first two days it already has eclipsed last year's standard of 1,111 sales. Leahy also said the company is on track to set a deliveries record, with a target of 450 by year end.

Regarding growth in the Middle East, he said Airbus will take a "very hard look" at raising its market forecast for the region in January. He said Dubai's ideal location could be a principal driver for further orders, as 90%-95% of the world's population is within a nonstop A350 or A380 flight from the city.

Another explanation for the glut of orders in the region is the dearth of delivery slots, Leahy said. "We are sold out with single-aisle aircraft through 2012, sold out with widebody aircraft through 2011 with only a handful of orders in 2012," he said. "Airlines are now looking at their fleet needs and saying, 'If I sit around and wait another year they'll be sold out in '13 and '14 so I better place my order now.'"

At the same press briefing, Airbus President and CEO Tom Enders said he could guarantee that both Emirates and Qantas will receive their first A380s next summer and that the program's recovery is well under way. The company plans to deliver 13 of the type next year, he said, and will ramp up production to reach a maximum four A380s per month in 2010. Production of other aircraft will be increased as well--by 2010 Airbus plans to produce 40 A320 family aircraft per month rather than the current 36 and 10 A330s/A340s per month rather than the current seven.

Despite the progress, Leahy reiterated that Airbus will not consider relaunching the A380 freighter program until well after the production goal is reached (ATWOnline, April 26). "We essentially moved it back to the middle of the next decade," he said, adding that the rising popularity of the A350 has left a freighter version impractical for the time being. "I don't have slots that customers need for the passenger version, so I don't see any imminent need to start building a freighter at all," he said.
by Brian Straus

Air Arabia banks on A320

Air Arabia yesterday signed a contract for 34 firm A320s plus 15 options, adding to Airbus's haul here and staking its claim as the largest LCC in the Middle East. The deal does not include an engine choice and is worth approximately $3.5 billion at catalog prices. It will more than triple the carrier's fleet and puts it on course to reach its target of 50 aircraft by 2015.

"Our vision is to be one of the world's leading low-cost carriers in terms of profit margins, innovation, reputation and operational excellence," Chairman Abdullah bin Mohammed Al-Thani said in a statement. "Having the A320 at the heart of our fleet is the best and quickest way we can achieve this." The Sharjah-based carrier currently operates 11 leased A320s to 37 destinations in the Middle East, Central Asia, North Africa and India.
by Brian Straus

Saudi Arabian places first Airbus order in more than 20 years

In a major shift away from Boeing, Saudi Arabian Airlines yesterday signed an MOU with Airbus for 22 A320s plus eight options as part of its fleet modernization. At the same time, it announced leases for 10 additional A320s from GECAS and another 10 from Bahraini Bank Gulf One.

The A320s will replace the airline's fleet of MD-90s and also will take over many regional routes from its 777s. Deliveries will start in 2009, with some of the aircraft replacing seven A320s currently operated on lease.

CFM International said Saudi Arabian chose the CFM56-5B to power the 10 aircraft leased from GECAS in a deal worth $135 million at catalog prices. Those aircraft are scheduled to begin delivering in 2010, CFM said. No other engine details were available.

The aircraft order represents the carrier's first from the European manufacturer since it became the A300-600 launch customer. That aircraft was delivered in 1984. DG Khalid Al-Molhem said that "investing in a new fleet of Airbus single-aisle aircraft enables us to benefit from an aircraft that is unquestionably right for our needs and for those of our passengers."

He told ATWOnline that the selection is "the first stage in the modernization plan" that also includes 777 cabin upgrades. He added that Saudi Arabian is looking at adding more 777s or alternative types. However, he said it is not interested in entering the hub wars with other Gulf carriers: "We only want to bring travelers and tourists to visit Saudi Arabia."
by Geoffrey Thomas

Nas air fills out fleet with E-Jets

One day after placing its A320 order, Saudi Arabia's National Air Services signed a contract for five Embraer 190s, plus five options and 12 purchase rights with the manufacturer and a separate agreement with GECAS for three more E-190s and two E-195s. The aircraft will be operated by its nas air low-fare airline.

The five firm aircraft ordered from the manufacturer are worth $172.5 million at list prices (based on January economic conditions), and the deal could reach $759 million if all options and purchase rights are exercised, Embraer said. Aircraft will be configured in a single-class layout with 114 seats on the 190 and 118 on the 195. The first will arrive in February from GECAS.

"We have a very aggressive development plan and we need the right aircraft to achieve it," nas air CEO Ed Winter said. "The Embraer E-Jets family has a proven operational background in the Middle East. This, combined with the versatility of these aircraft, which are in operation with other budget and mainline airlines, as well as regional carriers, convinced us that the Embraer 190 and the Embraer 195 are the perfect aircraft for our operations."
by Brian Straus

Royal Jordanian followed through on its commitment to increase its 787 fleet (ATWOnline, May 22), converting the two options it held with Boeing and announcing a lease deal with CIT Aerospace for two more 787s. RJ also signed a 12-year OnPoint Solution Services agreement with GE Aviation covering MRO on GEnx engines powering up to 12 787s.

Separately, the carrier announced that it transported 202,000 passengers in October, an increase of 40% over the year ago month. Load factor soared 11.5 points to 73.2%. RJ credited improved ontime performance, new aircraft and enhanced onboard food and entertainment options for attracting more passengers.

Dubai-based LCAL ordered six more 787s, taking its firm commitment to 21. LCAL was the first leasing company to order the Dreamliner two years ago (ATWOnline, Nov. 22, 2005) and will be the first to take delivery in 2009. It already had ordered the Trent 1000 and "is negotiating with GE to equip some of its fleet with GEnx engines," Boeing revealed. The new order is worth approximately $972 million at catalog prices, the manufacturer said. It had been attributed to an unidentified customer. Firm orders for the 787 now stand at 738 from 51 customers.

Kang Pacific Airways, a low-cost new entrant to be based in Fujairah, will launch its first flight Dec. 20 to Manila. Operating initially with two leased DC-10s, the carrier owned by UK-based businessman Paul Kang will fly the route thrice-weekly to start and intends to expand to Kochin in February, when it will launch a twice-weekly service. Kang told ATWOnline here that he has invested $10 million in the startup and that "demand is very high" for low-fare service from the UAE to countries that provide a significant number of workforce and visitors to the Gulf state or those who may use it as a connecting point between the UK and South Asia. KPA is planning to begin flying to Nottingham East Midlands in June and eventually to Amritsar, Dhaka and Columbo. Kang said all routes could be operated initially with the two aircraft and offered no details about further aircraft acquisitions. KPA will offer full meal service onboard and free bus service from Dubai, Abu Dhabi and the other Emirates to Fujairah.
by Brian Straus

Dubai World Aviation City, a component of the 140-sq.-km. Dubai World Central complex under construction in Jebel Ali outside the city of Dubai, will include the world's largest MRO center, officials announced here. "The MRO center will be the world's biggest in land area earmarked for development and will be able to handle all types of aircraft from light jets to superjumbos such as the A380," Chairman Ahmed bin Saeed Al-Maktoum said. "DWC Aviation City will not only feature the MRO center, but also repair and test as well as aircraft system and components installation facilities."

The City will measure 6.7 sq. km., is a AED5 billion ($1.36 billion) project and will include "several aviation colleges and training centers," light manufacturing and R&D facilities among other features. It is planned to begin operating in 2009, with the massive six-runway Al-Maktoum International Airport that will anchor it going live by the end of next year.

DWAC will be open to outside companies as well, with Gulf Aerospace Co. among the first to sign up. Yesterday it announced the signing of an MOU to build a $50 million, 23,960-sq.-m. MRO center within the City's free zone area. GAC will construct its own hangar and will have air- and landside access to the new airport.

Rockwell Collins announced a series of deals here starting with Qatar Airways' selection of a "broad array" of avionics for 20 firm 777s that the airline ordered Sunday. Its deal with RC also includes options for 20 additional 777s. The order covers the WXR-2100 MultiScan Hazard Detection System, TCAS and SAT-2100 satellite navigation with dual SwiftBroadband, along with a complete suite of communications, navigation and sensors.

Emirates chose RC avionics for 47 777s plus 12 options. Delivery already has begun. It ordered MultiScan along with the GLU-920 Multi-Mode Receiver, ADF-900, DME-900, HFS-900D, CPL-920D Coupling Unit and VOR-900. In addition, it selected RC's Airshow 4200D Moving Map and Flight Information System for its 777 and A380s.

Thales announced that Saudi Arabian Airlines selected the TopSeries i5000 IFE system for its 22 777-200s. The system includes on-demand video, music and games and comes with a laptop power connector, USB port and RCA jack. It will be retrofitted onto the aircraft, with first flight scheduled for June. The carrier also will install the Aeromobile System, enabling passengers to use mobile telephones during flight.

Jordan Aircraft Maintenance Ltd., announced a five-year MRO agreement covering medium and heavy checks on Niki's fleet of A320 family aircraft, including those yet to arrive. JorAMCo said Niki has six in operation and will take two A320s next year and several more thereafter. The MRO already had a European presence thanks to its contract with Vueling Airlines, and it has started working on TUIfly aircraft as well.