On Monday, Dubai carriers issued over $50 billion worth of Boeing jet orders to emerging regional competitors, heightening competition to secure dwindling long-haul jet supplies and accommodate the anticipated expansion of international travel.
Emirates, a government-owned airline, and its sibling airline operate flights.Dubai acquired 125 wide-body aircraft from Boeing (BA.N) at the commencement of the Dubai Airshow, but did not place an order with Europe’s Airbus (AIR.PA) for A350 jets that are essentially identical.
Orders comprised 55 of the more compact 777-8 and 35 of the 400-seat Boeing 777-9, providing a boost to the 777X program, which has been affected by delays for the past five years.
Additionally, Emirates acquired five additional 787 Dreamliners, whereas flyDubai placed its inaugural long-haul order for thirty of the same type.
“Together these orders represent significant investments that reflect Dubai’s commitment to the future of aviation,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates and flyDubai.
He stated that Emirates anticipated receiving the 777X in 2025, which corresponds to the most recent target set by Boeing.
Abu Dhabi’s economy is heavily reliant on the aviation and tourism sectors, as the country does not possess the substantial hydrocarbon reserves found in many neighboring countries.
Following the orders, which included 45 narrow-body 737 MAX aircraft for German-Turkish airline SunExpress, Boeing shares increased 4.4% in New York.
It was reported that this week’s discussions between Chinese President Xi Jinping and U.S. President Joe Biden could end a protracted ban on Chinese 737 purchases also contributed to the increase in shares.