Chillin' out till it needs to be funded
The Emirates’ airliner is taking delivery of upto 66 aircraft till 2019. It has increased its stake today in Air Berlin to 29.3% ducking the 30%
threshold in the German code. The airline is a relative newcomer, founded in 2003 and owns 18 777s instead of a fleet of 747s with some 757s at other global airlines. It has a fleet of 30 aircraft to service its 84 destinations, 9 of them Cargo freighters. Its fleet has some Airbus and some McDonnell Douglas aircraft but all the new orders are with Boeing made in march and November this year.
Etihad(Dubai) is not alone in their ambition to be a Gulf airline with a global reach. Emirates(Abu Dhabi) has earlier signed a $18 bln deal with Boeing in October for 18 new aircraft (777s) with another 20 options to increase the order at a future date that would take the order value to $26 bln. Qatar has gone for adding smaller A300neos to its fleet, going to Airbus for its expansion by 55 aircraft ( 50 neos, 5 380s ) for a $6.5 bln investment
Etihad is planning its breakeven this year having produced $1.7 bln in the first half of operations. Europeans have already raised noise levels against this surprising expansion of the gulf operators as a national strategy
Boeing and Airbus have been ssellin gthe Middle East dream t their investors in the last month, showcasing that between 1900 ( Airbus) and 2520 (Boeing ) new aircaraft will be required by airlines from the region till 2030. The Airbus estimate is approximately worth $350 bln and the Boeing estimate a little higher at 550 aircraft.
The aviation industry however has proved to be a back breaker for most. While people fly more and more each day, corporate budgets have been cutting on airlines expenditure and capacity is in danger of not reachign breakeven in 2012 at more airlines’ than in 2011. Chapter 11 bankruptcy protection has been keyy to US airlines coming out of the vicious cost loop with the last one being American Airlines.
This is a good enough start for the focus series so , I’m going to go ahead with other work ( washing my dog) while you enjoy this.