Jetjock330
5th Dec 2008, 23:50
Etihad firms up $10b landmark deal with Airbus for 25 advanced A35os (http://www.gulfnews.com/business/Aviation/10265158.html)
Reuters
Published: December 05, 2008, 23:46
Paris: Etihad Airways has firmed up a $10 billion (Dh36.78 billion) Airbus plane order in a landmark deal that could see the planemaker build part of its next generation of jets in the emirate, a source close to the deal said on Friday.
The order, whose fate had been left uncertain as financial turmoil engulfs even the world, follows a manufacturing deal between Airbus parent EADS and Abu Dhabi's Mubadala Development fund.
It is also the tip of the iceberg in a wider contest for orders with Boeing spanning three continents, industry sources said.
The order includes up to 25 future Airbus A350-1000s worth $270 million each. Although the deals are not publicly linked, industry sources said part of the A350s lightweight composites structure would be built at a new high-tech plant in Abu Dhabi.
http://gulfnews.advertserve.com/servlet/view/banner/image/zone?zid=36&pid=0&position=1 (http://gulfnews.advertserve.com/servlet/click/zone?zid=36&pid=0&lookup=true&position=1)
Airbus and EADS declined to comment. Latest Airbus monthly orders are due to be published in the next few days.
Etihad has said its pending plane order from Airbus, part of a $20 billion purchase split between Airbus and Boeing that was first unveiled at an air show in the summer, is not directly connected to the Mubadala Development industrial deal.
However, the extent of talks and the length of time it took to confirm the deal, and a supportive political climate between France and Abu Dhabi, all point to a broad-based negotiation.
"It is clear that the Mubadala deal was a structural element of the whole thing," a source familiar with the region said.
EADS plans to move some production offshore to escape currency volatility and high labour costs in Europe. But an earlier deal to assemble single-aisle planes in China from 2009 showed it was also prepared to invest where it has local plane orders.
The A350 is being developed as a response to Boeing's 787 Dreamliner, which has so far dominated the lucrative market for next-generation mid-sized planes designed to be less thirsty for fuel but which is also facing a new round of delivery delays.
Battle
The Etihad order follows a particularly fierce battle between Airbus and Boeing that is significant at two levels - strategic and commercial, industry sources said.
By putting down industrial roots in Abu Dhabi, EADS is forging ahead with a strategy of increasing its global industrial footprint.
The industrial deal is also seen as an insurance policy as both Airbus and Boeing face a slew of potential order cancellations or deferrals as the airline industry weathers a downturn in travel due to the global financial crisis.
Airbus is most heavily exposed to the Gulf region, which represents a significant slice of its order book and the lion's share of orders for the A380, whose biggest customer is Emirates.
On the commercial level, the Etihad deal is the latest move in an intricate chess game being played across global aircraft markets which involves the future of Boeing's latest 747.
Boeing decided not to build a direct rival to the 525-seat A380, which it regards as oversized, but it launched an upgraded and expanded version of its 747 jumbo, the 747-8, to protect the upper end of its range.
Winning Etihad was crucial in veteran Airbus sales chief John Leahy's efforts to capture the biggest prize still eluding his company, the Japanese market, which is all but locked up by Boeing.
More technicians from Peshawar needed now!
Reuters
Published: December 05, 2008, 23:46
Paris: Etihad Airways has firmed up a $10 billion (Dh36.78 billion) Airbus plane order in a landmark deal that could see the planemaker build part of its next generation of jets in the emirate, a source close to the deal said on Friday.
The order, whose fate had been left uncertain as financial turmoil engulfs even the world, follows a manufacturing deal between Airbus parent EADS and Abu Dhabi's Mubadala Development fund.
It is also the tip of the iceberg in a wider contest for orders with Boeing spanning three continents, industry sources said.
The order includes up to 25 future Airbus A350-1000s worth $270 million each. Although the deals are not publicly linked, industry sources said part of the A350s lightweight composites structure would be built at a new high-tech plant in Abu Dhabi.
http://gulfnews.advertserve.com/servlet/view/banner/image/zone?zid=36&pid=0&position=1 (http://gulfnews.advertserve.com/servlet/click/zone?zid=36&pid=0&lookup=true&position=1)
Airbus and EADS declined to comment. Latest Airbus monthly orders are due to be published in the next few days.
Etihad has said its pending plane order from Airbus, part of a $20 billion purchase split between Airbus and Boeing that was first unveiled at an air show in the summer, is not directly connected to the Mubadala Development industrial deal.
However, the extent of talks and the length of time it took to confirm the deal, and a supportive political climate between France and Abu Dhabi, all point to a broad-based negotiation.
"It is clear that the Mubadala deal was a structural element of the whole thing," a source familiar with the region said.
EADS plans to move some production offshore to escape currency volatility and high labour costs in Europe. But an earlier deal to assemble single-aisle planes in China from 2009 showed it was also prepared to invest where it has local plane orders.
The A350 is being developed as a response to Boeing's 787 Dreamliner, which has so far dominated the lucrative market for next-generation mid-sized planes designed to be less thirsty for fuel but which is also facing a new round of delivery delays.
Battle
The Etihad order follows a particularly fierce battle between Airbus and Boeing that is significant at two levels - strategic and commercial, industry sources said.
By putting down industrial roots in Abu Dhabi, EADS is forging ahead with a strategy of increasing its global industrial footprint.
The industrial deal is also seen as an insurance policy as both Airbus and Boeing face a slew of potential order cancellations or deferrals as the airline industry weathers a downturn in travel due to the global financial crisis.
Airbus is most heavily exposed to the Gulf region, which represents a significant slice of its order book and the lion's share of orders for the A380, whose biggest customer is Emirates.
On the commercial level, the Etihad deal is the latest move in an intricate chess game being played across global aircraft markets which involves the future of Boeing's latest 747.
Boeing decided not to build a direct rival to the 525-seat A380, which it regards as oversized, but it launched an upgraded and expanded version of its 747 jumbo, the 747-8, to protect the upper end of its range.
Winning Etihad was crucial in veteran Airbus sales chief John Leahy's efforts to capture the biggest prize still eluding his company, the Japanese market, which is all but locked up by Boeing.
More technicians from Peshawar needed now!