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Boeing Loses Dubai Aerospace Order for 737s at List Price of $2.3 Billion

By Susanna Ray - Feb 4, 2011 4:36 AM GMT+0400


A Boeing Co. 737 aircraft sits on the production floor of the Boeing final assembly facility in Renton, Washington. Photographer: Daniel

Acker/Bloomberg



Boeing Co. lost an order for 32 737 jets, valued at about $2.3 billion at list prices, from Dubai Aerospace Enterprise Ltd., the state-owned leasing and services company that has said it may drop some purchases.
Dubai Aerospace’s current backlog for 737s is 35, according to a monthly update yesterday on Boeing’s website, compared with 67 as of December. Separately, Boeing’s weekly order report showed 32 orders for the single-aisle aircraft had been canceled, without identifying the buyer.
Dubai Aerospace has been studying whether to scrap more orders as aircraft demand wanes, two people with knowledge of the matter said in December, after canceling plans last year to buy 47 jets from Boeing and Airbus SAS. An e-mailed request for comment to the company’s headquarters before regular business hours today wasn’t immediately returned.
“It would be inappropriate for Boeing to comment on the details of our agreements with customers,” said Marc Birtel, a spokesman for the planemaker in Seattle, where the company’s commercial operations are based.
Dubai Aerospace was set up in 2006, entering the leasing market during the peak of an air-travel boom, with the aim of becoming one of the world’s biggest airplane lessors. Airlines and leasing companies typically don’t pay list prices.
Boeing also won an order for 10 737s from an unidentified customer, according to yesterday’s update. The order and cancellation brought the Chicago-based company’s net orders for the model in January to zero. Boeing won an order last month for two of its twin-aisle 777 jetliners.

Old King Coal

I think you'll find that news is to do with an aircraft leasing company (Dubai Aerospace Enterprise) and is not, ostensibly, to do with the business entity 'Dubai Aviation Corporation' (which trades as 'flydubai' ) ... albeit who's to say what goes on at the top in the UAE, wrt to who owns what & whom?!

If you have a look at Dubai Aerospace Enterprise cancels 32 737s you'll see that it states: "Of the 38 aircraft, DAE's 737 order is made up of 34 737-700s and 4 737-800s. Three of the four 737-800s were delivered in 2010."

Given the majority of aircraft type mentioned (-700 series) it would certainly seem unlikely that this would specifically affect flydubai's deliveries (what with flydubai presently being a solely -800 series operation) ?!

Maj09

look again folks.......

Anthill

Lady like, I have been in the industry for 23 years and have never paid for a type rating (7 heavy jets) or interview. On one occasion, I paid for my own transport across the country to attend an interview. During the last 12 years, I have been type rated on F100, B737 and B777 and in each instance, the rating was supplied by the company. It was fair that they applied a bond, which I served before moving on. I have not had responses from several companies(ie:Jetstar) as I said that I would not pay for my rating.

The last company provided B777 type rating and paid during training. They had said that my contract would include that I pay for rating and I said that I did not think that appropriate and that I would consider the contract when it was sent as a formal offer. I also said that they should offer more money--guess what?? The contract included B777 rating and more $$$$.

There is a shortage of experienced pilots and it is possible to negotiate a better deal. However, I do suggest that some recruitment companies will only forward candidates who are prepared to be walked over. From the perspective of the airline, this will eventually be seen as a latent organisational deficiency. As for the recruitment consultants, what would they care-not their company, not their responsibility--unless they or a loved one gets killed by a sub-standard crew.

Hogg

Nice one man, very good post.
I wish more of us "had the balls". Good on ya

DIAPER

You are one hundred per cent totally rigth .

DZPILOT87

hI GUYS !

Any one has an idea wether flydubai hires fresh graduates SO's or not ???

Thank you !

Cloud Bunny

Not at the moment no.

Miss Aviator

For the record I got invited to CTC selection and no mention of a fee -- however, the fee portion stated "0" so seeing as they have such a column means that they charge sometimes (!!) Very strange. But since mine said zero I will give it a shot....
Now back to the original posted question...
Please if anyone has any info about CTC selection process please share. I have ordered the book "Get a head for the sky" from what I read of two posters on pprune saying it helped them.

frogone

The £150 fee has been removed by FD and CTC. I met with some FD guys a few weeks back. Apparently only about 1/3 of the people who started filling out the application actually went on to finish and submit it. So the 'fee' is gone. Makes you wonder what the fee was for in the first place?

DIAPER

So now they do not ask for money , maybe f/d pay them directly for each guy. Anyway, I hope God give all of you justice instead of luck because for me it´s clear the need to keep the business runing no matter how.
If you decide to go , I guess is better for your pocket make a reservation in ETAP Hotel in Southampton instead of CTC building, it´s cheaper and you will not increase their profit.

GOOD luck.

iranair

Has anyone been to the final stage of the interview in dubai ? and maybe you can shine some light on the matter !!!!

Miss Aviator

@frogone Do you have any info re CTC's selection process ? Any info would be appreciated (I have read all that is available on pprune) PM if you feel more comfortable.

@DIAPER Thank you for the suggestion, I will check ETAP out. I take it you have been to CTC? Were you there for any selection by chance ?

MA.82

Hello mate,
I went through the selection process two weeks ago and luckily got into last stage of the selection - went to the interview in Dubai couple of days ago.
The CTC part is not difficult at all - just briefly interdouce yourself and few group questions to solve as a team with other two or three people there. Their are most likely not so much interested in what kind of solution will you come up with , rather they are looking at your behavior among the group. Then we had a computer based test called PILAPT which was 6 modules of different tasks - mostly to make sure you can choose your priorities and concentrate for certain period of time. After that we had about 40 minutes interview "one on one" with the CTC recruitment person - which was only nice little chat - nothing technical.
The next day we had a sim check which was only about 45 min. as PM and 45 min. as PF in fixbase B737NG kind of sim. No emergeny, just raw data flying no AP no AT no FD, simple departure and some holding and own navigation ILS in Liverpool. And yes. I was little suspicious about paying the 150 GBP but I decided to go for it and see. I had the feeling there is more to be lost if I do not try it than there is those 150GBP. But it is everyone's choice. So good luck mate and I may see you in Dubai. Seeya MA.82

Sciolistes

I just read some article on Dubai regarding obtaining credit. It seems that your creditworthiness is wholly (it not majorly) dependant on which company you work for. The banks apparently maintain a list of stable reliable business in the Emirates and so long as you work for one of those firms, you get to drive your Panda/Porsche (delete as appropriate) away.

I presume Emirates Airlines is in good standing. But what about flydubai? It hasn't be up and running that long an may not be in favour with the banks yet, so I wondered if current FD people here could recant their experience of obtaining credit for big purchases.

skysod

Been here over 18 months now......never had a problem with my bank (HSBC).

Voodoo 3

I would imagine a banks lending is more wonga related than who you work for. That is, as long as you've got enough in the bank and you get paid from your company every month, whomever it may be, I wouldn't think there would be too much of an issue getting credit.

Maybe others have had different experiences though.

V3

stixits

Good luck! And don't let them scare you with a 3 years $24.000,- bond. Which only made sense if you didn't have to bring your 737 typerating yourself. You might even ask around before you go and check how many people actually made it through 3 years of living in the dust.

Miss Aviator

Thanks M.A.82,

Nice post. First I have to pass CTC selection to see you in Dubai

So what happens if you want to leave before 3 years ? What did the others in this situation do -- fork out the remaining bond money ?

Cheers,
M.A.

James T. Kirk

It would be better to avoid taking out large loans in the UAE altogether. The banking system is very different from the ones you may be used to and is often used just to separate the expat from his money. For example, good used cars in the UAE are cheap and could easily be bought for cash. Your western credit card should work perfectly there as well and you would do well to avoid the local cards which they will try to get you to take. You would be very well advised to use your UAE bank account only to get your hard earned money out of the UAE. Most local banks will offer one or two free transfers per month although it is worth checking if these are standing orders or if you have to turn up at your branch and sign forms.

In short if you keep your western account and card running and channel all your finances through that you will be far more fireproof during your time in the UAE.