Emirates signs groundbreaking 90-plane deal for 777X at Dubai Airshow

Middle East Carriers Expected to Order Billions of Dollars Worth of Jets at Dubai Airshow

Middle East carriers are anticipated to place significant orders for long-haul jets at the opening of the Dubai Airshow on Monday. Despite concerns over the impact of the conflict in Gaza on the travel sector, hosts Emirates and flyDubai are expected to make a strong impression at the world’s second-largest aerospace event. Industry sources have revealed that Emirates is set to make a new order for 90 Boeing 777X jets. This order would provide a much-needed boost to the program, which has experienced uncertainties and delays. The deal could potentially be valued at around $40 billion at list prices.

Emirates, the world’s largest user of wide-body jets, is also considering additional orders for the Airbus A350 and the Boeing 787, although the latter is not expected to feature immediately. Parallel negotiations for an order of Airbus A350 by Emirates are currently on hold due to discussions about the terms of an engine deal with Rolls-Royce.

Meanwhile, flyDubai is set to order more Boeing 737 MAX medium-haul jets. It is estimated that airlines worldwide are currently negotiating to purchase approximately 700-800 new jets, including 200-300 of the largest models, as they aim to catch up on fleet replacement plans delayed by the pandemic.

Competition among Gulf groups is intensifying, with Turkish Airlines (THY) entering the scene by announcing talks to buy up to 355 Airbus jets. After further discussions, industry sources suggest that the airline may announce part of the deal during the airshow. Turkish Airlines is also in discussions for a total of 600 planes split between Airbus and Boeing.

Despite speculation, sources indicate that it is premature to expect a large Dubai order for narrowbody jets from Saudi Arabia’s Riyadh Air, the region’s newest player.

The Dubai Airshow is taking place against the backdrop of the Israel-Hamas conflict in Gaza, which has led to increased demand for weapons and airspace closures. This has resulted in longer and more expensive flights for some airlines. Flight bookings worldwide have fallen since October 7, with Middle East bookings experiencing a 26% slump, according to travel analysis firm ForwardKeys.

While the war in Gaza may reinforce demand for weapons, major arms deals are not expected at the airshow.

Overall, the success of the airshow in terms of securing orders will depend on ongoing negotiations and competition among airlines in the region.

(Reporting by Tim Hepher, Alexander Cornwell, Pesha Magid; Editing by Hugh Lawson and Lisa Shumaker)