Emirates Announces Order for 50 Airbus A350s Worth $16 Billion

Dubai-based carrier Emirates announced on Monday it would be buying 20 additional wide-body Airbus A350s, bringing its total order for the aircraft to 50 in a deal worth $16 billion at list price.

Separately, the Emirati budget carrier Air Arabia announced the purchase of 120 new Airbus planes in deal worth $14 billion.

Also, Turkey's SunExpress announced it will be buying 10 of the troubled Boeing 737 Max jets, grounded globally after crashes that killed nearly 350 people after take-off from Indonesia and Ethiopia.

SunExpress, based in the Turkish coastal city of Antalya, said this brings its Max fleet order to 42 overall. The order was for the 737 Max 8 valued at $1.2 billion at list prices. It's likely the airline would negotiate for a better price as Boeing talks to airlines about compensations for the grounding of the aircraft and reaches settlements with relatives of victims who perished.

The announcements were the first major purchasing agreements to be unveiled at the biennial Dubai Airshow this year amid a slowdown in mega purchases by the Middle East's big Gulf airlines. The airshow opened on Sunday and runs until Thursday on the grounds near Dubai's newest international airport.

The announcement by the Emirates essentially confirms a February order for 30 of the A350-900 planes that Emirates had announced that month and tacks on another 20 of Airbus' newest generation wide-body aircraft, bringing the total to 50.

Emirates Group Chairman and CEO Sheikh Ahmed bin Saeed Al Maktoum said the new deal "replaced" February's agreement for an intent to purchase 70 Airbus aircraft, which had included 40 of the A330neo. That deal was valued around $21.4 billion.

Air Arabia, which operates mainly out of the emirate of Sharjah, already has a fleet entirely made up of 53 Airbus aircraft, 52 A320s and one A321 Neo. The new deal announced Monday will include 73 A320neos, 27 A321neos and 20 A321 XLRs, with first delivery in 2024.

It comes as one of the country's main carriers, Abu Dhabi Etihad Group, announced recently a joint venture with Air Arabia to launch Air Arabia Abu Dhabi, the first low-cost airline based in Abu Dhabi.

Meanwhile, Abu Dhabi's flagship carrier Etihad Airways said Monday it's launching one of the world's most fuel-efficient long-haul airplanes as the company seeks to save costs on fuel and position itself as a more environmentally-conscious choice for travelers.

Etihad's "Greenliner" is a Boeing 787 Dreamliner that will depart on its first route from Abu Dhabi to Brussels in January 2020. Etihad's CEO Tony Douglas described the aircraft as a flying laboratory for testing that could benefit the entire industry.

With fuel costs eating up around a quarter of airline spending, Douglas said the goal of the Greenliner is to be 20% more fuel efficient than other aircraft in Etihad's fleet.

"This is not just a box-ticking exercise," he told reporters at the unveiling of the initiative at the Dubai Airshow alongside executives from Boeing.

Douglas said the aircraft "not only makes sense economically from a profit and loss account point of view, but because it also directly impacts the CO2 because of the fuel burn."

Etihad has reported losses of $4.75 billion since 2016 as its strategy of aggressively buying stakes in airlines from Europe to Australia exposed the company to major risks.

Despite its financials, the airline continues to be among the most innovative.

This year, Etihad flew the world's first passenger flight using sustainable biofuel made from a plant that grows in saltwater. It also became the first in the Middle East to operate a flight without any single-use plastics on board to raise awareness of the effects of plastic pollution.

Aviation accounts for a small but rapidly growing share of greenhouse-gas emissions _ about 2.5% worldwide. But forecasters expect air travel to grow rapidly in the coming years.

There's a small but growing movement in Europe and North America that's shunning air travel because it produces high levels of greenhouse gas emissions. The trend is most prominent in Sweden, where the likes of teen climate activist Greta Thunberg have challenged travelers to confront the huge carbon cost of flying.

Some campaigners are also "flight shaming" travelers for their carbon footprint. Most recently, Prince Harry and his wife Meghan were criticized for flying on private jets this summer while calling for more action on climate change.

Etihad says it plans to make the Greenliner a "social media star" to bring under sharper focus its developments and achievements worldwide. Douglas said anything that Eithad learns with Boeing from this aircraft's operations will be open domain knowledge because it's about moving the industry forward in a responsible fashion.''

"We're like a millennial and like all good millennials, they're really focused on the environment and the sustainability agenda," Douglas said, referring to Etihad's 16 years in operation.

The Greenliner will be the only aircraft of its kind in Etihad's fleet of Dreamliners. The company currently has 36 of the 787s in its fleet with plans to operate 50.

"This is a small step today, but in a very, very long journey," Douglas said.

Source: Voice of America