Emirates reportedly cancelled $20-billion worth of aircraft deals at Dubai Airshow
Emirates Airline’s two major Airbus and Boeing aircraft deals announced at the Dubai Airshow 2019 actually represented a $20-billion re-structuring of previously announced agreements, according to Forbes.
“The orders are not new, they are in fact putting pen to paper on previously announced deals, and in-fact represent a contraction of not only aircraft numbers but additionally the actual size of the aircraft ordered,” writes James Asquith in an op-ed.
According to Asquith, Emirates have confirmed and reduced four separate aircraft orders at the Dubai Airshow.
It confirmed its A380 cancelation of the final 39 frames by ordering 50 A350s instead, which cancelled a commitment to buy 40 A330neo aircraft which had originally been announced to replace the A380 cancelation.
According to Forbes the new deal was worth US $16-billion at list prices compared to the original order worth US $21.4 billion.
Emirates also reduced the size of their 787 order to 30 and the size of the aircraft itself, opting for a smaller 787-9 version rather than the stretched 787-10 variant. The 787 order also led to a reduction of 30 777x aircraft that were previously on order.
Emirates order for 30 Boeing 787-9 aircraft worth US $9 billion represents a further US $4.5 billion reduction at list prices from Emirates’ original order, according to Asquith.
Furthermore, the confirmation of the previously announced larger Dreamliner order has come at the additional expense of 30 777x aircraft that has recently faced delays into production until 2021.
Emirates have substituted 30 aircraft from their 777x order to the smaller 787-9 which represents a $12.2 billion order reduction at list prices.
“The announcements at the Dubai Airshow represent a net reduction of more than $20 billion of aircraft orders versus previous announcements,” says Asquith.