Abu Dhabi's Etihad Slashes $21 Billion of Airbus, Boeing Orders

(Bloomberg) -- Etihad Airways slashed orders worth $21.4 billion at list prices for Boeing Co. and Airbus SE jetliners, pushing forward with a drastic restructuring after years of operational losses.

The state-owned Gulf carrier cut its order for Boeing 777-9 aircraft to 6 jets from 25, while canceling delivery of 42 Airbus A350 wide-bodies, leaving it with 20. While the airline will continue receiving Boeing 787 Dreamliners, Etihad said it'll decide what to do with the rest of the original order later, "through rescheduling, restructuring or reduction."

With the cancellation of $1.1 billion worth of A320neos last month, Abu Dhabi-based Etihad has taken $22.5 billion of orders off the table for the plane-manufacturing duopoly. The figures don't include customary discounts that lower final prices. Airbus announced the loss of the A350s, a modern wide-body, on Thursday when it said it would shut down the older A380 superjumbo program after a dozen years.

“This will enable the airline to further progress its transformation and adjust to its new operating model,” Etihad said in a statement. The airline “can now concentrate on the phased introduction of new aircraft types, enabling an efficient rationalization of its fleet, and building a network that connects Abu Dhabi to the world.”

The airline has cut thousands of positions, put the brakes on a costly expansion and scrapped marginal routes, after almost $3.5 billion in losses in over two years. The airline is also being sued over an August 2017 decision to cut financial support for defunct German carrier Air Berlin.

Etihad has 43 unfilled orders from the 787 family, according to Boeing's January monthly report.

--With assistance from Julie Johnsson and Benjamin Katz.

To contact the reporter on this story: Layan Odeh in Dubai at lodeh3@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John Bowker

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