Emirates Weighs a New Boeing 777X Order in Fleet Shakeup
(Bloomberg) -- Emirates is weighing a fresh order for Boeing Co.'s behemoth 777X twin-aisle plane as part of a complex series of transactions that would remake its fleet plans and likely spell the end of Airbus SE's A380 superjumbo jet, people familiar with the matter said.
The moves probably wouldn't be a ringing victory for Boeing or a total defeat for Airbus. Emirates is considering at least 20 of the 777X planes while weighing the cancellation of an existing deal for 40 Boeing 787 Dreamliners, said the people, who asked not to be named as the discussions are private. For Airbus, the airline is looking at cutting the A380 order while studying orders for the wide-body A350 jetliner and slow-selling A330neo, the people said.
With the reshuffled agreements, Emirates President Tim Clark would split both pain and rewards between the rival planemakers. The juggling act is emerging as one of the preferred options for Dubai-based Emirates as it looks to break a deadlock with Rolls-Royce Holdings Plc over terms to supply engines for the airline's most recent A380 deal, the people said.
Clark is known for putting pressure on suppliers, and the final outcome of the talks isn't yet certain, the people cautioned. The negotiations over the Emirates order for as many as 36 A380s had reached an impasse toward the end of last year, with alternative plans being drawn up in the last few weeks, one of the people said.
Representatives of Airbus and Emirates declined to comment, adding that discussions were continuing. Boeing and Rolls declined to comment.
The Emirates pact for the Dreamliners was never finalized. Boeing's 777X and Airbus's A330neo have each struggled to drum up significant order backlogs.
--With assistance from Christopher Jasper.
To contact the reporters on this story: Julie Johnsson in Chicago at jjohnsson@bloomberg.net;Benjamin Katz in London at bkatz38@bloomberg.net;Layan Odeh in Dubai at lodeh3@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson
©2019 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
