Emirates to buy 100 B777X if Boeing builds new model

[JuliusWong 0]

In a sign of defying world's glooming economy, Emirates, the world's largest airline by international passenger traffic, is likely to order 100 planes or more from Boeing if the plane manufacturer upgrades the design of the wide-body 777 with a newer model, the Dubai-based carrier's president Tim Clark said.

 

"If Boeing produced the airplane that we want I can see easily that figure, bearing in mind that we've ordered 175 of them," Clark said in an interview with Arabian Business. "If it's as good as we hope it'll be, it's a natural thing to say 'yes we would probably roll over what we have to what they're offering with the new aircraft'."

 

If Chicago-based Boeing was to produce the next generation of the long-haul 777-300ER (Extended Range), its most profitable aircraft to date, an order of 100 jets from Emirates would probably cost more than US$36bn considering the current list price for the 777-300ER.

That would be Boeing’s largest single order after Emirates ordered 50 of the company’s 777-300ERs in November last year.

 

More info: http://www.arabianbusiness.com/emirates-buy-100-777s-if-boeing-builds-new-model-478883.html

 

100 B777NGs!! These guys really don't know the limit.......

[Mohd Suhaimi Fariz 2]

I wonder if they're going to emerge as a super carrier, or end up biting the dust like Pan Am. The good times surely can't last forever.

[nrazmoor 0]

I wonder if they're going to emerge as a super carrier, or end up biting the dust like Pan Am. The good times surely can't last forever.

 

with the back-up of petro-dollar it is highly unlikely they will end up biting the dust.

Edited November 8, 2012 by nrazmoor

[flee 5]

Yes, they only need to manage business risk - financial risk management is not so critical.

 

With predatory pricing, they can muscle into markets. They can kill off many of the current carriers. That is why many countries are taking notice and are no longer allowing them open skies operations into their territories.

[Jack Emilius 0]

100? how are they going to utilize them properly?

[Y. J. Foo 0]

100? how are they going to utilize them properly?

The same way they deal with their 90 A380s. Although I would believe they are meant to replace their existing 777s.

[Syukri 0]

Thiss 100 is just to complement the 175 773ER they ALREADY had in order with Boeing, provided Boeing's idea of foldable wingtip really took off...

[Kee Hooi Yen 0]

Is he talking about Herpa models ?

[Guest Michael]

I think the money to run EK must be coming from the Sheikh would I be correct in my thinking? The Government there has a massive budget too I heard.

[Alif A. F. 0]

I think the money to run EK must be coming from the Sheikh would I be correct in my thinking? The Government there has a massive budget too I heard.

 

Initially the money comes from Dubai government (year 1985 with capital of $10 million if my memory is correct), then after two years EK broke even and paid back its creditor (in this case Dubai government). Since then, the airline is now on its own. But, then the government may hv indirect influence to the airline's success.

[Guest Michael]

I think so, MH can hopefully be this successful as well over time.

[Ashraf 0]

 

 

Initially the money comes from Dubai government (year 1985 with capital of $10 million if my memory is correct), then after two years EK broke even and paid back its creditor (in this case Dubai government). Since then, the airline is now on its own. But, then the government may hv indirect influence to the airline's success.

 

If Dubai had that sort of money, wouldnt it even be in the kind of debt it was in a few years back and still is today?

In fact not many people realize that Dubai is driven by trade, shipping, tourism, etc. as oil only accounts of 10% of its economy. Therefore the notion that EK gets cheap fuel does not hold water.

A lot of people also get confused between Dubai and UAE.It is Etihad that has bags of money as Abu Dhabi (the capital of UAE) bankrolls it.

EK has been profitable for the last 20 years and a healthy cash balance allows it to obtain loans from financial institutions, please check their website as you can see its audited accounts for the last 10 years, unlike the oher middle east airlines who do not disclose if they actually make a profit or loss. EK's fares are also at least 20% higher than EY, therefore it is more commercially driven than its neighbour. As a matter of fact EK paid USD250 million in royalty last year to the Dubai government. Now am waiting to see if MH can do the same.

 

 

[Lock SH 0]

 

............. As a matter of fact EK paid USD250 million in royalty last year to the Dubai government. Now am waiting to see if MH can do the same.

 

 

It is in the opposite sense for MH ....... the govt (be it in the form of any loan from any agencies at all) have to fork out not less than 5 times more than the amount mentioned above to make MH stays afloat .........