Airbus in talks with flydubai, Emirates over Dubai Airshow orders

Airbus remains confident it can secure order for A380s from Emirates
Dubai-based discount carrier FlyDubai, which is negotiating for as many as 175 narrow-body planes
By Bloomberg
Tue 14 Nov 2017 08:18 AM

Airbus heads into the third day of the Dubai Airshow with no announced orders, raising pressure on the manufacturer to clinch some deals and gain ground on arch-rival Boeing, which built an early lead at the event.

Airbus is working to turn around its fortunes during the remainder of the show, according to people familiar with the negotiations.

Among prospective orders are accords with EgyptAir Airlines for A320neo single-aisle aircraft, as well as a deal with Dubai-based discount carrier FlyDubai, which is negotiating for as many as 175 narrow-body planes, said the people, who asked not to be identified as talks are private and an agreement may change or get delayed.

The European planemaker remains confident it can bring home a highly anticipated order for about 36 additional A380 super-jumbos from Emirates. That deal has eluded the company so far, dealing an embarrassing blow to Airbus that was compounded when Boeing signed its own pact with the airline.

Boeing isn’t done with deals yet, either. Among the transactions in its pipeline is a deal to place about half a dozen 787 Dreamliners with EgyptAir, according to people familiar with the talks. Representatives for Airbus, Boeing and the airlines involved declined to comment.

Deal Forum

Air shows are forums that bring together manufacturers and customers and offer a prime opportunity to close deals that have been brewing in the background for weeks or months. Airbus in particular has used the events for bragging rights, tallying its overall haul at the end of each show and comparing its wins with those of Boeing.

As Airbus finds itself in the unusual situation of not having a single buyer after two days, it has to deliver in the last two days to avoid its biggest commercial humiliation in years.

The company typically excels at air shows, having perfected the art of the aircraft deal under longtime sales chief John Leahy, who relishes clinching last-minute accords and counting up gains at the expense of Boeing. With Leahy set to step down in coming months, that carefully honed choreography is facing an uncertain future.

The changing fortunes were on display on the opening day of the event Sunday, when Airbus had planned to make its debut with the A380 order. Instead, Boeing stole the limelight with a $15.1 billion deal from Emirates for its 787 Dreamliner, followed shortly thereafter with a follow-up accord with Azerbaijan Airlines.

When asked what was behind the hold-up with an Airbus order, Emirates President Tim Clark said Airbus needs to show greater commitment to the A380, whose future has been thrown into doubt as the order book for the giant aircraft dries up.

This year’s airshow has lacked the urgency of previous years, when Emirates and its Gulf rivals Qatar Airways and Etihad Airways worked up an order frenzy on opening day. Qatar is barred from this year’s expo amid a diplomatic dispute with some of its Arab neighbors, while Etihad is undergoing a dramatic overhaul of its management and strategy after its alliance of partner airlines around the globe imploded.

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