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Sat 9 Jul 2011 10:31 AM

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Boeing in talks with Dubai's DAE after Airbus upset

US plane maker says it is talking to Dubai Aerospace Enterprise but doesn't expect cancellations

Boeing in talks with Dubai's DAE after Airbus upset

US aircraft manufacturer Boeing is reportedly in talks with Dubai Aerospace Enterprise about whether the lessor plans to cancel orders, after it scrapped plans to buy planes from Airbus.

A spokeswoman for Boeing told news agency Zawya Dow Jones that the two sides were talking, but that no cancellations have been made and that it currently wasn't expecting any.

DAE Capital has 56 unfilled orders from Boeing including 15 of its newest freighters based on the 747-8 stretch jumbo, according to the US company's website.

Boeing's concern was raised after Airbus confirmed cancellations and said DAE no longer had any orders outstanding.

Airbus said DAE had cancelled orders for 34 A320 and 11 A350 aircraft, valued at a total of $5.8 billion at catalogue prices.

DAE cancelled Airbus orders worth $4.7bn, as well as a slew of Boeing orders, in March and entered negotiations with both planemakers about the rest of its orders.

Dubai Aerospace Enterprise was formed in 2006 in a collaboration between several Dubai names including sovereign wealth arm Investment Corporation of Dubai, developer Emaar and DIFC Investments.

The company ordered more than 200 aircraft during an industry boom in 2007 but its ambitions came under the spotlight during the global financial crisis. It was reported last year to have ceded some of its orders to Dubai-based airline Emirates.

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