We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 21 Jan 2007 12:00 AM

Font Size

- Aa +

Sky's the limit

Talking of delays one of the biggest storms in aviation is reaching boiling point and could see major aircraft manufacturer Airbus dramatically fall from grace in the next few months.

Talking of delays one of the biggest storms in aviation is reaching boiling point and could see major aircraft manufacturer Airbus dramatically fall from grace in the next few months. Emirates, the largest Arab airline and one of the industry’s dominant forces, has revealed that it may transfer its US$20bn 45-new plane order to rival Boeing unless it is satisfied with Airbus’s compensation for the massive delays in delivering its A380 ‘superplane’. Emirates says it plans to talk to the Toulouse-based Airbus in the next month or two.

Several outcomes are possible but if Airbus fails to adequately compensate Emirates to the tune of an estimated US$300m (the symbolic cost of an A380) I can only see one conclusion — Airbus losing out dramatically to Boeing with tens of major airlines switching their multi-billion dollar orders to rival Boeing and the French manufacturer eventually going under. As many experts are suggesting, Airbus needs Emirates but Emirates doesn’t need Airbus.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.