Qatar Airways confirms Boeing 777 jets order for US$18.9b

Qatar Airways has finalised a deal to buy 50 new generation 777-9X planes from US aircraft maker Boeing worth $18.9 billion (14 billion euros), the two firms announced on Wednesday.

The order was first announced as a commitment at the Dubai airshow in 2013.

Qatar added on Wednesday that it had agreed a commitment for 50 more of the long-haul fuel-efficient passenger jets, which if exercised would bring the total order value to $37.7 billion at list prices, the airline announced at the Farnborough airshow.

As well as buying up to 100 passenger jets, Qatar said it intended to purchase four 777 freighter planes with an option for four more.

In total, the 777 package is worth about $40 billion to Boeing.

"The Boeing 777 is the backbone of our fleet and is highly amenable to the standards Qatar Airways upholds. We look forward to building on our legacy with the next-generation 777-9X," said the airline's chief executive Akbar Al Baker.

Production of the 777X is set to begin in 2017, with first delivery targeted for 2020. Boeing has so far won 300 orders and commitments from six customers for the 777X.

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Emirates finalises order for 150 Boeing planes worth US$56b

Dubai's Emirates Airline has finalised an order for 150 Boeing 777 planes valued at US$56 billion at list prices, the US manufacturer said on Wednesday in Dubai.

The planes, comprising 115 777-9Xs and 35 777-8Xs, were initially ordered during the Dubai Airshow in November 2013, when the largest operator of the long haul airliner took also purchase rights for 50 additional planes.

The value of the deal could increase to US$75 billion at list prices if Emirates firms up its right to purchase the additional planes, Boeing said in a statement issued in Dubai.

"With the order for 150 777Xs, Emirates now has 208 Boeing 777s pending delivery, creating and securing jobs across the supply chain," said Emirates president Tim Clark in the statement, adding that Emirates already flies 138 Boeing 777 planes.

"We are extremely proud to have Emirates, the world's largest 777 operator, continue its long-standing partnership with Boeing by becoming the largest launch customer for the 777X," said Boeing Commercial Airplanes president and CEO Ray Conner in the statement.

Boeing said the 777X will introduce the latest technologies including "the most advanced commercial engine ever," the GE9X by GE Aviation, and an all-new high efficiency composite wing that has a longer span than today's 777.

Emirates, one of the world's fastest growing carriers, is also the largest single customer of Airbus' long-haul double-decker A380.

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Japan's ANA orders 40 Boeing, 30 Airbus planes worth US$16.4b

All Nippon Airways (ANA) said Thursday it would buy 70 new planes worth $16.4 billion, with almost half from Airbus in a move that marked a victory for the European aircraft maker as it tries to prise open the lucrative Japanese market.

The airline will buy 40 planes from Boeing, its major supplier that has had a virtual stranglehold in Japan for decades, and 30 from Airbus to increase its fleet ahead of the 2020 Tokyo Olympics, a statement said.

The order includes 14 of Boeing's troubled Dreamliner as well as 20 units of the 777-9X, and six 777-300ERs.

It will also buy seven Airbus A320neo and 23 Airbus A321neo.

The aircraft will be delivered between 2016 and 2027 and will increase the size of the ANA fleet to 250 aircraft.

The new Boeing aircraft will serve mainly international routes while the Airbus aircraft will operate both overseas and domestic trips, ANA said.

"ANA Group's introduction of these new aircraft will help it respond to the needs of the increasing number of passengers expected to arrive in Japan in the run-up to the 2020 Tokyo Olympics and will support the Japanese government's plans to boost the annual total of foreign visitors to Japan to 20 million," the firm said.

The orders, collectively the biggest in ANA's history, came as the airline aims to expand its international presence.

"The aircraft we have selected will enable us to modernise and expand our fleet further as we seek to become one of the world's leading airline groups," said Shinichiro Ito, president and chief executive of ANA Holdings.

"These new aircraft will give us maximum flexibility and improved fuel efficiency and will allow us to meet the growth in demand, both internationally and in our domestic Japanese market," he said in a statement.

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Union approves Boeing contract, 777X planes stay in Washington

A key Boeing labour union narrowly approved late Friday an eight-year contract that keeps production of the new 777X jet airliner in Washington state in exchange for cuts in benefits.

As a result, Boeing will stop seeking alternate sites for production of a more fuel-efficient version of its best-selling wide-bodied jet.

The Machinists Union District Lodge 751 said in a statement that members approved the controversial contract by 51 percent.

"Our members have spoken and this is the course we'll take," said local union president Tom Wroblewski, who represents more than 30,000 hourly workers at Boeing.

The contract was accepted even though Wroblewski and the local union leaders urged their members to reject Boeing's offer, which they said included cuts in retirement and health care benefits, and set limits on future wage growth.

"All along we knew that our members wanted to build the 777X," Wroblewski said. "Now, it's up to all of us now to pull together to make this airplane programme successful."

When the union rejected a first offer from Boeing, the aerospace titan began to look elsewhere in the nation to move the programme. Twenty-one other states, including California, Utah and Texas, quickly lined up with offers that included juicy tax breaks.

The union vote means that Boeing will carry out final assembly and wing fabrication on the 777X at their sites in Puget Sound, in northwestern Washington state.

"It was a tough vote, a hard situation, splitting the membership," Mark Johnson, a national level official with the International Association of Machinists (IAM), told reporters.

The 777X is a new version of Boeing's successful 777 twin-engine wide-bodied jet, which is built today in Everett. It is scheduled to come into service around 2020, and the company has already received billions of dollars in advanced orders.

Boeing, founded in Seattle in 1916, has more than 82,000 employees in Washington state, making it the region's largest private employer. A move elsewhere would likely have devastated the area economy.

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Cathay Pacific orders 4 more long-haul Boeing planes

Hong Kong flag carrier Cathay Pacific ordered four additional long-haul planes from Boeing on Friday, a week after it ordered 21 Boeing 777-9X planes, in a move to modernise its fleet.

The airline said it would purchase an additional three Boeing 777-300ER passenger planes along with a Boeing 747-8 freighter, with a total list price of HK$7.4 billion (US$954.25 million).

Cathay did not reveal the amount it is paying to the US manufacturer, but airlines usually negotiate a discount from a plane's catalogue price.

"Both the 777-300ER and the 747-8F offer a highly efficient solution on Cathay Pacific's ultra-long-haul routes," the airline's chief executive John Slosar said in a statement released on Friday.

Slosar said the 777-300ER's, which are expected to be delivered in 2015 and the 747-8F, to be delivered in 2016, combine "superb operating economics with a significant reduction in emissions".

Cathay last Friday ordered 21 long-haul Boeing 777-9X planes, the aircraft manufacturer's newest member of the 777 family, at a list price of US$7.48 billion.

The yet-to-be launched 777X series includes advanced technology including composite wings and engines that Boeing says consume 20 per cent less fuel than today's model.

The airline said the planes, which will seat up to 400 passengers and be delivered between 2021 and 2024, were ideal for long-haul destinations in North America and Europe.

The airline said in August it swung to a lower-than-expected net profit of US$3.1 million in the first six months, after losing money in the same period of 2012. Gains in passenger numbers were offset by persistently high fuel prices and falling cargo revenue.

This year, Cathay has increased daily services to popular destinations such as Los Angeles, Chicago and London.

The airline is set to take delivery of 93 aircraft between 2014 and 2024 at a total list price of US$28.63 billion.

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Cathay Pacific orders 21 Boeing 777X planes

Cathay Pacific said Friday it has ordered 21 long-haul Boeing 777-9X planes at a list price of US$7.48 billion, as the Hong Kong carrier modernises its fleet off the back of disappointing earnings this year.

The yet-to-be launched 777X series is Boeing's newest member of the 777 family, with advanced technology including composite wings and new engines that Boeing says consume 20 per cent less fuel than today's model.

Cathay did not reveal the amount it is paying to the US manufacturer, but airlines usually negotiate a discount from a plane's catalogue price.

"The 777-9X promises us improved payload range capability and reduced operating costs, in addition to a significant reduction in environmental emissions," the airline's chief executive John Slosar said in a statement.

"Cathay Pacific is committed to modernising its fleet to provide a superior experience to passengers," Slosar said, adding that the airline was "delighted to be an early customer" for the next generation of the 777 series.

The airline said the planes, which will seat up to 400 passengers and will be delivered between 2021 and 2024, were ideal for long-haul destinations in North America and Europe.

"The huge investment we are making in new aircraft underscores... our commitment to maintaining Hong Kong's position as one of the world's great aviation hubs," Slosar said.

The airline said in August it swung to a lower-than-expected net profit of US$3.1 million in the first six months, after losing money in the same period of 2012. Gains in passenger numbers were offset by persistently high fuel prices and falling cargo revenue.

The high price of jet fuel had affected its business adversely, Cathay said in a statement then, adding that it was withdrawing older planes and operating more long-haul services using fuel-efficient Boeing 777-300ER aircraft.

The airline faced a difficult year in 2012 when profit plunged more than 83 per cent over the full 12 months, buffeted by high fuel prices and the global financial crisis.

Starting from 2014, the airline is expecting the delivery of 12 Boeing 777-300ERs, and will see 50 of this aircraft type in its fleet by 2020.

This year, Cathay took delivery of six new aircraft in the first six months, including two Airbus A330-300s, three Boeing 777-300ERs, and one Boeing 747-8F freighter.

It has increased daily services to popular destinations such as London, Los Angeles, New York and Toronto.

The airline Emirates placed an order in November for 150 Boeing 777X aircraft -- 35 777-8Xs and 115 of the larger 777-9X variant, in a contract the Dubai-based carrier said was valued at US$76 billion.

Boeing said the Emirates orders were commitments worth US$55.6 billion.

Abu Dhabi's Etihad Airways last month placed an order for 25 777X passenger jets, including 17 777-9X models and eight 777-8Xs.

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Boeing dominates Airbus with US$101.5b orders at Dubai show

US aerospace giant Boeing on Wednesday announced up to US$101.5 billion in aircraft orders at the Dubai Air Show, as its new 777X model propelled total demand to more than twice that booked by European rival Airbus.

More than US$95 billion of the Boeing orders were for the 777X long-haul aircraft, making it the "largest product launch in commercial jetliner history by value", said the firm.

European giant Airbus meanwhile totted up orders worth US$44 billion, with Emirates placing the biggest by value worth US$20 billion for 50 A380s.

The total takings of about US$145 billion by the two rivals at Dubai were about twice those recorded at the Paris Air Show in June, when Airbus announced US$39.3 billion in orders and Boeing unveiled US$38 billion for a total of about US$77.0 billion.

Boeing's performance in Dubai was underpinned by demand for its new 777X, which was snapped up by Middle Eastern airlines.

Dubai's flagship Emirates placed an order worth US$55.6 billion for 115 777-9X aircraft designed to carry more than 400 passengers. It also ordered 35 777-8Xs, which has a capacity of 350 passengers.

Etihad Airways ordered 17 of the bigger model and eight of the smaller 777-8X, while Qatar Airways bought 50 777-9Xs worth US$18.9 billion.

Boeing claims that the aircraft, which is to enter service around 2020, would be 12 per cent more fuel efficient than the Airbus A350.

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Boeing, Airbus clinch mega orders at Dubai

Dubai Airshow took off on Sunday with huge aircraft orders and commitments worth around $141.5 billion for Boeing and Airbus from Gulf carriers, with the US manufacturer well in the lead.

The biennial show began brightly for Boeing's 777X, a long-range wide-bodied airliner featuring lower fuel consumption and composite wings.

The new 777 is scheduled to be operational in 2020.

Etihad Airways began the show with an $18.2-billion order for Boeings including 25 777Xs and one 777-200 freighter, Boeing said.

The deal also included an order for 30 787 Dreamliners, making the fast-growing carrier the largest single customer for the medium-body plane.

The Abu Dhabi carrier also announced it was taking an option to buy another 26 aircraft from Boeing.

The total value of the order, including engines and options, amounts to $25.2 billion, according to Etihad.

Emirates Airline followed shortly afterwards by placing orders with both the rival US and European manufacturers, in twin deals valued at $99 billion.

Of this sum, 80 per cent is destined for Boeing's coffers if commitments are confirmed.

The Dubai-based airline ordered 150 777Xs -- 35 777-8Xs and 115 of the 777-9X variant.

Boeing said the Emirates orders were commitments worth $55.6 billion.

The Middle East's largest carrier also boosted the Airbus sales sheet with a firm order for 50 A380 superjumbos worth $20 billion at book value, in the double-decker's first sale this year.

The order cements the status of Emirates as the single largest operator of the long-haul airliner, its chief Sheikh Ahmed bin Saeed Al-Maktoum said.

"Emirates has understood from the start the A380's advantages in terms of efficiency, economics and passenger comfort," Fabrice Bregier, Airbus chief and president, told the signing ceremony.

Airbus has been struggling to sell its A380 superjumbo.

Sales of the world's largest commercial aircraft suffered in 2012 after hairline cracks were discovered on A380 wings. Just nine were sold last year, down from an initial order of 30.

Airbus also clinched a $19-billion deal with Etihad, which ordered 87 aircraft including 50 extra-wide-body A350 XWBs.

The order comprises 40 long-haul A350-900s, 10 A350-1000s, one A330-200 freighter, in addition to 26 A321neo and 10 A320neo single-aisle planes, in addition to an option for 30 more aircraft.

Emirates budget sister company also made a commitment to buy up to 100 Boeing single-aisled 737 MAX and 11 Next-Generation Boeing 737-800s, in a deal valued by Boeing at $8.8-billion.

Qatar Airways also chipped in by signing a letter of intent to buy 50 Boeing 777Xs worth $19 billion.

The Doha-based airline said it had also ordered five A330 freighters from Airbus, valued at about $1 billion according to list prices.

The order was accompanied by an option to add eight airliners, which would put the overall price of the deal at $2.8 billion, chief executive Akbar Al-Baker said.

The Qatar Airways chief praised Boeing's 777 long-haul workhorse as he made a surprise appearance at the joint Emirates-Boeing briefing.

The Triple Seven has been a bestseller since it was launched in the 1990s, with 1,473 sold by November 12.

Boeing is fielding the 777X to counter Airbus's long-haul A350-1000.

This aircraft is anticipated to enter service in 2017 with a passenger payload of 350, threatening Boeing's predominance in the long-haul market.

Etihad on Sunday also announced it is acquiring a 33.3 per cent stake in Swiss carrier Darwin Airline which it plans to rebrand as Etihad Regional after the deal receives regulatory approval.

At the 2007 Dubai Airshow, sales of $155 billion were announced, and analysts have projected that orders this time could nudge that record.

In June, the Paris air show at Le Bourget racked up $115 billion in announced sales at catalogue prices.

The 13th Dubai Airshow, which runs until Thursday, is being held for the first time at the just opened Al-Maktoum International, the emirate's second airport and touted to become the world's biggest when complete.

With some 150 aircraft on the tarmac and 1,000 exhibitors, the show cements the Gulf region's hard-won position as the global hub for 21st century travel, spearheaded by booming airlines whose reach encompasses the world.

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Boeing mulls sites for new plane production after union rejection

US aerospace giant Boeing said Thursday it was reviewing site options to build its new 777X airplane after a key union rejected a contract extension at its Seattle base.

The International Association of Machinists & Aerospace Workers District 751 voted late Wednesday to turn down Boeing's proposal to extend by eight years the current contract that expires in 2016.

The contract extension notably would have reduced retirement benefits and provided a one percent pay increase every other year, in exchange for the long-term stability of production of the new long-range, twin-aisle plane.

A solid 67 percent of the roughly 31,000 members of the IAM machinists union who work for Boeing in the Seattle area of Washington state rejected the deal.

Boeing had argued that the contract extension would allow the company to maintain thousands of jobs in the Puget Sound area, home to its biggest aircraft plant in Everett, where the 777 family of airplanes is built.

"We are very disappointed in the outcome of the union vote," Ray Conner, Boeing Commercial Airplanes president and chief executive, said in a statement.

"Our goal was two-fold: to enable the 777X and its new composite wing to be produced in Puget Sound and to create a competitive structure to ensure that we continue market-leading pay, health care and retirement benefits while preserving jobs and our industrial base here in the region," he said.

"But without the terms of this contract extension, we're left with no choice but to open the process competitively and pursue all options for the 777X."

IAM representative Tom Wroblewski said the union had preserved members' pensions, "something sacred" that will help members retire with more comfort and dignity.

"It is my belief that we represent the best aerospace workforce in the world and hope that as a result of this vote Boeing will not discard our skills when looking to place the 777X," Wroblewski said in a statement.

Boeing, headquartered in Chicago, signalled that the union rejection had shut the door to further negotiations.

"There are no plans to re-engage with the union regarding contract negotiations until prior to the current contract expiration in 2016," Boeing spokesman Doug Alder said in an email to AFP.

The spokesman declined to identify the potential 777X locations.

In late October, another Boeing spokesman, Marc Birtel, told AFP that the company would design its new 777X aircraft at five US sites and in Moscow, Russia, but had made no decision about using its key Washington state facilities.

Much of the detailed design will be carried out by Boeing engineering teams in Charleston, South Carolina; Huntsville, Alabama; Long Beach, California; Philadelphia, Pennsylvania; and St Louis, Missouri, the company told employees in an internal memo seen by AFP.

The 777X is Boeing's working name for its planned newest member of the 777 family. It plans to launch the 777X this year, with entry into service with launch customer Lufthansa expected around the end of the decade.

Shares in Dow member Boeing closed 1.4 percent higher at $135.09 in New York trade.

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Boeing may take year to decide on mini-jumbo revamp

(Reuters) - Boeing Co appears to be at least a year away from offering a new version of the 777, its most profitable jet, timing that would be later than some airline customers want and could push them into the arms of rival Airbus.

Carriers such as Dubai's Emirates Airline EMIRA.UL and British Airways (ICAG.L) had planned on the new mini-jumbo, provisionally called the 777X, entering service by the end of the current decade. That being the case, the industry widely expected Boeing to begin selling the new jet by the end of this year.

With just seven weeks left in 2012, that timetable now appears increasingly unlikely, based on internal conversations between the planemaker and its customers.

"It's going to be way further off than people think," said a person familiar with the discussions who declined to be identified because the person was not authorized to speak publicly about the matter.

"Boeing is in conversations about it," the person added. "But the launch date (for sales) is a year away at least."

The 777X is aimed at the market for long-haul jets, worth hundreds of billions of dollars for Boeing and Airbus over the next decade or so. But some think delay by Boeing in creating the new 777 could push airlines into buying Airbus' rival A350-1000 jet, due to enter service in 2017.

Emirates, British Airways, Cathay Pacific Airways (0293.HK) and United Airlines (UAL.N), big buyers of the 777, have been pressing for the 777X to come sooner rather than later. The 777 is one of the most successful jets of all time and airlines are eager for an amped-up version that can go farther on less fuel with more passengers.

Rather than wait, United started talks with Airbus about upgrading some of its 25 orders for the A350-900 to the A350-1000, industry sources said. Cathay Pacific chose the A350-1000 in July. Analysts say others may grow impatient and follow.

In contrast, the 777X may not enter service until 2021 or 2022, rather than the end of the decade, based on Boeing's recent statements, said Richard Aboulafia, an analyst at the Teal Group in Fairfax, Virginia.

He was referring to comments by Boeing Chief Executive Jim McNerney on a conference call with analysts on October 24 in which he said, "We are looking at the end of the decade, beginning of the next decade" for entry into service.

"When you start throwing around 'early next decade' you're sending a message to customers to either buy our existing jets or go see Airbus," Aboulafia said. "You do not want to send that message."

A spokeswoman for Boeing said it hasn't changed the timing but declined to say if it will begin selling the first 777X by the end of the year.

"While we haven't set a firm timeline or launched the program, we've consistently talked about a potential market entry around the end of the decade and we are engaging with our customers to define the airplane and its ultimate timing," said Karen Crabtree, head of product strategy communications for Boeing. Boeing also said it always aims to balance spending between investment and shareholders.

STRATEGIC SHIFT?

Some analysts say the vague 777X timetable is fresh evidence of a bigger shift: a new reluctance by Boeing to plow capital into ambitious plane-development programs and an intention to instead return it to shareholders through higher dividends and share buybacks. Just five months ago, Boeing was seen by many as restoring an "engineering culture" that gave priority to new planes and production over immediate shareholder gains.

Also, linking "Boeing" and "delay" on the 777 serves as a painful reminder that the 787 Dreamliner, the world's first commercial carbon-fiber plane, arrived three and a half years behind schedule.

To be sure, Boeing and Airbus always do a delicate dance when launching new jets. Launch too early and they give their rival a chance to create a more technologically advanced jet. Launch too late and their rival has too much time to rack up sales, stealing the market.

In this case, the 777 delay frees up cash for other Boeing projects, such as the new 737MAX, aimed at the shorter-range market. It also avoids disrupting sales of the current 777 model, which is very popular.

And since timing and design of the 777X are must-win decisions, some say Boeing is wise to take time and get it right - even if that upsets some customers.

"We've all seen Boeing move quickly when they need to," said a person at a big Boeing customer who spoke on condition of anonymity. "If the industry is still asking this question (about timing) this time next year, then we may have some issues."

Last spring, the industry widely understood Boeing would seek board approval to begin selling the 777X by the end of the year or early 2013. That would mean work on building the jets could start in 2014, allowing the jet to enter service, or begin carrying commercial passengers, around 2019.

But the June resignation of Boeing's commercial airplane chief, Jim Albaugh - credited with solving many 787 production problems - and the ticking clock have raised concerns. Some analysts say Boeing is already at risk of waiting too long and losing its advantage in timing.

EYE ON AIRBUS

For its part, Boeing is keeping a wary eye on sales of the A350-1000, according to industry sources, and stands ready to pounce quickly if Airbus receives a surge in orders for its 350-seat rival model.

But if sales of the rival continue at a relatively sedate pace, Boeing will want to avoid moving too quickly and disrupting sales of its current-generation 777-300ER, while trying to catch the replacement cycle of 747-400s due to retire around the end of the decade, industry sources said.

Additionally, Boeing wants to be certain, before settling on the performance and economics of its 777X, that Airbus plans no further design tweaks to the A350-1000 to boost sales. Airbus has said it is happy with the design and there will be no further redesigns.

The A350-1000, the biggest member of the A350 family, is an all-new carbon composite design boasting fuel savings over the 777-300ER.

Boeing has limited margin for error. It also is juggling other complex programs such as the 787 and the stretched-jumbo Boeing 747-8. Airbus, too, has big programs under way, including smaller A350 versions and A380 superjumbo derivatives.

With order backlogs of more than 4,000 jets each, neither company faces a dire threat.

"When they get going, they'll do well," analyst Aboulafia said of Boeing. "But they'll miss a golden opportunity to deliver a knockout punch - launching the 777X quickly and badly damaging the A350-1000 before it gets traction in the market." (Reporting by Alwyn Scott and Tim Hepher.)

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The new A350 seems to have become the stop-gap measure before the B777X gets pushed out into the market in the early 2020s. The high fuel prices recently has dealt a pretty bad blow on planes spotting 4 jet engines, with Airbus scrapping the A340 totally. As a result, planes which can carry heavy loads over longer ranges are selling very well in today's market, especially the B777-300ER.

However, that is set to change with the A350-1000 as it is able to carry more passengers and is even more efficient than the 300ER. But let's not forget about the B787 too.

Exciting days ahead in terms of how efficient jet planes can become.