Etihad orders 200 aircraft worth $52 billion

Etihad Airways today announced orders of around 200 aircraft worth over $52 billion at the Dubai Airshow. Abu Dhabi-based airline a firm order for 87 Airbus aircraft, plus purchase rights for a further 30, to support the global expansion of its operations.  The order represents an investment of up to $26.9 billion at list prices, including related engines. The firm order, unveiled at the Dubai Air Show, includes 50 Airbus A350 XWB and 36 Airbus A320neo family aircraft, together with one Airbus A330-200F freighter. James Hogan, President and Chief Executive Officer of Etihad Airways, said, “Ten years ago this month, we celebrated our inaugural flight from Abu Dhabi using an Airbus A330. “A decade later, we have grown into one of the world’s leading airlines and the importance of Airbus to our fast-growing operations has never been stronger. We have more than 60 Airbus aircraft in our fleet today, and this latest order is testament to the continued strength of our partnership. “As one of the first airlines set to receive the much-awaited Airbus A350-1000, we look forward to benefiting from its operational efficiencies and cost savings.” The aircraft will be used to launch flights to new destinations around the world, add more capacity in established markets and progressively replace existing, less-efficient aircraft. It also provides the unique opportunity to redirect new aircraft orders from Etihad Airways to members of its equity alliance, airlines in key markets around the world in which it holds minority shareholdings.  This will enable capacity to be assigned where and when it is most needed, while improving fleet commonality and sharing significant cost synergies. Hogan said: “The revenue benefits of our equity alliance, to all the members, have always been clear.  What has been less obvious is the opportunity for business synergies which can improve the operating costs of all the partners.  The flexibility of this deal, and the economies of scale it offers, means all our strategic partners will have the chance to benefit from it.” The Airbus A350 XWB order includes 40 A350-900 and 10 A350-1000 aircraft, which will be equipped with Rolls-Royce Trent XWB engines. Deliveries will commence in 2020. Etihad Airways has also ordered 26 A321neo and 10 A320neo aircraft, which are scheduled for delivery from 2018, while the A330-200F will arrive in 2017. The A321neos will be powered by CFM LEAP-1A engines. Fabrice Brégier, President and Chief Executive Officer of Airbus, said: “We are delighted that Etihad Airways has consistently maintained its confidence in Airbus by selecting our A320neo family aircraft, which defines innovation and offers sustainability, and by expanding its A330-200F fleet. “Airbus is proud that alongside the A350 XWB, the world’s most technologically advanced and efficient aircraft, our products will provide a significant contribution to the continued success of Etihad Airways.” In a typical two-class configuration, the A350-900, which can seat 315 passengers and the A350-1000, which is the largest member of the A350 XWB family and seats 369 passengers, offer the range to expand the network around the world. The A320neo is offered as an option for the A320 family and incorporates new more efficient engines and large "sharklet" wing tip devices, which together will deliver up to 15 per cent in fuel savings. At the end of October 2013, firm orders for the neo stood at 2,487 from 44 customers, making it the fastest selling commercial airliner ever. The A330-200F is the cargo version of the best-selling A330. It is the world’s most modern mid-size freighter and can carry 70 tonnes of payload with a range of up to 4,000 nm. Etihad Airways currently has 86 aircraft in operation, with more than 80 aircraft on firm order.  Its last major aircraft deal was at the Farnborough Air Show in 2008, where Etihad Airways announced firm orders for 100 aircraft, including 55 Airbus aircraft, in a long-term order which was at the time one of the largest in aviation history. The Seabury Group served as advisors in the conclusion of this deal. Etihad announces order for up to 82 wide-body Boeing aircraft Etihad Airways today announced a firm order for 56 new Boeing wide-body aircraft, with options and purchase rights for a further 26, to support its continued global expansion. The order represents an investment of up to US$ 25.2 billion at list prices, including related engines. The deal, unveiled at the Dubai Air Show, includes 25 next-generation Boeing 777X aircraft of which 17 are 777-9X and eight are 777-8X aircraft. Etihad Airways is the first airline to order the 777-8X and will be a launch customer for the aircraft which is expected to enter service around the end of the decade. The airline also ordered 30 Boeing 787-10 Dreamliners.  Today’s announcement makes Etihad Airways the largest airline customer for the Boeing 787 Dreamliner, when combined with previous orders for 41 of the Boeing 787-9 variant, and includes the milestone 1,000th Boeing 787 Dreamliner to be ordered. It also ordered one Boeing 777-200 freighter. James Hogan, President and Chief Executive Officer of Etihad Airways, said: “This is a significant, timely and essential order for us, as we celebrate our tenth anniversary and plan for our next decade and beyond. “In just 10 years, we have grown from a start-up carrier to a global airline. This order enables us to build upon our achievements, using the next generation of aircraft to support our next generation of development. “Boeing has been a long term strategic partner for Etihad Airways throughout that journey, playing an integral role in our growth.  I am delighted we are extending our relationship, bringing industry-leading aircraft into our modern fleet.” The aircraft will be used by Etihad Airways to launch flights to new destinations, add capacity in existing markets and progressively replace existing, less-efficient aircraft. He said the deal would also provide direct economic benefits domestically and internationally. “This deal is good for Etihad Airways, it is good for Boeing and it is also good for economic development both in the UAE and in the USA.  In the United States, this order translates into a direct impact on America’s gross domestic product and supports employment throughout the aerospace supply chain.” All the aircraft in this order will be powered by General Electric GE9X, GEnx and GE90 engines. Ray Conner, President and Chief Executive Officer, Boeing Commercial Airplanes, said:  “We are very proud of our relationship with Etihad Airways, which began nine years ago with an order for five 777-300ERs. “It is gratifying that as one of the world’s fastest growing airlines, Etihad Airways continues to have confidence in Boeing’s products by selecting the 777X and by increasing its order for the 787 Dreamliner.  We look forward to further strengthening this partnership as Etihad Airways continues to build its position as a forerunner in the global aviation industry.” The Boeing 777-9X is a stretched, more fuel-efficient version of the airline’s largest current aircraft, the Boeing 777-300ER.  Typically seating 400 passengers, the 777-9X will be capable of flying the same distances as its predecessor, but with up to 40 more passengers, much lower operating costs and reduced fuel consumption per seat. The Boeing 777-8X is a smaller version but with even greater range, enabling Etihad Airways to serve ultra-long haul routes such as Abu Dhabi – Los Angeles more efficiently than any aircraft in service today. It replaces and improves upon the existing Boeing 777-200LR aircraft, currently the longest range airliner in commercial service. The Boeing 787-10 is the largest and latest version of the Dreamliner family, typically carrying more than 320 passengers, up to 50 more than the 787-9 which Etihad Airways will introduce late in 2014. The series 10 aircraft will be capable of flying between Abu Dhabi and medium-haul destinations such as Dublin or Johannesburg, again with more passengers and lower fuel burn and emissions per seat than current generation aircraft. The first of the new aircraft to join the Etihad Airways fleet will be the Boeing 787-10s, which will begin arriving in 2018, followed by the 777-9X from 2020 and the 777-8X from 2022. GE Aviation is engine partner for Boeing fleet Etihad Airways, the national airline of the United Arab Emirates, today announced the purchase of 127 GE Aviation engines to power its 56 new Boeing aircraft. The order includes installed and spare engines, and future service support. The announcement was made by James Hogan, Etihad Airways’ President and Chief Executive, and David Joyce, GE Aviation’s President and Chief Executive Officer, at the Dubai Air Show, in tandem with the airline’s Boeing order. The deal is for 57 GE9X engines which will power Etihad Airways’ 25 new Boeing 777X aircraft, 68 GEnx-1B engines for the airline’s 30 new Boeing 787-10 aircraft, and two GE90-115B engines which will be used on its new Boeing 777-200F freighter.  The aircraft are scheduled for delivery from 2018. Hogan said: “This order demonstrates Etihad Airways’ commitment to operating one of the most technically advanced and fuel efficient fleets in the industry, now and in the future. “Our business succeeds by establishing long term strategic partnerships to ensure we can offer our customers the best.  This deal allows us to do that.” He said the deal would also provide direct economic benefits domestically and internationally. “This deal is good for Etihad Airways, it is good for GE and it is also good for economic development both in the UAE and in the USA.  In the United States, this order translates into a direct impact on America’s gross domestic product and supports employment throughout the aerospace supply chain.” In addition to the main engine deal, Etihad Airways has signed a 15-year OnPoint solution agreement with GE, valued at US$ 8 billion, to cover all the engines in the order.  OnPoint solutions are customised service agreements tailored to the operational and financial needs of each customer for any size fleet. These agreements are designed to help lower airlines’ cost of ownership and maximise the use of assets. Joyce said: “We are honoured that Etihad Airways has selected GE to play a significant role in the airline’s expansion efforts. “GE’s wide-body engine strategy builds on the solid foundation that we began with our GE90 engines, was advanced with new technologies in the outstanding GEnx and will evolve further with the new GE9X engine, which will be the largest and most fuel efficient engine GE has ever designed and manufactured.” The GE9X engine for Boeing's 777X aircraft will offer a 10 per cent improvement in fuel burn over today's GE90-115B. The GEnx engine family is the fastest-selling engine in GE Aviation history, with more than 1,300 engines on order. Compared to GE's CF6 engine, the GEnx offers up to 15 per cent better fuel consumption, translating to a 15 per cent reduction in CO2. It also reduces NOx gases by as much as 55 per cent below today's regulatory limits and other regulated gases by as much as 90 per cent. Based on the ratio of decibels to pounds of thrust, the GEnx is the quietest engine GE produces due to the large, more efficient fan blades that operate at a slower tip speed, resulting in about 40 per cent lower noise levels. More than 1,500 GE90-115B engines have been ordered by customers for their Boeing 777-300ERs, 777-200LR and 777 freighters. The GEnx and GE90-115B engines are part of GE’s “ecomagination” product portfolio—GE’s commitment to implementing innovative, cost-effective technologies that enhance the customers’ environmental and operating performance. Emirates24/7