Posted on 11/28/2009 6:37:00 AM PST by ricks_place
As if Airbus and Boeing didn’t have enough to worry about already, the looming debt crisis in Dubai has cast a shadow over a backlog of aircraft orders, worth more than $60 billion, from Dubai, Inc.
The biggest – but by no means the only – example is Emirates, Dubai’s government-controlled carrier. It has more than $30 billion worth of planes on order from Airbus, including 53 of the double-decker A380, for which Emirates is by far the largest customer. Emirates also has placed 70 orders for Airbus’s forthcoming A350 widebody. And Airbus has outstanding orders from state-controlled leasing outfit DAE Capital totaling about $12.6 billion.
No surprise, then, that shares in Airbus parent European Aeronautics Defence & Space Co. fell more than 3% on Nov. 26 when the Dubai government asked to postpone debt repayments.
Boeing is considerably less-exposed than Airbus to potential turmoil in Dubai, but it still has plenty at stake. Emirates has about $4 billion worth of Boeing 777s on order, while DAE Capital and low-cost carrier Flydubai have a combined $16 billion on order from Boeing. As U.S. markets reopened on Nov. 27 after Thanksgiving, Boeing shares were down 1.2%
(Excerpt) Read more at businessweek.com ...
ping
53 A380’s ?
Is Airbus too big to fail?
Just a guess but I would think that the biggest news here is that there will be a lot more job losses in the aircraft industry.
Boeing probably has enough cash to weather this, but losing this much business has to result in layoffs.
I'm wondering of Dubie was the A380 "launch order". If so it's really sweet to a Boeing man to see that order cancelled!
No, I think SQ (Singapore Airlines) was the 380 launch customer.
That DOES ring a bell now that you say it. I bet it was not as big an order as Dubie'sez.
53 A380s @ 750 passengers each X one flight to Dubai per day = 14 million visitors to this sand pile each year. Something’s wrong here...
I was amazed to see that first picture of an A380 next to a 747. It looked like a 737.
I believe I read that this is the latgest ($$$) aircraft order ever placed at one time. (something like that)
Are these businessmen insane? Did anyone at Boeing or Airbus take ten minutes to run the numbers to see if this order made sense?
Or where they like giddy five-year-olds at Halloween?
I bet the executives have already spent the bonuses they got for getting the big order.
These people disgust me.
They fly more than just direct routes to Dubai.
Dubai has become a major hub for travel between the US and Europe to Asia.
Sort of like flying AirTran and most flights go through Atlanta.
Nope, the BIGGER news is there will be less carbon emissions, therefore saving the earth, the animals, plants, insects and all other living things.
“These people disgust me.”
I don’t suppose you’d like to get all the info before you become disgusted, would ya?
Boeing is ALREADY laying off.
I know, I’m one of them. . .
Yes, china is losing a lot of work.
Yes, caught up in the no down side BS coming from wall street.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.