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Posted on 11/21/2005 6:21:37 AM PST by kellynla
DUBAI (Reuters) - Planemaker Boeing Co. (BA.N: Quote, Profile, Research) revealed its first leasing company buyers of the hot-selling 787 mid-sized aircraft on Monday, announcing previously unidentified deals worth up to $4.6 billion at list prices.
Deals announced at the Dubai Air Show which opened on Sunday underscore the rebound in demand for new planes being seen at both Boeing and rival Airbus (EAD.PA: Quote, Profile, Research) this year.
They are close to doubling the orders they booked in 2004, each helped by demand for more fuel-efficient models due to high oil prices.
Leasing firm ILFC (AIG.N: Quote, Profile, Research) ordered 20 of the Boeing 787 Dreamliner due in 2008. The deal was worth $2.7 billion and ILFC also took options on four more.
"I'm sure it's just the first in a series of orders," ILFC President and COO John Plueger told Reuters. "The market is driving toward the 787 and that's where we are heading. I see the 787 driving the (design of) next generation of single-aisle planes."
International Lease Finance Corp (ILFC) is one the world's largest aircraft lessors and owned by insurer American International Group (AIG).
New aircraft lessor Low-Cost Aircraft Leasing (LCAL) ordered six Boeing Co. (BA.N: Quote, Profile, Research) 787 planes and said it was close to finalizing a deal for nine more worth a combined $1.9 billion at list prices.
The leasing firm is partnered with Saudi Arabia's Al-Jomaih Group and is compliant with Islamic sharia law, LCAL founder Clive Joy told Reuters at the Dubai Air Show.
It will seek contracts from airlines worldwide and plans to announce a management team in January, he said.
LCAL will get its planes beginning in 2009, a year before bigger rival ILFC, and said it was close to announcing airline clients.
(Excerpt) Read more at today.reuters.com ...
Both deals had previously been included in Boeing's Web site tally of orders (http://active.boeing.com/commercial/orders/) under the "Unidentified" customer category.
At the Dubai Air Show's opening day on Sunday, Boeing landed its biggest-ever order from the Arab Gulf region from airline Emirates (EMAIR.UL: Quote, Profile, Research), which placed a $9.7 billion order for wide-bodied 777 planes.
The show is a barometer for the Gulf's burgeoning airlines sector and in its first two days has already tripled the value of business announced at the same event last held two years ago."
Great news for my backyard.
Looks like we now know the answer.
Yeah. Talk about being in the right place at the right time... just as air travel is starting to shift from the hub and spoke model thereby reducing the need for huge jets.
Once again the free market beats centralized planing (aka gvt control) when it comes to discerning the market's direction.
I can't tell you how many times over the past few years I've had that argument with people here on FR and elsewhere. I wish I had written down the names of the people so I could now go back and rub their noses in it....... ;o)
The market is fragmenting and people want to fly from St. Louis to Venice, not St. Louis to Chicago to Amsterdam to Venice. Boeing recognized this years ago and is now reaping the rewards while Airbus is struggling to sell more of their A380 and fuel INefficient A340s and their warmed over A330 renamed the A350. Love it!
Well said. You nailed it.
If you want on or off my aerospace ping list, please contact me by Freep mail.
Boeing BTTT
I assume this is good? ;-)
17 billion in two days isn't bad, that's 10% of our trade deficit with China.
Trying to picture the salesman at the airshow taking $17 billion of orders. Did he remember to offer the extra trim package and the extended warranty?
As opposed to Air Bus, the vertical tail assembly will remain firmly attached to the fuselage while in flight on all Boeing aircraft. :)
WHAT BETTER WAY TO FOLLOW AN APPLE-CUP COUGER WIN IN HUSKIE STADUIM?
BA stock price 68.93 [+ 1.98] at 12:23 PM EDT on Nov 21
Boo!
(Dawg lover) LOL!
http://www.boeing.com/news/releases/2005/q4/nr_051121g.html
Does this include the BBJ's?
(Not a boo! on the stock price.)
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Sometimes you don't know. In the book Airframe, Crichton points out that sometimes big plane deals go through because corporate types agree to strange side deals, like putting production of some components off shore which means transfering technology and jobs to our competitors . . . Devil's in details. |
True, except the off-shore jobs go to the customers who buy the planes, not the competitor (Airbus).
It's not just a matter of what "people want to fly".
If the airplane flies St. Louis to Venice, it only needs one takeoff slot and one landing slot. Every additional stop it makes requires another slot-pair.
And since there's darned few new runways being built these days, takeoff and landing slots tend to be scarce.
I think boeing has sold their 100th BBJ just recently.
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