Boeing, flydubai announce historic single-aisle agreement

By BA Staff

Boeing and flydubai announced a commitment for up to 100 737 MAX 8 airplanes and 11 Next-Generation 737-800s at the Dubai Airshow.

The commitment from the airline of the emirate of Dubai, valued at $11.4 billion at list prices (including orders and purchase rights), is the largest ever Boeing single-aisle airplane purchase in the Middle East. flydubai operates an all-Boeing 737 fleet.

His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of flydubai said:

"flydubai is pleased to continue its partnership with Boeing. We believe that the commitment for up to 111 Boeing 737 aircraft will give flydubai one of the best performing aircraft available in the single-aisle market. This will ensure that flydubai is well positioned to continue to set new standards in aviation and support the further economic development of the United Arab Emirates."

Boeing Commercial Airplanes President and CEO Ray Conner said:

"We are extremely proud of the confidence that flydubai continues to place in our products operating an all-Boeing fleet. We look forward to continue strengthening our partnership and seeing the Next-Generation 737-800 and subsequently the 737 MAX play a central role in flydubai's rapid expansion plans."

flydubai placed its first order for 50 Next-Generation 737-800s in 2008. The airline took delivery of its first airplane in 2009 and was the first airline in the world to debut the Boeing Sky Interior. To date, flydubai has taken delivery of 33 Next-Generation 737-800s. In the past two years, flydubai has more than doubled the number of destinations it flies to and has around 1,200 weekly flights. flydubai carried 5.1 million passengers in 2012 and has become the second largest carrier, by passenger numbers, operating out of Dubai International, after big brother and fellow group company Emirates airline.

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Boeing launches 777X program - images and video

by Devesh Agarwal

Boeing 777-9X. Boeing image.

The Dubai Airshow is known for releasing multi-billion dollar orders from the major Gulf carriers, and yesterday was no exception.

Boeing was the clear winner on day one of the show, and the star was the yet to be commenced Boeing 777X program which is an upgrade of the already ultra-popular Boeing 777 twin engine wide body jetliner which today commands 71% of the in-service fleet worldwide.

Video at the end of the story

Despite receiving a order for 34 777-9X from German carrier Lufthansa two months ago, Boeing formally launched the 777X program at the 2013 Dubai Airshow, in deference to its largest 777 customer, Dubai-based Emirates airline, whose CEO, Tim Clark, has been the biggest demander of the new aircraft. (Watch a video of Tim Clark talking about wide body aircraft including the 777X).

Reflecting customer faith in the yet to be developed aircraft, Boeing took in orders and commitments for a whopping 225 aircraft, racking up its tally to 259, making the 777X, the largest product launch in commercial jetliner history by value.

Boeing image

Boeing received orders and commitments from Etihad Airways with 25 77X aircraft (17 777-9X and 8 777-8X), Qatar Airways with 50 777-9X; and Emirates with 150 777X (115 777-9X and 35 777-8X), with an option for 50 more. The combined value of the agreements is more than $95 billion at list prices.

The consistent large orders from the Gulf majors is not unexpected. As Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Emirates, explained

"In recent years, much of the action in global aviation has shifted to the Middle East because countries like the U.A.E. and Qatar have tapped into our geographical advantage to build new air transport connections for the world,"

The 777X will build on the market leading 777 and will introduce new technologies in multiple places. A new composite wing similar to the 787 Dreamliner and 747-8 Jumbo will feature folding raked wingtips, allowing the new plane to fit into existing gates at airports. The new GE9X is touted as the most advanced commercial engine ever. Giving airlines what they desire most, lower seat-mile costs.

Mini-jumbo battle

Boeing 777-9X and 777-8X CGI. Boeing image.

The existing 777-300ER (77W) will be upgraded to the 777-9X with a list price of $377.2 million, an expected entry in to service (EIS) date of 2020, range of 8,200 nm (15,185 km), and passenger capacity of 406. The 777-200LR will be upgraded to the ultra-long-haul (ULH) 777-8X with a list price of $349.8 million, an EIS about 18 months after the -9X, range of 9,300 nm (17,220 km), and passenger capacity of 350 which is close to that of the existing 777-300ER.

The "mini-jumbo" segment is hotly contested, pitting the 777X against the A350 XWB from European major, Airbus.

While Boeing claims "the 777-8X competes directly with the A350-1000, while the 777-9X is in a class by itself", Airbus counters saying Boeing has driven up passenger numbers to justify operating economics using the ultra-dense 17 inch width seating, as practised by Emirates and Etihad, when compared to the wider 18 inch seat width used by Airbus to arrive at its 350 seat A350-1000, which is due to enter service in 2017.

Video of 777X

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Emirates group first half fiscal 2014 net profits up 4%. Airline net profit up 2% to $475 million

by Devesh Agarwal

Emirates A380. Photo copyright Devesh Agarwal.

The Emirates Group, the aviation holding company of the Al Maktoum family which rules Dubai, and the parent of Emirates airline, announced its first half (April to September) results of the fiscal year 2014 (ending March 31, 2014) today.

Group

The Emirates Group revenues reached AED 42.3 billion (US$ 11.5 billion) for the first six months of its current fiscal year ending September 30, 2013, up 13% from AED 37.5 billion (US$ 10.2 billion) at 30 September 2012.

Net profit for the Group rose to AED 2.2 billion (US$ 600 million) an increase of 4% over the last year’s results.

The Group’s cash position on 30 September 2013 came down to AED 18.2 billion (US$ 4.9 billion), from AED 27.0 billion (US$ 7.3 billion) six months earlier. This is after a AED 1.8 billion bond repayment which matured in July 2013, a AED 367 million first instalment payment on a USD one billion Sukuk (Islamic equivalent of bonds), and a AED 7 billion injection back into the business to fund new aircraft, engines, spares and other projects across the Group.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said

“The global business environment continues to be challenging. We have stayed agile even as we grow, and this ability to adapt and act quickly has been key to our success. Our investments in the infrastructure of both Emirates and dnata continue to pay off,”

Group employee numbers increased 11.7% to over 75,800 from six months earlier.

Emirates airline

Capacity measured in Available Seat Kilometres (ASK), grew 16.9% on the addition of ten aircraft – six A380s, three 777s and one 777 freighter in the reported six month. 15 more new aircraft scheduled to be delivered to the airline before March 31, 2014, the end of the current fiscal year FY2014.

Passenger traffic carried measured in Revenue Passenger Kilometres (RPK) was up 16.1% with a load factor averaging 79.2% down from last year’s 79.7%. In number, Emirates carried 21.5 million passengers in the six months, since 1 April 2013, up 15% from the same period last year.

Cargo volumes increased 5.2% but the airline has not released the actual performance nomrally measured in FTK (Freight Ton Kilometre) or capacity in ATK (Available Ton Kilometre) .

Emirates airline's revenue, including other operating income, for the six months was AED 39.8 billion (US$ 10.8 billion) up 12% from last year's first half revenue of AED 35.4 billion (US$ 9.6 billion) to return a 2% increase in net profit of AED 1.7 billion (US$ 475 million).

Fuel prices constituted 39% of the airline's expenditures. The Union and state governments of India would be well advised to observe the disadvantage they put Indian carriers to, thanks to their greedy excessive taxation regime which makes fuel between 45%~50% of expenditure.

Emirates launched new routes to Haneda and Stockholm, bringing the total count of new routes launched in the past 12 months to seven including Adelaide, Lyon, Phuket, Warsaw and Algiers. The airline now flies to 137 destinations in 77 countries, up from 126 cities last year in 74 countries. Additional new routes to be added in the remaining part of the fiscal year include Kabul, Kiev, Taipei and Boston.

The airline also celebrated the five year operating anniversary, of its A380 super-jumbo. Emirates' A380s have carried 18 million passengers since its first flight on August 1, 2008 from Dubai to New York.

dnata airport services and infrastructure

dnata (formerly Dubai National Air Transport Association) now operates in 38 countries with revenues including other operating income of AED 3.7 billion (US$ 1 billion), 18% higher compared to AED 3.2 billion (US$ 864 million) last year. Overall profit for dnata rose strongly by 13% to AED 458 million (US$ 125 million).

dnata’s airport operations was the largest contributor to revenues with AED 1.4 billion (US$ 375 million), a 16% increase from last year's first half revenues of AED 1.2 billion (US$ 324 million). The number of aircraft handled by dnata rose 9%, to 141,845

dnata’s in-flight catering operation, which operates the world's largest flight kitchen, in Dubai, United Arab Emirates, recorded strong growth thanks to its acquisition of Servair in Italy in June 2013. Revenues were up 39% to AED 891 million (US$ 243 million). 22.4 million meals were uplifted for the first half of the fiscal year, up a massive 81% from last year.

Revenue from dnata’s Travel Services operation contributed AED 303 million (US$ 83 million), up 16% from the same period last year.

dnata’s cargo handling division grew revenues 4% to AED 546 million (US$ 149 million) on account of increased tonnage mainly for dnata’s UK operation and in Switzerland which rose in total by 2% to 809,236 tonnes.

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