Monday, June 16, 2003 | 9:55 a.m.
LE BOURGET, France -- The fast-growing Gulf airline Emirates announced today a $12.5 billion order for 41 airliners from European airplane maker Airbus, in what executives called the largest order ever for wide-body jets.
The deal, announced at the Paris Air Show in suburban Le Bourget, includes an order for 21 A380 superjumbo jets, offering the latest vote of confidence for the planned 555-seat behemoth.
Separately, Emirates announced operating lease orders for 26 777-300ER planes from Airbus rival Boeing. The jets will belong to two U.S.-based companies: 14 owned by GE Capital Aviation Services and 12 by leasing firm International Lease Finance Corp. (ILFC). However, only four of those planes are new orders.
Emirates has been one of the few bright spots in an aviation industry ravaged by the effects of the Sept. 11, 2001, attacks in the United States, a global economic slowdown, wars in Afghanistan and Iraq and the outbreak of severe acute respiratory syndrome.
In the Airbus deal, Emirates also agreed to buy 20 A340 aircraft -- including 18 A340-600s, currently the largest plane in the Airbus fleet.
British engine manufacturer Rolls-Royce said Emirates had agreed to buy its Trent 500 engines to power the A340s, in a deal valued at $900 million.
Including previous orders, Emirates now plans to purchase a total of 43 A380s -- by far the largest of any airline customer. It also expects to lease another two from ILFC.
Emirates Chairman Sheikh Ahmed bin Saeed Al-Maktoum acknowledged that the orders for A380s amounted to a "big number" but said the carrier has had trouble obtaining landing spots at airports -- and the larger plane could help solve that.
"We'll have increased capacity with the same number of flights," he told reporters.
Noel Forgeard, chief executive of Airbus, said today's announcement amounted to the largest order ever for wide-body planes in terms of number and dollar value.
"This will be our big order of the show," John Leahy, head of Airbus' commercial aircraft division, told The Associated Press on the sidelines of a news conference at the 8-day event.
"Emirates is one of the growth airlines of the world, and we expect to grow together," he added.
Airbus has received a total of 116 firm orders from eight customers for the A380, which is to enter service in 2006. The plane is Airbus' proposed alternative to Boeing's 747, currently the largest plane in passenger service.
In a statement, the company said it has eight other "commitments" from Asian airlines Malaysia and Qatar Airways.
Airbus previously said it needed to build and deliver some 250 A380s to break even on the new aircraft -- putting it nearer to the halfway mark of that goal, even though none is in service yet.
Chicago-based Boeing has been setting its sights on a mid-sized, fuel-efficient 7E7 aircraft, which is expected to enter service in 2008.
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