Two new major orders see Airbus generating $30 billion, leaving rival Boeing behind

By:
Forex Distribution

Airbus managed to get an early lead over eternal rival Boeing, after securing two new orders from airline companies based in the United Arab Emirates.

According to CNN Business, Emirates announced this Monday that it had ordered 50 Airbus A350 units, thus giving the jet a prominent role in its fleet, alongside models like the A380 or Boeing 777.

The deal is worth $16 billion, at list prices, is actually a replacement for Emirates’ initial order, announced earlier this year, in February, for 30 Airbus A350 units, as well as 40 A330Neos. Obviously, airlines benefit from serious discounts, considering the number of their orders.

A prosperous 2019, it appears, for the multinational corporation

And it appears that business is seriously thriving for Airbus, as another order, for 120 A320neo models, came from a low-cost carrier based in the UAE. Specifically, we’re talking about Air Arabia, who is looking forward to tripling its current fleet after all units will be delivered.

All negotiations were held during the Dubai Airshow, which initially failed to impress, in terms of sales during the opening day. Still, Airbus was there to save the day, not to mention that some sources claim that even more deals could be closed by Thursday when the event finishes.

Most likely, Boeing will also try to get close to such numbers, seeking to reassure potential buyers that their 737 Max model will return to service, despite the crashes of planes belonging to Ethiopian Airlines and Lion Air, which resulted in the death of 346 people.

“We’re going to follow the US Federal Aviation Administration’s lead on this, said Stan Deal, Boeing’s president and CEO of commercial airplanes, adding that the company is confident about getting US certification for the 737 Max before the end of 2019.

“This airplane, the process, the tools, and certification has to be safe and done well.”

Boeing, another victim of the infamous trade war

In their attempt to surpass rivals Airbus, US-based planemaker Boeing builds around 42 jets each month, even though none can be delivered while the plane is on the ground. Also, the main part of the money generated by a sale is collected just after the plane reaches the airline that ordered it.

However, besides the problems with the 737 Max, there are a few more. For example, last month they have announced, through an official statement, that the production rate for the 787 Dreamliner could be reduced to just 12 units per month, as a result of the US-China trade war, which diminished the demand.

In the meantime, Airbus looks ready to register some great number for 2019, especially if they manage to sale even more units by Thursday, when the Dubai Airshow is set to close its gates.

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