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Boeing launches the 777X program at the 2013 Dubai air show with 259 orders
Boeing launched the 777X program on Nov. 17 at the 2013 Dubai air show with a record-breaking number of customer orders and commitments for the newest member of its twin-aisle product family. Agreements for 259 airplanes from four customers across Europe and the Middle East provide a strong foundation to support development and production of the airplane. (airguideonline.com) More...
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While it seems to me that the 3 major middle east carriers are overbuilding terminals and fleets for the region. The only issue that that these carriers aren't just serving the ME region.
Positioned between Europe and Asia/Africa, the ME carriers are in a position to skim off lots of long-haul passengers from other regions'carriers. The ME carriers are cutting into the other carriers' most profitable long-haul business. In order to feed their more profitable international routes these other carriers maintain short-haul fights to feed their hub(s). But these airlines compete with lower cost LCC airlines, and often make losses on short-haul to feed their long haul. The ME carriers can just set up relationships with the LCC airlines and get feeder traffic without the cost and effort to run a short haul business in other airlines' home regions.
So these other carriers already have make up for their short haul losses when pricing their international long-haul fares. The ME carriers can afford to either price lower and take business or offer more luxury for the same price and take business away from other carriers saddled with the shirt haul and other legacy costs.
The scary reality is that these ME carriers can succeed by taking lucrative long-haul business from the traditional carriers who are squeezed between LCCs at home, and the Muddle East carriers and other newer entrants on international flights. If the ME carriers take delivery of all these aircraft and fill them all up, you'd have to wonder which other airlines these passengers aren't flying instead.
So I can't guarantee that the ME carriers will be successful in their plan. But if they are successful, many other airlines will feel quite a lot of pain.
Positioned between Europe and Asia/Africa, the ME carriers are in a position to skim off lots of long-haul passengers from other regions'carriers. The ME carriers are cutting into the other carriers' most profitable long-haul business. In order to feed their more profitable international routes these other carriers maintain short-haul fights to feed their hub(s). But these airlines compete with lower cost LCC airlines, and often make losses on short-haul to feed their long haul. The ME carriers can just set up relationships with the LCC airlines and get feeder traffic without the cost and effort to run a short haul business in other airlines' home regions.
So these other carriers already have make up for their short haul losses when pricing their international long-haul fares. The ME carriers can afford to either price lower and take business or offer more luxury for the same price and take business away from other carriers saddled with the shirt haul and other legacy costs.
The scary reality is that these ME carriers can succeed by taking lucrative long-haul business from the traditional carriers who are squeezed between LCCs at home, and the Muddle East carriers and other newer entrants on international flights. If the ME carriers take delivery of all these aircraft and fill them all up, you'd have to wonder which other airlines these passengers aren't flying instead.
So I can't guarantee that the ME carriers will be successful in their plan. But if they are successful, many other airlines will feel quite a lot of pain.
My bet is, a significant number of these airframes will never be delivered, or not delivered to the players placing the orders. Particularly the A380's. Can't imagine that the region could sustain that amount of capacity ever, but particularly after the band stops playing,(ever gushing middle eastern oil). Silica, (sand), is just not in great demand. Their other major asset! Aah, the hubris of it all. Or is it just my limited imagination?
They can always go back to flying rugs.
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777X launched at Dubai Airshow, sets new order record
The 13th Dubai Airshow brought several new orders, including a new aircraft type, on its first day on Sunday. Four airlines placed orders for aircraft at the show, which was held at Dubai World Central.
http://jansaviation.com/news.php?art=777x-launched-at-dubai-airshow-sets-new-order-record
777X launched at Dubai Airshow, sets new order record
The 13th Dubai Airshow brought several new orders, including a new aircraft type, on its first day on Sunday. Four airlines placed orders for aircraft at the show, which was held at Dubai World Central.
http://jansaviation.com/news.php?art=777x-launched-at-dubai-airshow-sets-new-order-record
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UPDATE: Boeing, Airbus Reel In Persian Gulf Orders
Boeing Co. BA +0.73% formally launched its 777X jetliner with record orders, part of jet-buying commitments at the Dubai Airshow valued at more than $150 billion for Boeing and rival Airbus that highlighted the growing ambition of Persian Gulf airlines.
The orders, announced Sunday at the air show's start, are part of the Gulf region's effort to become the world's dominant transit point for airline passengers and foster its own economic growth. Boeing unveiled deals for several models valued at more than $100 billion, based on list prices, with Emirates Airline, Abu Dhabi-based Etihad Airways, Qatar Airways and flydubai, a low-cost carrier founded by Dubai's government five years ago. That was double the haul of rival Airbus, a unit of European Aeronautic Defence & Space Co. EAD.FR -1.50%
http://online.wsj.com/news/articles/SB10001424052702303755504579204052790857652
UPDATE: Boeing, Airbus Reel In Persian Gulf Orders
Boeing Co. BA +0.73% formally launched its 777X jetliner with record orders, part of jet-buying commitments at the Dubai Airshow valued at more than $150 billion for Boeing and rival Airbus that highlighted the growing ambition of Persian Gulf airlines.
The orders, announced Sunday at the air show's start, are part of the Gulf region's effort to become the world's dominant transit point for airline passengers and foster its own economic growth. Boeing unveiled deals for several models valued at more than $100 billion, based on list prices, with Emirates Airline, Abu Dhabi-based Etihad Airways, Qatar Airways and flydubai, a low-cost carrier founded by Dubai's government five years ago. That was double the haul of rival Airbus, a unit of European Aeronautic Defence & Space Co. EAD.FR -1.50%
http://online.wsj.com/news/articles/SB10001424052702303755504579204052790857652
(Duplicate Squawk Submitted)
UPDATE: Boeing takes $100 billion in orders from Gulf
.S.-based Boeing Co. dominated on the first day of the Dubai Airshow, netting $100 billion in orders at an event that showcased the spending power and aggressive expansion efforts of the Middle East's Gulf Arab carriers.
The 342 orders represented more than twice the value of those seen by European rival Airbus, who said it took 142 orders worth some $40 billion.
The massive commitments came from just four carriers in the tiny nations of Qatar and the United Arab Emirates, which are in a race to create more jobs for their own citizens and diversify their oil-dependent economies.
http://www.9news.com/money/364942/344/Boeing-takes-100-billion-in-orders-from-Gulf-
UPDATE: Boeing takes $100 billion in orders from Gulf
.S.-based Boeing Co. dominated on the first day of the Dubai Airshow, netting $100 billion in orders at an event that showcased the spending power and aggressive expansion efforts of the Middle East's Gulf Arab carriers.
The 342 orders represented more than twice the value of those seen by European rival Airbus, who said it took 142 orders worth some $40 billion.
The massive commitments came from just four carriers in the tiny nations of Qatar and the United Arab Emirates, which are in a race to create more jobs for their own citizens and diversify their oil-dependent economies.
http://www.9news.com/money/364942/344/Boeing-takes-100-billion-in-orders-from-Gulf-
Most of this is driven by three players that have done an admirable job of building three major hubs. Trouble is they are all within a couple hundred miles from each other.
I don't think that is sustainable. There is not enough traffic that flows in and out of there to support that. The three players are all "cousins" that have conspired against the world to sell oil they pull out of the ground for $4 a barrel and sell for $100. These prices have created economic hardship globally, and as the demand in the BRIC countries grows it will outstrip the supply from the Middle East.
To increase supply exploration will discover new sources, and much of that will be in South America and Africa. The consumers will demand political stability in those areas, and the huge increase in supply will render the machinations of OPEC moot.
The Sultans in the Middle East will be told to GPS. (Go Pound Sand)
I see Jet A falling to $ 2.00/gallon and airlines become very profitable. Combined with fuel sipping designs like the Dreamliner there will be money for real security, the demise of nickel and diming, and the removal of 20% of coach seats to allow comfortable long haul flights.