India's Jet Airways injected life Monday into the Dubai Airshow, confirming an order for 75 Boeing 737 planes worth $8.25 billion at list price. The order, already listed on Boeing's books under an undisclosed client, was the sole large deal for plane purchases to be announced since the show opened Sunday. Little was expected in terms of sales of new planes at the biennial show, as Gulf carriers -- the usual big spenders, already have long lists of orders.
Organisers say the last edition of Dubai Airshow generated business of up to $200 billion (185 billion euros), with orders for planes in the first few hours alone topping $162.6 billion, beating the show's previous record of $155 billion set in 2007. Jet Airways' order, "previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 aircraft", Boeing said in a statement released at a joint press conference.
"The announcement marks the largest order in Jet Airways' history and supports the airline's replacement strategy," the statement said. The Boeing 737 MAX 8 plane costs $110 million at list price, bringing the total value of the deal to an estimated $8.25 billion. The carrier, partly owned by Etihad Airways, has a fleet of 115 aircraft.
"This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which reflects the positive forecast for the country's economy, and offers tremendous potential for growth and development," said Natesh Goyal, chairman of Jet Airways. The single-aisle being developed by the US manufacturer is touted as being more cost effective than its competitors. Meanwhile, Dubai's Emirates airline, which implied it would not be placing major orders for planes, on Monday announced maintenance contracts with GE Aviation of the United States.
The first is a $16-billion contract with GE Aviation for its fleet of 150 Boeing 777s. The contract covers "the maintenance, repair and overhaul (MRO) of the GE9X engines that will power the airline's fleet... over a period of 12 years", it said in a statement, adding that it was Emirates' largest contract of its kind. Emirates in 2013 signed a $76-billion contract for the 150 Boeing 777X twin-engine aircraft, powered by GE's new GE9X engine, in what was the single largest order by value in the history of US commercial aviation.
The second contract is also a 12-year deal with GE Aviation worth $36-million for maintenance and inventory support for various avionics, electrical power and mechanical systems on all its Boeing 777s in service and the 44 more on order. Emirates chief Sheikh Ahmed bin Saeed al-Maktoum told AFP Sunday that Dubai's national carrier made many orders at the last edition of the show in 2013, implying no major deals should be expected. The United Arab Emirates (UAE), however, opened its coffers for military spending, signing a $1.27-billion deal with the Swedish defence giant Saab, including the purchase of two surveillance planes and upgrading two others.
The two new aircraft are Global 6000 surveillance planes, while the old planes to be upgraded are part of the UAE's fleet of Saab 340s, Major General Abdullah al-Hashimi told reporters. The date of delivery has not been finalised, but could be within two years, he said. The purchase "supports surveillance capabilities" of the Gulf nation's air force, he said. The UAE has been part of the US-led coalition bombing militants of the Islamic State jihadist group in Iraq and Syria. It has also played a key role in the Saudi-led coalition that launched a military campaign in March against Iran-backed rebels in Yemen.
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