Boeing Takes Lion Share Of Dubai Airshow Orders On First Day

Boeing
BA
has started the Dubai Airshow with a flurry of announcements for significant customer orders. The aircraft manufacturer’s sales reports on the first day of the airshow come close to the record $74 billion in aircraft sales announced during the whole of last year’s Dubai Airshow. This year’s Dubai Airshow is expected to deliver 300 to 400 aircraft orders to aircraft manufacturers.

Today, Boeing reported 221 aircraft orders, which included 90 737 MAX aircraft for Turkish Airlines and Lufthansa’s leisure carrier SunExpress, 30 787 Dreamliner orders for low-cost carrier flydubai, and a $52 billion order from Dubai-based Emirates. This order consisted of 55 Boeing 777-9s and 35 777-8s. Emirates also updated its Boeing 787 Dreamliner order to 15 787-10s and 20 787-8s.

2023 Dubai Airshow Record Deals Expected

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE
UAE
and Ruler of Dubai, announced his expectation of record deals for this year’s event in a post on Sunday on the social media platform X, formerly Twitter.

“The exhibition’s deals in its previous session exceeded $74 billion.. and our expectations are for greater growth this year,” he wrote. “Dubai’s growth and superiority are linked to aviation… and the growth and development of the global aviation sector today is linked to Dubai… and the UAE will remain a forum for the most important global investment opportunities in all economic sectors.”

A pilot himself, Mohammed bin Rashid is deeply committed to aviation and inaugurated the first Dubai Airshow in 1986.

Flydubai Fleet Upgauge

Flydubai’s order of 30 787-9 Dreamliners represents a significant fleet diversification for the low-cost carrier, which currently operates an all-737 fleet of 79 planes. With the new Dreamliner aircraft introduction, flydubai plans to add capacity to existing routes while exploring new routes for growth.

“In 2008, when we placed our first-ever order for 50 Boeing 737 aircraft, we were confident of the vital role flydubai would play in supporting Dubai’s aviation hub,” said His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of flydubai. “I am proud today to see flydubai evolve further, surpassing labels and challenging the traditional conventions around travel.”

The 787-9 aircraft can carry 296 passengers with a range of 7,565 nautical miles. It also allows more room for cargo. According to Boeing, around half of all 787 Dreamliner flights cover shorter distances. The Dreamliner flies short- and medium-haul routes of less than 2,700 nautical miles.

SunExpress Order Reflects Growth of Leisure Market

SunExpress, the Turkish leisure carrier created through a joint investment by Turkish Airlines and Lufthansa, announced it will buy up to 90 Boeing 737 MAX aircraft. This order will double the airline’s fleet over the next decade. The deal includes 28 737-8 and 17 737-10 models, with a potential for an additional 45 737 MAX airplanes. The airline placed a previous order for 42 737-8s, of which Boeing has delivered nine.

“SunExpress is now poised for next-level growth to meet market demand and achieve a greater international footprint,” said Max Kownatzki, SunExpress CEO. “Over the next decade, we will more than double our fleet, reaching a 150-aircraft fleet by 2033. Also, the addition of the 737-10, the newest 737 MAX plane with up to 230 seats, to our fleet will allow us to strengthen our capacity further. SunExpress is well-positioned for the future.”

Emirates Ongoing Commitment To A Long-Haul Fleet

Emirates ordered 95 more Boeing wide-body aircraft valued at $52 billion. The order includes 55 additional Boeing 777-9s and 35 777-8s, bringing Emirates’ 777X orders to 205 planes. Emirates also updated its Boeing 787 Dreamliner order to 35 planes, with 15 787-10s and 20 787-8s.

“These additional aircraft will enable Emirates to connect even more cities, supporting the Dubai economic agenda D33 set out by HH Sheikh Mohammed bin Rashid Al Maktoum, to add 400 cities to Dubai’s foreign trade map over the next decade,” said HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates airline and Group. “By the early 2030s, we expect the Emirates fleet to be around 350-strong, connecting Dubai to even more cities around the world.”

Emirates operates an all-wide-body fleet of 264 aircraft, including Airbus A380s and Boeing 777s.

Additional Boeing Orders from Royal Air Maroc and Royal Jordanian

Boeing and Royal Air Maroc confirmed a repeat order for two 787-9 Dreamliners, which will expand its fleet of nine Dreamliners.

Royal Jordanian ordered four 787-9 Dreamliner jets and confirmed its previous order for two 787-9s.

“Royal Jordanian, having been the first in the Middle East to order the 787 over 16 years ago, continues to lead in adopting advancements in aviation,” said Samer Majali, vice chairman and CEO of Royal Jordanian. “The airline’s current fleet of seven 787-8 Dreamliners has proven successful in connecting Amman to major global destinations. The additional order underscores Royal Jordanian’s forward-looking approach and commitment to meeting the growing demand for long-haul travel.”

AirBaltic Orders 30 Airbus A220s

Airbus announced that airBaltic will become its largest A220 customer in Europe after confirming an order for 30 more A220-300s. This brings the airline’s total firm order book to 80 planes. The airline operates a fleet of 44 A220-300s, and is the largest A220-300 operator in the world.

The airline was the launch customer for the Airbus A220-300 in 2016, when the A220 was the Bombardier C-Series. The airline refreshed its fleet to operate the A220 as a single-aircraft type in 2020. The airline plans to fly a fleet of 100 A220s by 2023.

“For almost seven years already, the Airbus A220-300 has been the backbone of our operations and has played an integral role in the international success story of airBaltic”, said Martin Gauss, President and CEO of airBaltic.

Optimism Backed by Positive Third Quarter

The optimism reflected in significant aircraft order announcements is supported by the continued recovery of passengers who are eager to fly.

In September 2023, the International Air Transport Association reported continued growth in passenger traffic, measured in revenue passenger kilometers, compared to September 2022. RPKs have now reached 97.3% of pre-COVID levels globally.

Global domestic traffic in September increased by 28.3% compared to September 2022. It surpassed the pre-COVID levels from September 2019 by 5.0%.

International traffic rose by 31.2% compared to the previous yea, and all markets reported double-digit percentage growth. International RPKs reached 93.1% of the levels recorded in September 2019.

“The third quarter of 2023 ended on a high note, with record domestic passenger demand for the month of September and continued strong international traffic,” said Willie Walsh, IATA’s Director General.

Middle Eastern airlines’ passenger traffic grew by 26.6% compared to September last year. The load factor, which measures the number of seats sold onboard each flight, reached 81.8%.

By comparison, North American carriers experienced an 18.9% rise in traffic in September 2023 compared to the previous year. The passenger load factor reached 85.6%.

In Europe, airline passenger traffic rose by 15.7% and the load factor reached 85.5%.

“With the end of 2023 fast approaching, we can look back on a year of strong recovery in demand as passengers took full advantage of their freedom to travel,” said Walsh. “There is every reason to believe that this momentum can be maintained in the New Year, despite economic and political uncertainties in parts of the world.”

However, Walsh also warned of potential issues that could derail growth, asking for “the whole value chain to be ready.” Concerns include supply chain issues in the aircraft manufacturing sector. “They have held back the recovery, and solutions must be found,” Walsh said.