Boeing has been eating Airbus's lunch this year and $42 billion in new deals this week confirms it
- Airbus and Boeing have landed three mega-deals this week for a total of 695 planes worth $92 billion.
- It's the latest chapter in the sales battle between the two manufacturers.
- Before the 2017 Dubai Air Show, Boeing was leading 690 planes sold to 343.
- Airbus has closed the gap with the single largest order in company history.
The 2017 Dubai Air Show has become the aviation industry's showdown in the desert.
Here's a quick walkthrough of the massive deals that have been announced in the past 4 days.
- Boeing landed a $15.1 billion order for 40 787-10 Dreamliners from Emirates on Sunday.
- The American manufacturer won another deal from Fly Dubai, the city's low-cost carrier, for 225 737MAX jets worth $27 billion on Wednesday.
- Also on Wednesday, Airbus won a $49.5 billion order from Indigo Partners' portfolio of low-cost airlines that include Frontier, Wizz Air, Volaris, and JetSmart.
For instance, Indigo Partners likely received a discount in the neighborhood of 45% to 48%, Airways senior business analyst Vinay Bhaskara told Business Insider.
But even with that factored this, Dubai's airshow has become a highlight of this year's race for sales supremacy between the two companies. Overall, Boeing has been eating Airbus's lunch so far this year, out-selling the Toulouse, France-based planemaker by 690 to 343.
Boeing's success in Dubai is no accident.
For the Government of Dubai, the 265 jets its airlines agreed to buy from America's largest industrial exporter is a not-so-subtle show of the Emirate's impact on the US economy. It will serve as an important counterpoint to the ongoing complaints from the three US legacy airlines which are lobbying to change air transport agreements that have et the Middle East's three big carriers compete for US passengers.
That wasn't lost on Boeing when it announced the deal FlyDubai deal.
"The deal represents the largest-ever single-aisle jet order - by the number of airplanes and total value - from a Middle East carrier," Boeing said in a statement."When finalized, the purchase promises to sustain tens of thousands of direct and indirect jobs in Boeing's U.S. factories and network of suppliers."
'End of an Era'
All three deals are for state-of-the-art, ultra-fuel-efficient airliners. Although pricey, investment in these aircraft is meant to help these airlines operate and grow in a more efficient manner.
The Boeing 787 will give Emirates a level of flexibility and economy that its larger Boeing 777-300ER and Airbus A380 fleet could not approach. With Emirates and FlyDubai expected to have a much cozier relationship in the near future, the 737MAX will finally give Emirates access to a major narrow-body fleet. This allows the airline to turn over many of its shorter, less profitable routes to FlyDubai.
For Indigo's portfolio of airlines, the 430 aircraft deal not only satisfies its current needs but also gives it leeway to grow as fast as the business can manage.
As we approach the end of the year, expect more announcements as Airbus and Boeing shore up their annual sales figures. Stay tuned for more action.
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