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Airlines

Emirates Places Firm Order for 42 Boeing 777 Aircraft Amid Rapid Expansion

Strategic Insights

— 1 min read

Emirates, a Middle Eastern airline owned by the government of Dubai, has placed a firm order for 42 Boeing 777 long-haul aircraft, bolstering its position as a major player in the global aviation market. This latest contract, valued at $9.7 billion, brings the airline's outstanding firm orders for wide-bodied aircraft to 132, surpassing the existing long-haul fleets of several major carriers. Emirates' rapid expansion is fueling concerns about the competitive threat posed by state-owned carriers in the Middle East, including Qatar Airways and Etihad.

Key Takeaways:

  • Emirates has placed a firm order for 42 Boeing 777 aircraft, valued at $9.7 billion at list prices before discounts.
  • The airline's outstanding firm orders for wide-bodied aircraft total 132, exceeding the existing long-haul fleets of British Airways, Lufthansa, United Airlines, and Singapore Airlines.
  • Emirates operates an all-wide-bodied fleet of 83 aircraft, serving over 75 cities in 54 countries.
  • The airline's passenger traffic, measured by revenue passenger kilometers, is growing at 25-30% per annum.
  • Emirates expects to carry 13 million passengers in 2005-2006, with projected growth to 32-33 million by 2013.
  • The airline has aircraft on order valued at $37.4 billion at list prices, including 45 A380 superjumbos.
  • Emirates' first A380 is due for delivery in April 2007.
  • Dubai airport is expanding to handle up to 75 million passengers per year, with a growth rate of 14% per annum.
  • The Boeing order includes 10 777-200LRs, the world's longest range commercial passenger jet.

Statistics:

  • Emirates' passenger traffic growth rate: 25-30% annually
  • Projected passengers in 2005-2006: 13 million
  • Projected passengers in 2013: 32-33 million
  • Total value of aircraft on order: $37.4 billion
  • Number of A380 superjumbos on order: 45
  • Number of 777-200LRs on order: 10
  • Dubai airport's projected growth rate: 14% annually
  • Dubai airport's expected capacity: 75 million passengers per year beyond 2009

Sources:

  • The Financial Times
  • Emirates ( Emirates website)
  • Boeing ( Boeing press release)
  • Dubai Airports ( Dubai airport expansion plan)

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