Emirates Airline has big plans for itself. This was made perfectly clearly after it was announced that the carrier has plans to purchase more than 200 planes. This will help Dubai, which is Emirates Airline’s home base, become one of the largest and most well-known aircraft hubs in the whole world. Of the 200 planes, 150 will be Boeing 777 mini jumbo jets. The remaining 50 will be Airbus A380 superjumbo jets.
This will bring in some much needed cash for Boeing. In fact, this order is believed to be worth at least $55.6 billion for Boeing. This is a price that excludes the engines for the planes. Airbus, on the other hand, should get around $20 billion at full list price. Of course, with an order this size, it is far more likely that Emirates Airline received a nice discount on the list price. Most plane manufacturers offer airlines discounts if they buy planes in groups like this.
Tim Clark, who is the current president of Emirates Airline, said that his company will continue to buy planes. He does not believe his company will stop any time soon and will continue to buy more planes in the near future. The intention of the government is to help fill the new airfield in Dubai with planes.
It is pretty apparent that Gulf airlines are looking to become a huge force in the aviation world. In fact, airlines from this region have purchased plane deals that are worth more than $150 billion. That is a lot of planes for just one region of the world. It is apparent that they want to expand and become one of the largest regions for airlines.
Airline industry experts say that this buying spree shows a huge shift in power. The aviation industry is moving toward the Gulf. This area has a lot of money thanks to oil and a very quick-growing economy. Right now, that is what airlines need, and it is taking priority over markets in the West and East. It is starting to draw in more travellers that used to travel from hubs in Asia and Europe.
Of course, Abu Dhabi benefits from this deal as well. After all, Boeing and Airbus will have to buy parts to make all of these planes. They will need to buy some $5 billion in materials and parts, and they will get it from Abu Dhabi. Thus, this will also give a huge boost to the economy in this area.
When there is a lot of money, economies tend to flourish. This is why places like the United States and most countries in Europe are struggling. There is simply not a lot of money to go around. When there is not a lot of money, people do not invest and buy things. When people are not buying, the economy comes to a standstill, and people lose jobs. It is a catch 22. However, the Gulf region seems like it is flourishing.