International press coverage of a record order of 71 new passenger jets by Emirates centered on the airline’s attempt to rescue the airline industry as it did in 2001 with a $15 billion order for new jets. Yet, despite this widespread view of the new $19-billion-order, industry experts felt current circumstances simply enabled the carrier to negotiate better financial terms and obtain cheaper purchasing and leasing prices.
The truth is that most feel this is the right time to buy planes from the manufacturers who have been hit by the global economic downturn, the outbreak of SARS, job cuts and bankruptcies.
“The deal will have a good impact on the entire industry because it covered several aspects including engines, leasing, maintenance contracts and purchasing,” said an airline expert.
Another analyst said: “Emirates not only benefited the industry but actually enabled it to negotiate a good financial deal on the best terms.”
Analysts were also of the view that Emirates has opted to buy Airbus planes and lease Boeing jets because of the former’s bigger cargo and passenger capacity, advanced technology, and low fuel consumption, even on long-haul flights.
The latest Emirates deal involves the purchase of 21 Airbus A380-800s and the leasing of two A380-800s and operating leasing of 26 Boeing 777-300ERs, 14 from General Electric Capital Aviation Services and 12 from the International Lease Finance Corporation.