Sales Soar at Dubai Airshow
From Staff Reports
Both Boeing Co. (BA) and rival Airbus SAS secured hefty contracts at the Dubai Air Show, the world’s third-largest aerospace event. However, Boeing isn’t resting on its success, but is rather looking ahead to what it thinks will be a very lucrative market in the future.
Orders topped $80 billion on in the first two days alone, with deals announced for more than 515 aircraft, Gulf News reported. Those figures include two letters of intent from Dubai Aerospace Enterprises for 200 aircraft, split evenly between Airbus and Boeing.
"Day two sent the show’s record sales tally soaring when Dubai Aerospace Enterprise signed a $13.5 billion letter of intent with Airbus for up to 100 aircraft," organizers said. "Within hours, DAE went on to sign a letter of intent for 100 aircraft, worth approximately $13.7 billion, with Boeing."
Reportedly, Boeing then won an order worth around $972 million, for six additional 787-8 Dreamliners from Dubai-based LCAL, an aircraft-leasing company.
Also, Boeing’s Chief Executive Officer Scott Carson announced yesterday (Tuesday) that his company is close to defining the market for a bigger version of its new 787 Dreamliner and is currently negotiating the sale of approximately 200 aircraft.
"We’re within a few months of defining the center of the market," Carson said in an interview with Reuters. "There are six to eight [sales] campaigns around the world [for the planned stretched 787-10] and each one wants a different thing."
Boeing hopes to satisfy those customers in coming months. The company’s shares closed yesterday at $93.70 each, up 84 cents, or 0.90%.
News and Related Story Links:
- Money Morning Investment Analysis:
China’s Growth Will Clear $340 Billion Worth of Airliner Sales for Takeoff Over the Next 20 Years. - GulfNews.com:
Aircraft Sales Soar Past $80 Billion. - Reuters:
Boeing Sees Demand For Bigger 787.
