Monday, October 3, 2016

The Middle East and Boeing's Usual Suspects

Boeing needs wide body orders stat. It has been cultivating Middle East clientele for many years. The time has come where both the slack order year meets Middle East need.

Qatar recently received its last Dreamliner order while booking so many A-350's. Today they are disappointing and a bit angry with Airbus. In the highly competitive passenger aviation business it has left Qatar holding the travel bag. Its 787 works just fine. Qatar is thinking 787 at this time when Airbus is sluggish and not as dependable as Boeing's delivery schedule.

Saudi Air is in the works with buying US military aircraft recently approved by the US to do so. A 787 package is in the works with Boeing awaiting completion of the military deal. When that is complete expect an expansion of Boeing's 787 order book. All Things 787 indicates about 13 787's.

Emirates has positioned itself after considering Boeing or Airbus who for some reason Emirates abandon a huge Airbus order of 70 a few years back (ouch). Now the negotiation are in the final stages where Emirates is deciding on a package which is centered around environmental conditions of heat and tonnage. Emirates has been deploying new deliveries of 787-9's around the region. Since Emirates cancelled 70 of its A-350's back in June 2014, the Emirates plans have a gaping hole in its inventory and needs more wide bodies than what was ordered initially with its 787-9 orders. "All Things 787", blog reports: "I can see them taking 30 or so 787-9s and 45 787-10"

A full read of All Things 787 for October 1, 2016 will put this issue in perspective!

The point of all this order chatter is Boeing is anxious for filling its wide body order book including 777X types and the Middle East is ready for this accommodation. Even Turkey has a dog in this order fight but that may come in early 2017 as it arranges financing.