What Is Known As The Emirates 40 Is Orphaned

Now it lays at Boeing's feet. Emirates has signed for 40 787-10 in the midst of its reshuffling fortune as it cancels out the A-380 and soothes the Airbus customers by sliding over to the A330 NEO and A350 orders for a total of 70 airplanes, but no word as of yet what it will do with its LOI Boeing 787-10s order for forty. Herein lies the puzzle, and one clue has already been exposed. The clue is in all this bluster of trading A-380's for the 40 A330 NEOs and 30 A350 WBs with no mentioned of canceling the 40 LOI 787-10's.

It means that Emirates is not done yet as it reaffirms six 777X's coming on board. Emirates could close the Boeing case with a large additional order by expanding it to greater than 150 777X units as it already intends on. The forty LOI 787-10 gained by Emirates during 2017 is a card in play for pricing reduction and a build schedule. Boeing will blink and give Emirates a low ball price on 20 787-10's and then sign on for another 777X 20 by signing for 5, 777-8x and 15, 777-9X with special pricing. The delivery duration will be a strung out affair over the next dozen years as the Emirate fleet flexes and grows during its aviation cycles. Boeing will save face and hunker down with its gains during this Emirates fleet reshuffle. 

Emirates needs time and opportunity to adjust its fleet operations with the 70 Airbus WB's and another potential 40 Boeing WB if acted upon. It is important to note Emirates has about 148 older 777's in its fleet today and could easily replace those 777 classics on a one for one basis with its current 777X order book. It was dabbling with the 787-10 but the 40 A330 NEO's and 30 A-350 orders may negate having the 787-10's at all. Drawing a 5,000 mile from Dubai includes all of Africa, Europe and the complete near east. This is billions of potential passengers for Emirates.

Having only 20 787-10 in your fleet underutilizes a business case on one of the world's busiest corners. There is potential room in the Emirates scheme of things to fit in the 787-10 on high-density routes with an unmatched seat mile efficiency not found in the Airbus product. Emirates can go back to both Airbus and Boeing and re-write the order book. Since no cancellation proclamation has been made on Emirates 40 787-10's, it is assumed another shoe will drop explaining the outcome of the LOI. Emirates could just simply drop LOI for 40 at this time but it looks like there is more blood to squeeze out of that turnip in the meantime.