Boeing Secures Significant Ethiopian Airlines Order, Outshining Airbus at Dubai Airshow

15 Nov, 2023

Boeing Secures Significant Ethiopian Airlines Order, Outshining Airbus at Dubai Airshow

Boeing's impressive run at the Dubai Airshow reached new heights with Ethiopian Airlines' substantial order, signifying a pivotal moment in the aviation industry. The deal encompasses 11 Boeing 787 Dreamliners and 20 737 MAX airplanes, making it the most significant purchase of Boeing aircraft by an African company. This agreement holds particular significance as it marks a step towards reconciliation after the tragic Ethiopian 737 MAX crash in 2019.

Emirates Airline's noteworthy order further underscored Boeing's dominance in the market, dealing a significant blow to rival Airbus, which faces concerns over engine defects. The Emirates order includes a substantial fleet, with 55 Boeing 777-9s, 35 777-8 jets, and five 787 planes. This development solidifies Emirates Airline's status as the world's largest operator of Boeing 777 aircraft.

Boeing's success extended beyond Ethiopian Airlines and Emirates Airline, as FlyDubai revealed plans to acquire 30 Boeing 787-9 Dreamliners. This move marks FlyDubai's first order for widebody aircraft, highlighting the increasing demand for Boeing's innovative and fuel-efficient Dreamliner series.

Adding to Boeing's triumphs, SunExpress, a joint venture between Turkish Airlines and Lufthansa, committed to purchasing up to 90 Boeing 737 aircraft. The agreement includes an order for 28 737-8s, 17 737-10 models, and an option for up to 45 additional 737 MAX planes. This further solidifies Boeing's position in the aviation market.

However, amidst Boeing's successes, Airbus faced challenges. While securing an order for 30 A220-300 aircraft from airBaltic, Airbus received signals from Emirates Airline regarding a delay in new Airbus A350 orders. Emirates Airline's President, Tim Clark, hinted at concerns over Rolls-Royce engines, stating they are "not doing what we want." This adds a layer of complexity to Airbus's position in the competitive aviation landscape.

Boeing's stock reflected these achievements, rising by 1.4% on Tuesday, building on the momentum generated by the Dubai Airshow orders. This positive trajectory is further supported by reports suggesting China's consideration of a significant commitment to Boeing's jets.

In contrast, Airbus, trading in American depositary receipts (ADRs), faced a more modest increase of 2.8% on Tuesday. Despite a solid performance throughout the year, Airbus is approaching its 2023 highs from late July.

Additionally, Air Lease, a key player in jet leasing and fleet management services, experienced a 2.4% increase on Tuesday. This emphasizes the broader impact of Boeing's success on the aviation industry.

In summary, Boeing's triumphs at the Dubai Airshow, particularly the groundbreaking Ethiopian Airlines order, have not only positioned the company as a leader in the market but have also highlighted challenges faced by its competitors, especially Airbus. The aviation landscape continues to evolve, with Boeing's innovative offerings and strategic partnerships reshaping the industry's dynamics.