Boeing nabs $5 billion jet deal

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Boeing nabs $5 billion jet deal Emirates expected to order 26 of the new
longer-range 777-300ER
By JAMES WALLACE
SEATTLE POST-INTELLIGENCER AEROSPACE REPORTER

Emirates, the fastest-growing airline in the Middle East, plans to order as
many as 26 of The Boeing Co.'s new longer-range 777-300ER jets, industry
sources confirmed yesterday. The deal, which is expected to be announced at
next month's Paris Air Show, would be worth nearly $5 billion based on the
$191 million average list price of the 777-300ER (extended range). Airlines
are believed to be getting steep discounts of as much as 30 percent or more
from Boeing and European plane maker Airbus as a result of the ongoing
industry downturn, so Emirates will be paying much less than the sticker
price in what is a buyer's market.  The Emirates order represents a major
boost for the 777-300ER and comes at a time when Boeing and Airbus are
scrambling for new orders. As part of its expansion plans, Emirates is
reportedly buying more planes from Airbus, including a huge add-on order
for the A380 superjumbo. The industry magazine Flight International
reported in its latest edition that Emirates will announce at the Paris
show orders for 23 more of the 555-passenger A380s. That would bring to 45
the total number of firm orders Emirates has placed for the new jet, which
will enter service in 2006. Emirates will also announce in Paris orders for
10 A340-600s and take options on that many more, Flight International
reported. The 777-300ER will compete against the A340-600, which is already
in service.  Even though the 777-300ER will not arrive on the scene until
early 2004, industry analysts say it should continue to give Boeing a
winning long-haul hand. The 777 has outsold the A340 family, which entered
service first.


With a longer wingspan to hold more fuel, the 777-300ER can carry 365
passengers up to 7,250 nautical miles. That's about 1,200 nautical miles
farther than the current 777-300.  An order for 26 planes would represent
nearly half again as many firm orders as Boeing now has for the 777-300ER
-- 56 total firm orders from seven airlines and leasing companies. Two
777-300ERs are now in flight tests. The first, which will be the third
plane down the Everett production line, will be delivered in early 2004 to
Air France. In addition to Air France, which has ordered 10 of the jets,
six other customers have ordered 38 planes. Boeing also lists eight
777-300ER orders on its books from an unidentified customer. That customer
is EVA of Taiwan, sources previously told the Post-Intelligencer. Those
planes are in addition to the four firm orders that Boeing and EVA have
publicly disclosed. The 777-300ER (extended range) will be able to fly up
to 14 hours non-stop. Still to come from Boeing will be the 777-200LR
(longer range), which will fly up to 18 hours non-stop. Engineering design
work on the 777-200LR, which will be the world's longest-range jetliner,
was recently restarted. Boeing halted work on the plane after the Sept. 11,
2001, terrorist attacks because of the industry downturn. The 777-200LR
would carry about 300 passengers nearly 9,000 nautical miles. The P-I
reported last year that Emirates was in serious talks with Boeing about the
777-300ER. At the Dubai Air Show in November 2001, Emirates announced it
would buy 25 Boeing 777s. But that commitment, which was never finalized
into a firm order, was for existing versions of the 777, not the new
longer-range model.

Later, after the Dubai announcement, Emirates made it known to Boeing that
it was interested in switching to the 777-300ER. Talks have been under way
since.  But a firm deal for the 777-300ER has been slowed because Emirates
wanted even more powerful engines for the plane. It will apparently settle
for the existing engines. Developed by General Electric, they are already
the world's most powerful. The GE90-115B is certified at 115,000 pounds of
thrust. For year-around operations on some long-haul routes from its
hot-weather Dubai hub, Emirates wanted the engine to have even more thrust.
Hot weather affects performance. Boeing was apparently able to make its
case with Emirates that the 777-300ER will meet nearly all of the airline's
route requirements with the 115,000-pound thrust engine. Boeing's current
fleet of 777-200s and 777-300s are powered by GE, Rolls-Royce and Pratt &
Whitney engines producing 90,000 to 100,000 pounds of thrust. GE won an
exclusive contract from Boeing to produce the more powerful engine of the
777-300ER.  Despite the industry downturn that has seen many of the world's
carriers delay expansion plans and new airplane orders, Emirates is doing
just the opposite. Airline executives have said they want to triple the
size of the Emirates fleet of Boeing and Airbus jets over the next 10
years. Emirates is expanding operations to the U.S. and other regions.
Founded in 1985, Emirates wants to grow into one of the biggest operators
between North America, Asia, Europe, Africa and Australia.


777-300ER ORDERS
Customers for the 777-300ER and number of planes ordered:
Air France: 10
Pakistan Int'l. Airlines: Three
Japan Airlines: Eight
All Nippon Airways: Six
EVA of Taiwan: Four
Intl. Lease Finance Corp.: Eight
GE Capital: Nine


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