FlyDubai orders 150 Airbus A321neo aircraft, expanding its fleet beyond Boeing
FlyDubai, the lower-cost sister airline to long-haul carrier Emirates, announced an initial order Tuesday for 150 Airbus A321neo aircraft at the Dubai Air Show — an estimated $24 billion purchase that will see the carrier for the first time expand its fleet beyond Boeing.
The deal would more than double FlyDubai's current fleet of aircraft and the airline said it had options to buy another 100 A321neos. It also represents a major purchase for the airline as Dubai prepares across both carriers to expand as it builds a five-runway airport in this desert sheikhdom in the United Arab Emirates.
The A321neo is a mid-range, two-engine, single-aisle aircraft, matching the style of the Boeing 737s that FlyDubai has relied on since launching flights back in 2009. The airline currently has a fleet of 95 aircraft.
Airbus and FlyDubai declined to take questions from journalists at the announcement. Both firms referred to the order as a memorandum of understanding, signaling more negotiation are likely ahead before a firm deal.
"It's an exciting step in expanding and diversifying our fleet and strengthening our longterm expansion plans," said Sheikh Ahmed bin Saeed Al Maktoum, the chairman and chief executive of Emirates and chairman of FlyDubai.
Airbus also praised FlyDubai in the announcement.
"We're very impressed with FlyDubai as an efficiency minded carrier that's also offering a premium product," said Christian Scherer, Airbus' CEO of commercial aircraft.
At the last Dubai Air Show in 2023, FlyDubai made an $11 billion order of 30 Boeing 787-9 Dreamliners, which will be the first wide-body aircraft in its fleet when the airline takes delivery.
Abu Dhabi's Etihad also makes an Airbus purchase
Earlier Tuesday, Etihad put in an order for 16 Airbus aircraft, part of expansion efforts as its economic fortunes improve.
Etihad's order includes six A330-900s, seven A350-1000s and three A350F freighters, the two firms said at a news conference. They did not offer a cost for the deal. Airlines often negotiate lower prices in major orders.
Etihad made a record $476 million profit in 2024, part of a financial rebound for the Abu Dhabi-based airline. While still a slender profit compared to rival Emirates' record profits of $5.2 billion in the last fiscal year, it continues a major turnaround for Etihad.
Abu Dhabi's rulers launched Etihad in 2003, rivaling the established Dubai government-owned carrier Emirates, which boasts a larger fleet and a far-flung network.
Etihad struggled with its business plan and underwent cost-cutting measures even before the coronavirus pandemic. Since 2016, Etihad has lost some $6 billion as it has aggressively bought up stakes in airlines from Europe to Asia to compete against Emirates and Qatar Airways.
Emirates goes with Boeing 777-9
On Monday, Emirates ordered 65 of Boeing's upcoming 777-9 aircraft worth at $38 billion at list prices.
Tim Clark, the president of Emirates, again acknowledged to journalists on Tuesday the delays that have plagued Boeing in getting the 777-9 to customers. However, he said he believed Emirates' large purchase could see even President Donald Trump's White House take note and push the manufacturer to finish the plane.
"I'm sure the White House will be leaning on Boeing to make sure it all works and they can get the things out of the doors quickly as they can, because it does mean jobs for everyone," Clark said. "Particularly the 9X is going to be Seattle constructed, so all that sort of workforce in the northwest is almost secured now for decades."
Boeing has faced billions in losses in recent years, as well as a slowdown in manufacturing off the back of the coronavirus pandemic, worker strikes and increased government scrutiny following two crashes of Boeing 737 MAX aircraft in Indonesia in 2018 and another in Ethiopia in 2019. A Boeing 787-8 passenger jet in India crashed in June, killing at least 260 people.
At Monday's announcement from Emirates, Sheikh Ahmed said the airline expected to receive its 777-9 aircraft from Boeing beginning in "the second quarter of 2027." Asked whether he thought Boeing would get the planes to Emirates then, Clark said: "We'll see." Clark has been repeatedly critical of Boeing's delays.
Clark also acknowledged Emirates and FlyDubai would be able to rapidly expand its routes with new aircraft once the sheikhdom drastically expands Al Maktoum International Airport at Dubai World Central, where the air show takes place.
Dubai plans a $35 billion project to expand to five parallel runways and 400 aircraft gates, to be completed within the next decade.
"We'll be able to reach any point on the planet," Clark said.
Source: Associated Press
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