Emirates New Deal

Emirates’ Business Expansion to be Valued at $ 24.8 billion

The Dubai-based airplane company, Emirates, invested $ 9 billion in the expansion of its commercial carrier service on November 20, 2019. The company has entered into a deal with the American airplane manufacturing company, Boeing, for the supply of 30 787-9 Dreamliner jets.

Emirates’ President Tim Clark has already made an announcement regarding the purchase of 50 Airbus A350-900 jets and the company’s plans to invest $16 billion for the expansion of the company.

The two deals by Emirates’ will bring the total to nearly $ 24.8 million. Presently, the company has 270 commercial airplanes and aims at increasing the number of airplanes by 30% by the end of 2025.

New Deal with Boeing 787-9 Jet

Boeing’s 787-9 jet is a two-class compartment with a mid-sized body having a seating capacity of 242 to 330 passengers. The original value of the deal with Boeing is about $ 8.8 billion; however, Emirates is likely to negotiate the price.

The delivery of the airplanes to Emirates will begin in May 2023 and continue for the next five years. Including these 30 787-9 Dreamliner jets, Emirates will have 126 airplanes of Boeing alone.

This deal has emerged like a beckon of hope for the American airplane manufacturer, especially in the hour of shrinking sales caused due to the ban on around 400 of Boeing’s 737 Max jets since March 2019 due to their frequent crashes.

Initially, Emirates had signed a deal for a bigger carrier, Boeing 787-10, which was canceled later as Boeing 787-9 has better fuel efficiency and compact range space.

Boosting Global Tourism and Business of UAE

Having signed the $ 9 billion deal with Boeing, the Emirates’ Chairman, and Chief Executive, HH Sheikh Ahmed Bin Saeed Al Maktoumsaid stated,

“I am pleased to announce an order for 30 Boeing Dreamliners. This is an important investment and addition to our future fleet and it reflects Emirates’ continued efforts to provide the best quality air transport services to our customers. The 787s will complement our fleet mix by expanding our operational flexibility in terms of capacity, range, and deployment. We are also pleased to reaffirm our commitment to the Boeing 777X program and look forward to its entry into service”.

The chairman explains that the expansion of Emirates’ carriers is to serve the global audience and meet the global demand for transportation.

Considering it as a key strategy for the UAE to be a global destination, Emirates’ expansion will facilitate the need for international tourism and increase businesses in Dubai.

Sources:

  1. https://www.cnbc.com/2019/11/20/emirates-inks-order-for-30-boeing-787-jets-talks-expansion-plans.html?__source=twitter%7Cmain
  2. https://boeing.mediaroom.com/2019-11-20-Emirates-Orders-30-Boeing-787-Dreamliner-Airplanes-to-Complement-777X-family?sf224084121=1
  3. https://gulfnews.com/business/aviation/dubai-airshow-2019-emirates-firms-up-88-billion-order-for-30-boeing-787s-1.1574235881497

I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.

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