Airbus Bags Order For 15 More Aircraft From Emirates Following A Public Dispute: What's Going On?

Author: Lekha Gupta | November 16, 2023 08:34am

Airbus SE (OTC:EADSF) won an additional order for 15 A350-900s aircraft from Emirates Airlines at the Dubai Airshow. With this new order, Emirates Airlines' total order is 65 aircraft. 

The move came after Airbus reportedly faced a setback from Emirates at the Dubai Airshow, where the UAE-based airline reportedly ruled out an immediate contract to purchase Airbus A350-1000 jets on Tuesday, accusing a dispute with engine maker Rolls-Royce Holdings PLC (OTC:RYCEY)(OTC:RYCEF) over the durability of its engines and leaving the European planemaker without a significant showcase order.

The deal comes as a compromise after Emirates publicly criticized the performance and cost of Rolls-Royce engines for the A350-1000 related to the downtime needed in Gulf conditions, Reuters reported, citing Industry sources.

At the end of October, the A350 had won over 1,000 orders from leading carriers globally.

HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said, "The A350-900s will add to our fleet mix and we are pleased to announce additional orders for this aircraft type. We plan to deploy our A350s to serve a range of new markets including long-haul missions of up to 15 hours flying time from Dubai. We will work closely with Airbus and Rolls-Royce to ensure our aircraft deliver the best possible operating efficiency and flying experience for our customers."

Also this month, Airbus inked a deal for 11 additional A350-900s aircraft with Ethiopian Airlines Group. Moreover, EGYPTAIR ordered 10 A350-900s aircraft from Airbus.

Also Read: Airbus Bags €1.2B In Contracts To Enhance French Tanker Transport Capabilities

Price Action: EADSY shares closed lower by 1.14% at $35.43 on Wednesday.

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