Emirates Orders 30 Boeing 787-9 Dreamliners But Reduces 777X Deal

Emirates has ordered 30 Boeing 787-9 Dreamliners in a blockbuster deal with US manufacturer Boeing. The deal was just announced this morning, Wednesday, November 20, 2019, in Dubai. The list value of the order is USD$8.8 billion.

emirates-boeing-787-9
Emirates orders 30 Boeing 787-9s. Photo: Emirates

It follows a deal Emirates struck yesterday with Airbus for 50 A350-900 XWBs. Based on list prices, that deal is worth up to USD$16 billion.

The details of the 787-9 deal

In 2017, Emirates placed a tentative order for 40 Boeing 787-10s but the deal was never finalized, as a separate order for 150 Boeing 777Xs ran into delays.

Advertisement

Today’s order will substitute 30 of the 777Xs for 787-9s. Emirates will still be taking some Boeing 777Xs. A spokesperson said;

Advertisement

“The 787-9 Dreamliner will complement the fleet by expanding flexibility, range, and deployment.”

The 787-9 Dreamliners will be introduced onto longer, thinner routes. Today’s order means the Dubai based airline will bring a modern, fuel-efficient medium-sized aircraft into its fleet to complement the airline’s larger Boeing 777s and A380s.

Advertisement

During the signing, Emirates CEO Shiekh Ahmed bin Saeed Al Maktoum said;

“I am pleased to announce firm 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 programme and look forward to its entry into service.”

emirates-orders-boeing-787
The delivery of the first Boeing 787-9 will be in 2023. Photo: Emirates.

Boeing’s Stanley Deal said during the signing;

“We are excited to finalize this important order from one of the world’s leading airlines. Our agreement solidifies Emirates’ plan to operate the 787 Dreamliner and the 777X, which make up the most efficient and most capable widebody combination in the industry. It is an honor to build on our successful partnership with Emirates and continue to sustain many jobs at Boeing and our supplier partners.”

All water under the bridge

Emirates has dug in its heels in recent months, criticising production delays and problems with delivered aircraft, and taking aim at both Boeing and Airbus. In September, Emirates CEO Tim Clark said;

“We are not in a business to deal with aircraft that don’t function properly.

I am a little bit irritated that, over the years, we as an airline, and I think as the industry, have been subjected to the requirements of the propulsion manufacturers, and to an extent the airframe manufacturers, where we are expected to deal with quality control issues and design issues, and operate these aircraft and engines, and take whatever consequences there are when they don’t work.”

emirates-orders-boeing-787
Emirates CEP Shiek Ahmed with Boeing Commercial Planes CEO Stanley Deal. Photo: Thomas Boon / Simple Flying.

That appears to be water under the bridge today. It is also a big shot in the arm for Boeing who has had a horrendous year. In addition to the ongoing 737 MAX grounding, engine issues with the 787s, and production delays with the 777X, they were seriously outgunned by Airbus at the Paris Air Show in June this year. To top it all of they were publicly eviscerated at a series of US Senate hearings in late October.

The first deliveries of the Emirates Boeing 787-9 will be in 2023.

Advertisement

40
Leave a Reply

14 Comment threads
26 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
17 Comment authors
newest oldest most voted
Trausti

So does this mean they’ll cancel the A33neo deal? Did they maybe convert the 330neos to the A350?

Peter

Tim Clarke indicated yesterday that the A330 Neos are still potentially on the table, but that this will be evaluated at a later date:

https://www.flightglobal.com/news/articles/dubai-clark-leaves-door-open-to-emirates-a330neo-d-462380/

Nicolas

Uhm… how is this a shot in the arm for Boeing? Essentially it means 2 things:
1. 30 777X ‘s get downgraded to 789’s – a decrease of roughly $4 billion in the value of their order book
2. De facto cancellation of the LOI for the 40 787-10’s – $13.5 billion potential order that doesn’t materialize

Peter

And importantly: a substantial decrease in the worldwide total order number of 777Xs…which now goes down to 301 from 325 (7.4 % decrease — ouch)!

Vince

And a loss of a prominent operator for the B787-10

Peter

FlightGlobal is indicating that the 777X “order” has been cut down to 126 from the original 150:

https://www.flightglobal.com/news/articles/emirates-to-take-30-787-9s-and-trims-777x-deal-462424/

Martin

This is no real ‘win’ to Boeing. They lost 24 of 777x orders for confirmation of 30 787 orders firming up a tentative 787 order (of 40 planes) placed some time ago. No amount of spin can hide the fact that the 777X program just took a huge hit and Emirates dropped the 787 order by 10. This is not a Boeing bonanza!.

Peter

And additionally: they downsized their original interest in the 787-10, and went for the 787-9 instead

Henning

I dont think the 787-10 with its current performance in the hot season in Dubai was out of the question. https://www.seattletimes.com/business/boeing-aerospace/big-order-pending-emirates-has-issues-with-787-10/

Tom

Peter, it’s true a lot of the carriers including Emirates are interested in the Boeing 787-9 than the 10 because the performance on the 787-9 is better than the 787-10. Even though there are less cargo and passenger capacity, the 787-9 can fly in very long-range than the 787-10. 🙂

Vince

To begin with the original B787 never included the – 10 variant. It was your overstretched variant with capacity increase but not the MTOW. Its full cargo + pax range is no better than the A330ceo.

Peter

Tim Clarke talked to an FAA official yesterday about the certification process for the 777X.
One gets the impression that Tim may be starting to have strong doubts about taking that plane at all:

https://www.flightglobal.com/news/articles/dubai-emirates-meets-with-faa-over-777x-certificat-462394/

Karl

@Andrew Curran

Emirates is converting 24 777X orders and 6 777-300ER orders — i.e. 6 77W orders still in the books and which never have materialised — into a firm order for 30 787-9s.

This is, therefore, not a blockbuster deal for Boeing since the dollar value of 30 787-9s is less than for 24 777Xs and 6 777-300ERs. In fact, “the blockbuster deal” is a net loss for Boeing.

Nicolas

Where did you see that 6 of those conversions were from 77W?

This certainly helps to reconcile the otherwise inconsistent info about (a) conversion of 30 777’s, and (b) 777X order book going from 150 to 126. But how did you figure out the discrepancy of 6 was about 77W? Neither the Boeing nor the Emirates press releases go into this degree of detail

Henning

Boeing said in their press release that Emirates cut the 777 orders by 30 and the chairman of Emirates said that they reduce their 777x orders by 24. So I would say that is obvious that is has to be the 777-300er, they don’t have any 777-F on order

Vince

Not really, it just imply that the value of 24 B777X = 30 B787-9 for Emirates order. Likewise the 36 A380 could be worth the same as 50 A350-900. The 6 B777-300ER may not be in the picture at all. Furthermore with the B777-9 entry service date pushed back to 2021, Emirates will need the 6 B777-300ER even more.

Karl

@Vince

120 firm orders and 114 deliveries for Emirates for the 777-300ER was still listed in the user-defined reports (orders and deliveries) at the Boeing Commercial website, as recently as August, 2019.

Orders & Deliveries (bottom of the page)

https://www.boeing.com/commercial/

It doesn’t appear as if Emirates is in need of the last 6 777-300ERs they had on order. Keep in mind that they still have 135 777-300ERs in their fleet; 21 of which are on lease.

Karl

Dubai, UAE, 13 December 2018
Emirates takes delivery of its last Boeing 777-300ER aircraft

https://www.emirates.com/media-centre/emirates-takes-delivery-of-its-last-boeing-777-300er-aircraft/

Krzysztof

Standard Boeing report (Unfilled Orders by Customer Through October 2019: http://www.boeing.com/commercial/#/orders-deliveries) shows for Emirates 156 unfilled orders for B777; 150 concerns 777X so the rest 6 – B777-300ER.

Karl

Thanks for the link.

Orders & Deliveries (bottom of the page) doesn’t seem to work.

https://www.boeing.com/commercial/

Karl

@Nicolas

Currently, Emirates has a fleet of 135 777-300ER aircraft; 21 of which are on lease from lessors and 114 of which are Emirates-owned.

The user-defined reports (orders and deliveries) at the Boeing Commercial website is currently down — for unknown reasons it’s been down for some time (737 MAX related?). However, you can find the correct figures here:

https://en.wikipedia.org/wiki/List_of_Boeing_777_orders_and_deliveries

Karl

Orders & Deliveries (bottom of the page):

https://www.boeing.com/commercial/

Warren Mills

I wouldn’t say this is great news for Boeing, as after all they just lost 30 orders for their 777x and am guessing the cost of the 787 is much less.

Charles Bolland

Does this mean the end of the a330neo orders for emirates?

TonytTDK

Peter
Tim Clarke indicated yesterday that the A330 Neos are still potentially on the table, but that this will be evaluated at a later date:

https://www.flightglobal.com/news/articles/dubai-clark-leaves-door-open-to-emirates-a330neo-d-462380/

1 Reply
7 hours ago

Karl

In fact, by ordering the 787-9 and not the 787-10, Emirates has left the door open for the A330-900. One should keep in mind that the A330-900 has a far better take-off performance in a hot/high environment than the 787-10 at MTOW. The Trent 7000 engine on the A330neo offers 68k-72k (pounds) of thrust with 330 minutes ETOPS capability, and its extra hot/high thrust capability matches today’s highly reliable Trent 700 engine on the A330ceo. In contrast, the 787-10 requires 76k thrust on basically the same engine In a three-class configuration (business, premium economy and economy) an Emirates A330-900 fleet… Read more »

Vince

The B787-9 has similar seating capacity to the A330-900. So why would the b787-9 order leave the door open for the A330neo? Shouldn’t it be the other way around?

Karl

@Vince The 252 metric tonnes A330-900 is cheaper to buy and has about the same CASM as the 787-9 on routes of up to 4500 nm, or so (i.e. 787-9’s advantage increases on long haul routes), and has a superb payload capability (i.e. being able to fly with full cargo loads in the lower hold on routes of up to 5,500 nm length). Also, the A330neo can be outfitted with the same business and economy seats that are on the A380 and it can delivered much sooner than either the 787-9 and the A350, both of which are also likely… Read more »

Karl

That should read: The 251 metric tonnes A330-900 is cheaper to buy…..

Vince

Well, then that leaves the 30 B787-9 on order in an sandwiched position isn’t it? For flights below 4000NM both the B787-9 and the A330-900 offers similar CASM. For flights above 4000NM, the A350-900 offers better payload & range with a slightly higher cost. Anywhere above 5500nm, the B787-9 will have less profit potential than the A350. That very much bound the B787-9 to operate in a narrow band of 4000NM – 5500nm which for Emirates is only a handful of destinations (mostly oceans).

Karl

Apparently, Tim Clark is indicating that Emirates might reduce their 777X order further. I’d guess the order for 35 777-8 would be the first to go. Such a move would reduce the current 126 777X orders to 91 orders for the 777-9 only. Quote: “Explaining the background to FlightGlobal in Dubai this week, Clark said he thought the A330neo was “a great aeroplane. But when all the planners got involved they thought the A350-900 would be a better bet than the A330-900. What I said was: ‘We leave it in the mix and see how that will work for us… Read more »

Peter

Perfectly understandable.
The clock is ticking for the 777X…

Karl

Boeing has a long history of seriously underestimating Airbus — primarily starting with the A320 in the mid 1980s — i.e. Boeing’s response: initially the 7J7 and later, the 737NG. In fact, by not launching an all new single aisle aircraft in 1993, instead of the 737NG, Boeing sowed the seeds of what led to the 737 MAX disaster a quarter of century later. By not being able to foresee that while the A320 was future proofed for being outfitted with significantly larger next generation engines, and that their own 737NG was not, is IMJ a demonstration of not only… Read more »

Mark Thompson

Boeing’s 737 Max issues are on par with their KC-46, SLS and Starliner delays all pointing to serious company-wide culture issues. Only fix is a new CEO, board and management.

I exclude the 777x as Boeing appears to have gotten this program right only to be affected by GE catching Boeing disease.

mohave

The world economy is slowing. This is the worst year in a decade for twin aisles. If the current trend continues, there will be more postponement for twin aisles until conditions improve. Small twin aisles will replace large. A321 will replace small twin aisles.

Phillip Parrish

[The world economy is slowing] The elephant in the room that most here are ignoring. The question is how soon and how deep the downturn will be and how long it will linger.

Tom

Pretty sure they still got the A330neo on the table, and yes now the 787-9 is one of the best selling planes from Boeing. Pretty sure it will help the variety of planes on Emirates fleet 😀

ian mcintosh

Is there any strength to the argument that more and more long range flights like Perth to London will result in a downturn in traffic through Dubai? As one assumes these flights will attract business end travellers – would this leave Emirates with a growing profit problem?

Phillip Parrish

The Interstate Highway System in the US destroyed many small bypassed towns/communities over the past 55 years. I would suspect the same is very likely with long range air travel.

Antman

What engines have they ordered. RR or GE?