Christopher's Business Blog

Boeing 777x

The orders just keep on rolling in at Dubai’s air show. It’s no surprise that Boeing and Airbus are leading the pack with around 141.5 Billion USD in sales in just the first day of the air show. The largest clients of the air show so far have been the “Gulf three”. They are made up of the 3 of the biggest airline companies in the world based out of the middle east. They include Etihad, Emirates and Qatar airlines. They have “struck fear” into the competitors says CNN’s Richard Quest. During a time when most airlines are cutting back on the amount of aircraft they have in their fleets in order to reduce costs, these three giant airline companies are looking to lead the airline industry.

Boeing has received a whopping number of orders since the air show has begun especially from the “Gulf Three”. Emirate Airlines bought a whooping 150 Boeing 777x planes. This increase helped raise Boeing’s stock over $5.00 in the last few days. The air show came at a good time for boeing especially since many military contracts are not being renewed due to spending cuts by the U.S government. These contracts over the past few days will ensure the Boeing operates up through 2020 when they expect the 777 line of jets to be ready for commercial use.

Boeing has seen promising growth in the Middle east over the past few years. They now own 40% of the middle eastern market. Airbus on the other hand holds closer to 60% of the market because they realized the potential in the Middle Eastern market while Boeing did not. It will be interesting if Boeing begins to overtake Airbus because they are at a competitive advantage.
Sources:

http://www.france24.com/en/20131116-boeing-holds-nearly-40-percent-middle-east-market

http://edition.cnn.com/2013/11/17/business/dubai-airshow-emirates-airbus-quest/

http://www.boston.com/news/world/middle-east/2013/11/17/abu-dhabi-etihad-adds-boeing-planes/WST9df8yEUyENYnBL5NKmJ/story.html