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Dubai Aerospace Enterprise (DAE) has cancelled 18 orders for narrow-body A320 planes and seven orders for A350-900 mid-sized jets from Airbus it was revealed this week. The troubled Dubai based aircraft lessor is also understood to have cancelled orders of some 10 777s and 15 787s with Boeing.
The developments bring to more than $8bn the catalogue value of DAE cancellations, totalling 50 aircraft, as revealed in Airbus and Boeing (BA.N) data published in the past few days.
Mohammed Al Zarooni, recently appointed chairman of state-owned DAE declined to comment on the cancellations.
Al Zarooni's predecessor as DAE chairman was Sheikh Ahmed bin Saeed Al Maktoum, chairman of The Emirates Group.
On Thursday, Boeing data revealed cancellations for 25 jets worth over a total of $5bn at catalogue prices. Comparisons with previously published data indicated the cuts came from DAE.
In November 2007, DAE made a grand entrance on to the leasing market with the stated aim of "quickly becom[ing] a leader in the aircraft leasing business." The company signed letters of intent for 200 Airbus and Boeing aircraft worth just over $27bn.
91 unfilled orders with Boeing
DAE had ordered 15 787-8 Dreamliners and 10 777-300ER aircraft in 2007 from Boeing, at the peak of a global order boom.
Boeing's latest backlog did not include any such wide-body passenger jets for the leasing and repair firm. It did, however, have 91 unfilled DAE orders for narrow-body jets and freighters.
DAE still has 52 Airbus A320 planes and 23 A350-900s, designed to compete with the Boeing Dreamliner, on order with a total list value of $10bn at current prices.
The director general of Dubai's Department of Finance, Abdelrahman al Saleh, said recently DAE was in negotiations with Boeing and Airbus on its total of some 220 plane orders.
Airbus sales chief John Leahy said at Farnborough that it was "no secret" that DAE was facing disruption over its orders.
After adjusting for total cancellations in the past month, Airbus reported a net total of 245 new orders in the first seven months of the year, up from 117 by the end of June.
Boeing is still ahead of its rival in the race for 2010 orders as the industry exits recession. However it still ranks in second place behind Airbus in terms of production.
Boeing said it had received total orders for 319 planes between January and July, and a net total of 255 planes after adjusting for cancellations. The net orders include 229 narrow-body Boeing 737 short-haul and medium-haul planes. |