Etihad books 205 planes

The UAE hogged the limelight yesterday at the Farnborough International Airshow in the United Kingdom when Abu Dhabi-based Etihad Airways placed $43 billion (Dh157bn) worth of orders and options for up to 205 aircraft and the soon-to-be-launched low-cost carrier of Dubai, FlyDubai, said it would acquire 54 Boeing 737-800 (Next Generation) narrow-bodied aircraft in a deal worth nearly $4bn.

Etihad's was one of the largest aircraft orders at the airshow. The Abu Dhabi Government-owned airline's combined order with Boeing (for 45 planes) and Airbus (for 55 planes) consists of 100 firm aircraft orders, with 55 on options and 50 purchase rights.

With the new aircraft deliveries scheduled between 2011 and 2020, it would boost the airline's fleet to more than 250 if all aircraft are delivered. While the B777s are scheduled for delivery in 2011, the B787s would be delivered to Etihad in 2015. The airline's current fleet consists of 38 aircraft.

The FlyDubai deal includes four aircraft under a lease agreement with Babcock & Brown Aircraft Management for a further four Boeing 737-800s.

With plans of kicking off operations in mid-2009, with assistance from Emirates, FlyDubai's firm aircraft order is estimated to be valued at $3.74bn at list prices.

According to FlyDubai's Chief Executive, Ghaith Al Ghaith, the low-cost carrier would have an initial start-up capital of Dh250 million. He said FlyDubai will initially focus on regional flights within the GCC and surrounding countries.

Meanwhile, Etihad Chief Executive James Hogan said the airline may face a delay in achieving its target to break even by 2010. Though the airline is on track to achieve its target of becoming profitable by 2010, fuel price may pose a hindrance, he said. Hogan had recently said the airline may not be able to meet its target of 2010.