Etihad Airways yesterday placed a whopping $21 billion (at list prices) aircraft order for up to 100 aircraft, making it one of the largest aircraft orders at the Farnborough International Air Show currently taking place in the UK.
It has also taken options and purchase rights for 105 more aircraft, taking the total order worth to $43bn.
The Abu Dhabi Government-owned airline's divided the order almost equally with the two rival aircraft manufacturers, with 55 going to Airbus and 45 to Boeing.
With the new aircraft deliveries scheduled between 2011 and 2020, Etihad said, it would boost the airline's fleet to more than 150 aircraft when delivered.
When asked about the airline's financing options for the aircraft, James Hogan, Etihad Airways' CEO said: "The aircraft would be financed by Etihad as it has been in the past."
The firm orders for 55 Airbus aircraft are split into 20 A320s, 25 A350s and 10 A380s – at a list price of approximately $12 billion. There are also options for five A320s, 15 A350s and five A380s.
For Boeing, the airline order comprises 35 B787 and 10 B777-300ER at a list price of more than $9 billion. There are also options for a further 25 Boeing 787s and 10 Boeing 777s.
The airline said it has also agreed purchase rights for a further 10 Boeing 787s and five Boeing 777s.
While the B777s are scheduled for delivery in 2011, the B787s will be delivered in 2015. The airline's current fleet comprises 38 planes. "The future will see planned investments in infrastructure and projects within the emirate likely to exceed $200 billion during the next 10 years," he said. "This kind of investment is aimed at diversifying from an oil-based economy."
Currently the airline serving 45 global destinations.
Break-even may face delay
Etihad Airways may face a delay in achieving its target to break-even by 2010. According to the airline's CEO James Hogan, though the airline is on track to achieve its target of becoming profitable by 2010, fuel price may pose a hindrance. Hogan had recently said the airline may not be able to meet its 2010 target.
"Though we are on track to break-even in 2010, soaring oil prices have to be watched now," he said.
With fuel accounting for 33 per cent of the airline's costs, Hogan is said Etihad is well-hedged for 2007 and 2008, and partially hedged for 2009. As for publicly listing the company, he said: "The decision is for the airline's board and management."