Boeing, Airbus Strike Record-Breaking Dubai Deals

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Nov. 18 (Bloomberg) -- Roger Johnson, director at Edison Investment Research, talks with Guy Johnson about the record-breaking deals struck by Boeing and Airbus on the first day of the Dubai Airshow. He speaks on Bloomberg Television’s “The Pulse.”

The real surprise to me came on airbus.

They are pulling off something significant.

If you look at the emirates deal, 140 of these aircraft.

If you look at the backlogs across the industry, we talked about it earlier.

The wide-body fleet focusing towards that middle east market.

Nobody else is taking much interest in this aircraft.

The results -- they are saying, one of our key priorities is, let's make sure we sell more of these a-380's. this is obviously a good sign.

What do you think they had to offer mr.

Clarke?

I think there is a reasonable chunk in there.

He will probably take a decent cut.

This is a capacity expansion we are talking about.

If you look at the expectations and what emirates are going for, they will see significant growth into markets.

If you look at the etihad, that is more about replacement.

Staying at the forefront of those particular red lines.

Where is the biggest problem in ringing the state capacity and for mr.

Clark?

He has got potentially a lot of nice capacity that he can take advantage of.

They are going to expand that.

If you look across what he is trying to do -- working on this kind of deals, there is a bit of a give-and-take.

If you look at what they are trying to do in dubai at the moment, from that regional hub, to drive out central and look at how you create that regional hub . they haven't really played the card yet.

There must come a point in time where the chairman of emirates says, we are buying an awful of planes.

We are keeping your a-380 line open.

I think at some point, they will play that political card.

If you look at everything that is going on, do by itself is bidding for the world expo.

If that comes along, they will put even more investment into dubai world central.

They will be looking for something in return.

When you look at their potential, by how much more can we do here?

Geographically, it fits very well.

If you want a flight to asia and europe, it is a good place to stop off.

How much more is there?

We heard it from them themselves.

They believe the 20% growth rate is continuing.

They don't see any reason to slow that down.

If you look at the orders and the traffic growth, that will start to return.

We are still just coming out of a recession.

That part of the world continues to spend.

We don't see that changing.

When you look at what this means for airbus and boeing, the airbus story is interesting as they struggled with the wide- body.

This is a big validation for boeing.

How well beyond the region do you think that aircraft will do?

We have seen what has happened with the a-350. that sold well.

The 777x has come in direct competition.

This is a really expensive airplane.

This is top of its game, really expensive, this is the rolls- royce you were talking about here.

The gulf carriers can't afford it.

Can everybody else afford it?

You can make a case for it.

They are looking to turn that international hub.

There are air lines out there who look to take this 777x. if you look at how well the 777 itself has sold, this is the sort of thing that the market is asking for.

That is the whole reason that knowing started -- boeing started developing this particular aircraft.

We believe that there.

Thank you very much indeed.

This is what we have coming up.

The film "the italian job" helped put the mini on the map.

Why the mini is such a big deal, coming up next.

?

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change