Middle Eastern Airlines Set to Revitalize Aircraft Buying Spree

After a relatively quiet year in terms of aircraft orders, major airlines in the Middle East are gearing up to rejuvenate their fleets with hundreds of planned purchases, positioning the region as a crucial growth driver for Boeing and Airbus, as reported by Bloomberg.com.

Flydubai is reportedly negotiating to acquire at least 200 narrowbody jets, with an additional option for 100, according to sources familiar with the talks. Nearby, Etihad Airways is discussing the potential acquisition of up to 40 widebody aircraft. Meanwhile, Qatar Airways is nearing an agreement for approximately 230 twin-aisle aircraft, and Bahrain’s national carrier, Gulf Air, is in talks for about a dozen widebody jets, the insiders, who requested anonymity, revealed.

Riyadh Air is also looking to purchase 50 long-range aircraft, potentially bringing the total orders from the region to at least 500 this year. Such significant activity would firmly establish the Middle East as a pivotal market for Airbus and Boeing, as carriers aim to expand and modernize their fleets and transform cities like Dubai from mere transfer hubs to standalone tourist destinations.

Although North America remains the largest profit contributor to the global aviation industry, the Middle East has seen the strongest financial performance, buoyed by robust demand for premium long-haul travel. The region was the only one to report an increase in passenger yields last year.

Countries like India and Turkey have also been making major moves, seeking to capture a larger share of the global transfer market and, in India’s case, catering to a burgeoning middle class that is increasingly traveling both domestically and internationally.

With demand for new jets nearing record highs, airlines are eager to secure delivery slots that now extend into the next decade for both single-aisle and twin-aisle aircraft. Both Airbus and Boeing have been challenged in scaling up production due to lingering supply chain and engine maintenance issues.

Responses from the manufacturers and airlines have been cautious. Boeing deferred comments to its customers, while Airbus, Etihad, and Qatar Airways declined to comment. Gulf Air did not respond to requests for comments.

Flydubai’s CEO, Ghaith Al Ghaith, commented on ongoing discussions with aircraft manufacturers, stating, “We are currently assessing our requirements for narrow-body aircraft and will announce any decisions once finalized.”

Some airlines, including Flydubai, have had to cancel flights and adjust their routes due to delays in aircraft deliveries from Boeing and Airbus. Al Ghaith mentioned that Flydubai is considering both the Boeing 737 and the Airbus A320 family. Despite currently operating an all-Boeing fleet, recent delays have prompted the airline to reconsider its exclusive arrangement with the American manufacturer.

Etihad is planning an initial public offering and is eyeing the Boeing 777X and 787, as well as the Airbus A350, as part of a five-year plan to double its fleet. Qatar Airways is also evaluating widebody models and could place an order as early as April.

Newcomer Riyadh Air, owned by Saudi Arabia’s sovereign wealth fund, has about 100 jets on order and is considering firming up 33 options for Boeing’s 787 Dreamliners. The carrier is also contemplating acquiring up to 50 Airbus A350-1000s or Boeing 777Xs.

Gulf Air, which currently operates about 40 aircraft, is considering adding approximately 10 Boeing 787s to its fleet as it aims for growth and profitability under new management. Given ongoing issues with Rolls-Royce Holdings Plc engines, the carrier is likely to opt for General Electric Co. engines for new purchases.

Emirates, the region’s largest airline and operator of the world’s biggest long-haul fleet, has over 200 Boeing 777X planes on order, though delivery delays have pushed expected receipt dates to at least the second quarter of 2027. At the 2023 Dubai Air Show, Emirates acquired a small number of Airbus A350-900 planes but has made no further announcements since.

Many airlines prefer to time their order announcements with major aviation events, such as the Farnborough and Paris air shows, or the biennial Dubai expo, scheduled for November this year.

Sources: AirGuide Business airguide.info, bing.com, bloomberg.com