At face value, the recent acquisition of Abu Dhabi Aircraft Technologies (ADAT) from Mubadala Development Co. by Etihad Airways is straightforward portfolio realignment between two state-owned entities in the United Arab Emirates.
Economy of the United Arab Emirates
Low-cost carrier flydubai announced $74 million in maintenance, repair and overhaul (MRO) contracts Tuesday at the Dubai Airshow.
The airline signed agreements with Abu Dhabi Aircraft Technologies (ADAT), part of the Mubadala Aerospace MRO network, with a combined value of $54 million.
Emirates Airline made history at the Dubai Air Show yesterday in placing the largest single order ever for Boeing commercial airplanes, signing for 50 Boeing 777-300ERs and reserving options on another 20 of the long-range widebodies.
Fast-growing Dubai-based business aircraft management group Empire Aviation is about to conclude a major joint-venture agreement, which executive director Steve Hartley said will “double the size of the company.” It remains to be seen whether the deal will be sealed here at the Dubai Air Show this week.
Dubai Aerospace Enterprise has declined to confirm or deny reports that its leasing arm, DAE Capital, has cancelled all remaining airliner orders with Airbus. But the European airframer has acknowledged that the Middle East group is not currently a customer and its published orders tally does indeed confirm that orders for 34 A320s and 11 A350-900s are no longer on the books.
Dubai Aerospace Enterprise (DAE) is accepting offers “for part or all of StandardAero,” according to a Reuters report released last month, raising questions about the Middle East enterprise’s future in the business aviation market.
Executive Aircraft Services (EAS) yesterday signed a contract to have its Bombardier Global Express pilots trained at the Emirates-CAE Flight Training (ECFT) facility here in Dubai. Crews with the Beirut-based operator already receive flight training there for the Challenger 300 and Hawker HS-125 aircraft. The Global Express training will be conducted on a new CAE 7000 Series that was installed at ECFT in April.
Emirates Airline plans to reinstate Airbus A380 service between Dubai and New York JFK Airport on October 31, fifteen months after it ceased operating one of its superjumbos on the route due to insufficient demand. The decision to restore A380 service on one of Emirates’ twin daily JFK routes comes as the carrier reports an 8.1-percent revenue increase for the Americas for its 2009-10 fiscal year.
Tim Clark is relieved, if only slightly, because the Emirates Airline president sees a less bleak future for the local carrier than he projected a few months ago. Following better-than-expected performance through the middle of this year, Clark believes that in 2010 the airline industry should benefit from increased consumer spending, unless the recession deepens or stock markets decline strongly.
Speaking on the sidelines about FlyDubai’s order announcement for 50 Boeing 737-800s on Monday, Emirates Airline deputy chairman Maurice Flanagan made it clear that his airline hasn’t suffered from the business woes about which other airlines are complaining. “There has been no downturn whatsoever,” said Flanagan here at Farnborough. “We have exceeded our revenue forecast. It is an exciting situation.”
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