Bloomberg News

Boeing Loses Dubai Aerospace Order for 737s Worth $2.8 Billion

July 14, 2011

July 14 (Bloomberg) -- Boeing Co. lost an order for 35 single-aisle 737s from Dubai Aerospace Enterprise Ltd., the leasing company that canceled its remaining order from Airbus SAS last week.

The Boeing jet order was valued at about $2.8 billion at list prices. Dubai Aerospace still has 15 747-8 jumbo jets and six 777s on order from Boeing, said Marc Birtel, a spokesman for the planemaker in Seattle.

The state-owned Gulf company was set up in 2006 with the goal of becoming one of the world’s biggest aircraft lessors. It ordered 200 airliners from Airbus and Boeing, the world’s biggest planemakers, at the 2007 Dubai air show, only to scale back the plans when its finances weakened during the global recession.

Airbus said last week that Dubai Aerospace had dropped orders for 34 single-aisle A320s and 11 A350 widebodies, leaving it with no more purchase contracts after previous cancellations in the past year. The lessor has also cut its planned purchase of 15 Boeing 787 Dreamliners and the other 32 737s it had ordered.

Dubai Aerospace didn’t respond to requests for comment today after business hours in the emirate. Robert Genise, chief executive officer at Dubai Aerospace’s DAE Capital leasing unit, left the company last month.

--With assistance from Tamara Walid in Dubai. Editor: James Langford

To contact the reporter on this story: Susanna Ray in Seattle at sray7@bloomberg.net

To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net


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