Company Watch - Airbus

AirGuide Business, July 14, 2008

Abu Dhabi's Mubadala Development, an investment agency for the government of the world's fifth-largest oil producer, signed deals with Airbus parent EADS and engine maker Rolls Royce on Tuesday as the emirate dominated the world's largest air show. Abu Dhabi-based Etihad Airways ordered planes worth USD$20 billion from Airbus and Boeing on Monday, highlighting a shift in economic power towards the Gulf as western carriers shunned Farnborough due to high oil prices. 7/15/2008

European aerospace group EADS signed a supplier deal that will see lightweight composite aerostructures designed, developed and built in Abu Dhabi. EADS plans to work with Mubadala at its planned composites plant, due to start operations in 2010, to make the facility a key supplier for the next generation of commercial jets. The site would initially provide some parts for planes including the widebody Airbus A350 - 53 percent composite - and the A380 superjumbo - 25 percent composite. The cooperation is expected to generate over USD$1 billion in sales for Mubadala Aerospace over 10 years, the companies said. 7/15/2008

All Nippon Airways confirmed that it has not yet decided to order the A380 as widely reported late last week and in fact has not even issued an RFP. A spokesperson told this website that the airline set up a New Aircraft Selection Committee last week to examine both the A380 and the 747-8. "No RFPs have gone out yet," the spokesperson said, adding that ANA will decide among the 747-8, the A380 or continuing to build its long-haul fleet around the 777-300ER. 7/8/2008

China Southern Airlines ordered 20 A320s from Airbus to be powered by GE Aviation CFM56-5B engines and opted for a long-term material services agreement. Deliveries will run from 2009 to 2011. None of the parties released the value of the deal, but engine list prices suggest a tab of at least $240 million. 7/15/2008

CITGroup announced an order for 15 ship sets of IAE V2500 engines to power new Airbus A320-family aircraft. The transaction, completed on behalf of CIT Aerospace, a unit of CIT,is valued at approximately $250 million at list prices. IAE President & CEO Jon Beatty said, [sup.3]This additional order from CIT is a great vote of confidence in the V2500. As the technology leader on the A320 family, the V2500 offers best-in-class performance on fuel burn, emissions and cost of ownership. CIT understands that these are the key issues facing airlines today and the value that IAE can provide in the current market.[sup.2] CIT owns or finances a fleet of more than 300 commercial aircraft. With this order, CIT[sup.1]s combined portfolio and order book include 88 A320-family aircraft powered by the V2500 engine. 7/16/2008

Dubai Aerospace Enterprise, the state-owned aircraft leasing, confirmed Tuesday a firm order for 100 Airbus planes worth US$12.6 billion (EUR7.88 billion) at list prices. DAE Capital's order for 30 wide-bodied A350-900 and 70 single aisle A320s follows a memorandum of understanding signed at the Dubai air show in November 2007. 7/15/2008