Boeing blunts flydubai fleet setback with new jet order

By Federico Maccioni, Ahmed Elimam and Tim Hepher

DUBAI (Reuters) -Boeing hit back at the Dubai Airshow with a provisional order for 75 of its 737 MAX jets from flydubai on Wednesday, a day after the long-time Boeing customer handed an order for 150 competing A321neo aircraft to its arch-rival Airbus.

The defection to Airbus had been one of the major talking points of the Middle East's largest aviation event, held at the site of a new airport that will be flydubai's home by 2032.

The Boeing order includes options for another 75 jets, flydubai said.

FLYDUBAI CEO SAYS BOEING COULD EMERGE STRONGER FROM CRISES

Boeing had continued to negotiate a deal involving dozens of jets to claw back part of its share of the growth of one of its most important 737 MAX operators, Reuters reported this week.

The deal allows flydubai to choose at a later date which of three 737 MAX variants it needs.

In an interview, CEO Ghaith Al Ghaith voiced confidence in Boeing's recovery from recent crises but told Reuters the Airbus jets had been chosen mainly for their extra range and size.

"Boeing to me is almost like my home. And I'm very close with the leadership in Boeing," he said, adding that he had seen the planemaker's dynamics improve in recent weeks and months.

"My prediction is that they will come out of this crisis, which I think is almost behind them, even stronger," he said.

A series of safety, industrial and regulatory crises has plunged Boeing into debt and curbed output, leaving Airbus in a strong position at the top end of the busy narrow-body market.

"They've given more business to Boeing ... but (the A321neo) increases the capability or the opportunities for them in the future," analyst John Strickland said.

Al Ghaith declined to discuss details of negotiations, but said Airbus had "always been very focused, determined, even I can say aggressive, to get the deal".

Airbus was heading for a narrow victory at the show as most trade buyers began leaving the biennial event, with 200 firm or provisional orders - excluding existing deals in which only the buyer's name was being revealed.

Boeing had a total of 184 orders or provisional deals, according to a Reuters tally.

EMIRATES DISCLOSES A350-900 ORDER

Airbus has grabbed the lion's share of the hottest part of the jet market in recent years as the A321neo pulled away from the largest available Boeing equivalent, the 737 MAX 10, which is likely to enter service next year after certification delays.

At the top end of the market, Boeing had dominated day one of the show with a surprise order worth $38 billion for the 777X from Emirates, which continues to back the jet to meet demand despite long development delays.

Airline president Tim Clark said on Tuesday it was not yet ready to buy the competing Airbus A350-1000 amid questions over engine performance in harsh Gulf conditions, but heaped praise on the smaller A350-900 which Emirates began taking a year ago.

On Wednesday, Emirates revealed a previously undisclosed order for eight more Airbus A350-900s, a day after ruling out an immediate order for larger A350-1000s.

The decision to go public during the air show with the order, previously posted as a transaction with an unnamed buyer, was seen as a gesture of support after Emirates placed its unexpectedly large 777X order on Monday, delegates said.

The air show continued to reflect demand for freighters despite global trade tensions.

Azerbaijan's Silk Way West Airlines signed a contract for two additional A350F freighters and Libya's Buraq Air signed a provisional deal to buy 10 A320neo passenger jets, Airbus said.

(Editing by Conor Humphries)