Emirates cancels 70-plane A350 order in blow to Airbus, Rolls

[traderjake]

http://news.yahoo.com/emirates-cancels-order-airbus-70-a350-planes-080533329--finance.html
 
Airbus and Boeing have dismissed warnings of a 'bubble' in commercial aircraft orders, which remained robust throughout the financial crisis, but some industry bankers say airlines have ordered too many aircraft despite growth in emerging markets.

 

[WorldTraveler]

Boeing and Airbus are now going to have to live with the reality that they have offered deeply discounted aircraft to the ME3 who are working to decimate legacy carriers thru out the world.

Those legacy carriers are now finding they can't afford all of those airplanes they used to buy.

Also, European legislators are finally being told that they can't have both a viable European airline industry and a manufacturing industry that will pump out subsidized aircraft to the Middle East.

The latter is killing the former.

Good for LH.

Hopefully Brussels will wake up and Washington won't be far behind.

 

[traderjake]

Who are the ME3?

 

[WorldTraveler]

Middle East 3 - Emirates, Qatar, and Etihad. Some would probably also include Turkish.


The German flag carrier and Europe's largest airline by passenger count is getting tough competition from Gulf carriers.

Dubai-based Emirates airlines in the United Arab Emirates, Etihad in neighboring Abu Dhabi emirate, and Qatar Airways are growing rapidly as more Europeans choose their modern, expanding fleet of jetliners flying out of gleaming recently built hubs.

Falling ticket prices on long-haul routes out of Europe as a result of increased competition is eating into Lufthansa's profits. The German carrier is also contending with effect of a pilots strike in April, and devaluation of the Venezuelan Bolivar, which reduced profit on tickets for South American routes.


Read More At Investor's Business Daily: http://news.investors.com/business/061114-704265-delta-air-lines-united-american-fall-on-lufthansa.htm#ixzz34MlgzxpC

 

[777 fixer]

This is starting to get interesting.
 
http://voices.suntimes.com/business-2/boeing-airbus-dogfight-brewing/

 

[Parkeralex]

I read here that the deal valued $16bn at list prices.Also the order cancellation also impacts engine manufacturer Rolls-Royce, with potential losses of £2.6bn.
 
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