Follows Order For 35 737s From FlyDubai

ANN REALTIME UPDATE: 07.14.08 1145 EDT: The orders are starting to roll in from Farnborough... and so far, Middle Eastern customers are choosing Boeing. On the heels of a 50-plane deal announced earlier Monday from new low-cost carrier FlyDubai, Boeing and Etihad Airways announced an order for 35 787-9 Dreamliners and 10 777-300ERs (Extended Range) airliners.

Valued at $9.4 billion at current list prices, the order has been attributed on Boeing's Orders & Deliveries Web site to an unidentified customer.

"The new-generation Boeing aircraft we have ordered are among the most fuel efficient and will help maintain Etihad's fleet as one of the youngest and greenest in the sky," said James Hogan, Etihad Airways' CEO. "The size of our order also mirrors the rising prominence of the Middle East and its increasing emergence as a new focal point of global aviation offering the fastest air links for travelers and freight forwarders."

Since beginning commercial operations in November 2003, Etihad Airways has grown rapidly to offer service to 45 destinations. The Abu Dhabi-based airline carried 2.8 million passengers during the first six months of 2008, compared to nearly 2 million for the same period in 2007.

"We count Etihad as an outstanding, world-class customer, and we congratulate the airline on its remarkable growth," said Boeing Chairman, President and CEO Jim McNerney. "Boeing's commitment to provide the world's most fuel-efficient airplanes is clearly demonstrated by both the 777 and 787, and we know Etihad will benefit from the reliability and efficiency these airplanes bring to twin-aisle operations."

Original Report

0830 EDT: It's a major order, to be sure... but compared with the 100+ plane deals we've seen from Farnborough and Paris in recent years, perhaps it's also a sign of a waning market. Boeing and Dubai's recently launched low-cost airline FlyDubai announced Monday an order for 50 737-800s at the Farnborough International Airshow.

Valued at approximately $3.74 billion at current list prices, the order includes substitution rights allowing FlyDubai to convert its 737-800 orders to 737-900ERs (extended range) in the future.

"The Boeing Next-Generation 737 is ideally suited to our mission to bring some two billion regional inhabitants affordable, efficient and flexible travel options to and from Dubai," said Emirates Chairman Sheikh Ahmed bin Saeed Al-Maktoum, who is also chairman of the new low-cost airline. "FlyDubai will be the first step for a new set of passengers seeking out high-demand tourist destinations in the Gulf States and surrounding countries, while bringing connectivity to all parts of the globe."

The Dubai government initially formed FlyDubai in March. Since then, the airline has been building a business model based on flexible flight operations with a high degree of interactivity with its customers, giving them greater control in booking flights and tailoring their in-flight services. The low-cost airline's operations will be entirely separate from Emirates Airline and Group.

Boeing Chairman, President and Chief Executive Officer CEO Jim McNerney hosted a ceremonial signing and press conference held at the air show.

"Our relationship with the UAE is something we truly value and have worked to strengthen over time," McNerney said. "Today's order is the result of a thorough analysis of the contributions the Next-Generation 737 can make to FlyDubai's innovative business model. We foresee the unmatched efficiency and operability of this incredible airplane bringing the same success to our partners in Dubai as it does to so many of the world's most successful low-cost carriers."

Boeing says 116 customers have ordered more than 4,800 Next-Generation 737s, and the planemaker has more than 2,200 unfilled orders for the Next-Generation 737 valued at more than $160 billion at current list prices.

FMI: www.boeing.com