Airbus and Boeing share $19bn Emirates order

AIRBUS SAS and Boeing Co, the world’s two biggest planemakers, won orders from Emirates, the Middle East’s fastest-growing airline, for 67 new planes, which the carrier valued at as much as $19 billion.

The order includes 21 of Airbus’s planned double-decker A380 airliners, 20 Airbus A340s and 26 Boeing 777s, the planemakers said at Paris Air Show press conferences. Boeing’s figure includes 22 planes already on order from General Electric Co. and American International Group Inc’s plane-leasing units.

Airbus will probably surpass Chicago-based Boeing as the world’s largest planemaker this year as it delivers more aircraft than its US rival for the first time and gets more orders for new airliners, analysts said. The 555-seat A380 will become the world’s biggest passenger jet when it enters service in 2006, about 35% larger than Boeing’s 747, which seats 420.

“I always expected Airbus to win more orders than its largest competitor both this year and next,” said Klaus Breil, who helps oversee about $5.9 billion at Adig Investments in Frankfurt, including one million shares in Airbus’s 80% owner European Aeronautic, Defence & Space Co. “This proves my expectations.”

The order for A380s “leaves Boeing looking rather foolish,” said Sandy Morris, an analyst at ABN Amro in London.

“Over the last few years, Boeing has been saying that there’s not a market for a large plane such as the A380. The order also shows extraordinary ambitions on Emirates’ behalf.”

Toulouse, France-based Airbus expects to win orders for about 250 planes this year, 40% more than it predicted in January, because it is taking business from Chicago-based Boeing. The Emirates order with Airbus “is the largest widebody order ever, both in terms of value and the number of planes,’ said Airbus chief executive officer Noel Forgeard.

Forgeard reiterated that the planemaker expects to deliver 300 planes this year, topping Boeing’s 280. He had forecast earlier that Airbus and Boeing would win a total of about 350 orders this year, roughly split evenly.

Dubai-based Emirates said the Airbus order is worth $12.5 billion, the planes’ combined value at delivery. At list prices, the Airbus aircraft are worth $8.5 billion.