Emirates Airlines In Boeing And Airbus Spree

Emirates Airlines has gone on a 200-plane spending spree, as its home base of Dubai reiterates plans to become the world's biggest aircraft hub.

The airline has agreed to buy 150 Boeing 777 mini jumbos and confirmed purchase of 50 Airbus A380 superjumbos.

The order from Boeing is valued at $55.6bn (£34.5bn), excluding engines, while the purchase from its European rival Airbus amounts to $20bn (£12.4bn) at list price.

Emirates' appetite for plane purchases will not cease, the airline's president Tim Clark said.

"I don't think Emirates is going to stop with this order," Mr Clark, speaking at the Dubai air show, said.

"The intention of the government of Dubai is to fill the new airfield here on this site," at Al-Maktoum International Airport which opened for passenger operations last month.

In total Gulf airlines, led by Dubai's Emirates and Abu Dhabi's Etihad, struck plane deals worth almost $150bn (£93bn) on Sunday.

The buying spree underscored a shift in power in the aviation industry, as oil-rich, fast-growing economies of the Gulf take advantage of their strategic position between East and West to draw more travellers from hubs in Europe and Asia.

An Emirates Airbus A380 lands on the runway at Manchester Airport

But it comes at a price - both Airbus and Boeing signed deals to buy some $5bn of parts and materials from Abu Dhabi, in a sign Gulf states are seeking a reciprocal boost to their economies from the huge orders they have placed with the plane firms.

Dubai has in the past announced ambitions to turn Al-Maktoum into the world's largest aviation hub once completed, with five runways and a capacity to handle 160 million passengers.

"They're hoping to get that in the state of readiness for 2020-2022 and the scale of that will allow us to grow our fleet further," Mr Clark said.

"When we have more firm lines on that, we will be revisiting our fleet plans and routes structures."

Mr Clark said the commitment to buy 150 Boeing aircraft would be finalised before the end of 2013.

Emirates was in discussions for four to five years with Boeing over the new airliner that is scheduled to enter service around 2020.

"In the last months we've got it where we wanted it to be," said Mr Clark. "Basically the terms are agreed with Boeing."

The biennial Dubai air show got off to a bright start Sunday, with orders from the big three Gulf carriers - Emirates, Etihad Airways and Qatar Airways - for Boeing and Airbus planes hitting $141.5bn (£87.5bn), excluding the price of engines.

Emirates flew its first routes out of Dubai with just two aircraft in October 1985, using a leased Boeing 737 and an Airbus 300 B4.

It now has more than 200 aircraft, excluding the newly announced purchases, and flies to 70 countries.

The airline accounts for around 40% of all flights at Dubai International Airport.

:: The air show was hit by a Gulf sandstorm on Sunday, cutting visibility dramatically.

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