Flydubai Seals Landmark Agreement to Purchase 225 Airplanes from Boeing

Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum and Boeing Commercial Airplanes President & Chief Executive Kevin McAllister attend a news conference at the Dubai Airshow in Dubai, UAE November 15, 2017. REUTERS/Satish Kumar
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum and Boeing Commercial Airplanes President & Chief Executive Kevin McAllister attend a news conference at the Dubai Airshow in Dubai, UAE November 15, 2017. REUTERS/Satish Kumar
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Flydubai Seals Landmark Agreement to Purchase 225 Airplanes from Boeing

Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum and Boeing Commercial Airplanes President & Chief Executive Kevin McAllister attend a news conference at the Dubai Airshow in Dubai, UAE November 15, 2017. REUTERS/Satish Kumar
Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum and Boeing Commercial Airplanes President & Chief Executive Kevin McAllister attend a news conference at the Dubai Airshow in Dubai, UAE November 15, 2017. REUTERS/Satish Kumar

Boeing and flydubai signed on Wednesday a record-breaking agreement for 225 737 MAX airplanes with a list price value of $27 billion. The agreement includes a commitment for 175 MAX airplanes and purchase rights for 50 additional MAXs. Also, Airbus reached a preliminary deal to sell 430 airplanes to Indigo Partners.

“We welcome the continuation of our long partnership with Boeing. Their airplanes have provided a foundation for the success of our business model, providing us with the operational flexibility and range to build a network of 95 destinations in 44 countries,” said flydubai Chairman Sheikh Ahmed bin Saeed Al Maktoum.

He added, “Understanding the demand for travel across our network, our innovative approach to our cabin design and developing a product unique to our market have allowed us to exceed our passengers' expectations in their flying experience.”

Boeing Commercial Airplanes President & CEO Kevin McAllister said that “This record-breaking agreement builds on our strong partnership with flydubai and the other leading carriers of this region." He added: “With flydubai's proven business model and ambitious growth plans, we look forward to seeing these airplanes connecting Dubai with the rest of the world."

The 737 MAX is the fastest-selling airplane in Boeing history, having surpassed 4,000 total orders from 92 customers. flydubai placed its first order for 50 Next-Generation 737-800s in 2008. To date, flydubai has taken delivery of 63 737-800s and three 737 MAX airplanes.

“This has been a very successful show for Boeing,” said Bernard Dunn, president of Boeing’s regional office. “We signed agreements with key airline partners including Emirates, flydubai, Azerbaijan Airlines, ALAFCO, Ethiopian Airlines and Egyptair,” during Dubai Air Show 2017, he added.

Further, UAE Armed Forces purchased five C295 MW transport aircraft and related services from Airbus Defence and Space.

On the sidelines of Dubai Air Show 2017, Major General Ishaq Saleh al-Baloushi, the head of the executive administration of industries and development of defense capabilities at the Ministry of Defense and deputy chairman of the supreme organising committee for the event for operations, said that the purchase of the aircraft forms part of the UAE's push to support and promote the development of the Armed Forces.

Baloushi added that the commitment constitutes top national priority so that the Armed Forces remain at a high level of readiness to assume their responsibilities in defending the homeland and protecting its security and stability.



Oil Slips on Buildup in US Gasoline Stocks; Eyes on Weekend OPEC+ Meeting

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
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Oil Slips on Buildup in US Gasoline Stocks; Eyes on Weekend OPEC+ Meeting

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices drifted lower on Thursday after a surprise jump in US gasoline inventories, with investors focusing on the OPEC+ meeting this weekend to discuss oil output policy.
Brent crude futures fell by 14 cents, or 0.2%, to $72.69 per barrel by 0401 GMT, while US West Texas Intermediate crude futures were also down 14 cents, or 0.2%, at $68.58 a barrel.
Trading is expected to be light due to US Thanksgiving holiday kicking off from Thursday.
Oil is likely to hold to its near-term bearish momentum as the risks of supply disruption fade in the Middle East and stemming from the higher-than-expected US gasoline inventories, said Yeap Jun Rong, a market strategist at IG.
US gasoline stocks rose 3.3 million barrels in the week ended on Nov. 22, the US Energy Information Administration (EIA) said on Wednesday, countering expectations for a small draw in fuel stocks ahead of record holiday travel.
Slowing fuel demand growth in top consumers the United States and China has weighed heavily on oil prices this year, although supply curtailments from OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, have limited the losses.
OPEC+ will meet on Sunday. Two sources from the producer group told Reuters on Tuesday that members have been discussing a further delay to a planned oil output hike that was due to start in January.
A further deferment, as expected by many in the market, has mostly been factored into oil prices already, said Suvro Sarkar, energy sector team lead at DBS Bank.
"The only question is whether it's a one-month pushback, or three-month, or even longer. That would give the oil market some direction. On the other hand, we would be worried about a dip in oil prices if the deferments don’t come," he said.
The group, which pumps about half the world's oil, had previously said it would gradually roll back oil production cuts with small increases over many months in 2024 and 2025.
Brent and WTI have lost more than 3% each so far this week, under pressure from Israel's agreement to a ceasefire deal with Lebanon's Hezbollah group. The ceasefire started on Wednesday and helped ease concerns that the conflict could disrupt oil supplies from the top producing Middle East region.
Market participants are uncertain how long the break in the fighting will hold, with the broader geopolitical backdrop for oil remaining murky, analysts at ANZ Bank said.
Oil prices are undervalued due to a market deficit, heads of commodities research at Goldman Sachs and Morgan Stanley warned in recent days, also pointing to a potential risk to Iranian supply from sanctions that might be implemented under US President-elect Donald Trump.