Boeing Or Airbus, Dubai Or Not

Boeing and Airbus are each vying to win a $3.95 billion contract from the United Arab Emirates-based Air Arabia, which plans to purchase at least 50 jets, according to Reuters.

Air Arabia, the Middle East’s largest discount carrier, recently revealed it plans to buy 34 narrowbody airliners. An order of Boeing 737-800s, at roughly $79 million apiece at list, would cost as much as $3.95 billion million off the shelf; 50 Airbus A320s would cost less at $3.25 billion.

"We are planning to purchase between 34 and 50 aircraft directly from airplane makers... in November," Air Arabia Chief Executive Officer Adel Ali told Reuters by telephone from Kuwait.

Adel Ali, Air Arabia’s chief did not say why he might order more aircraft than he stated earlier. The three–year old carrier -- started by Sharjah, the UAE's third-largest emirate -- currently operates a fleet of nine leased Airbus A320s.

Other Middle East airlines have used the Dubai Airshow to announce their billion dollar aircraft orders. That show will start on November 11 featuring aircraft from around the world.

Air Arabia recently sold a 55 percent stake in the Middle East's first airline IPO in April, 2007. The proceeds from that $700 million sale will be directed toward the purchase of new aircraft, according to Air Arabia spokesman Housam Raydan.

Air Arabia wants to increase its fleet to 52 aircraft by 2016, according to airline officials.

FMI: www.airarabia.com/, www.dubaiairshow.org/airshow07/site/home/index.php