Boeing to aid emirate in aerospace ventures

DUBAI, United Arab Emirates — Airbus on Monday got its second aircraft order at the Dubai Airshow with an agreement to sell 10 A320 planes to Yemen, while its U.S. rival, Boeing, managed to cut a Mideast deal of its own even though it has yet to score a plane order at the region's top aviation meet.

Chicago-based Boeing said it signed an agreement with Abu Dhabi's state investment vehicle Mubadala Development to collaborate on multiple projects designed to help the UAE's largest emirate build an aerospace industry as it seeks to diversify its economy beyond the oil patch.

Homaid al-Shemmari, associate director of Mubadala Aerospace, said in an interview with The Associated Press that the agreement could involve joint projects ranging from an aerospace museum and training programs to the production of composite aircraft parts in the emirate.

No financial terms were released, though al-Shemmari said the deal did not signal plans by Mubadala to deepen its investment in U.S. manufacturing by taking an equity stake in Boeing.

Abu Dhabi controls nearly all of the oil reserves found in the U.A.E., one of OPEC's top five producers and a key U.S. ally in the region.

Airbus said a memorandum of understanding it signed with Yemen's national carrier Yemenia on Monday was worth $700 million at list prices. Airlines typically negotiate bulk discounts, however, especially in tough economic times.

A day earlier, Toulouse, France-based Airbus finalized a $3 billion deal with Ethiopian Airlines for 12 A350 XWB aircraft that had been agreed upon earlier in the year under a similar memorandum — effectively a promise to buy.

Many analysts expect deals announced at the weeklong event to fall well below the record-breaking $155 billion in orders that were struck during the last show two years ago.

Meanwhile, the head of Dubai's Emirates airline told reporters the carrier is in talks with Boeing and Airbus for additional planes, though it's unclear whether any deal will be announced at this week's show.