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Arab airliner Etihad brings in Boeing after all

By David Bowermaster
Seattle Times aerospace reporter

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A final contract with the Abu Dhabi-based carrier has not been signed, but a Boeing spokesman said the company expects to conclude detailed negotiations in the next four to six weeks.

The 777-300ER is Boeing's newest and most expensive jet, with a catalog price of $218 million to $245.5 million. The Etihad order could be worth more than $1.2 billion at those prices, although discounts on large orders are routine.

Etihad, which is the national airline of the United Arab Emirates, delivered a major blow to Boeing at the Farnborough Air Show in July when it announced a memorandum of understanding to order 24 Airbus wide-body jets and secure options to buy 12 more.

That deal, worth up to $7 billion, was for several different Airbus models including the 555-seat A380, which is due to enter service in 2006. The diverse mix of aircraft gave the impression Etihad had decided to fly an all-Airbus fleet.

But yesterday's 777 deal gives Boeing an important foot in the door with one of the world's newest and richest carriers.

Etihad was created in 2003 and had its first flight last November. Though it currently has just five airplanes, it plans to have a 50-jet fleet by 2009.

"Anytime that you establish a working relationship with a new airline you're looking to the future for orders," said Brian Walker, a Boeing spokesman, who called the deal a "big win" for Boeing.

Competition between Middle East airlines may have helped Boeing's cause. Emirates, the region's largest airline based in Dubai, ordered four 777-300ERs in July.

Walker declined to comment on whether Boeing is also talking to Etihad about the all-new 7E7. Boeing executives have said 24 airlines have tentative agreements in place for up to 200 7E7s, but it has announced just 52 firm 7E7 orders to date.

David Bowermaster: 206-464-2724 or dbowermaster@seattletimes.com

Copyright © 2004 The Seattle Times Company

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