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Airbus edges Boeing
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November 5, 2001: 11:29 a.m. ET
European aircraft maker gets bigger contract from Arab nation's flagship.
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NEW YORK (CNNmoney) - The Emirates, the national airline of the United Arab Emirates, announced $15 billion in new aircraft orders Monday, giving an edge to European aircraft marker Airbus Industrie over its U.S. competitor Boeing Co.
Under the sales announcements at Dubai's International Air Show, Emirates is to buy 33 Airbus jets for $8.4 billion, while an order for 25 Boeing 777 widebody jets is worth about $6.6 billion.
Airbus, a European consortium owned 80 percent by European Aeronautic Defense and Space Co., won an order that includes $7 billion for 15 of the "super-jumbo" A380 jets, plus an option for 10 more of the double-deck widebody jet. In addition, it will buy eight A340-600 narrowbody jets valued at $1 billion, and three A330 narrowbody jets valued at $415 million.
Shares of EADS rose about 5 percent in Paris trading following the announcement, while shares of Boeing (BA: up $0.66 to $35.01, Research, Estimates) gained in early trading on the New York Stock Exchange.
The demand for new jets has fallen sharply from U.S. airlines, the world's largest aviation market, since the Sept. 11 terrorist attack sharply reduced U.S. air travel, so the orders from overseas airlines have become even more crucial for the two aircraft manufacturers. Boeing also suffered a setback last month when it lost the competition to Lockheed Martin Corp. (LMT: up $0.30 to $48.68, Research, Estimates) to build the Joint Strike Fighter, a U.S. fighter jet that could be worth as much as $200 billion.
A statement from Emirates said that the airline expects the downturn in travel to be temporary.
"Short term, airlines have seen their business dip," said as statement from Sheikh Ahmed bin Saeed Al-Maktoum, chairman of the company. "Long term, air travel remains firmly on course to double in the next 15 years. Even today we need larger aircraft, let alone in five years when our first A380 leaves the runway at Dubai."
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The firm orders for 58 new jets is expected to increase the size of Emirates' fleet to 100 jets by 2010. 
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