Emirates orders US$1.5 bn worth of A380 engines

9 December 2003

Emirates Airline orders US$1.5 billion worth of A380 engines, announces advanced jet engine test facility

Emirates Airline today signed an order for GE-P&W Engine Alliance aircraft engines worth US$1.5 billion, to power its latest order of 23 Airbus A380-800 aircraft, placed in June at the Paris air show.

The airline also announced plans to build a US$45 million advanced jet engine test facility in Dubai, in partnership with GE Aircraft Engines (GEAE), and the launch of a new helicopter simulator training program with CAE.

The new engine contract was signed today by Emirates' Chairman HH Sheikh Ahmed bin Saeed Al-Maktoum and Lloyd Thompson, President of GE-P&W Engine Alliance, during a media briefing at Dubai's 8th International Aerospace Exhibition.

The order is for 101 GP7200 engines (92 installed and nine spare) for delivery from 2009. These are in addition to an earlier US$1.5 billion order for 98 engines of the same type placed by Emirates last year (88 installed and 10 spare), for the first wave of 22 Airbus A380-800s, which will start being delivered to the airline in 2006.

The total US$3 billion investment in the 199 GP7200 engines ordered so far by Emirates makes the airline the world's largest client for this new Engine Alliance power unit. Emirates also is the world's largest customer for the A380-800, having ordered 45 of the yet-to-fly super-jumbos, or about one-third of all firm orders taken by Airbus for the new aircraft.

Sheikh Ahmed said: "The GP7200 engine was chosen after a comprehensive and detailed study of the engines available for the A380. Because of the size of the order we could have had two different manufacturers providing powerplants for our A380s. But we again decided that the Engine Alliance engine is ideal for us."

He added: "Emirates will be the world's first airline to put the GP7200 into service. We are pleased to increase our business relationship with Engine Alliance and are confident of its commitment to deliver an engine that will meet our expectations."

Lloyd Thompson said: "Emirates' confidence in our technology and ability to deliver on this order as required, is very gratifying. It's the best possible reward for the time and effort that we have been investing in the GP7200, in partnership with Emirates engineering and operations staff, who continue to provide valuable technical input. We are looking forward to giving them 199 excellent reasons to feel they made the right decision."

New Multi-Jet Engine Testing Facility and Helicopter Simulator Training

HH Sheikh Ahmed also disclosed that GEAE and Emirates have reached an agreement for the former to design and construct an advanced jet engine test facility for Emirates in Dubai. The project will expand the airline's jet engine repair and technical support capabilities and will eliminate the current need to outsource Emirates' jet engine testing.

It will consist of a 6000 square meter indoor jet engine test stand with state-of-the-art data acquisition systems and engine "preparation to test" area. Construction is set to begin next year, for completion in 2006. The building cost is estimated at US$45 million.

The Emirates Chairman said: "This will be the most advanced and unique jet engine test facility in the world, capable of testing a wide array of jet engines such as the GP7200, the CFM56, the Rolls Royce Trent series and the GE90. It will be capable of testing jet engines up to 150,000 pounds of thrust."

In addition he revealed that Emirates-CAE Flight Training will launch the first full flight Bell 412 / 212 helicopter simulator training program in the Gulf region. It will be in place at the end of 2005, with commitments from a number of GCC and Middle East operators.

Sheikh Ahmed commented: "Expansion into helicopter training reinforces Emirates-CAE Flight Training as the centre of excellence for aviation training in the Gulf region."

The two projects reflect Emirates' strategy to acquire technical, in-house self-sufficiency, and ultimately offer its services to other airlines and aviation operators worldwide. Besides creating additional revenue sources, they showcase the airline's support of Dubai's development as a major aviation hub.

Emirates at the Dubai Air Show

Commenting on the on-going edition of the Dubai Aerospace Exhibition, which takes place every other year, Sheikh Ahmed said: "This air show is a symbol of the vitality of the UAE's and the region's aviation industry, presently the world's fastest-growing.

"The 550 exhibitors represented here, from 36 countries, demonstrate the air show's attractiveness to top players and suppliers from around the world. It has come of age as a 'can't miss' international aerospace industry event."

As is customary at every Dubai Aerospace Exhibition, Emirates has put on a spectacular show for visitors. Hundreds of industry and trade executives, VIPs and news media representatives were given the opportunity to inspect the Emirates' newest 'crown jewel', the A340-500 aircraft, which the airline launched into commercial service last week to Sydney and Auckland, in a world premiere.

Guests on tour sampled the new ice (information, communication, entertainment) inflight system, a world first featuring more than 500 channels of films, TV, music and games - three times as many as on other airlines. Emirates is investing US$1.8 billion in reinventing longhaul travel with a series of innovations including the world's first enclosed First Class suites, featuring sliding doors which can be closed for maximum privacy.

Emirates' distinctive exhibition stand, unveiled at ITB Berlin earlier this year, is a see-through triple-decker, suggestive of the interior of an A380-800's fuselage.

Contact: Bob Wallace, Professional Public Relations NZ (09) 979 2000 or 029 979 2000

About Emirates: Dubai-based Emirates Airline was established in 1985. It has received more than 250 international awards since its inception. In 2003 alone it has been voted Best Economy, Best Airline to the Middle East, and Runner-Up Airline of the Year by Skytrax Research, and Passenger Service Airline of the Year by Air Transport World, USA, among others.

Emirates announced the largest order in aviation history at the recently concluded Paris Air Show, when it added 71 new Airbus and Boeing aircraft worth US$19 billion to its fast-growing fleet. Apart from being the first to fly the Airbus A340-500, it is now the main launch customer for two other innovative ultra-modern Airbus aircraft ? the A340-600 HGW and A380 double-decker.

The airline's current fleet is comprised of 57 aircraft - a mix of Airbus A330-200s, A340-500s, Boeing 777-300s, 777-200s and 747-200/400Fs, with an average age of three years, the youngest in the skies. In 2006, Emirates will receive the first of 45 A380 double-deckers on order, and over the next decade it expects to more than double its fleet size.

Financially independent, Emirates is the world's fastest-growing full-service intercontinental airline and is also among the five most profitable and twenty largest ones. It offers services to 71 cities in 50 countries in Europe, Africa, Middle East, Indian subcontinent, Asia-Pacific and North America.

Besides the airline, the Emirates Group includes Emirates Destination and Leisure Management (Emirates Holidays, Arabian Adventures, Al Maha Resort), Emirates SkyCargo, Dnata, Mercator, Transguard and Galileo.

ENDS

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