The Record Breaking Deal In Boeing Aircraft History
In 2013 Boeing Aircraft and Emirates made a record-breaking deal for 150 Boeing Aircraft worth $76 Billion sending shock waves through the aircraft industry. Recently, Emirates Airlines president Tim Clark stated that the deal is in jeopardy due to the continuing potential to rescind the Open Skies agreement signed in 1999 made between the U.S and UAE.
This revelation doesn’t only affect the Boeing Aircraft but the 300 GE9x Engine made by GE Aviation worth $16 Billion. U.S airlines including American, United, and Delta airlines claim the Emirates airline growth is fueled by government subsidies which are said to be near $50 Billion. Emirates President, in retaliation to these accusations, says. “but half of them were in chapter 11 not too long ago, and some of them twice. If that wasn’t a subsidy, then I'll eat my hand”.
The clear animosity toward Emirates by American Airline companies is clear, the competition in the airline industry is fierce. Some experts have said that the threat of revoking Emirates deal with Boeing just will not happen. This is because the aircraft they ordered is the only aircraft on the market that fits their needs. There is no other aircraft that can replace the 777x due to how Emirates operates. This is because Emirates worked along with Boeing to create the 777x to fit their needs exactly. Additionally, The U.S government knows that Emirates buys many Boeing and other American aviation products and U.S airlines typically don’t operate in many places that Emirates does and therefore the open Skies Agreement seems to be safe clarifying the ramifications between the U.S and Emirates airlines spat.