Worries increase over Middle Eastern airlines
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Aug. 28, 2017, © Leeham Co.: Market sources are increasingly pointing to weakness in the Middle East airline sphere as a threat to existing Airbus and Boeing orders. Emirates Airline, Etihad Airways and Qatar Airways are the Top 3 of Boeing's Top 10 wide-body customers.
These three also represent 73% of Boeing's 777X order backlog.
Qatar and Etihad are the Nos. 2 and 3 wide-body customers at Airbus (after AirAsiaX); Emirates has slipped to No. 8.
The financial trouble at Etihad, exacerbated by its poor investments in the now-bankrupt Alitalia Airlines and AirBerlin, have been well documented.
Emirates' profits have fallen dramatically and is facing over-capacity. Qatar Airways is now isolated by intra-geopolitical events.
- Emirates and Etihad already deferred Boeing orders.
- Lessors beginning to express concerns.
- Customer concentration for 777X worries some.
- A380 future rests largely with Emirates.