Boeing

The Boeing Company [NYSE; BA] and Emirates today announced they have concluded contract negotiations for a firm order for 42 Boeing 777 airplanes with purchase rights for 20 additional airplanes. The deal was announced by Emirates Chairman H.H. Sheikh Ahmed bin Saeed Al-Maktoum at the Dubai Air Show and is valued at $9.7 billion at list prices.

Emirates' order is for 24 Boeing 777-300ERs, 10 777-200LR Worldliners and 8 777 Freighters, with the first airplanes scheduled for delivery in 2007.

"We're honored that Emirates' has again chosen the 777 and will now use the entire 777 family as a cornerstone of its fleet operations," said Alan Mulally, Boeing Commercial Airplanes president and chief executive officer. "Emirates is renowned for its quality and excellence and we're excited to see how the airline and its passengers will benefit from the superior economics, comfort and utility of the 777 models ordered today."

When current orders are delivered by late 2007, Emirates fleet will include 51 Boeing 777s, already making it one of the world's largest 777 fleets. This new order for 42 Boeing 777s will see the airline becoming the largest Boeing 777 operator in the world.

"We have had very positive results with the Boeing 777s already in our fleet," said Emirates Chairman H.H. Sheikh Ahmed bin Saeed Al-Maktoum. "These new airplanes are perfectly suited to our business model for continued growth, both in cargo and passenger traffic, while maintaining the high level of comfort and exceptional service our passengers expect."

Emirates will use the 777 Family to extend routes to key European and Asian cities, and fly to emerging markets. The 777-200LR, which recently broke the world distance record for a commercial airliner, will allow Emirates to open new direct service to destinations across the globe, including direct flights to the U.S. West Coast. The airline currently serves over 75 destinations and continues to grow, including a 27% volume increase in cargo through its subsidiary Sky Cargo.

The 777-200LR is the world's longest-range commercial jetliner and is capable of connecting virtually any two cities around the globe. It will carry more passengers and more revenue generating cargo farther than any jetliner. In service, the 777-200LR can carry 301 passengers and baggage up to 9,420 nautical miles (17,445 kilometers).

The 777 Freighter, based on the -200LR airframe, will deliver value to the world's cargo operators, featuring the lowest trip cost of any large freighter and excellent tonne-kilometer economics. The 777 family has proven itself to be the leader in delivering twin-engine efficiency to the marketplace with lower fuel consumption, maintenance costs and operating costs.

All of the Boeing 777s included in this order by Emirates will be powered by General Electric's GE90 jet engine family and will meet QC2 noise standards for maximum accessibility to noise-sensitive airports.

Emirates firm order for 42 777s marks a milestone in Boeing's overwhelmingly successful airplane program. The airline is credited with the 777th order for a Boeing 777, bringing the total number of 777s ordered by 43 airlines around the world to 779 airplanes.