Emirates Airlines has backed out of a deal it signed seven years ago to buy 70 Airbus A350s, a major blow to the European plane-maker that could prove a windfall for Chicago-based Boeing.
The cancelled order for 50 A350-900s and 20 of the larger A350-1000s, to be delivered in 2019, had been worth $16 billion at the time the deal was inked in 2007.
Emirates didn't elaborate on the reason for the cancellation, other than to say the contract had "lapsed." However, the Dubai-based airline has expressed dismay in the past over A350 development and production delays. The about face also hurts U.K.-based Rolls-Royce, which was to have supplied the aircraft engines.
The New York Times reports:
"The news comes just months before the new jet, the A350-XWB, is due to enter service, prompting some analysts to wonder whether the decision by Emirates could presage a slowdown in aircraft orders from Persian Gulf carriers.
"Those airlines have been among the most voracious buyers in recent years of wide-body planes from both Airbus and Boeing."