Airbus set for deals in euros due to weak dollar

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the Airport Expo on the opening day of the Dubai Airshow.

Dubai: The weak dollar is posing a big challenge for Airbus and the company is open to aircraft deals in euros or in a basket of currencies to offset the impact of the declining greenback on the European aircraft manufacturer's profits, a company official said on Sunday.

"The weak dollar is a huge challenge for us as the aviation industry trades in dollars and a lot of the world's manufacturers are based in the US," Airbus spokesman David Velupillai told Dow Jones Newswires at the Dubai air show.

A weak US dollar does not make the planes more expensive, but it does lower the company's profits since half of Airbus' costs are in euros, he said.

"We're open to selling our aircraft in euros or in a basket of currencies," Velupillai said. "We're also trying to cut down costs by placing our work force in dollar zones."

Embraer Signs USD$811 Mln Virgin Nigeria Deal

Brazil's Embraer has agreed to sell 10 aircraft to Virgin Nigeria in a deal that could be worth USD$811 million, the planemaker said on Sunday.

Virgin Nigeria agreed to buy seven Embraer 170 aircraft and three 190s, it said in a statement at the Dubai Airshow.

The deal gives the airline the option to buy six more 190s and purchase rights for eight 190 and 195 aircraft, it said.

Embraer also announced that it had signed deals for 19 business jets from Globalia of Spain and Falcon Aviation.

The aircraft include Embraer's Lineage 1000, Legacy and Phenom models, a spokesman said.

The deals were announced on the first day of the Dubai Air Show, which runs until Thursday.

Emirates Picks Airbus A350 In USD$35 Bln Deal

Dubai-based airline Emirates picked the Airbus A350 airliner over Boeing's 787 in orders potentially worth up to USD$35 billion on the first day of the Dubai Air Show.

Deals this week could make 2007 the biggest year in history for planemakers as soaring crude oil prices drive orders for new, more fuel efficient airliners such as the A380 superjumbo and Boeing's mid-sized 787 Dreamliner.

The Gulf's biggest airline ordered 70 A350s and took options on 50 more while extending its lead as the biggest buyer of the Airbus A380 superjumbo by adding another 11.

Emirates' orders included 12 long-range 777-300ERs from Boeing worth USD$3.2 billion.

The industry is in the third year of a record level of demand spurred by new aircraft as well as the spread of budget airlines.

Boeing's biggest deal came from Qatar Airways, which ordered 30 787s and options to buy 30 more. It also bought 27 777s and took five options.

Boeing entered the air show leading Airbus in their annual race for orders but the gap narrowed on Sunday.

While the 787 is already the fastest-selling new Boeing in history, the Emirates order for the A350 XWB (Xtra Wide Body) is a major boost for the new Airbus plane, which has been the subject of fitful design changes over the last two years.

The battle between the 787 and A350 for sales to industry heavyweight Emirates was being closely watched by industry analysts.

"The 787-9 is a smaller aircraft with fewer seats," said Tim Clark, Emirates airline president, explaining the decision to go with the Airbus.

"The 10 is just not being offered," he said, referring to a stretched version of the 787 which some airlines have urged Boeing to launch.

Separately Rolls-Royce said it would supply engines for the A350s in a deal that could be worth USD$8.4 billion if Emirates firms all options.

Industry sources said Dubai Aerospace Enterprise (DAE), Saudi Arabian Airlines and Air Arabia are among those expected to announce orders this week. The air show runs until Thursday.