Qatar Airways’ 160 aircraft deal with Boeing, 400 GE engines: 6 things to know

Doha: Qatar’s national carrier, Qatar Airways, inked historic agreements with Boeing and GE Aerospace for a massive order of aircraft and engines on Wednesday. The deals, announced during a visit by US President Donald Trump to Qatar, mark the largest widebody aircraft order in Boeing’s history and the biggest widebody engine purchase for GE Aerospace.

According to the White House, the deal for Boeing 777X and 787 planes with GE Aerospace engines was worth $96 billion.

Qatar Airways Group Chief Executive Officer Badr Mohammed Al-Meer said, “This is a critical next step for Qatar Airways on our path as we invest in the cleanest, youngest and most efficient fleet in global aviation.  This is so we can meet the airline's strong demand as we connect passengers to the world better than anyone.”

He stated, “After two consecutive years of record-breaking commercial performance and with this historic Boeing aircraft order – we’re not simply chasing scale; we’re building strength that will allow us to continue to deliver our unmatched products and customer experiences.”

Stephanie Pope, President and CEO of Boeing Commercial Airplanes. “Our team is looking forward to building 787s and 777s for Qatar Airways into the next decade as they connect more people and businesses worldwide with unmatched efficiency and comfort.”

Here are six key takeaways from the landmark announcements:

Record-Breaking Boeing Order: Qatar Airways has ordered up to 210 Boeing widebody jets, comprising 160 firm orders and 50 options. This includes a staggering 130 Boeing 787 Dreamliners. Additionally, the airline has ordered 30 Boeing 777-9 aircraft. This order signifies a major investment in Qatar Airways’ fleet expansion strategy.

Largest Dreamliner operator in the Middle East: Qatar Airways currently operates more than 150 Boeing airplanes, including 777 and 787 passenger jets and 777 Freighters. With this purchase, Qatar Airways will become the largest 787 Dreamliner operator in the Middle East.

Job creation: The order will support nearly 400,000 jobs in the US.

Largest Engine Deal for GE: Complementing the aircraft order, Qatar Airways has signed a monumental agreement with GE Aerospace for more than 400 engines. This includes 60 GE9X engines to power the Boeing 777-9 fleet and 260 GEnx engines for the Boeing 787 aircraft, along with options and spare parts. This deal represents the largest widebody engine purchase in the history of GE Aerospace, highlighting the scale of Qatar Airways’ ambition.

Fleet Modernisation and Growth: These deals underscore Qatar Airways’ fleet growth plan and its commitment to operating a young, clean, and efficient fleet. The airline aims to meet the strong demand in the aviation sector and seamlessly connect passengers across the globe. The new generation aircraft, such as the 787 Dreamliner and the 777-9, offer significant fuel efficiency improvements and enhanced passenger comfort.

Boosting Qatar’s Aviation Sector: The agreements not only benefit Qatar Airways but also solidify GE Aerospace’s commitment to Qatar’s aviation industry. The engine deals build upon previous orders, further strengthening the national carrier’s focus on efficiency and performance. This includes service agreements for engine maintenance, repair, and overhaul, further underscoring the long-term nature of the partnership.

According to Saj Ahmad, Chief Analyst at StrategicAero Research, the Qatar Airways deal is significant for many reasons. "From underscoring the political strength and partnership between the USA and Qatar to employing both Boeing and the state airline, this deal showcases the long-term ambitions for Qatar Airways to leverage its strength as a core GCC player respected on the world stage," said Ahmad.

Competing against Emirates

While Qatar Airways has long competed with Emirates, this new deal firmly puts them on a path to growth while replacing their older airplanes, said Ahmad.

"Critically, one could argue that the recent push to 2032s completion of the first phase of Dubai World Central and Emirates' shift there has likely caught the eye of Qatar Airways, and they also want to capture some of the intended growth that this development will bring, especially since its own Hamad International Airport is still developing and has a long way to go before reaching capacity," said Ahmad.

After years of turmoil for Boeing, this deal shows that under their new leadership, the company is steadily regaining its reputation for safe, reliable and high-quality airplanes. Ahmad also said, "Qatar Airways is a tough customer to please, and with this order in the bag, Boeing will demonstrate to them that they can deliver this big order over the next decade and beyond."

Could existing owned and leased A350s be phased out and go all Boeing?

"Very possibly – but even if they make a corresponding big Airbus purchase, the reality is that Qatar, as a political entity and now as a transport hub, wants the world to know how much they can offer – the challenge now is not just to operate new airplanes, but they need to marry that up with commensurate travel options and new routes to fulfil their ambition of rivalling Emirates – because as it stands, Emirates' position in the GCC and beyond is extremely dominant and potent - and their earnings last week proved it and highlights just how far behind other Arab airlines are."

Moreover, Boeing's woes seem to be coming to a close as China has removed a ban on airlines taking delivery of the American OEM's planes after the United States and China agreed on a temporary cut in steep tariffs, Bloomberg News reported on Tuesday, citing sources familiar with the matter.

Officials in Beijing have started to tell domestic carriers and government agencies this week that deliveries of aircraft made in the US can resume, Bloomberg said.