Airbus signs 150-jet deal with flydubai worth $24 billion | Reuters

Airbus signs 150-jet deal with flydubai worth $24 billion | Reuters

Airbus (AIR.PA), opens new tab won a provisional order for 150 A321neo jets from flydubai on Tuesday worth $24 billion, ousting Boeing (BA.N), opens new tab as exclusive supplier to the fast-growing budget carrier and bouncing back from a muted start to the Dubai Airshow.

The deal on the second day of the show came after Reuters reported on Sunday that Europe's Airbus was set to win a three-digit order from the government-owned Dubai carrier.

"It's an exciting step for expanding and diversifying our fleet," flydubai Chairman Sheikh Ahmed bin Saeed Al Maktoum told a news conference.

The deal is worth $24 billion and includes an option for another 100 aircraft, he said in a post on X, adding it will allow the carrier "to meet the increasing demand in our markets".

'WHAT TOOK YOU SO LONG?'

Flydubai has previously bought jets from Boeing since it was founded in 2008 as sister airline to Dubai's Emirates, prompting Airbus Commercial CEO Christian Scherer, sitting alongside Sheikh Ahmed on Tuesday, to joke: "What took you so long?"

Boeing has been negotiating to salvage part of the growth requirements of one of its most important 737 MAX operators, industry sources said earlier in the week.

Talks were continuing on Tuesday for a potential order for dozens of Boeing jets, people familiar with the matter said.

A deal is not guaranteed as negotiations remain fluid, but if confirmed, it would most likely still leave Airbus with the majority of the airline's new business while roughly balancing the overall fleet, they said.

Boeing declined to comment. Flydubai was not immediately available for comment.

DEAL FOLLOWS MONDAY'S BOEING ORDER FROM EMIRATES

Flydubai currently operates some 95 Boeing 737s, including 69 MAX jets, and has more on order.

Tuesday's announcement was the second commercial coup at the show after Boeing secured a surprise order on Monday for 65 more of its 777X jets from Emirates despite severe delays.

Emirates Airline President Tim Clark said on Tuesday that it was not yet ready to order the competing Airbus A350-1000, squashing speculation of a deal at the show.

Also on Tuesday, Etihad Airways ordered a mix of Airbus A350s and A330neos.

Mideast Stocks:Gulf bourses track global selloff as Fed rate cut hopes fade

Mideast Stocks:Gulf bourses track global selloff as Fed rate cut hopes fade

Most Gulf stock markets slipped on Tuesday, tracking declines in global equities as diminishing odds of an interest rate cut by the U.S. Federal Reserve weighed on sentiment, while investors awaited key government data from the world's largest economy.

The release of delayed U.S. data following the end of a federal government shutdown, including the September non-farm payrolls report due on Thursday, will be crucial for investors assessing the chances of a rate cut next month. Traders now see a 46.4% probability of a Fed rate cut in December, down from nearly 67% a week ago.

Monetary policy shifts in the U.S. tend to heavily impact Gulf markets, where most currencies are pegged to the dollar.

The Qatari benchmark index fell for a fifth straight session, losing 1.1% to 10,683, its lowest level in nearly five months, with almost all stocks in the red. Industries Qatar shed 1.9%, while Ooredoo slumped 6.7%, its steepest intraday fall in more than four years.

The telecoms firm said on Monday that Abu Dhabi sovereign wealth fund, the Abu Dhabi Investment Authority, plans to sell about half its stake in Ooredoo through a secondary share sale that could raise as much as $572 million.

Dubai's benchmark stock index dropped 1%, pressured by broad-based losses. Tolls operator Salik slid 1.5% and Emaar Properties fell 1.1%.

The Abu Dhabi benchmark index eased 0.3% to a near-five-month low. Blue-chip developer Aldar Properties fell 1.7%, and Two Point Zero Group declined 5% after the investment platform – created via the merger of Multiply Group, 2PointZero and Ghitha – said on Monday it would list 23.36 billion new shares via a capital increase.

Saudi Arabia's benchmark stock index rose 0.4% after two consecutive sessions of losses. Al Rajhi Bank gained 1.3% and Retal Urban Development jumped 10%, its biggest intraday rise since listing in 2022, after the developer was awarded a 5.2 billion riyals ($1.39 billion) contract by National Housing Company to build residential units and related infrastructure in Riyadh.

Outside the Gulf, Egypt's blue-chip index slipped 1.4%, with most stocks falling. Commercial International Bank lost 1.3% and Talaat Moustafa Group dropped 2.7%.