Airbus Group SE (EADSF) (FR:AIR) secured a provisional order for 150 A321neo jets from flydubai on Tuesday, replacing Boeing (BA) as the budget carrier’s exclusive supplier and rebounding from a slow start to the Dubai Airshow.
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For context, flydubai is a government-owned low-cost airline based in Dubai, United Arab Emirates. It operates short- and medium-haul flights across the Middle East, Europe, Asia, and Africa.
Airbus Steals Spotlight Over Boeing
The Dubai Airshow is a major international aerospace event where airlines and manufacturers showcase aircraft and announce key deals. On the second day of the show, Airbus announced a 150-jet order for its A321neo with flydubai. Notably, the A321neo is Airbus’s most popular aircraft, offering more capacity than the standard A320.
The deal marks the first significant contract at the expo for Airbus, which had so far been dominated by Boeing’s announcement of a 65-jet 777X order from flydubai’s sister carrier, Emirates, on Monday. Additionally, winning flydubai is a strategic win for Airbus in a region long dominated by Boeing, especially in widebody aircraft. Switching suppliers in the single-aisle market is rare, as airlines value fleet commonality to cut costs and simplify operations.
Meanwhile, flydubai has previously expressed frustration with delays in Boeing jets, which slowed its growth as Dubai pushes to expand tourism and regional connectivity.
Airbus Wins Big at Dubai Airshow
On Tuesday, Airbus also landed a top-up order from Abu Dhabi’s Etihad Airways for A330neo and additional A350-1000 long-range jets. However, a much-anticipated A350-1000 order from Emirates remains unlikely, as President Tim Clark noted the aircraft’s engines do not meet his performance requirements.
Is Airbus a Good Stock to Buy?
On TipRanks, EADSF stock has received a Strong Buy rating based on 10 Buys and three Holds assigned over the last three months. The Airbus share price target is $259.57, which is 8.4% above the current share price.
