Dubai Air Show Features $28 Billion in Sales for Airbus Including the Super-Jumbo A380

Rebounding European aircraft company Airbus had reason to celebrate last week at the Dubai Air Show as they sold more than $28 billion worth of orders for planes, including their latest and greatest A380 double-decker super-jumbo airliner, with the most ostentatious sale going to Saudi billionaire Prince Alwaleed Bin Talal.

The world's 13th-wealthiest man bought one of the brand new $300 million A380s for ... himself as a kind of flying palace in the clouds replacing his aging personal 747. CNN had a rundown of the deals that totaled as much as $100 billion altogether.

Other multi-million deals signed by airlines including Emirates Airline, DAE Capital, Qatar Airways and Air Arabia are expected to top $80 billion. Airbus earned the largest windfall, securing $28 billion in commitments, followed by Boeing.

"These are the largest deals for both Boeing and Airbus from these Middle Eastern Airlines," says Michael Burns, transportation analyst from Booz Allen Hamilton. "Rather than simply re-equipping, they are actually growing for new capacity. So they're ordering lots of new jets very quickly."

The new hubs in the Middle East are creating an impact on air traffic around the world, he adds. "They are taking traffic from all the regional centers in Europe, and funneling them into Asia, Australia and areas like Pakistan. And that means airlines are obviously having to build up capacity. They are expecting to see major growth over the next decade," he says.

Middle Eastern carriers are also starting to lease aircraft in addition to buying them outright, which further allows them to expand more rapidly.

Some of the deals signed at the show

Emirates Airline
From: Airbus
For: $34.9 billion (The largest-ever aircraft order in civil aviation and beating the total for the whole of 2005 event by US $13.6 billion)
Of: 120 A350s, 11 A380s, 12 Boeing 777-300E (total order includes 93 aircraft on firm order and 50 on option. The first A350 will be delivered 2014)

DAE Capital (off-shoot of DAE)
From: Airbus
For: $13.5 billion dollars
Of: 70 Airbus A320 and 30 A350 planes

Qatar Airways
From: Boeing
For: $6.1 billion
Of: 30 787 Dreamliners and five 777 Freighters (will be first Middle East Airline to operate both the 777 and 787)

Air Arabia
From: Airbus
For: $3.5 billion
Of: 50 Airbus A320 planes

Dubai Aerospace Enterprise (DAE)
From: GE Commercial Aviation Services
For: $1billion acquisition
Of: 20-aircraft deal, Boeing 737 next generation series and Airbus A320 series

LCAL
From: Boeing
For: $972 million
Of: 6 787-8 Dreamliners

Dubai Aerospace Enterprise (DAE)
From: Emirates Airline in a split purchase and leaseback deal that marked
For: $500 million
Of: 8 Airbus wide body Airbus A330-200s

NAS
From: Embraer
For: $348 million
Of: 5 Embraer 190 jets

Al Jaber Group
From: Embraer
For: $300 million (Single largest order for Embraer from the region)
Of: 5 Lineage 1000 and 2 Legacy 600

Al Jaber Aviation
Airbus
No exact figure BUT catalog prices of the two A318s would together be worth more than $110 million. The A380 sells for about $320 million apiece. 2 A318 Elite corporate jets, 2 A380 superjumbos

Wallan Aviation (KSA)
Cessna
Over $110 million
11 Citation business jets and 14 single engine aircraft

Wallan Aviation (KSA)
From: Smart Aviation (Egypt)
For: $80 million
Of: 5 Citation Sovereign aircraft

Yemenia
From: Airbus
Of: 10 Airbus A350 XWBs

So, what would you do with an aircraft that can hold 800 passengers? Swimming pool? Polo ponies? Here's another peek from CNN:

The A380 superjumbo can cram 800 passengers in an all-economy layout. On Singapore Airline's version, 471 people sit comfortably in its three classes.

But when Saudi billionaire Prince Walid bin Talal bin Abdul Aziz al-Saud collects his bespoke A380, less than 50 will luxuriate in its 6,000-square feet of space.

(At Right) Prince Al-Walid bin Talal bin Abdul Aziz Al Saud finalizes the deal for his own A380 with Airbus CEO, Tom Enders at the 2007 Dubai Air Show.

Prince Alwaleed's order of a VIP version of the new double-deck airliner -- the first private order for Airbus -- was announced at the Dubai Air Show this week.

"Like all of us, when we buy a new product, we want to trade up to something better," says Airbus spokesperson, David Velupillai. The A380 "Flying Palace", as it has been named, is certainly bigger with 50 percent more floor space than the Boeing 747-400, that Prince Alwaleed currently makes do with.

Features he may wish to choose include private bedrooms with showers, a movie theatre, a gym with Jacuzzi as well as conference rooms. He'll also need a flight crew of around 15 to operate the luxury jetliner.

Following the Saudi prince's ostentatious purchase, deals by other multi-billionaires are likely to surface.

Airbus has confirmed there are more VIP orders in the pipeline, but would not disclose who from. Contrary to rumors in the French press, Russian billionaire Roman Abramovich was not one, Velupillai told CNN.

The company sees a market for about 30 very large VIP jets, of which it expects the A380 Flying Palace to win at least a half. "There are about 25 VIP and government 747s in service today," he says. "They will need to be replaced one day, and there will also be increased demand."

David Lacy, MD of aircraft charter firm, Flightplan says his company is seeing an increase in bookings for personal charters as more travelers shirk the security hassles and time constraints of large airports.

The only factor restraining growth, he says, is getting hold of aircraft. "Demand is outstripping supply at the moment."

Most orders for private jets, however, are for smaller craft in the category of the Learjet or Gulfstream that come with a more modest price tag of between $2-5 million. Airbus and Boeing's VIP versions of the A320 and the 737 sell for around $70 million.

Customizing an A380 for private use is on a different league of investment. The plane itself will cost in the region of $300 million but that doesn't include the millions to be lavished on fitting out the plane. Lacy says costs could easily reach $20-30 million for fittings. Other experts have estimated prices could reach $150 million. As Lacy says, "the sky is not the limit."

Germany's Lufthansa Technik has already designed renderings to give prospective VIP customers an idea of the sort of luxury they can command. See pictures of the renderings. »

Features include spacious bedrooms on the plane's upper deck, reception areas, a bar or two, offices, private dining rooms and a gym complete with steam bath and exercise machines.

On the lower decks VIP guests can meet in lounges or conference areas. And, freed of the burden of cargo, lower areas can be transformed into yet more recreation space, perhaps even a cinema.

This sort of excess is just another purchase for bin Talal, the world's 13th richest person. His wealth down not just come from oil, however. He is founder and chairman of financial investment enterprise, Kingdom Holding Company (KHC) that has assets of around US$ 25 billion and stakes in major corporations including Time Warner, Apple, PepsiCo and Walt Disney Co.

The plane will be delivered to bin Talal in 2010, but it is expected to take another two years for the cabin to be fitted. Big things come to those who wait.