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Trump visit: Qatar Airways' potential 100 Boeing jets order would be 'big boost' for struggling US company
Trump visit: Qatar Airways' potential 100 Boeing jets order would be 'big boost' for struggling US company

The National

time12-05-2025

  • Business
  • The National

Trump visit: Qatar Airways' potential 100 Boeing jets order would be 'big boost' for struggling US company

Live updates: Follow the latest on Trump's Gulf trip An order by Qatar Airways for up to 100 wide-body Boeing aircraft during US President Donald Trump's visit to Doha this week would be a major boost for the struggling US aircraft manufacturer. The deal is expected to be signed as part of a series of bilateral agreements between the US and the Gulf countries, Bloomberg reported. The airline is also expected to announce option of another 100 jets from the US plane maker, the report said. 'For Boeing, any sizeable wide-body order, even after usual industry discounts, will provide not just guaranteed employment for its workers and grow Boeing's backlog, it will also make other airlines consider their own future fleet needs, too,' Saj Ahmad, chief analyst at StrategicAero Research, told The National. If big airlines like Qatar Airways are block booking orders, it means delivery slots are at a premium and 'so this may well trigger further orders from other airlines – particularly for the hot-selling 787 family', he said. Mr Trump's visit to Saudi Arabia, Qatar and the UAE this week is part of a diplomatic sweep through the region. He aims to seal investment as well as corporate deals with close Gulf allies to boost his image as a dealmaker. 'While it could be argued there is a diplomatic angle [for the potential order], Qatar Airways operates some of the earliest 787s – so it stands to reason any order for new 787s will come down the line over a period of years, replacing these earlier models. Similarly, any 777X order will eventually supplant their current 777-300ER fleet,' Mr Ahmad said. Boeing has been struggling to turn operations around after a turbulent 2024, when it navigated a large number of problems including a prolonged workers' strike, safety issues on some of its most widely used commercial planes, lower jet deliveries, overrunning costs of defence contracts and shake-ups in its senior management. The company posted an annual loss of $11.8 billion for 2024, its biggest since 2020 and its sixth annual deficit in a row. The plane maker has also come under increasing pressure after the US-China trade war sparked by Mr Trump's tariffs led to some Chinese airlines refusing to take deliveries of Boeing planes. 'It is understandable that Boeing's production challenges may hamper airline growth, but the reality is that airlines don't have a lot of choice when it comes to buying aeroplanes – and not every rival Airbus aeroplane can fulfil or replace every competing Boeing aeroplane,' Mr Ahmad said. 'So, Qatar Airways is getting in early with a view to Boeing's turnaround that will ultimately mean higher production rates, which in turn means the airline gets faster deliveries, newer aeroplanes, lower costs and boost efficiency.' The longer-term knock-on effect, he added is 'what's at play here, not the current state of play'. Qatar Airways, which operates flights to more than 170 destinations, is also expanding its route network amid strong long-haul travel demand. Thierry Antinori, the airline's chief commercial officer, told Reuters in March that it soon planned to place a 'big order' for wide-body jets to support its growth plans. Meanwhile, Qatar is also in talks to supply the US with a Boeing 747-8 jumbo jet as a replacement for the ageing Air Force One, but denied the suggestion that the aircraft was a 'gift'. 'The possible transfer of an aircraft for temporary use as Air Force One is currently under consideration between Qatar's Ministry of Defence and the US Department of Defence,' said Ali Al Ansari, Qatar's media attaché to Washington, stressing that no decision had been made. The talks sparked a commotion in Washington after Mr Trump suggested the new plane was a 'gift'. Calling the plane a 'flying palace,' ABC News, which first reported the story, claimed the jet would possibly be the most expensive gift yet received by the American government.

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