In addition to the A380s, Emirates has ordered two further long-range A340-500s from Airbus and 18 of the larger A340-600 four-engine derivative. The A340s will be powered by engines from the UK's Rolls Royce. Two further A340-600s will be leased from the Singapore-based International Lease Finance Corporation (ILFC). The deal will make Emirates the launch customer for the higher-gross-weight variant of the A340 airframe. The airline is scheduled to take delivery of its first A340-500s later this year.

The Boeing Companyof the US has also benefited from Emirates' latest round of fleet expansion. The airline announced at Le Bourget the acquisition of 26 Boeing 777-300 ER (extra long-range) on lease agreements. General Electric Capital Aviation Servicesof the US will lease 14 of the 777 and ILFC will lease the remaining 12 aircraft. The deal dates back to a letter of intent signed by Boeing and Emirates in 2001. Both the Airbus and Boeing deals bring the value of Emirates' total order book to over $26,000 million.

Attention will now shift to the engine supply deals for the airframes. Foremost will be the competition to supply engines for the new A380s. Engine Alliance, a joint-venture of GE Aero Enginesand Pratt & Whitney, both of the US, was awarded in June the estimated $1,500 million contract to supply Emirates with aero turbines for its first batch of A380s. Its competition comes from Rolls Royce of the UK, which is offering the Trent-900 derivative for the four-engine superjumbo.

Emirates has taken advantage of the gloom in the international air transport industry to increase its fleet capacity on the best possible terms. Boeing and Airbus have slashed the list price on their aircraft since the onset of the present downturn in an attempt to keep production lines in operation. Emirates has announced that earnings for the financial year ending March 2003 are up 94 per cent to AED 907 million ($247 million), making it one of the few airlines to post a profit last year (MEED 21:6:03).