Dubai Debt Threatens Boeing
Have global economy. Have global economic problems.
Dubai, the very picture of modesty and moderation, feels the credit crunch.
Boeing's recent move to South Carolina may have saved the jet-maker a couple bucks on non-union labor. But it looks like that money might be needed immediately now that the Middle East's Disnelyand-for-the-rich appears to be dead broke.
Dubai just asked for a six-month IOU on a $60 billion debt. News that's troublesome for a host of global companies, including the one that makes planes all those other global companies use to get around.
According to Business Week's Carol Matlack, Dubai's airline Emirates has about $4 billion of Boeing 777ss on order. Counting the other back-logs from low-cost carriers in the country, Boeing has about $20 billion riding on the hopes that Dubai can pay back its bills.
Bad news for Boeing, considering the most likely result of Dubai's debt crisis is a bail-out from oil-rich neighbor Abu Dhabi. A move which would likely mean no new orders, along with an emptying of the country's well-stocked shopping cart.
The only good news out of this mess: Boeing isn't the only jet-maker feeling the credit crunch. Its biggest competitor, Airbus, has over $40 billion in unlikely-to-be-filled aircraft orders too.
2 comment(s)
Anonymous says:
This is a pretty silly piece. Emirates Airlines is highly profitable, and it is a separate entity to Dubai World, the entity that is in technical default. Why would you mix the two together? Its like saying your neighbor is in foreclosure, and it makes you bankrupt, huh? Get your facts straight before you rush a piece like this, it only shows your ignorance.
Posted On: Friday, Nov. 27 2009 @ 6:40PM
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Posted On: Saturday, Dec. 12 2009 @ 4:27AM