* DAE Capital cancels remaining orders for 45 Airbus jets
* Doubts raised over orders for Boeing aircraft
* Dubai leasing company's CEO stepped down a week ago
* Airbus outsold Boeing in first half, EADS shares dip
(Adds details, background)
By Tim Hepher and Praveen Menon
PARIS/DUBAI, July 7 A troubled Dubai leasing
firm has cancelled all its remaining Airbus orders worth $5.8
billion, it emerged on Thursday, as the after-shocks of the
financial crisis dampened celebrations of record new jet sales.
The clearout by DAE Capital failed to spook investors in
Airbus parent EADS , which is well ahead of Boeing this
year, but delivered a blow to Dubai at a time when the emirate
is touting its recovery from a crippling 2009 debt crisis.
It also raises questions over the fate of about $9 billion
in unfilled orders by the same leasing company from Boeing
, which is due to update its order book later on Thursday.
DAE Capital has 56 unfilled orders from Boeing including 15
of its newest freighters based on the 747-8 stretch jumbo,
according to the U.S. company's website.
Officials at DAE Capital, whose chief executive Robert
Genise resigned on June 30, were not available for comment.
An Airbus spokesman confirmed the cancellations, which
emerged in a monthly order snapshot dominated by strong sales of
its A320neo passenger jet at last month's Paris Air Show.
Airbus sold a total of 777 aircraft in the first half, or
640 after accounting for cancellations such as the 45 remaining
orders for A320 and A350 jetliners withdrawn by DAE Capital.
According to the most recent available data, Boeing won 210
gross orders and 151 net orders between Jan. 1 and June 28.
Fresh demand has been dominated by orders for fuel-saving
narrowbody jets from India and Asia to dampen oil costs, but
planemakers are still managing backlogs left vulnerable in some
cases by the abrupt end of a previous ordering boom in 2008.
DAE had already cancelled Airbus orders worth $4.7 billion
as well as a slew of Boeing orders in March and entered
negotiations with both planemakers about the rest of its orders.
French brokerage Oddo said investors were prepared for the
cancellations. Shares in Franco-German-led EADS fell 0.3 percent
to 23.32 euros in a slightly higher European market.
Dubai Aerospace Enterprise was formed in 2006 in a
collaboration between several Dubai names including sovereign
wealth arm Investment Corporation of Dubai, developer Emaar
and state-linked DIFC Investments.
The company ordered more than 200 aircraft during the market
heyday in 2007 but its ambitions fizzled out as the global
financial crisis engulfed Dubai. It was reported last year to
have ceded some of its orders to Dubai-based airline Emirates.
"The shareholders in DAE are government entities and each of
them own at minor stake. So there is not a single entity that is
championing for DAE and this may be a reason why it is
marginalised," said Khuram Maqsood, former director at a Dubai
"The cancellations had to do with the liquidity issues DAE
is facing, and in general, Dubai is facing. The cancellations
are just a symptom of the ground reality."
Still, a June bond issue by the Gulf Arab emirate came hard
on the heels of a highly successful bond launch by flagship
carrier Emirates -- the largest buyer for the Airbus
A380 -- boosting Dubai's case that the worst was behind it.
The total of 777 first-half aircraft orders at Airbus
includes 180 planes sold to India's IndiGo and 200 to Malaysian
budget carrier AirAsia -- two deals that set volume
records on successive days at last month's upbeat air show.
They do not however include 88 A320 jets sold to China on
June 28 amid tensions with Europe over emissions trading rules.
"Some details still need to be finalised," an Airbus
Airbus delivered 258 aircraft including 10 A380 superjumbos
between January and June.
(Additional reporting by Amran Abocar, Cyril Altmeyer, James
Regan; Editing by Hans-Juergen Peters)