Dubai firm cancels order for 35 Boeing 737s

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Leasing company Dubai Aerospace Industries has canceled an order for 35 Boeing Co 737 narrowbodies, the planemaker said in its weekly order book update.

The planes are valued at US$2.8 billion, according to Boeing’s list prices.

The Dubai company, which last week cleared out its remaining orders worth US$5.8 billion for planes from EADS unit Airbus, still has its orders for 15 747s and six 777s. Boeing declined to comment on the remaining orders, Reuters reports.

Boeing also took orders for one 737 and one 747 in the latest week.

Dubai Aerospace, formed in 2006, had already canceled Airbus orders worth US$4.7 billion as well as a pile of Boeing orders in March and entered negotiations with both planemakers about the rest of its orders.

The company ordered more than 200 aircraft during the market heyday in 2007. Prospects dimmed, however, as the global financial crisis engulfed Dubai. Last year it was reported to have ceded some of its orders to Dubai-based airline Emirates.

Shares of Boeing were down 1.2 percent at US$71.34 in afternoon trading on the New York Stock Exchange.