NEW YORK (TheStreet) -- Emirates Airline has cancelled a $16 billion order for 70 Airbus new A350 passenger jets, which could mean a potential boost to the Boeing (BA - Get Report) 777, according to Sterne Agee analyst Peter Arment.
Emirates Airline has cancelled a $16 billion order for 70 Airbus new A350 passenger jets.
It is Airbus's largest order cancellation in history, with a current combined value of $21.6 billion at current prices. It amounts to 9% of Airbus' A350 order backlog. An Emirates spokesman said the contract the airline signed with Airbus in 2007 has lapsed and Emirates is reviewing its fleet requirements.
The A350 stands to pose the main competition to the Boeing 787 Dreamliner. While Emirates has not said it will order Dreamliners to replace the cancelled A350 order, Sterne Agee analyst Peter Arment believes the decision is a boost to the Boeing 777.
He says, "The decision to cancel the A350 reflects Emirates future capacity requirements but also cements its endorsement behind the 777 platform. The current generation 777 aircraft is flying Emirates key routes and will likely see further expansion at the end of the decade with the 777X."
In New York, I'm Brittany Umar for TheStreet.
-- Written by Brittany Umar in New York.