Qatar Airways placed a $6.5 billion order for Airbus jets hours after walking away and telling the European giant to go back to basics in a day of high theater at the Dubai Air Show. A row over who would be first to receive the European planemaker's latest jet, a revamped version of its best-selling A320, nearly scuppered the deal which also included five more Airbus A380 superjumbos, people close to the matter said. Timing is a serious issue as airlines rush to take advantage of 12-15 percent fuel savings offered by revamped models now being offered by Airbus (EAD.PA) and Boeing (BA.N). But the negotiations turned into a public drama, with Qatar Airways' chief executive first saying the deal was off, only to return hours later to announce the signing. “Every deal sometimes gets stuck especially when the lawyers throw the spanner in the wheel. The price was not at all an issue, from the beginning,” CEO Akbar Al Baker said. The deal includes 50 orders for A320neo narrowbody jets worth $4.6 billion, plus options for another 30, and the five-airplane A380 order which doubles Qatar's planned superjumbo fleet, together with options for a further three. Pratt & Whitney (UTX.N) won a key engine order for the deal. Qatar is among a trio of Gulf airlines investing heavily in new fleets to build up the region as a global hub, despite concerns over the economy and Europe's debt crisis. It competes fiercely for attention with the other two, Dubai's Emirates and Etihad Airways of Abu Dhabi. More than $30 billion in orders at this week's biennial air show reflect competition by Gulf carriers to capture traffic as economic activity shifts eastwards. Although many airlines prepare deals in advance or ignore air shows altogether, the publicity value of such jamboreees can lead to brinkmanship on either side, though only rarely are the media and competitors given such a field day. In chaotic scenes, Tuesday's deal took place only after Airbus was forced to abandon an initial press conference.
