(Bloomberg) -- Etihad Airways is in early talks with Boeing Co. and Airbus SE for a possible widebody-aircraft order as the carrier aims to double in size in the coming years, according to people familiar with the matter.
Abu Dhabi’s flag carrier is looking to purchase twin-aisle jets to upgrade and expand its fleet of long-distance aircraft, said the people, who asked not to be identified discussing private matters. Etihad will most likely choose between the Airbus 350 and Boeing 777X, they said.
Etihad and Boeing declined to comment. Airbus said it’s always in talks with customers and declined to comment on specific deliberations with any potential buyers. The people cautioned that talks are at an exploratory stage and Etihad may decide not to place an order anytime soon.
Both aircraft models come with their own set of challenges. Etihad is facing issues with the maintenance cycles for the engines made by Rolls Royce Holdings Plc on its Airbus 350-1000 aircraft. And the Boeing model, of which Etihad has already ordered 25 units, is years behind delivery schedule. Boeing said late last week that the aircraft would now come to market in 2026.
The shortage of new jets has prompted the carrier to retrofit older 777 aircraft with new interiors as it seeks to capitalize on growing travel demand. The airline now has more than 90 aircraft in its fleet.
Any new purchase would be part of Etihad’s $7 billion investment plan over the next five years, including doubling the fleet size, refurbishing some aircraft, rearranging the network, and adding routes. The carrier is also planning an initial public offering, Bloomberg reported earlier this year.
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