Prince Walid bin Talal with Thomas Enders, chief of Airbus. Just how much money does one person need in life…..

The price of crude oil extended its slide today after a prominent energy group lowered its estimate for worldwide oil demand, saying high prices were harming consumption.Oil fell $3.45, or 3.7 percent, to $91.17 a barrel in New York. Last week, oil futures reached a high of $98.62 a barrel. Oil prices, which have more than quadrupled over the last four years, are close to the historic record of $101.70 a barrel from April 1980 after adjusting for inflation.

High crude oil prices are helping sales of new, more fuel efficient models such as the Airbus A350 and Boeing's 787 Dreamliner. The Middle East's largest low-cost carrier, Air Arabia, along with Saudi Arabian Airlines and Oman Air, have announced deals for Airbus planes worth a combined $6 billion this week.

Prince Walid bin Talal of Saudi Arabia, the world’s 13th-richest man, will soon be able to claim the bragging rights to the world’s largest private jet. Putting an end to months of speculation, Airbus announced Monday that the Saudi billionaire had become the first VIP customer for the A380 superjumbo jet, the winged colossus that the European plane maker prices at just over $300 million.

Reportedly, Airbus and Boeing did deals in Dubai topping more than $83 US billion dollars at the weekend.

Prince Walid, who currently makes do with a customized Boeing 747-400, signed the contract for a new flying palace at a ceremony with senior Airbus executives at the Dubai air show.

He expects to take delivery in 2010.

With its 240-foot double-deck fuselage and 262-foot wingspan, the 560-ton A380 dwarfs the rides of the world’s most powerful leaders. In comparison, Air Force One, the presidential jet, is a relatively modest conveyance, a Boeing 747-200 weighing just 333 tons.

“This is a very overt sign of the tremendous wealth that’s being created in the Middle East these days,” said Doug McVitie, managing director of Arran Aerospace, a consultancy in Dinan, France. With oil prices edging toward $100 a barrel, he said, building private jumbo jets for Arab customers “is definitely a growing market.”

Saudi Arabia may be the biggest oil-producing nation, but oil is not the main source of Prince Walid’s fortune, which Forbes magazine estimates to be $20.3 billion. The prince, 52, controls Kingdom Holding, an enterprise with stakes in scores of blue-chip companies, like Citigroup, the News Corporation, and the Walt Disney Company. The company, based in Riyadh, also owns stakes in some of the world’s most prestigious hotels, including the George V in Paris and the Savoy in London.

The company’s computer models include a bedroom, office, bathroom and “wellness area” in the back of the plane’s upper deck, along with two guest rooms equipped with showers. A private lounge with numerous divans as well as a modern galley and buffet are laid out in the front section.

The main deck is reserved for meeting rooms, a dining room, and a spacious royal lounge. The rear section would feature first- and business-class style seats for courtiers, advisers and other staff.

Industry analysts estimate that manufacturers produce as many as 1,000 private airliners a year, with sales during the next decade predicted to reach as much as $200 billion.

But most of the planes are relatively small craft made by the likes of Cessna, Gulfstream, and Dassault, which sell for around $2 million to $5 million. Both Airbus and Boeing offer VIP versions of the A320 and the 737, which sell for around $70 million.

With its 6,460 square feet of floor space, customizing an A380 for private use represents a significant investment in itself. The $300 million Airbus price tag does not include the cost of the plane’s interiors, which can run into hundreds of millions of dollars, limited only by a buyer’s own extravagance.

“The very size of the A380 allows the VIP to customize the airplane and to spend far more on the interior than on the aircraft itself,” Mr. McVitie said. “It’s a huge canvas to work with.”
Prince Walid reportedly travels with an average entourage of around 50 people — far fewer than the nearly 900 seats that can be squeezed into an A380 with an all-economy class configuration.

The head of Airbus said Monday he expects a record year for orders and deliveries despite a weak dollar and delays to its A380 superjumbo plane.

The state-owned Dubai Aerospace Enterprise announced on Monday at the air show that it would buy 100 Airbus planes for $13.5 billion.

Dubai Aerospace, which develops airports and leases and finances aircraft, also said it would buy 100 aircraft from Boeing, a rival of Airbus, in a deal worth $13.7 billion. That order comprises 70 Boeing 737s and 30 wide-body aircraft, Boeing said. The wide-body fleet will be split among 787s, 777s and the freighter 747s. The price incorporates a deal with General Electric, for engines, valued at more than $1.9 billion (1.29 billion Euros).

The Emirates-based low-cost carrier Air Arabia said it would buy up to 49 Airbus A320 aircraft in a deal worth $3.5 billion. It signed a contract for 34 aircraft with an option for 15 more.