July 10, 2012 in Business

Boeing lands 737 MAX sale

Pan Pylas Associated Press
 
Associated Press photo

Britain’s Prime Minister David Cameron, left, is shown around an Airbus A400M airlifter by chief test pilot Edward Strongman at the Farnborough Airshow in southern England on Monday.
(Full-size photo)

FARNBOROUGH, England – Boeing Co. clinched the first big deal of this year’s Farnborough Airshow on Monday with a firm order from Air Lease Corp. for 75 of its redesigned 737 aircraft worth $7.2 billion.

The order is a big win for the Chicago-based company at the opening of the weeklong airshow and is the first order for the MAX, a new version of its best-selling 737 aircraft, by a leasing company.

“They are an ideal partner to help establish the 737 MAX in the leasing market,” said Ray Conner, Boeing Commercial Airplanes president and chief executive.

The MAX incorporates new technologies designed to make the aircraft more efficient, reliable and comfortable. So far, Boeing has secured orders and commitments for more than 1,000 of the aircraft.

Los Angeles-based Air Lease, which buys planes and leases them to airlines, also has the right to purchase a further 25 planes. The order will take several years to deliver. ALC has ordered a total of 170 airplanes from Boeing.

“The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of Next-Generation 737-800s,” said Steven Udvar-Hazy, chairman and CEO of Air Lease. “The 737 MAX represents a step-change improvement that our airline clients need to compete in the future.”

Expectations are high that Boeing will clinch a raft of deals for the plane as it tries to catch up with Airbus in orders for single-aisle aircraft.

So far, the only deal Airbus has announced at Farnborough is the sale of four A321neos to Arkia Israeli Airlines. The order has a list value of around $450 million and makes the airline a new Airbus customer.

© Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Get stories like this in a free daily email


Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus