Aerospace and defense giant Boeing Co. (BA) and its European rival Airbus Group N.V. (EADSF.PK,EADSY.PK) Tuesday announced airplane orders at the ongoing Farnborough International Airshow 2014 in the UK. Boeing received order for 26 airplanes from Air Lease Corp. (AL), comprising six 777-300 Extended Range and reconfirmed twenty 737 MAX 8 airplanes, valued at $3.9 billion at current list prices.
Boeing also received order worth $1.9 billion from Intrepid Aviation, a privately held commercial aircraft lessor, for six 777-300ERs air-crafts, with an option to buy an additional four 777s. If all options are exercised, the value could be more than $3.2 billion at list prices, said Boeing.
Meanwhile, aircraft leasing firm SMBC Aviation Capital has signed a major firm order for 115 A320 Family aircraft with Airbus, including 110 A320neo, and five A320ceo. SMBC order is said to be the industry's largest ever single firm order by a leasing company for single-aisle aircraft.
CIT Group Inc. (CIT) said its CIT Aerospace committed an order with Airbus for fifteen A330-900neo aircrafts and five A321-200ceo aircrafts. Deliveries of the A330-900neo are scheduled to begin in 2018, while the A321-200ceo's delivery will begin in 2015.
Boeing noted that its latest 737 MAX single-aisle jets order for 20 airplanes, valued at more than $2 billion at current list prices, brings Air Lease's combined orders for the 737 MAX to 104 airplanes. The 777-300ER order is valued at more than $1.9 billion at current list prices.
Bloomberg, on Monday reported that Boeing was close to winning orders from two aircraft-leasing companies for narrow and wide-body planes valued at up to $9.2 billion at the Farnborough Air Show. Apart from Air Lease, Boeing reportedly would get BOC Aviation Ltd.'s order for at least 50 of the Max jets.
In separate deals, Boeing received order from Irish airplane leasing company Avolon for six 787-9 Dreamliners, valued at $1.5 billion at current list prices, and Chinese privately-owned airline Okay Airways ordered for six 737 MAX 8s and four Next-Generation 737-800s from, valued at $980 million at current list prices.
Further, British carrier Monarch Airlines said Monday that it has selected Boeing as the preferred bidder for fleet replacement, and made a commitment for thirty 737 MAX 8s for fleet transition to Boeing single-aisle airplanes. The order is valued at $3.1 billion at current list prices.
On July 9, Boeing finalized an order for 150 777Xs aircraft from Dubai-based Emirates Airline that is valued at $56 billion at list prices. The order is for a combination of 115 777-9Xs and 35 777-8Xs. Emirates Airline, the world's largest 777 operator, had announced its commitment for the order at the 2013 Dubai Airshow.
Boeing's 737 MAX has surpassed 2,000 orders from 42 customers, being the fastest selling airplane in history, the company noted.
Separately, Boeing announced new details about its newest long-haul twin-aisle airplane, the 777X, at the Farnborough Airshow. Its features include 6,000-foot cabin altitude, comparable to the 787 Dreamliner, 16-inch wider cabin than competition and more than 15 percent bigger windows.
The 777X program has 300 orders and commitments from six customers worldwide. Production is set to begin in 2017, with first delivery targeted for 2020.
In pre-market activity, the BA shares were gaining 0.83 percent, and trading at $130.60.
In Paris, Airbus shares are currently at 47.15 euros, up 0.03 percent.
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