Singapore-based BOC Aviation has ordered 13 new Boeing (BA) 737 MAX 8 as aircraft demand is seen rising in Asia.
"Airlines are attracted by the 737 MAX 8's lower operating costs and fuel efficiency, and we are delighted to announce the inclusion of these additional aircraft as we build our future delivery pipeline," said BOC Aviation CEO Robert Martin in a statement.
The order is worth $1.4 billion at list prices, which are typically discounted for actual volume deals.
Shares of Boeing, a member of the Dow Jones industrial average, fell 1.9% to 175.96 in the stock market today. Rival Airbus (EADSY) sank 1.1%.
Last July, Boeing forecast worldwide demand over the next 20 years for 39,620 new aircraft — worth $5.9 trillion — with 15,130 of those deliveries seen going to Asia, according to Reuters.
And the aircraft maker projected in September that commercial plane demand in China would reach over $1 trillion, or 6,810 new planes, over the next two decades.
Meanwhile, Paulo Cesar de Souza e Silva, CEO of Brazil-based Embraer (ERJ), told the Financial Times that its plans to deliver its next-generation E2 regional aircraft is "on time, on budget and the aircraft is slightly underweight."
The first aircraft are reportedly expected for delivery in the first half of next year.
IBD's TAKE: Embraer, Boeing, Textron (TXT) and Northrop Grumman (NOC) are seen as potential participants as the Air Force explores a low-cost attack plane program.
Embraer shares fell 6.85% to 22.98, closing just below the 50-day line. Embraer is calling its E195-E2, which will reduce per-seat fuel usage by 24%, "the most efficient next-generation commercial jet in the world."
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