Boeing (BA) Receives Order for 100 737s at Paris Air Show
Shares of the Boeing Company (BA) were trading down -0.30 or -0.21 percent to $141.99 per share in Tuesday's premarket after news late yesterday that the company had secured an order for 100 737s worth approximately $10.6 billion at the Paris Air Show. Boeing Company stock closed at $142.29 per share, down -0.51 or -0.36 percent in Monday's regular trading session.
Chicago, Illinois based Boeing Company is an American multinational aerospace corporation involved in the design and manufacture of fixed wing aircraft, rockets, satellites and rotorcraft.
Boeing received an order from Netherlands based AerCap. The Dutch company ordered 100 of Boeing's 737MAX-8s, beating the company's European rival Aerbus for the order. Aerbus is actively marketing its A320 line of passenger jets. Each 737MAX-8 carries a price tag of $106.7 million.
In addition to the order from AerCap, Boeing received 19 orders for it 777 jets in their passenger and freight versions. Boeing reported it had penned intent to purchase agreement with Indonesian airline Garuda. The airline plans to order as many as 30 787s and 30 737MAXs, this sale alone could be worth as much as $10 billion.
For its part, European rival Aerbus finished the first day of the Paris Airshow with orders for 95 of the company's A320 single aisle passenger jets, 31 of its A350XWB jets and 20 of the aircraft maker's larger A330 models. No orders were announced for Aerbus' giant A380 superjumbo, which has not received an order for a year. Nevertheless, the company was rumored to be in talks for a modified version of the superjumbo which could increase demand for the aircraft.
In addition to its first day sales, Boeing revealed that the company was looking into producing a "Middle of the Market airliner, which would fall between its 737 single aisle plane and the company's smallest widebody, the 787. The new plane, which is still far from being decided upon will be the first all new aircraft the company has built since the 2003 release of the 787 Dreamliner.
The new jetliner would have seating for 220 to 280 passengers and have a range of 4,500 to 5,000 miles. "That's larger than a 757 and flies farther than a 757 said Boeing's sales chief at Boeing Commercial Airplanes John Wojick, "It's a domestic and a regional airplane. It would be very efficient operating domestically in the U.S. or China, and regionally as well in Southeast Asia and Europe. It could fly from the East Coast of the U.S. to many destinations in Europe.
Despite the good news from the Paris Airshow, Boeing stock seems to be steady to slightly lower in this morning's premarket, suggesting that the initial orders for the company were unimpressive to stockholders. The 2015 Paris Air Show will continue until June 21st, with the potential for more significant sales by Boeing.
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