The Boeing Company
) has received an order from Turkish Airlines for 15 777-300
Extended Range ("ER") airplanes. The order worth $4.7 billion at
list prices includes options for five additional 777-300ERs.
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The Turkish Airlines had made the commitment in October
2012. Currently, the Turkish Airlines' fleet includes 12
The Boeing 777 is the world's most successful twin-engine,
long-haul airplane. It produces 22% less carbon dioxide per seat
and costs 20% less to operate per seat. The Boeing 777-300 ER is
the longer range version of the Boeing 777-300. It is powered by
the world's most powerful turbofan engines. The modified extended
range includes the most powerful engine, the GE90-115B, ever
produced. The aircraft is also equipped with raked wingtips,
additional fuel tanks, strengthened main landing gear and
fuselage and a higher Maximum Take-off Weight. The 386 seater
airplane in a three-class configuration has a maximum range of
7,930 nautical miles.
Recently in October, the company had increased the production
rate for Boeing 777 from 7 per month to 8.3 per month. The
company has implemented new technologies in order to achieve the
highest production rate. The increase reflects the increased
demand for the airplane.
Boeing is popular amongst various airlines for its excellent
aircrafts. Turkish Airlines currently operates a fleet that
includes nearly 100 Boeing airplanes. Moreover, in November, the
company has received an order, worth $4.9 billion, for 23
737-800s and 31 737 MAX 8s from SilkAir.
Boeing's revenue exposure is spread across more than 90 countries
around the globe. Due to the continuing recovery of the global
economy, demand for Boeing's Commercial Airplanes is benefiting
from a steady improvement in passenger and freight traffic.
Overall, we expect the growth momentum to be maintained by its
order backlog, planned production rate increases and a globally
diversified customer base.
However in the near term, headwinds over the global airline
industry along with expected cutbacks in the U.S. defense budget
remain a matter of concern. Like its peer,
Lockheed Martin Corporation
), the company presently retains a short-term Zacks #3 Rank
(Hold) that corresponds with our long-term Neutral recommendation
on the stock.
Based in Chicago, Boeing Company is a premier jet aircraft
manufacturer and one of the largest defense contractors in the
U.S. The company's customers include domestic and foreign
airlines, the U.S. Department of Defense, the Department of
Homeland Security, the National Aeronautics and Space
Administration, other aerospace prime contractors, and certain
U.S. government and commercial communications customers.