The Boeing Co.
) has won a sizable firm order form a joint venture between
Lufthansa and Turkish Airlines - SunExpress - for a total of 40
Boeing jets, worth $3.8 billion at list prices.
The contract includes the delivery of 25 Next Generation 737-800
and 15 737 MAX 8 jets, with SunExpress having an option to buy
additional 10 737 MAX 8 aircraft. The jets - slated for delivery
between 2015 and 2021 - are essential to perk up route services
from Germany to several destinations in Turkey.
SunExpress operates an all-Boeing fleet of over 60
Next-Generation 737-700s and 737-800s. It serves more than 90
destinations across Europe, the Middle East and North Africa.
The fourth generation of the 737 family - the 737 Max - is a
premier aircraft from Boeing's stable and sees brisk demand in
the single-aisle market for its fuel efficiency and low carbon
dioxide emissions. Powered by the Commercial Fan Motor (CFM)
International LEAP-1B engines, the Advanced Technology winglet of
this airplane also enhances performance.
Additionally, the pivoting overhead stowage bins increase cabin
space. The bins give passengers more room to keep a carry-on
roll-aboard near their own seat besides providing extra leg
space. This aircraft is 13% more fuel efficient than its closest
peer in the single-aisle aircraft market.
Again, the Next Generation 737-800 version comes in with the new
Boeing Sky Interior which is the latest in a series of
enhancements for both airlines and passengers. This variant has
been Boeing's bestseller in the single-aisle market. The
single-aisle fleet's share in the global market is expected to
increase from 14% to 20% by 2032. This will certainly keep
Boeing's cash register ringing in the future.
Recently, Boeing received an order to supply 16 737 MAX airplanes
to IcelandAir. The initial order for 12 aircraft received in Dec
2012 has been increased to 16. The agreement also includes
purchase rights for eight more 737 MAXs. The total value of the
16 airplanes will be $1.6 billion at list prices.
In Jan 2014, the company also won a contract, valued at $3.9
billion at list prices, from GE Capital Aviation Services
("GECAS"), the commercial aircraft leasing and financing unit of
General Electric Company
). This big order consists of 40 medium-haul passenger jets,
evenly split between the two models, the 737 MAX 8 and the
Indeed, this commercial aerospace behemoth - Boeing - is flying
high on the back of rising demand for its new fuel-efficient
commercial planes. It reported record jet deliveries in 2013,
beating its own projection, driven by strong commercial numbers.
The heightened deliveries were also a function of an increased
Boeing currently has a Zacks Rank # 3 (Hold). Some better-ranked
stocks in the aerospace and defense industry include Zacks Ranked
#1 (Strong Buy)
Northrop Grumman Corp.
) and Zacks Ranked #2 (Buy)
Lockheed Martin Corp.
BOEING CO (BA): Free Stock Analysis Report
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