) business arm Boeing Capital Corp. extended its business
relationship with Australia's premier airline QantasLink by
offering five additional 717 modern and efficient twinjets on
lease. Currently, the airline operates a fleet of 13 twinjets
Boeing is expected to initiate delivery of the 717 aircrafts
in late 2013 after upgrading the interiors to offer full business
class experience and new in-flight entertainment services.
The company also agreed to provide more 717 jets to Europe's
startup carrier Volotea on lease. This would bring Volotea's
total fleet to 15. In Feb 2012, Boeing and Volotea inked a
multi-year deal for the delivery of an undisclosed number of 717
jets on lease.
With the rise in passenger numbers, both QantasLink and
Volotea expect Boeing's refurbished 717s to provide high class
reliable services. The Boeing 717 is a short-haul, high frequency
100-passenger airline and has two class configurations with
The flight deck features include an electronic instrument
system, a dual flight management system, a central fault display
system, and global positioning system. It also has category IIIb
automatic landing capability for bad-weather operations and
future air navigation systems.
We note that Boeing picked up sizeable international contracts
at the Paris Air Show. The resolution of the 787 battery issue
also removed a major overhang. The most recent contract in Paris
Ryanair Holdings plc
) for the supply of 175 next generation 737-800 airplanes for
Meanwhile, Boeing managed to secure a firm-fixed-price
multi-year contract worth $3.4 billion for the construction of
the remanufactured and new-build CH-47F cargo helicopters from
the U.S Army. Boeing's multiple contract wins will ensure a
stable future earnings stream.
The increase in airline activities around the world has
prompted an upswing in aircraft orders which will prove
beneficial for the company. Currently, Boeing retains a Zacks
Rank #2 (Buy).
Other Zacks Ranked #2 (Buy) defense players looking good at
the moment are
Wesco Aircraft Holdings Inc.
BOEING CO (BA): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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