The Boeing Co.
) won a sizable order from the Singapore-based aircraft-leasing
company of the Bank of China Ltd. - BOC Aviation Ltd - for 82
Boeing jets. The contract is valued at $8.8 billion at list prices.
This whopping order comprises 80 single-aisle Boeing 737 jets that
include 50 737 MAX 8s. The contract also covers 30 next-generation
737-800s and two extended-range 737-300ERs. These planes are
scheduled to be delivered from 2016 through 2021.
The 737-800 fleet belonging to the Next-Generation 737 family comes
with high performance efficiency and lower operating cost while the
737 Max is equipped with cutting-edge CFM International LEAP-1B
engines to deliver maximum efficiency, reliability and passenger
comfort. The 737 Max boasts of an 8% operating cost per seat
advantage over its peers.
777-300 ER is one of the most advanced twin-engine, long-haul
airplanes. The 777-300ER is equipped with the world's most powerful
GE90-115BL commercial jet engine, and has a maximum range of 7,825
nautical miles (14,490 kilometers).
The unprecedented rise in passenger traffic in the Asia-Pacific
region is bringing in a steady flow of orders. Going ahead, the
projected 5.7% increase in airline traffic by 2017, as revealed by
the International Air Transport Association (IATA), would boost
Boeing's commercial airplane order book.
Earlier, Boeing had already revealed that Asia-Pacific will require
12,820 airplanes worth $1.9 trillion in the next two decades. The
deliveries will account for a sizeable 36% of the global commercial
airplane delivery in the aforesaid period. These deliveries will
triple the size of the Asia-Pacific aircraft fleet by 2032 from
Not surprisingly, Boeing is likely to be a major beneficiary of
this demand explosion, as nearly 69% of the new additions will be
in the single-aisle market. The emphasis being on swift, low-cost
travel, Boeing with its fuel efficient single-aisle airplanes like
the Next-Gen 737 and the 737 MAX will definitely secure a good many
of these potential orders.
In the second quarter 2014, Boeing delivered 181 commercial
airplanes, approximately 7.1% higher than the year-ago number.
During the quarter, the Next Generation 737 model proved yet again
its unfailing popularity, delivering 124 airplanes.
Boeing currently has a Zacks Rank #2 (Buy). Other companies in the
defense space worth considering include Air Industries Group (
), Lockheed Martin Corp. (
) and General Dynamics Corp. (
). Air Industries carries a Zacks Rank #1 (Strong Buy), while
Lockheed and General Dynamics hold the same rank as Boeing.
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