Leading commercial airplane producer,
The Boeing Co.
(
BA
) received a firm order of 25 airplanes from Avolon. The order
includes 10' 737 MAX 8s, 5' 737 MAX 9s and 10' Next-Generation
737-800s. The total value of the order at list prices is pegged at
$2.4 billion.
The airline leasing company Avolon initially made a commitment to
Boeing at the Farnborough Airshow in July about the 737 aircraft
and this order is a finalization of that commitment. The
Farnborough Air show was a happy hunting ground for Boeing as the
company was able to secure a few multi-billion dollar order
commitments for its 737 model.
The Boeing 737 MAX 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 add to the
spaciousness of the cabin. The bins give passengers more room to
keep a carry-on roll-aboard near their own seat besides providing
extra leg space. At the end, the 737 MAX 8 is expected to incur the
least operating cost in the single-aisle category.
The 737 variant is one of the best selling aircraft models for
Boeing and contributes a major chunk of the commercial airplane
revenue of the company. Till September 20, 2012, the company
received net orders for 692 airplanes of different variants of 737.
Boeing is a major operator in both the defense and commercial
airspace market. We believe these multi-billion dollar commercial
airline contracts will definitely act as a positive catalyst. The
backlog at the end of the second quarter of 4,000 airplanes, valued
at $302 billion, will definitely provide ample support to the
company while boosting its overall performance, amidst the threat
of cutback in the U.S. defense budget.
Chicago-based Boeing Co. retains a Zacks #3 Rank (Hold rating).
Boeing's peers, across diverse niches, are
General Dynamics Corp.
(
GD
),
Lockheed Martin Corporation
(
LMT
) and
Northrop Grumman Corporation
(
NOC
).
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
Report
NORTHROP GRUMMN (NOC): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research