Leading commercial airplane producer,
The Boeing Co.
) 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
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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
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.
Lockheed Martin Corporation
Northrop Grumman Corporation