Thursday, July 12, 2012

United Airlines orders 100 737 Max at Farnborough Airshow

Continental/United Airlines Boeing 737-924 (30118/820) N30401 arrives at Portland International (PDX/KPDX) on August 26, 2011.
(Photo by Michael Carter)  

United Airlines capped a bumper air show for Boeing Thursday with a $14.7 billion firm order for 100 737 MAX aircraft and 50 737-900ERs.

The deal brought firm MAX orders up to 649, and helped close the gap with the 1,454 firm orders for rival Airbus A320neo. With orders and commitments, the MAX total stands at around 1,200, Boeing said.

Unusually, however, the customer did not attend the Farnborough Airshow to make the announcement. Instead, United president and CEO Jeff Smisek appeared at a press briefing in Chicago with Boeing chairman, president and CEO Jim McNerney and new Boeing Commercial Airplanes president and CEO Ray Conner in a telecast to Boeing’s Farnborough chalet. Chicago is the corporate headquarters city for both companies.

Smisek said the decision was made based on "the best airplane with the best engines at the best price."

The aircraft will be powered by CFM International engines, which announced the deal was worth $5 billion deal.

Fully aware of the likelihood of a show-stealing announcement by its competitor on the last full business day of the show, Airbus unveiled a slew of new orders and commitments with a total list price value of $6.5 billion. These included a $2.1 billion firm order from Russia’s UTair for 20 A321s; a $1.9 billion firm order from Colombia-based Synergy Aerospace for six A330-200s and three A330-200Fs; a commitment by Irish lessor Avolon for 15 A320neos valued at $1.45 billion; and a memorandum of understanding with Lebanon’s Middle East Airline-Air Liban for five A320neos and five A321neos plus eight options valued at $1.05 billion.

Combined with orders announced earlier this week, including a $4.2 billion order for 26 A350-1000s from Cathay Pacific, Airbus COO-customers John Leahy said the company had logged sales totaling $16.9 billion.

"We are very happy with the results of this show," Leahy said. "Air shows are useful to bring people together and if you are close to a deal you can use them as a deadline to get across the line."

But air shows tend to be a numbers game, and on that basis it was Boeing’s show, beginning the week with a $7.2 billion deal from US lessor Air Lease Corp. for 75 Boeing 737 MAXs and ending with the United coup that brought its sales total at the Farnborough finishing line to 396 aircraft valued at $37 billion.

(Karen Walker - ATWOnline News)

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