Boeing Wins $7.2 Billion Order from Air Lease

Boeing Wins $7.2 Billion Order from Air Lease

Comapny ordered 72 of the 737 MAX series which is an more fuel-efficient version of the mid-sized 737 and is a response to the Airbus A320neo.

Air Lease Corp. ordered 75 of Boeing's new short-haul 737 MAX jets, the two firms announced on Monday.

"Boeing and Air Lease Corporation announced today a firm order for 60 737 MAX 8 and 15 737 MAX 9 airplanes," they said at the start of the Farnborough airshow near London.

"The order, with a list-price value of $7.2 billion, represents the first 737 MAX order by a leasing company," the companies said at the start of the Farnborough airshow near London. The pair also said there was an option for Air Lease to buy 25 more MAX planes. Buyers tend to win significant discounts on list prices.

Still the deal is huge and a massive boost for Boeing (IW 1000/49) as the planemaker seeks to steal a march over its European rival Airbus, which has enjoyed great success with orders for its new fuel-efficient A320neo.

"The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of next-generation 737-800s," said Air Lease Corp. CEO Steven Udvar-Hazy. "The 737 MAX represents a step-change improvement that our airline clients need to compete in the future."

Separately, Franco-U.S. manufacturer CFM said it would earn $1.9 billion from supplying Air Lease's new planes with Leap-1B engines.

Boeing's 737 MAX series is an upgraded and more fuel-efficient version of the mid-sized 737, the world's best-selling commercial airplane. The first 737 MAX is scheduled to be delivered in 2017 and is a response to the Airbus A320neo.

Airbus says the A320neo, due to enter service in late 2015, will use 15% less fuel than its current best performing A320 model.

Copyright Agence France-Presse, 2012

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