Over the past week, Boeing has secured various orders and commitments across their aircraft lineup, with attention clearly in favor of freighters. The addition of customers returning for top-up orders reaffirms Boeing’s market position.
Here is their order summary for the 2019 Paris Airshow:
GECAS
Kicking off day one of the 2019 Paris Airshow, GE Capital Aviation Services (GECAS) signed an agreement with Boeing that sees them exercising purchase rights for 10 737-800 Boeing Converted Freighters (BCF).
Additionally, GECAS added 15 extra purchase rights for the type.
“Our leasing customers are very pleased with the versatility and reliability of these freighters.”
Richard Greener – SVP and Manager of GECAS Cargo
The 737-800BCF is Boeing’s latest freighter product. Produced by converting passenger 737 NG aircraft to freighters, the aircraft can carry up to 23.9 tonnes 2000 nautical miles more than previous standard-body freighters.
British Airways/International Airlines Group (IAG)
Boeing and IAG signed two agreements at the airshow that will provide highly important services for British Airways.
Signed during the first day of the show, the agreement will see Boeing offer component services, including inventory management and exchanges, for A320 and A320neo parts as well as the 777.
Boeing says this agreement is the first of a kind for the company and will open up convenient access to parts for British Airways.
Also celebrated formally at the airshow was British Airways’ order for the 777X. With firm orders for 18 777-9s and 24 options, the order takes the backlog for the type to 364 from more than eight customers.
Korean Air
Showing its confidence and satisfaction with the type, Korean Air signed an agreement with Boeing that will see them add 30 new 787 Dreamliners.
Consisting of the 787-9 and 787-10, the aircraft will be handed to the airline through Boeing and Air Lease Corporation.
Air Lease Corporation (ALC)
As well as dealing business with Airbus, Air Lease Corporation also visited the Boeing chalet, announcing a commitment to purchase five 787-9 Dreamliners.
The deal, valued at $1.5 billion at list prices, will see the aircraft distributed to customers in need of the aircraft.
ASL Aviation Holdings DAC
Continuing on with the narrowbody freighters, ASL Aviation Holdings signed a memorandum of understanding with Boeing for 20 737-800 Boeing Converted Freighters (BCF).
The agreement comprises of 10 firm orders and 10 purchase rights.
Since its launch, the 737-800BCF has gained 120 orders and commitments from eight customers.
Qatar Airways
Further developing their freighter fleet, Qatar Airways and Boeing announced a commitment for an additional five 777 Freighters.
Once delivered, the aircraft will increase Qatar Airways’ 777 Freighter fleet by 20 percent, enabling greater business capabilities with the growing cargo market.
The deal, worth $1.8 billion at list prices, will be placed into Boeing’s order book once finalized.
Turkmenistan Airlines
A small but useful order, Turkmenistan Airlines announced an agreement with Boeing for a single 777-200LR, adding to its three currently in service.
The deal, valued at $346.9 million, will be reflected on Boeing’s backlog as soon as its finalized.
With a range of 8,555 nautical miles (15,843km), the 777-200LR is one of the world’s most capable aircraft, operating flights such as Doha to Auckland. Powered by two GE90-110B1L engines, the aircraft has the capability to carry 317 passengers in a two class configuration.
China Airlines
Adding to the growing freighter trends with Boeing, China Airlines announced their intent to order up to six 777 Freighters to modernize their fleet.
Just like the other orders, it wont be reflected on Boeing’s backlog until it’s finalized.
International Airlines Group (IAG)
The biggest shock from the Paris Airshow was IAGs announcement to purchase 200 737 MAX aircraft.
Leading up to the order were discussions kept in private, traumatizing Airbus when the decision was publicly made.
Comprised of 737 MAX 8 and MAX 10, the order is valued at $24 billion at list prices. Despite this, numerous aviation outlets are reporting significant discounts.
Offering a significant discount to such a large customer would be an easy win. The aim would be to boost customer confidence in the aircraft program with such an order.
Although nothing has been disclosed, discussions held within the community are estimating a discount up to 65 percent.
Airbus is rather upset they were not given a change to bid for the order and is currently insisting they’re given an opportunity before the deal is finalized.
Boeing’s Performance
A somber and stressful show for Boeing, battling the 737 MAX crisis and admitting delays with the 777X program due to engine issues, the company still achieved a healthy collection of orders.
Mostly reaffirming their market offering and position with additional commitments for the 787 Dreamliner and freighters, Boeing pulled through.
The 737 MAX commitment came as a huge shock, however sent a strong statement to the industry. In a blow to Airbus, the order shows Boeing’s ongoing effort to secure the 737s success in today’s market, which currently, with the launch of the A321XLR, is in Airbus’ favor.
Both companies had a good show, however for Boeing, the list of customers just didn’t top the list. Perhaps next year at the 2020 Farnborough Airshow when they supposedly launch the ‘797’/NMA, they can pull some key customers away from the competition.
