Boeing (NYSE: BA) and GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric (NYSE: GE), finalized a firm order for 85 737s, which includes 75 737 MAX 8s and 10 Next-Generation 737-800s. The order, first announced as a commitment at the Farnborough Airshow in July, allows for up to 15 additional 737-800s.
The order, worth $6 billion at list prices, further illustrates both the strength of the 737 MAX and the continuing strong demand for the Next-Generation 737 in the airplane-leasing industry. To date, 821 737 MAX airplanes have been ordered.
"The 737 MAX will be a perfect complement to our broad portfolio of modern, fuel efficient aircraft that offer our airline customers the lowest operating costs," said GECAS President and CEO Norman C.T. Liu.
"GECAS is a leader in the commercial airplane leasing industry with a successful track record of placing 737s with airlines worldwide," said President and CEO Ray Conner, Boeing Commercial Airplanes. "The GECAS leadership team will have the same success with the 737 MAX. The airplane will provide passengers with the exceptional flying experience that they have come to expect from the 737 family, but with increased fuel efficiency and technological advancements."
The 737 MAX is a new-engine variant of the world's best-selling airplane and builds on the strengths of today's Next-Generation 737. The 737 MAX incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. Airlines operating the 737 MAX will see an 8 percent operating cost per seat advantage over tomorrow's competition.
With this order, GECAS has ordered 580 airplanes directly from Boeing since 1995, which includes 737s, 747s, 757s, 767s and 777s. To date, GECAS has taken delivery of 433 of the airplanes.
Source: The Boeing Company (NYSE: BA)
Date: Oct 3, 2012