Boeing Earns $7.2 Billion in Air Lease Deal
Representing the first 737 MAX order by a leasing company, Air Lease Corporation has commissioned 75 airplanes. Sixty of those orders are for the 737 MAX 8; an additional 15 are for the 737 MAX 9. The deal could get even larger, as Air Lease Corporation has reconfirmation rights for another 25 airplanes in the 737 MAX line.
"The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of Next-Generation 737-800s," Steven Udvar-Hazy, chairman and CEO of Air Lease Corporation, said in a company release. "The 737 MAX represents a step-change improvement that our airline clients need to compete in the future."
Built with a new-engine variant of what Boeing refers to as the "world's best-selling airplane," the 737 MAX incorporates CFM International LEAP-1B engines "to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market." Boeing claims that the 737 MAX provides a fuel-burn improvement of 13 percent over today's "most fuel efficient single-aisle airplanes," as well as an eight percent "operating cost per seat advantage over tomorrow's competition."
"This 737 MAX order continues ALC's disciplined approach to building its young, fuel-efficient fleet," added Boeing Commercial Airplanes President and CEO Ray Conner, who was also quoted in the press release. "The ALC leadership team has an excellent record of placing Boeing airplanes with airlines worldwide. They are an ideal partner to help establish the 737 MAX in the leasing market."
Air Lease Corporation has ordered a total of 170 airplanes from Boeing, including 78 Next-Generation 737-800s, five 777-300ERs (Extended Range), and 12 787-9 Dreamliners.
Boeing has orders and commitments for more than 1,000 737 MAXs.
Boeing closed Friday at $73.69, up near 0.5% year-to-date.
Follow me @LouisBedigianBZ
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.