Boeing’s Impressive Dubai Airshow Performance
In a spectacular start to the Dubai Airshow, Boeing (BA) has already made a significant mark by securing a series of substantial orders. While these major orders are lifting the spirits at Boeing, there are also rumors circulating about China’s potential interest in resuming purchases of Boeing’s 737 MAX aircraft. As a result, Boeing’s stock has surged early on a promising Monday. This report takes you through these remarkable developments and the impact they could have on Boeing’s future.
Table of Contents
- Dubai Order Frenzy
- China Rumors
- Market Response
- Airbus’ Noteworthy Order
Dubai Order Frenzy
Emirates Airline’s Staggering Order Emirates Airline, renowned as the world’s largest operator of Boeing 777 aircraft, delivered a staggering announcement with a $52 billion order on Monday. This order includes a total of 95 of Boeing’s widebody jets, comprising 55 Boeing 777-9s, 35 777-8 jets, and five 787 planes. With this order, Emirates’ 777x backlog soars to an impressive 205 planes, and their 787 backlog climbs to 35 jets. Currently, Emirates boasts nearly 150 Boeing 777 jets in its fleet.
The Power Behind the Jets Emirates has also ordered 202 GE9X engines to power the additional 777X aircraft. They anticipate the first 777-9 to join their fleet in 2025, resulting from a previous order for 115 units. The jets from Monday’s order are expected to grace their fleet in 2035. As for the 777-8, Emirates foresees deliveries commencing in 2030.
Flydubai’s Ambitious Move Flydubai, another key player in Dubai’s aviation scene, revealed its ambitious plans to purchase 30 Boeing 787-9 Dreamliners. This move marks Flydubai’s first foray into widebody aircraft, as they currently operate a fleet consisting solely of 737s. With an order backlog of 137 Boeing 737s, Flydubai’s strategy is clear – they aim to open new routes and enhance capacity on their existing offerings.
SunExpress Joins the Boeing Bandwagon SunExpress, a joint venture between Turkish Airlines and Lufthansa, jumped on the Boeing bandwagon with a commitment to acquire up to 90 Boeing 737 aircraft. The agreement includes an initial order for 28 737-8s, 17 737-10 models, and an option to purchase up to 45 additional 737 MAX planes. Notably, SunExpress had previously ordered 42 737-8 aircraft, with nine of them already delivered.
Boeing’s Middle East Vision Boeing’s forecast indicates that widebody airplanes will constitute a substantial 20% of its deliveries to Middle East airlines over the next two decades. This prediction underscores Boeing’s dedication to the region, giving the Middle East the highest regional percentage of widebody aircraft deliveries globally.
China Rumors
China’s Boeing 737 MAX Interest In the backdrop of these remarkable orders, there are intriguing rumors concerning China’s stance on Boeing’s 737 MAX jets. Reports have emerged, citing sources familiar with the matter, that China’s government is contemplating lifting a commercial sales freeze on these jets. This development coincides with the upcoming meeting between President Joe Biden and China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) conference in San Francisco. The stage seems set for a potential lift on the order freeze in conjunction with this high-profile meeting. While China is considering a commitment to purchase 737 jets, it’s important to note that discussions are still ongoing, and President Xi is not expected to make a formal order announcement.
It’s worth highlighting that Boeing hasn’t secured significant sales in China since 2018, following the grounding of the 737 MAX in the wake of two tragic accidents.
Market Response
Boeing’s Stock Surge Following these impressive developments, Boeing’s stock has enjoyed a substantial surge, marking a great start to the week. On Monday, BA shares rallied by an impressive 3.5%. Moreover, Boeing stock had already reclaimed its 50-day moving average during its advance on Friday. So far this year, shares have experienced a 3.2% increase through Friday’s close. Notably, Boeing stock is currently in a consolidation phase, with a buy point of 243.10.
Airbus’ Steady Climb In the midst of Boeing’s success, its European rival Airbus (EADSY) is also making strides in the market. Airbus secured an order for 30 additional A220-300 aircraft from airBaltic. This order expands the airline’s total order book to a substantial 80 jets and positions the Latvian airline as the largest A220-300 customer in Europe.
Air Lease’s Slight Dip While the aviation giants are basking in the limelight, Air Lease (AL), a provider of jet leasing and fleet management services, witnessed a marginal decline in its shares, down about 1% early on Monday.
FAQ
Q1: Why is Boeing’s 777x order from Emirates significant?
A1: Emirates Airline’s order of 95 Boeing 777 aircraft, including 55 Boeing 777-9s, is a substantial commitment. It underscores the airline’s confidence in Boeing’s widebody jets and their anticipation of future growth and demand in air travel.
Q2: What is the potential impact of China’s interest in Boeing 737 MAX?
A2: China’s potential interest in resuming purchases of Boeing 737 MAX aircraft is a significant development. It could not only boost Boeing’s sales but also signal a positive turn in the relationship between Boeing and China after a hiatus since 2018.
Q3: What is the significance of Flydubai’s order for Boeing 787-9 Dreamliners?
A3: Flydubai’s order for 30 Boeing 787-9 Dreamliners is notable as it marks their entry into the widebody aircraft segment. This move signifies Flydubai’s intent to expand its offerings, open new routes, and enhance its existing capacity.
In conclusion, Boeing’s impressive performance at the Dubai Airshow has set a positive tone for the company. The notable orders from Emirates, Flydubai, and SunExpress, along with the potential resurgence in China’s interest, are promising signs for the aviation giant. While Boeing’s stock has responded positively to these developments, the future looks bright as the company continues to expand its global reach and influence in the aviation industry.