Business, Economics and Jobs

Boeing wins $7.2 billion order at Farnborough Airshow (PHOTOS)


The Red Arrows fly in formation alongside a Vulcan bomber (C) to officially open the Farnborough International Airshow in Hampshire, southern England, on July 9, 2012. Farnborough sees the announcement of orders for military jets but with governments slashing defence budgets to help reduce huge public deficits, major deals are set to be scarce.



Boeing announced that it won a $7.2 billion order on 75 planes at the Farnborough Airshow on Monday, according to the BBC.

The deal will include sixty 737 Max 8 planes and fifteen 737 Max 9 planes, which are designed to be more fuel efficient, said the BBC.

The order comes from Steven Udvar-Hazy's Air Lease Corp., and he said, "The airplane we looked at last year and the first few months of this year is now a totally different plane," according to Bloomberg.

The Associated Press said the deal is a big victory for the Chicago-based company and is the first order of the Max by a leasing company. Ray Conner, Boeing Commercial Airplanes president and chief executive, said, "They are an ideal partner to help establish the 737 MAX in the leasing market."

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According to The Wall Street Journal, "Boeing is trying to catch up with Europe's Airbus, which last year far outpaced Boeing with orders for an update of its competing A320. The update, dubbed the A320neo, has garnered more than 1,400 orders, while the 737 Max has received fewer than 500."

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The Farnborough Airshow is a showcase for the billions of dollars of jets and arms being promoted, said Reuters. Despite the global economic slowdown, Reuters noted that demand for aircrafts has remained strong as airlines modernize their fleets, and defense budget cuts have not impacted buyers as much as previously thought.

The BBC said Boeing has received orders for up to 1,000 737 Max planes, which will take to the air for the first time in 2016.