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Published:
Thursday, February 16, 2012
Boeing books record order
Boeing secures its largest order ever for 230 737s, pushing MAX orders past 1,000
By Michelle Dunlop
Herald Writer
The Boeing Co. kicked off the Singapore Air Show on Tuesday on a high note by locking in its biggest aircraft order ever.
The deal with Indonesian carrier Lion Air for 230 Boeing jets, valued at $22.4 billion at list prices, was announced as a tentative agreement last November. But the deal, which also gives Lion Air the rights to buy up to 150 additional aircraft, was recently finalized. Lion Air plans to pay for the planes over 12 years with bank financing.
Lion Air's order includes 201 of Boeing's re-engined 737, called the 737 MAX, and 29 extended-range 737-900s. Securing the Lion Air order is a big win for Boeing because it was considered something of a long shot when it was first announced in November. The order will more than quadruple the current fleet at Lion Air.
Until the deal was confirmed, Boeing's biggest firm order was from Southwest Airlines Co. for 208 planes valued at $19 billion at list prices. Airlines commonly get discounts. Southwest will be the first customer to get the 737 MAX, which is still in development. It's scheduled for delivery in 2017.
The order gives Boeing's backlog a nice boost, especially for the 737 MAX. The jet maker said it has more than 1,000 orders and commitments for the re-engined jet, which will be assembled in Renton. Boeing is expected to firm up many of those commitments this year and likely take back the aircraft orders title from rival Airbus, which has enjoyed sales success with its A320neo, or "new engine option."
The European company beat Boeing to the punch, launching its re-engined single-aisle A320 in December 2010. Boeing announced the 737 MAX last August.
Michelle Dunlop: 425-339-3454, mdunlop@heraldnet.com.
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