The parent company of British Airways will command up to 42 next-generation Boeing 777Xs, beating the Airbus (EADSY) An A350 in a key market on the long haul. Boeing (BA) stock has increased.
International Airlines Group has signed an order for 18 of the 777-9 with the option to buy another 24. The transaction is valued at $ 18.6 billion at the list price, but carriers generally benefit from a discount for large orders.
The latest Airbus A350 defeat came as IAG CEO Willie Walsh criticized Airbus in the past for delivery and reliability issues.
The new generation of Boeing 777X includes the smaller 777-8 as well as the larger 777-9. Both are presented as more fuel-efficient options to replace aging 747 and 777-200s.
The 777-8 is also under consideration for the Qantas project to connect the east coast of Australia to London, the longest non-stop route in the world.
Boeing said the 777-9 has a "slightly larger cabin" than the current Boeing 777s, which allows it to carry 400 to 425 passengers. It has a fuel consumption 12% lower than that of "competing aircraft" and can travel 7,600 nautical miles on board. General Electric (GE) engines.
Boeing 777 new generation
The agreement reached Thursday with IAG covers total orders and commitments for the next-generation Boeing group, between 777 and 358, for eight customers, according to Boeing. The production of the 777X widebody line aircraft began in 2017 and Boeing is planning the first flight and the first delivery next year.
But large aircraft orders have suffered from the boom in the large aircraft market.
Earlier this month, Airbus announced it would stop production of its A380 widebody superjumbo and deliveries will stop in 2021.
Boeing shares rose 1.2% to a new high of 440.54 on the stock market today. US shares of Airbus plunged 0.1% and GE 4.6%.
Morgan Stanley (MS) raised its price target on Boeing's stock from 450 to 500 on a "stable business environment for commercial aerospace".
He also mentioned significant cash flow, a potential deal in the US-China trade war, faster production rates 737 and the planned launch of a new medium-lift aircraft.
UBS has raised its price target on the Boeing stock from 515 to 525, due in part to the better than expected progress of the next-generation 777 program.
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