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Boeing (BA) has confirmed an agreement with investment firm 777 Partners, which will purchase 24 737 Max jets with options for another 60 jets. Boeing’s stock has jumped.
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While the deal was officially announced on Friday, Canada’s low-cost airline Flair Airlines first announced the deal in January when it announced an agreement to lease 13 Boeing 737 Max aircraft to the company. investment.
“Flair will lease the first 13 aircraft to one of its main financiers, 777 Partners, which recently signed an agreement with Boeing for 24 new Boeing 737-8s as well as purchase options for 60 other 737-8 aircraft”, said on Jan. 23 statement read.
Boeing did not return requests for clarification on the deal.
777 Partners owns a stake in Flair and plans to lease the 737 Max aircraft to Flair and other affiliated carriers.
“The downsizing of legacy carriers around the world has created an unprecedented market opportunity for more agile and profitable operators,” Joshua Wander, founder and managing partner of 777 Partners, said in the Friday statement. “These planes will allow our operators to accelerate the recovery of the destinations they serve.”
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Boeing Stock
Shares surged 6% to 267.50 in the stock market today, hitting the highest level in a year and on the verge of recouping all of its pandemic losses. Boeing stock erupted from a cut base with a buy point of 244.18 on March 10, according to MarketSmith analysis. The buy zone expands to 256.39, which means Boeing’s stock is already extensive.
Supplier actions 737 Max Spirit AeroSystems (SPR) grew 2.2% and the engine supplier General Electric (GE) climbed 1.7%.
With the return to service of the 737 Max and the resumption of deliveries, orders have also increased, helping Boeing’s stock to rebound.
Its February report showed more orders than cancellations for the first time since 2019, when the 737 Max was grounded following two fatal crashes. The data also indicates that Boeing secured an order for 14 737 Max jets for an unidentified customer last month.
Earlier this month, United Airlines (UAL) has announced plans to purchase an additional 25 Boeing 737 Maxs, bringing its total Max order to 180. The carrier also plans to increase deliveries of 45 737 Max.
Ireland Ryanair (RYAAY) and Alaska Airlines (ALK) also announced large orders of 737 Max in recent months.
More, South West (LUV) is reportedly close to a deal with Boeing for a potentially huge order for the 737 Max.
Follow Gillian Rich on Twitter for aviation news and more.
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