uploads/2019/01/boeing-373904_1280.jpg

Boeing Received Another $2.3 Billion in 737 MAX Orders

By

Updated

New orders for 737 MAX

Boeing (BA) has received more orders for the 737 MAX—its most advanced and fuel-efficient single-aisle aircraft. On January 28, Japan’s ANA Holdings announced 20 orders for the model valued at $2.3 billion at list prices. The Japanese airline also revealed that it has options to order ten more 737 MAX jets.

ANA Holdings’ order for Boeing’s 737 MAX jets is first order from a Japanese airline company. The recent order is believed to be in the wake of mounting pressure from the Trump’s Administration on Japan to lower its trade surplus with the US.

Article continues below advertisement

However, Reuters reported that ANA Holdings Vice President Hideki Mineguchi denied any pressure from the Japanese government for buying aircraft from Boeing. He said that the latest transaction “has nothing to do with trade friction.” He said, “The decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise.”

Apart from ordering 20 737 MAX planes, ANA Holdings has also ordered for 18 A320neos from Boeing’s arch-rival Airbus, which is valued at $1.99 billion at the list price.

Rising orders for 737 MAX

The 737 MAX model has been one of Boeing’s major revenue drivers in recent years. The model is said to be the company’s most advanced and fuel-efficient airplane in the single-aisle category. The 737 MAX models come with a capacity of more than 90 seats.

The 737 MAX model is Boeing’s fastest-selling plane in history. Boeing has received ~4,800 orders from 100 customers worldwide for the 737 MAX model. Major US air carriers (JETS) including American Airlines (AAL) and United Continental (UAL) have placed orders for 100 planes each, while Southwest Airlines (LUV) has placed an order for 280 jets.

Last year, most of Boeing’s orders were for the narrow-body 737 families. The company booked orders for 893 aircraft in 2018—762 were for 737 models.

Advertisement

More From Market Realist