New orders for 737 Max
Boeing (BA) is likely to receive a large order for its most advanced and fuel-efficient single-aisle jet, the 737 MAX, Reuters reported last Friday, citing people familiar with the matter. On February 22, the financial news and data provider revealed that Vietnam budget airline VietJet Aviation is anticipated to sign a deal for as many as 100 Boeing 737 MAX aircraft.
Reportedly, the deal is likely to be signed during President Donald Trump’s visit to Vietnam this week for the second summit with North Korean leader Kim Jong Un. The Boeing-VietJet deal is believed to be a part of strengthening military and economic ties between the US and Vietnam.
If these sources are correct, this would be the second time in the last three years that VietJet has placed such a massive order for Boeing’s 737 MAX jets. Last time, the company placed orders for a similar model and the same quantity when Barack Obama visited the country in 2016.
Additionally, on February 24, another Vietnamese air carrier, Bamboo Airways, announced that it is going to sign a deal to buy ten Boeing 787 widebody aircraft during Trump’s visit to the country.
Rising orders for 737 series
The 737 series models have been one of Boeing’s major revenue drivers recently. The model is said to be the airplane maker’s most advanced and fuel-efficient jet in the single-aisle category. The 737 series models come with a capacity of more than 90 seats.
The 737 series models are Boeing’s fastest-selling plane in history. Boeing has received ~4,900 orders from 100 customers worldwide for this series aircraft. Major US airlines (IYT) including United Continental (UAL) and American Airlines (AAL) have placed orders for 100 planes each, while Southwest Airlines (LUV) has placed an order for 280 jets.
In 2018, most of Boeing’s orders were for the narrow-body 737 families. The aerospace and defense contractor booked orders for 893 aircraft last year, of which 762 were for the 737 series models.