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Mayank Marwah
Mayank Marwah
Articles (684) 

Boeing’s 2018 Plane Orders: Here’s What You Need to Know

Boeing’s deal with Green Africa Airways and Flyadeal to sell 737 MAX 8 would be valued at $17.6 billion at list price once finalized

December 24, 2018 | About:

The American aerospace giant Boeing (NYSE:BA) is far ahead of its European rival Airbus (NYSE:AIR) in terms of number of orders bagged during the whole year. In fact, Boeing now has entered into a contract with Nigeria and Saudi Arabia to purchase its airplanes.

All about the deal

Nigeria’s Green Africa Airways is to purchase up to a hundred 737 MAX 8 aircraft worth $11.7 billion and is the largest deal the company has ever signed in Africa. On the other hand, Flyadeal, a Saudi Arabia airline has given a commitment to the company to buy up to 50 737 MAX 8 jets valued at $5.9 billion. Flyadeal, at this point, is operating new Airbus A320s and has now selected the “737 MAX for the future.” Boeing said that the operating cost of 737 MAX 8s would be 8% lower than that of Airbus A320s.

The 737 MAX is the fastest-selling plane in the company’s fleet, with orders exceeding 4,800 from more than 100 customers across the globe since its launch.

Boeing vs. Airbus: 2018 in review

Throughout the year, both Boeing and Airbus have had a tight contest for sales of advanced fuel-saving planes like 737 MAX and A320neo family. However, Airbus managed to eke out a victory, thereby gaining more market share for A320neo family in spite of having a displeasing year in terms of orders bagged and management changes.

Boeing has already won 690 net plane orders during the January-November period whereas Airbus could only manage to win 380 total orders less cancellations during the same period. With a month remaining, both the aircraft giants would look to gain more orders. As for Airbus, industry analysts said that it could achieve more orders towards the year-end from leasing customers such as SMBC Aviation. However, Airbus is quite unlikely to edge past Boeing this year in number of orders.

Boeing eyes Africa as target market

Boeing looks set to establish its authority in the growing Africa aviation sector. The company said that airlines in Africa would require 1,190 new planes over the next 20 years as the continent has both intra-continental and intercontinental connectivity.

Disclosure: I do not hold any position in the stocks mentioned.

About the author:

Mayank Marwah
A seasoned writer with keen interest in the automotive, technology, telecommunication, retail and aerospace sectors.

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