Boeing Company (NYSE: BA) announced on Friday that Investment 777 Partners, a private investment firm based in Miami, has agreed to purchase 24 737 MAX 8 planes with the option to purchase 60 additional planes at a later date.
What happened: A strategic investor in the aviation sector, Investment 777 Partners plans to rent the 24 planes to its partners, including Flair Airlines, a low-cost passenger carrier.
“The 737-8 aircraft are a fantastic addition to our aviation portfolio and will allow our partners to leverage the superior economic performance of the jets to offer low fares to their passengers while at the same time reducing their carbon footprint,” said the founder. and managing partner of Investment 777 Partners, Joshua Vagar.
Why does it matter: Boeing has struggled to take off after two fatal plane crashes. On March 10, 2019, all 157 people aboard Ethiopian Airlines flight 302 died when a Boeing 737 MAX 8 crashed six minutes after takeoff. Five months earlier, on October 29, 2018, Lion Air Flight 610 crashed into the sea off Indonesia, killing all 189 passengers and crew members.
After the crash of March 10, 2019, 30 countries have banned the use of Boeing 737 MAX planes. Almost two years later, when the restrictions were lifted, American Airlines Group Inc (NASDAQ: AAL) became the first airline to fly the 737 MAX when flight 718 left Miami en route to New York on December 29, 2020.
The stranding has cost Boeing and its affiliated airlines billions of dollars in lost revenue.
What is the next: Airlines slowly began placing orders for Boeing’s 737 MAX planes, as bans were slowly lifted around the world.
On Wednesday, Reuters reported that Boeing was approaching a multi-billion dollar deal with Southwest Airlines Co (NYSE: LUV) for the purchase of 737 MAX 7 aircraft.
The number of planes Southwest can order is unclear, but at the time it was reported to be the biggest order since restrictions were lifted.
Boeing believes the Investment 777 Partners order demonstrates renewed faith in him and that the purchase marks a turning point for the company.
“777 Partners has earned a reputation for investing in high growth markets and we are pleased to welcome them into the Boeing 737 family,” said Ihssane Mounir, senior vice president of commercial sales and marketing at Boeing. “This is a significant order that speaks to the belief of 777 Partners in 737-8 and the recovery of the market ahead. “
(Photo: Boeing)
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