Boeing (BA) confirmed a deal with the investment company 777 Partners, which will buy 24 737 Max jets with options for another 60 aircraft. Boeing’s shares jumped.
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Although the deal was officially announced on Friday, Canadian airline Flair Airlines first reported the deal in January when it announced an agreement to lease 13 investment company Boeing 737 Max jets.
“Flair will lease the initial 13 aircraft from one of its key financiers, 777 Partners, which recently signed a contract with Boeing for 24 new Boeing 737-8 aircraft, along with options to purchase another 60 737-8 aircraft” 27 statement read.
Boeing did not return requests for clarification on the deal.
777 Partners has a stake in Flair and plans to rent the 737 Max planes to Flair and other affiliated operators.
“The downsizing of traditional operators globally has created an unprecedented market opportunity for more agile and economical operators,” said Joshua Wander, founder and managing partner of 777 Partners, in the statement Friday. “These aircraft will allow our operators to accelerate recovery at the destinations they serve.”
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Boeing Stock
The shares rose 5% to 264.90 in the stock market today, reaching the highest level in a year and almost recovering all of its pandemic losses. Boeing shares left the base of hearts with a buying point of 244.18 on March 10, according to MarketSmith’s analysis. The purchase zone extends to 256.39, which means that Boeing’s inventory is already extended.
Max supplier 737 shares Spirit AeroSystems (SPR) rose 3.8%, and the engine supplier General electrical (GE) rose 1.2%.
With the 737 Max back in service and deliveries resuming, orders are also in place, helping to recover Boeing’s inventory.
His February report showed more orders than cancellations for the first time since 2019, when the 737 Max ran aground after two fatal accidents. These data also indicate that Boeing secured an order for 14 737 Max planes for an unidentified customer last month.
Earlier this month, United airlines (UAL) announced plans to purchase an additional 25 Boeing 737 Max jets, to raise its total Max order to 180. The carrier also plans to have 45 deliveries of 737 Max aircraft increased.
From Ireland Ryanair (RYAAY) and Alaska Airlines (ALK) has also announced large orders for the 737 Max in recent months.
Most, South-west (LUV) is reportedly close to an agreement with Boeing for a potentially huge Max 737 order.
Follow Gillian Rich on Twitter for aviation news and more.
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