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Boeing Gets $7.2 Bln Order From Air Lease

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Aerospace and defense giant Boeing Co. (BA) on Monday announced a firm order for sixty 737 MAX 8 and fifteen 737 MAX 9 airplanes from Air Lease Corp. (AL) with reconfirmation rights for twenty five additional 737 MAXs. The company said the order has a list-price value of $7.2 billion.

In a separate statement, Raytheon Co. (RTN) said it has received a $636 million development and sustainment contract from Boeing to provide the Exoatmospheric Kill Vehicle. Boeing is the prime contractor for the Ground-based Midcourse Defense or GMD program. The contract extends through November 2018.

Regarding the order from Los Angeles-based aircraft leasing company, Boeing's Commercial Airplanes President and CEO Ray Conner said, "The ALC leadership team has an excellent record of placing Boeing airplanes with airlines worldwide. They are an ideal partner to help establish the 737 MAX in the leasing market."

Till date, Boeing has received orders and commitments for more than 1,000 737 MAX airplanes. ALC has ordered a total of 170 airplanes from Boeing including 75 737 MAX, 78 Next-Generation 737-800s, five 777-300ERs and 12 787-9 Dreamliners.

The 737 MAX is a new-engine variant of the world's best selling airplane and builds on the strengths of Next-Generation 737. The plane incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

According to the company, the use of 737 MAX will result in a 13 percent fuel burn improvement over current fuel efficient single-aisle airplanes.

In its statement, technology firm Raytheon said the Exoatmospheric Kill Vehicle or EKV represents the centerpiece for the Missile Defense Agency's GMD as the intercept component of the Ground Based Interceptor, also known as GBI. This is designed to engage high-speed ballistic missile warheads in space. The EKV is designed to destroy incoming ballistic missile threats by colliding with them, a concept often described as 'hit to kill'.

Under the contract terms, Raytheon will provide EKV development, fielding, testing, system engineering, integration, configuration management, equipment manufacturing and refurbishment, and operation and sustainment.

Boeing shares are currently at $74.06, up $0.37 or 0.47 percent, while Raytheon is currently at $56.10, up $0.22 or 0.39 percent.

Air Lease shares are currently at $19.15, down $0.07 or 0.36 percent.

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