Aerospace and defense giant Boeing Co. (BA) finalized Tuesday a firm order for seventy 737 family aircraft from Turkish flag-carrier Turkish Airlines. The deal, which was committed in early-April, is valued at $6.9 billion at list prices.
The order, which is now the largest by value in Turkish Airlines' history, includes the purchase of forty 737 MAX 8s, ten 737 MAX 9s and twenty Next-Generation 737-800 airplanes. The order also includes options for an additional twenty-five 737 MAX 8s.
According to Chicago, Illinois-based Boeing's website, the 737-800 model is valued at $89.1 million at list prices, while the 737 MAX 8 model is valued at $100.5 million and the 737 MAX 9 model is valued at $107.3 million.
Boeing noted that the current order from Turkish Airlines brings the total number of 737 MAXs ordered to date to 1,285, while it also currently has more than 3,100 unfilled orders for 737s.
"We are delighted to finalize the order, which will considerably expand our fleet and contribute to our continued growth. Turkish Airlines is a global airline, serving the most countries worldwide and we are building the strongest network in the world. Our long-standing partnership with Boeing is one of the key factors behind the success of Turkish Airlines," Turkish Airlines President and CEO Temel Kotil said in a statement.
Turkish Airlines currently operates a fleet that includes nearly 100 Boeing airplanes, including more than 85 Next-Generation 737s, and serves more than 220 destinations across 99 countries worldwide. The carrier, which added the 200th aircraft to its fleet in November, is currently the world's fifth-largest airline.
The current order follows Turkish Airlines' $4.7 billion firm order for fifteen 777-300ER or extended range airplanes that was finalized in December 2012, which was until now the largest order by value in Turkish Airlines' history.
The order also comes close on the heels of Turkish Airlines finalizing an order for 117 A320 family aircraft, including the A320neo, in mid-March from Airbus, the aircraft manufacturing subsidiary of European Aeronautic Defence and Space Co. or EADS NV (EADSY, EADSF).
The 737 MAX is a new-engine variant of the world's best selling Boeing 737 airplane and builds on the strengths of Next-Generation 737, and incorporates the latest-technology CFM International LEAP-1B engines. It delivers the highest efficiency, reliability and passenger comfort in the single-aisle market.
The order momentum for the aircraft continues in the marketplace due to its 13 percent more fuel efficiency and lowest operating costs with an eight percent operating cost per seat advantage over tomorrow's competition.
Boeing decided in July 2011 to revamp the top-selling 737 instead of building an all-new aircraft. The revamped 737 MAX is designed to compete with the Airbus' fuel efficient A320neo in the narrow-body aircraft segment. The 2011 Paris Air Show had clearly indicated that the ever-increasing fuel costs has tilted customers' preference towards more fuel-efficient aircraft.
BA closed Monday's regular trading session at $94.76, up $0.64 on a volume of 3.49 million shares.
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