Boeing Gets Largest Order Ever From a South American Airline

It has also agreed to adapt future planes for short runways

By Christopher Freeburn, InvestorPlace Writer

Boeing (NYSE:BA) has landed a $6 billion order for 60 of its new 737 Max commercial jets from Brazil’s GOL (NYSE:GOL) airline, marking the largest single order the U.S. aircraft giant has received from a South American carrier.

According to GOL, Boeing has also agreed to develop a version of the jet specially adapted for landings and takeoffs on short runways, likely to be introduced in a number of years, the Seattle Times noted.

Could BAE-EADS Give Boeing a Lift?
Could BAE-EADS Give Boeing a Lift?

Boeing has previously produced a “Short Field Performance” version of the 737 for GOL that can take off and land on the notoriously short runways at some Brazilian airports.

With the GOL order, Boeing has received orders for 724 of the fuel-efficient 737 Max planes, moving it closer to the 1,000-plane target it set for the jet this year. 737 Max jets reportedly use 13% less fuel and emit less carbon dioxide than the typical 737.

The new jet is vying with A320 jets from European rival Airbus to attract orders. The A320 currently has about 1,400 orders from airlines around the world.

While the list price of the 737 Max would put the value of the GOL order at around $6 billion, discounts routinely awarded for large orders would substantially lower the deal’s final price.

Shares of Boeing slipped fractionally in Tuesday morning trading.

Article printed from InvestorPlace Media,

©2018 InvestorPlace Media, LLC