Boeing signs first deal for 737 Max jets since Lion Air crash; International Airlines Group signs letter of intent for 200 planes
The company announced at the Paris Air Show on Tuesday that International Airlines Group, the parent company of British Airways and other carriers, signed a letter of intent for 200 Boeing 737 aircraft.
The company announced at the Paris Air Show on Tuesday that International Airlines Group signed a letter of intent for 200 Boeing 737 aircraft
The combination of 737-Max 8 and 737-Max 10 planes would cost $24 billion at list prices, though companies usually strike deals for discounts
Boeing depends heavily on the aircraft and has said it is costing at least $1 billion to address problems with the troubled jet
Paris: Boeing is selling its 737 Max planes again. The company announced at the Paris Air Show on Tuesday that International Airlines Group, the parent company of British Airways and other carriers, signed a letter of intent for 200 Boeing 737 aircraft.
Boeing said it's the first sale of the jetliner since the crash of an Ethiopian Airlines 737 Max in March. Another 737 Max crashed in Indonesia 2018. All planes of the same model are now grounded amid an investigation of problematic software. The letter of intent is subject to the final agreement but is a vote of confidence in Boeing as it struggles to win back trust from airlines, pilots, regulators, and the traveling public.
The combination of 737-Max 8 and 737-Max 10 planes would cost $24 billion at list prices, though companies usually strike deals for discounts. The planes would be delivered between 2023 and 2027 to airlines owned by IAG. IAG expressed optimism that regulators will allow amended Max jets to fly again soon. But it's unclear when that will be, notably for regulators outside the US.
Ethiopian Airlines and Lion Air crashes killed 346 people. Boeing executives started off the Paris Air Show on Monday with a sweeping apology to victims' families and airlines. Analysts had predicted that Boeing might try to announce some Max orders at the air show to demonstrate that the plane — one of Boeing's most popular models — still has support.
Boeing depends heavily on the aircraft and has said it is costing at least $1 billion to address problems with the troubled jet. But the company has struggled to get a handle on the Max controversy.
The CEO says Boeing botched communication with regulators and is promising more transparency. After lackluster sales in recent months, Boeing's orders picked up Tuesday. It announced a deal with Korean Air and Air Lease Corporation for a total of 30 long-range 787 jets, worth $6.3 billion at list prices.
European rival Airbus also announced several orders on Tuesday. Before announcing its Boeing Max deal, industry powerhouse IAG signed a firm order with Airbus for new A321XLR long-range jets, for its airlines Aer Lingus and Iberia. Airbus also reported sales to Delta Air Lines, Saudi Arabian Airlines and Atlantic Airways, and announced a feasibility study for vertical takeoff and landing aircraft that could shuttle visitors to the Paris 2024 Olympics. Both Airbus and Boeing face a slowing economy that tempered the mood at the air show.
The companies, along with other manufacturers, came together Tuesday to promise more investment in reducing aviation emissions even as global air travel is expected to rise significantly in the decades to come. Plane makers are under increased pressure from regulators and passengers concerned about climate-damaging emissions. They are looking at hybrid, electric or hydrogen technology to eventually replace existing fuel.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Grounding Boeing 737 MAX 8 isn't the answer, fixing accountability and rooting out issues with aircraft key to allay panic
Boeing has been quiet about the crash, but on Monday the FAA advised that there would be software upgrades to the MCAS on board all Boeing 737 MAX aircraft by the end of April 2019.
Ethiopian Airlines to send black boxes of 'crashed' Boeing abroad, after two-thirds of all 737 MAX planes were grounded globally
Boeing, the world’s biggest planemaker, has said it retains "full confidence" in the 737 MAX. Its shares fell 6.1 percent on Tuesday, bringing losses to 11.15 percent since the crash.
Donald Trump confirms US grounding Boeing 737 Max 8, 9 after Ethiopia crash, 'effective immediately'
The US is issuing an emergency order Wednesday grounding all Boeing 737 Max 8 and Max 9 aircraft "effective immediately," in the wake of the crash of an Ethiopian Airliner that killed 157 people, President Donald Trump said.