Military

Boeing Takes New Order for $1.4 Billion; Airbus Nabs $828 Million

Boeing 787-10 ANA
Source: The Boeing Co.
Boeing Co. (NYSE: BA) announced Friday morning that Japan’s All Nippon Airways (ANA) has ordered three of the company’s 787-10 Dreamliners and five of its current version of the 737-800 in a deal worth $1.4 billion at list prices. Boeing expects to deliver the first 787-10s to its customers in 2018.

In what must be something of a disappointment to Boeing, ANA also ordered four A321 and three A320neo single-aisle jets from Airbus in a deal worth $828 million at list prices. The A320 and A320neo families compete with Boeing’s 737 and 737 MAX families.

ANA was Boeing’s first customer for the 787, and the airline had more than a few problems in the early days following the first delivery in September 2011. There was the delamination issue with the plane’s composite skin and a corrosion risk in the plane’s Rolls-Royce engines. Then, of course, all 787s were grounded for several months in early 2013 due to fires in the plane’s lithium-ion batteries. ANA cancelled 459 flights in January of that year, which cost the company an estimated $15 million in revenue.

Boeing’s latest order book shows that ANA has ordered a total of 80 787-8s and 787-9s. The new order brings ANA’s fleet total of 787s to 83, of which the company has so far received 34, including its first two 787-9s.

The 787-8 carries up to 242 passengers and has a range of 7,850 nautical miles, while the 787-9 can carry 280 passengers up to 8,300 nautical miles. The largest of the family, the 787-10, can carry 323 passengers up to 7,020 nautical miles, which Boeing claims includes more than 90% of the world’s twin-aisle routes.

Boeing’s stock traded down about 2% at $144.84 Friday morning. The 52-week trading range is $116.32 to $148.25.

ALSO READ: Boeing to Build the Next Air Force One

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