Aerospace & Defense

Orders Begin Flowing in for Boeing, Airbus at Paris Show

A320neoGECASThe Paris Air Show opened Monday morning for industry insiders and press with the expected flurry of new letters of intent and orders that airplane makers have been storing up for just this occasion. Boeing Co. (NYSE: BA) has so far announced that it has letters of intent for up to 65 airplanes and taken an order for 14 more.

Archrival Airbus has so far announced a letter of intent to purchase 30 planes and firm orders for 65. The European plane maker also said that Saudi Arabian Airlines will take 20 of the new Airbus A330-300 regional jets and add 30 more planes from the company’s single-aisle A320 family. The airline already owns 12 of the A330-300 wide-bodies and 50 A320s. The A320s are not the new engine versions.

Here is a little more detail. Both Boeing and Airbus signed letters of intent with Garuda Indonesia. In Boeing’s case Garuda has said it intends to buy 30 of the 787-9 Dreamliners and up to 30 of the new 737 MAX 8s. Garuda also reaffirmed its October announcement to purchase 50 Boeing 737 MAX 8s. The Indonesian carrier already flies 91 Boeing aircraft. At list prices, the sale is valued at $10.92 billion.

At the same time, Garuda signed a letter of intent with Airbus for 30 of the company’s new A350 XWB aircraft. Garuda’s current fleet includes 22 Airbus planes, all A330s. In the press release from Airbus, Garuda’s CEO said the A350 XWBs “will be one of the options for us to reposition ourselves as a leading premium carrier in competitive long haul market out of Asia.” The A350 XWB comes in three models with list prices ranging from $269.5 million to $351.9 million per plane.

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Boeing also announced an order for 10 of the company’s new 777-8Xs and four 777 freighters from Qatar Airways. At list prices the deal is valued at $4.8 billion.

In other Boeing news, Taiwanese carrier EVA Airways has committed to purchase five of Boeing’s 777 Freighters. The order is valued at $1.5 billion at list prices. EVA’s fleet currently includes 12 Boeing 747-400s and 20 Boeing 777-300, as well as 27 Airbus A321s and A330s.

Airbus announced that Saudi Arabian Airlines is the launch operator for its new A330-300 regional jet. The plane is a variation of the existing A330-300 and has a list price of $253.7 million, valuing this part of the airline’s order at $5.07 billion. The 20 A320s would cost $2.91 billion at list prices. The airline already has 18 A330s and 35 A320s in its fleet. All told, Saudi Arabian Airlines currently flies 69 Airbus jets and 75 Boeing jets.

Air Lease Corp. (NYSE: AL) placed a firm order for one A350-900, one A321 and three A320s, and the GE Capital Aviation Services (GECAS) division of General Electric Co. (NYSE: GE) placed a firm order for 60 of the new A320neo family of Airbus planes. GECAS has already ordered 120 of the new single-aisle planes to add to the 345 A320s it already owns. According to Airbus, the order includes an unspecified number of A321neo jets. The A320neo’s list price is $106.2 million and the A321neo carries a list price of $124.4 million.

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