Boeing, Airbus Add More New Planes to Tally Sheets (Updated)
Update 2: Malaysian carrier AirAsia has signed a firm order for 100 Airbus A321neo aircraft in a deal valued at around $12.4 billion at list prices. AirAsia’s fleet already numbers 81, all A320s. The average age of planes in the airline’s fleet is 5.9 years. AirAsia Malaysia is one of five carriers included in the AirAsia Group.
Update 1: India’s Go Air has signed a memorandum of understanding with Airbus for 72 A320neos. The airline already has orders in place for another 72 of the single-aisle planes. At list prices the order is valued at $7.65 billion.
To say that aircraft makers Airbus and Boeing Co. (NYSE: BA) are rolling in new orders at the U.K.’s Farnborough Airshow is not entirely accurate. There are firm orders and then there are commitments, letters of intent and memoranda of understanding.
In the firm order category, Airbus announced two orders Tuesday morning: one from Iceland low-cost carrier WOW for four of the current version of the A321, and the second from Germania Group for 25 A320neos. The order from WOW is valued at $455 million at current list prices and the Germania Group order is worth $2.12 billion.
Boeing did not use the term “firm order” in any of its announcements, but the company did use terms that were close to that. The largest deal was the “finalization of terms” with Volga-Dnepr Group for 20 747-8 freighters, a deal first announced at last year’s Paris Air Show. At list prices the deal is worth about $7.6 billion. Boeing said it has already delivered four planes (probably whitetails) on this deal.
The European operator of six airlines, TUI Group, “finalized an order” for 10 737 MAX 8s and one 787-9 Dreamliner, in an order worth $1.4 billion at list prices. The deal includes an option for one additional 787-9.
Air Lease Corp. (NYSE: AL) and Boeing “announced an order” for six 737 MAX 8s, of which three were new orders and three already appeared on Boeing’s order book, attributed to an unidentified customer. The value of the deal is $660 million at list prices.
Kunming Airlines, a Changshui, Yunnan, based carrier, completed a memorandum of understanding to purchase 19 737 MAX 7s and would be the launch customer in China for the plane.
Finally, Boeing announced a commitment for 30 737 aircraft in a mixture of both the current version and the MAX model, but the announcement did not include a value.
A late-breaking item: Boeing and Qatar Airways announced a new Performance Improvement Package (PIP) for the Boeing 777. The airline will upgrade all 53 of its 777s with the new PIP, which the announcement said “allows airlines to open new routes, fly existing routes more efficiently and improve payload capacity and range.”
Boeing posted no new firm orders on Monday and Airbus announced just five. Tuesday has gotten off to a better start for both companies, and there are still some reported negotiations between Airbus and two Asian carriers that could result in new announcements.