Aerospace & Defense

Boeing Continues to Stack Up Orders in Paris

Orders and commitments for new commercial jets from Boeing Co. (NYSE: BA) and Airbus reached a total of 467 by the end of the first day of this year’s Paris Air Show. Boeing has received orders and commitments for 345 new planes, and Airbus has taken firm orders for 112 new planes.

Airbus announced an order for 100 A320s early Monday morning from General Electric Co.’s (NYSE: GE) GECAS leasing group and later in the day an order for 12 of the single-aisle planes from another lessor, Air Lease Corp. (NYSE: AL).

Boeing came to Paris with the idea of launching its new 737 MAX 10 (737-10) and had taken orders or commitments for 307 of the planes on Monday. Early Tuesday the company added an order for 20 of the new planes from Air Capital Group (ACG) in a deal valued at $2.49 billion at list prices.

Chicago-based Boeing wrote memoranda of understanding (MOUs) for 31 more single-aisle MAX family jets, with China’s Okay Airlines taking eight 737-10s and seven MAX 8s. Romanian carrier Blue Air signed an MOU for six MAX family jets, but Boeing did not specify the model.

Ireland-based Ryanair Holdings PLC (NASDAQ: RYAAY) added 10 additional MAX family airplanes to bring its unfilled orders for Boeing jets to 110. Ryanair also has 100 options on what Boeing’s announcement called the “higher capacity 737 MAX 8,” which presumably is what the company once dubbed the 737-200, a modified MAX 8 that Boeing specifically designed for Ryanair. Boeing could be trying to convert those options to the 737-10. Stay tuned.

Boeing also has written a firm order for 30 787-9 Dreamliners with lessor AerCap and an MOU for eight of the same model with China’s CDB Leasing. Azerbaijan Airlines has signed an MOU for four 787-8 Dreamliners and lessor Avolon signed an MOU for 75 737 MAX 8s and purchase rights for an additional 50.

In addition to commercial jet sales, Boeing also has announced several services deals. CEO Dennis Muilenburg has set a $50 billion revenue target for the company’s services business over the next five years, more than tripling the current revenues.

Boeing also released long-term forecasts on the services market and new aircraft demand. The company projects a total demand for more than 41,000 new airplanes valued at around $6.1 trillion. The commercial services market could rise to a value of $8.5 trillion over the next 20 years, and the government/military market could add $2.5 trillion to the value of the overall market for services. We’ll look at both these forecasts in a more detailed story later.

Finally, Boeing is expected to reveal more details this morning about the “new midsize airplane” (NMA) the company is working on. Aviation Week reported Monday that the fuselage of the NMA will be based on composites and that Boeing is showing a “787-like twin-engine tube-and-wing concept with high-aspect-ratio, fifth-generation composite wings.” There has been a lot of interest from potential customers (and speculation by the press) in an airplane that can carry about 250 passengers on flights of 4,000 to 5,000 nautical miles. Boeing’s 757 was the last plane that addressed that market directly and the company stopped building them in 2004.

Boeing stock jumped 1.3% on Monday to close at $199.08, after posting a new 52-week high of $199.47 earlier in the day. Shares traded up another 0.4% in Tuesday’s premarket at $199.83.

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