2023-12-12 13:20:41 ET
Boeing Co (NYSE: BA) says it has received another big order from Avolon – an Irish aircraft leasing company. Its shares are up nearly 1.0% at writing.
How many planes did Avolon buy?
On Tuesday, Avolon placed an order for 40 of the multinational’s 737-8 Max planes.
The aerospace giant had received a similar sized order from the lessor in June as well. According to Andy Cronin – the Chief Executive of Avolon:
We have committed to … transformation of our fleet to lower emissions airplanes. Today’s orders strengthen our delivery pipeline and reflect our confidence in long-term outlook for aviation.
The news arrives more than a month after Boeing Co reported a wider-than-expected loss for its third financial quarter ( read more ). Shares of the Arlington-headquartered firm are still up 40% since then.
Watch here: https://www.youtube.com/embed/GqqShGwR2U4?feature=oembedBoeing stock initiated at ‘outperform’
Bohai Leasing Co Ltd – a Chinese firm that has a 70% stake in Avolon valued the Boeing transaction at $4.9 billion based on the list prices.
Avolon expects the new aircrafts to be delivered by 2032. Note that the aircraft leasing company also placed an order with rival Airbus this morning for 100 of its A321 neo planes.
Also on Tuesday, William Blair analyst Louie DiPalma assumed coverage of Boeing stock with an “outperform” rating. He sees “elevated aftermarket demand” as a positive for the New York-listed firm but told clients in a research note that it will see “real upside from higher production rates”.
Boeing Co booked a net of 104 orders in November.
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