(Bloomberg) -- Boeing Co. used the second session of the Paris Air Show to get on the scoreboard in a big way after getting shut out on Day 1. The slugfest began in earnest when Boeing won an order for twenty 787s from Korean Air Lines then followed up with a deal with IAG SA for 200 of the embattled 737 Max.
The news came a day after Airbus SE scored $13 billion in orders, while its U.S. rival got nothing. Airbus added to its book on Tuesday with a deal from Saudi Arabian Airlines and an order for 14 of its just unveiled extra-long-range jet.
Here are the latest developments:
- Boeing got a letter of intent for 200 737 Maxes from IAG
- IAG ordered 14 Airbus A321XLRs for Iberia and Aer Lingus
- Airbus struck a deal with Saudi Arabian Airlines for A320neos
- Boeing broke its drought with a 787 order from Korean Air Lines
(All times Paris)
Boeing Nabs Big Max Deal (6:34 p.m.)
Boeing won its first deal for 737 Max jets since a global grounding that followed the second deadly crash in five months.
IAG SA, the owner of British Airways, signed a letter of intent for 200 of the planes, Boeing said in a statement Tuesday. The mix of 737-8 and 737-10 planes would be delivered between 2023 and 2027, assuming the deal is formalized.
The agreement with one of the world’s leading carriers hands Boeing a big boost as it struggles to get the Max back in the air amid a grounding that recently entered its fourth month.
IAG Orders Airbus XLR (3:38 p.m.)
IAG ordered 14 of Airbus’s newly introduced A321XLR to expand trans-Atlantic operations at two of its core airlines.
Spain-based Iberia and Ireland’s Aer Lingus will take eight and six of the extra-long-range jets respectively, IAG said in a statement. The deal is d at about $2 billion, based on a list price of $142 million per aircraft.
Amazon Bolsters Fleet (2:02 p.m.)
Less than two weeks after being dropped by delivery partner FedEx Corp., Amazon.com Inc. is expanding its air-cargo fleet. The online retail giant will lease an additional 15 Boeing 737-800 cargo aircraft from GE Capital Aviation Services, adding to the five 737-800s already in its hangars. The planes will fly the U.S. Amazon Air network, which is building up toward a goal of 70 aircraft by 2021, Dave Clark, Amazon’s senior vice president of worldwide operations, said in a statement at the show.
Amazon’s emergence as a logistics powerhouse has put pressure on FedEx and United Parcel Service Inc. for cheaper and speedier deliveries. The Seattle-based company’s contract with FedEx’s Express air division expires at the end of this month. It doesn’t cover international operations or other services such as FedEx’s ground deliveries.
Boeing, Air Lease Strike Deal (1:27 p.m.)
Air Lease Corp. reached a deal with Boeing to purchase five 787-9 Dreamliners, d at $1.5 billion at list prices.
Saudia Boosts Order (1:02 p.m.)
Saudi Arabian Airlines increased its commitment for A320neo jets from Airbus to as many as 100 aircraft, from up to 35 previously. The deal, including 15 of the newly launched long-distance A321XLR, would total about $7.5 billion at list prices.
Next up will be a decision over larger planes: “In addition to the narrow-body order, evaluations are currently under way for wide-body requirements, expected to be concluded within the next few months,” said Saleh Al-Jasser, the airline’s director general, in a statement.
Boeing Breaks Drought (11:42 a.m.)
Boeing won a 30-plane 787 order from Korean Air Lines. The carrier agreed to buy 10 new 787-10s and 10 additional 787-9s d at $6.3 billion at current list prices. Korean Air will also lease 10 787-10s from Air Lease Corp. The talks were earlier reported by Bloomberg.
Ethiopia Airlines Praises Boeing
Boeing’s efforts to reassure airlines and passengers that its 737 Max jetliner will make a safe return to service won the support of Ethiopian Airlines Chief Executive Officer Tewolde GebreMariam, whose carrier suffered the fatal crash that led the plane’s grounding.
Ethiopian has “more confidence” in the U.S. manufacturer following its expressions of contrition and admission that it made a mistake in how it handled new systems introduced on the Max, Tewolde said. He has met “very frequently” with Boeing managers at the air show, CEO Dennis Muilenburg among them.
Supersonic Flight Plans
Boom Supersonic still plans to unveil its test plane before the end of the year but says the plane won’t now fly until 2020, after it decided to install an additional safety feature to improve “stability.” CEO Blake Scholl predicted a market of 1,000 to 2,000 units for the first supersonic passenger plane since Concorde, priced at about $200 million apiece.
Electric Plane Debut
Eviation Aircraft Ltd. said U.S. regional airline Cape Air agreed to buy a “double-digit” number of its electric planes. The carrier flies some 88 Cessna turboprops on routes such as Boston to Martha’s Vineyard and New York to Nantucket.
The Israeli startup’s plane, the Alice, is one of a host of electric models at the design stage, and its nine-passenger capacity and 650-mile range from a single charge could give it an edge in the commuter market. Running costs will be about $200 a flight hour, versus $1,000 for a turboprop. The Alice will be slower than some conventional craft, with a cruising speed of 240 knots (276 miles per hour).
Norwegian XLRs
Norwegian Air Shuttle ASA is in talks with Airbus to buy the latest A321XLR jetliner as it seeks the extra range to serve smaller cities in the U.S. Midwest. The new narrow-body was formally launched at the start of this week’s Paris Air Show.
The discount carrier originally ordered 30 A321LRs, and the total may be reduced with the switch, Bjorn Kjos, its chief executive officer, told Bloomberg Television at the expo.
Philippines Order
The country’s largest carrier, Cebu Air Inc., confirmed it has ordered 31 aircraft from Airbus including 10 long-range jets. The deal for 16 A330neo wide-bodies -- beating out Boeing -- and 15 A320neo-family aircraft includes 10 of the European planemaker’s new A321XLR model. The jets, scheduled for delivery from 2021 to 2026, would be worth $6.8 billion based on the list price.
Prospects for Takeoff
France’s Safran SA, which supplies engines for the Boeing 737 Max through its CFM International venture with General Electric Co., said it expects to see the grounded jet flying again this summer. But CEO Philippe Petitcolin warned that a delay beyond August would force a further slowdown in production beyond the cut of 10 planes a month -- to 42 -- that’s already been forced on the company. “There’d be another reduction, I don’t think we’d have any other choice,” he said.
American Air Mulls Up to 50 of XLR Jets
American Airlines Group Inc. is considering an order for as many as 50 of Airbus’s new long-range A321XLR jets, a person familiar with the discussions said.
The world’s largest carrier sees the plane, which would have the longest range of Airbus’s single-aisle offerings, as a potential replacement for its aging fleet of 34 Boeing Co. 757-200 jets, Bloomberg reported earlier this month. There’s no guarantee a deal will be reached.
Mitsubishi Edges Toward Bombardier
A takeover by Mitsubishi Heavy Industries Ltd. of Bombardier Inc.’s CRJ regional jet program has merit, according to an executive at the Japanese company’s aviation unit.
“It would make a lot of sense in the context of developing and delivering global aircraft,” Steve Haro, a vice president at Mitsubishi Aircraft Corp. The comment raised the possibility that a deal could be reached soon.
- Mitsubishi Says Buying Bombardier Jet Division Would Make Sense
Qatar Air Nears New Investment
Qatar Airways QCSC will announce a stake in a sixth overseas carrier in the coming months, Chief Executive Officer Akbar Al Baker said, as the Persian Gulf operator turns to outside investments to boost revenue and cash amid a Saudi-led embargo restricting its flights.
“We are buying stakes in successful airlines and we will continue to do so,” he said, without naming a target company. “Soon you will hear about another investment.”
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