Boeing Gets $7.2 Billion Order for New 737s

Boeing got a good start at the opening of the Farnborough air show. It got a $7.2 billion order from Steven Udvar-Hazy’s Air Lease Corp. for its new fuel-efficient 737 MAX. The 75 plane order is for 60 of the Max 8 model and 15 of the Max 9 model. This was according to a statement released by Boeing.

According to Udvar-Hazy, Boeing’s improvements to the Max helped them with their decision to go for the Max. Some of the tweaks include the winglets to help save fuel. It said that the plane they inspected last year and the first few months of the year is a totally different plane.

Boeing tries to copy Airbus SAS’ success with its A320neo during last year’s show in Paris when the French airplane manufacturer dominated the order book. The company rushed to unveil the Max even before its directors approved building the new plane.

Aside from its order from Udvar-Hazy, it looks like Boeing is getting more orders for the Max during the show. General Electric’s jet-leasing unit is said to be purchasing 100 737s. This is according to people with knowledge of the transaction. GE Capital Aviation Services is set to buy 75 737 Max planes that are valued at $9.25 billion. Boring and GE declined to comment on the deal.

The Max improved its fuel efficiency by 13 percent compared to current models. This makes it attractive to airlines in an industry where the largest expense is its fuel consumption. Max is set to debut in the commercial market on 2017 and has already collected 1,000 orders and commitments.

Air Lease’s orders include the reconfirmation rights for 25 more aircraft according to Udvar-Hazy. Boeing’s value increased 0.5 percent to $74.03 while Air Lease dropped 0.4 percent to $19.15. With the Air Lease deal, Boeing is renewing its ties to the godfather of the leasing industry.