Boeing Tipped To Add Big Orders At Farnborough Airshow

Boeing

Stock Code

BA

Business Type

Planemaker

Date Founded

1916-07-15

CEO

Dave Calhoun

Headquarters Location

Chicago, USA

Key Product Lines

Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

Today’s opening of the Farnborough Airshow may signal a renaissance for embattled Boeing, with some big orders tipped to land in its order book.

Reuters reports that Boeing could win around $15 billion with just two orders from Delta Air Lines (Delta) and Lufthansa. It says that Boeing and Delta have been discussing an order for 100 B737 MAX 10s for some time and that the announcement will come early in the week, giving Boeing an early strike in its battles with Airbus. In June, Delta CEO Ed Bastian said there was a place in Delta’s fleet for the MAX, and the airline “was trying to get a deal done with Boeing. We’re keeping our eye on that, and, hopefully, we’ll be able to figure that out.”

A MAX 10 order is a big vote of confidence

Placing an order for the B737 MAX 10 would be a big vote of confidence from Delta, given that Boeing CEO Dave Calhoun recently threatened to cancel the program due to certification delays at the Federal Aviation Administration (FAA). That comment was somewhat watered down by Boeing Commercial airplanes’ president and CEO Stan Deal, who told reporters on Sunday that canceling the MAX 10 is “not a high probability path.”

Delta is also expected to announce an order for around 12 Airbus A220s at Farnborough.

During an earnings call last week, Bastian was asked if an order for extra Airbus A220s would be signed next week, and he replied: “We don’t comment on upcoming decisions that have yet to be taken, so I’ll leave that at that.”

The report also says that Lufthansa will firm up an order for around ten large Boeing freighters, including seven of the newly launched Boeing B777X freighter. According to Boeing’s June 30 unfilled orders report, Lufthansa has existing orders for two B777F and 27 B777X aircraft, although there are also Unidentified Customer orders for ten B777Xs and 27 B777Fs listed.

While these deals may not be ready for Farnborough, easyJet is nearing shareholder approval to order 56 Airbus A320neos, and Etihad Airways is firming up an order for seven Airbus A350F freighters. Airbus says the A350F delivers three tonnes more payload, 11% more volume, and more range with lower emissions than the B777F.

The Boeing 777X will certainly be an exciting sight above Farnborough

The deal of the airshow would be if Air India owner, Tata Group, finalized its plans for fleet renewal at the legacy carrier. According to ch-aviation.com, Air India has a fleet of 119 airplanes and no orders for replacements or additions. It has 76 Airbus A320 family, 27 Boeing B787-8s, 13 B777-300ERs and three B777-200LRs. Reuters says that Airbus and Boeing are chasing a potential deal for 200-300 narrowbodies and 30-70 widebodies to be split between the two. Overall it would be worth around $50 billion, but it is on hold and not likely to surface this week.

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The B737 MAX 10 and the B777X will be at the Farnborough Airshow, as will the Airbus A220. Having the actual aircraft being ordered there will provide a perfect photo opportunity if the Delta and Lufthansa orders are announced this week. On the other hand, the sweltering UK heat may make the airconditioned chalets a more comfortable place for that.

Source: Reuters