Boeing's 737 MAX Lands 25-Jet Deal With SMBC Aviation

Boeing Company BA has received an order for 25 737 MAX jets from airplane lessor SMBC Aviation Capital. The financial terms were not disclosed.

The order is for 737-8 jets, which reduces fuel use and emissions by up to 20%.

Each airplane will save up to 8 million pounds of CO2 emissions annually compared to those airplanes it replaces. Additionally, 737 MAX offers up to 14% lower airframe maintenance costs than the competition.

The plane adjusts 162 to 210 passengers depending on configuration with a range of 3,500 nautical miles and operates profitably on short- and medium-haul routes.

The company's 737 MAX jets are grappling with supplier-related issues with Spirit Aerosystems Holdings, Inc SPR, which has called on Boieng to share a more significant portion of the financial strain brought about by inflation, deeming its contracts currently 'unsustainable.'

Also See: Spirit AeroSystems Calls On Boeing & Airbus To Share Inflation Burden: Report

Recently, Aviation Capital finalized an order for 13 737 MAX jets, increasing the lessor's order book to 47 737 MAXs. The order includes seven 737-8 and six 737-10 jets as ACG grows its single-aisle options to meet robust customer demand for the fuel-efficient 737 MAX airplane family.

With travel demand surging globally, lessors are trying to boost their single-aisle portfolios to provide airlines with more fuel-efficient jets capable of operating across various route networks. 

"The 737-8's incredible versatility and unrivalled fuel-efficiency makes it a key asset for the leasing community in its drive to help airlines achieve sustainability and efficiency goals," said Stan Deal, president and CEO of Boeing Commercial Airplanes.

Boeing has secured more than 400 737 MAX family orders in 2023.

Read More: Vietnam Airlines Eyes Monumental $10 Billion Deal With Boeing

Price Action: BA shares are trading lower by 0.07% to $210.87 premarket on the last check Tuesday.

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