Investment 777 Partners Buys 2 Dozen Boeing 737 MAX 8 Airplanes

Boeing Company BA announced on Friday that Investment 777 Partners, a Miami-based private investment firm, has agreed to purchase 24 737 MAX 8 airplanes with the option to purchase 60 additional planes at a later date.

What Happened: A strategic investor in the aviation sector, Investment 777 Partners plans to lease the 24 planes to its partners, including Canadian-based Flair airlines, a low-cost passenger carrier.

“The 737-8 aircraft are a fantastic addition to our aviation portfolio and will enable our partners to leverage the jets’ superior economic performance to deliver low fares for their passengers while reducing their carbon footprint,” said Investment 777 Partners founder and Managing Partner Joshua Wander.

Why It Matters: Boeing has struggled to get off the ground following two deadly plane crashes. On March 10, 2019, all 157 people aboard Ethiopian Airlines Flight 302 were killed when a Boeing 737 MAX 8 crashed six minutes after takeoff. Five months earlier on Oct. 29, 2018, Lion Air Flight 610 crashed into the sea off Indonesia, killing all 189 passengers and crew members.

Following the March 10, 2019 crash, 30 countries banned the use of Boeing’s 737 MAX planes. Almost two years later when restrictions were lifted, American Airlines Group Inc AAL became the first carrier to fly the 737 MAX when Flight 718 departed from Miami on route to New York on Dec. 29, 2020.

The grounding cost Boeing and affiliated airlines billions of dollars in lost revenues.

What’s Next: Airlines have slowly begun to put orders in for Boeing’s 737 MAX planes as bans are slowly lifted across the globe.

On Wednesday, Reuters reported that Boeing was nearing a multibillion-dollar deal with Southwest Airlines Co LUV for the purchase of 737 MAX 7 airplanes.

The number of planes Southwest may order is not clear, but at the time it was reported to be the largest order since restrictions were lifted.

Boeing believes Investment 777 Partners’ order demonstrates renewed faith in it and that the purchase marks a turning point for the company.

“777 Partners has gained a reputation for investing in high-growth markets and we are delighted to welcome them to the Boeing 737 family," said Ihssane Mounir, Boeing senior vice president of commercial sales and marketing. "This is a significant order that speaks to 777 Partners’ belief in the 737-8 and the market recovery ahead.”

(Photo: Boeing)