Boeing landed an order for 200 737 Max airplanes. This is the first such order after the planes were grounded globally, post 2 fatal crashes. IAG, which is British Airways’ holding company, was the purchasing party, and this fact sent the stocks shooting high. IAG managed to land this at the PAS. The planes won’t be posted on Boeing’s monthly order list until all details have been finalized. The jets were grounded by aviation authorities after 2 crashes occurred in a span of 5 months, killing over 346 people. Regulators’ permission is required before Boeing and other airlines can resume their operations with these jets. However, officials have refused to divulge any details.
Boeing closed at nearly $374, ending about 5.4% higher than the previous day. It was ahead of the market and caused the DJIA to surge ahead. This was the highest single-day gain in the stock price in over 5 months. The jets will be used for handling short-haul journeys in all its airlines. Max 10 and Max 8 were in the order list. The flights will be used by Iberia, Level, Vueling and Aer Lingus. The group currently has A320s in its fleet, manufactured by Airbus, Boeing’s rival. CEO of IAG Willie Walsh stated that he was confident about the jet returning to service within a few months after receiving requisite regulatory approval. The production of this jet had been reduced by 20%, along with the suspension of all deliveries after the grounding orders arrived. 373 Max is the highest-selling jet ever made by Boeing.
This order is good news since Boeing had entered the show reluctantly due to the impact of these crashes. Several lawsuits and investigations are also underway against it. Airlines had to reduce flights due to these jets being grounded. Though the order is set to cost $24 billion if taken at list price, airlines are known to receive discounts. These planes are set to be delivered during 2023-27.