Boeing Lands 100 New Orders of 737 Max Planes - By Daisy BARRO
Boeing recently closed a deal with one of its most loyal customers, Southwest Airlines to deliver 100 Max planes, with delivery of the first thirty to happen next year.
The deal was closed on
Monday, which happened to be the 50th anniversary of Boeing’s
agreement with the airline for its first three planes. The contract comes as a
boost for the jet program, especially after the 737 MAX was grounded in March
2019 after two crashes that resulted in loss of lives.
Commenting on the
recent development, the Chief Executive Officer (CEO) of Boeing Commercial
Airplanes, Stan Deal said, “Southwest Airlines has long been a leader and
bellwether for the airline industry and its order is a big vote of confidence
for commercial air travel. We are deeply honoured by Southwest’s continuing
trust in Boeing and the 737.”
According to sources,
the financial terms of the agreement have not been divulged yet, but Southwest
made it quite clear that Boeing offered them a tremendous bargain, one which
Airbus could not compete with. Despite this added incentive, the CEO of
Southwest revealed that Boeing “was our preference all along, which is not
surprising because the airline operates an all-Boeing fleet already.
Boeing’s net orders
have gradually picked up steam as regulators in the United States, Europe,
Canada, Brazil and other countries have resumed operations with their MAX 737s.
Their renewed confidence in the jets was due to Boeing changing the automated
flight-control system that played a key role in the aforementioned crashes.
The airplane-manufacturing
giant has now announced about two hundred and seventy orders and commitments
for MAX since December, and its shares rose 2.3% Monday, helping the Dow Jones
Industrial Average close with a gain of 0.3%.
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