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FARNBOROUGH (dpa-AFX) – The Farnborough, UK air show began for the troubled aircraft manufacturer Boeing with a long-awaited major order. The American airline Delta Air Lines has signed an order for 100 copies of the Boeing 737 Max 10 medium-range jet, which both sides announced on Monday at the Southwest of London fair. However, it is not yet certain that this long version of the Boeing 737 Max will be approved. Meanwhile, the world’s largest aircraft manufacturer Airbus (Airbus SE (ex EADS)) from Europe initially did not receive any orders for jets on the first day of the fair and only submitted one order for a Moroccan helicopter.
The news for Boeing was well received on the stock exchange. The US group’s share price recently rose about three percent to $ 152.22 in New York City. The paper has lost about a quarter of its value since the turn of the year. Airbus shares rose by half a percent on Monday. It was sold almost seven percent cheaper than at the turn of the year.
Boeing has long negotiated a difficult contract with Delta. According to the price list, 100 machines have a total value of approximately $ 13.5 billion (EUR 13.4 billion). However, big discounts are common for large airplane orders. In addition, Delta has secured options for the purchase of another 30 jets.
The 737 Max 10 is a long version of the Boeing 737 Max that was not allowed to take off for 20 months in 2019 and 2020 after two crashes around the world. The Max 10 is still pending approval by the US FAA. In an interview with Bloomberg TV, Boeing’s head of commercial airliners Stan Deal was confident he would be certified by the end of the year. Alternatively, the manufacturer broke an exemption from the US Congress. Without an agreement, the manufacturer faces the costly introduction of a completely new cockpit warning system due to a law change in 2020 – or the discontinuation of production of a long version aircraft type.
Boeing is competing with the Max 10 with the bestseller of the Airbus A321neo – the long version of the A320neo. This has long represented the majority of new orders in the narrow-body aircraft segment among Europeans. Airbus also developed a long-haul version of the machine called the A321XLR. It is planned to be put into service in early 2024. Boeing lacks a suitable competitor model.
Meanwhile, Airbus has once again increased the production of its A320neo model family to around 50 planes per month, and is aiming for a record production of 75 planes per month by the middle of the decade. Boeing recently hit a monthly rate of 31 for the 737 Max. Meanwhile, aircraft manufacturers, like companies in other industries, struggle with bottlenecks in their supply chains.
Large long-range jets are recently sought after primarily in the dynamically developing cargo segment, which until now has been the domain of Boeing. In contrast, both manufacturers severely restricted the production of large passenger airliners during the pandemic. While Airbus continues to supply its A350 and A330neo types, Boeing only does so with the older 777 model.
The manufacturer had to postpone its new 777X edition for several years. And for about a year, he was unable to hand over the slightly smaller Boeing 787 “Dreamliner” to his customers due to production problems. Talks with a supervisor to resume deliveries are well advanced, a Boeing Deal manager said on Sunday, but did not provide a schedule.
Meanwhile, Dave Calhoun, Boeing’s CEO, believes it’s not yet time to develop a new passenger jet. The introduction of the new aircraft depends on the technical level of propulsion technology and whether it is significant over previous engines, said the head of the Financial Times (Monday). “I don’t think we’ve reached that threshold.” Calhoun noted that when Boeing overcomes its current problems, it will also be in a better financial position. The group is currently groaning under a burden of net debt of approximately US $ 45 billion (€ 44.6 billion).
Meanwhile, Delta Air Lines, a Boeing customer, is likely to buy from Airbus, albeit on a smaller scale. According to Bloomberg, an order for the twelve smallest Airbus jets, the A220, is being discussed there. Airbus is also negotiating with Malaysia Airlines to purchase approximately 30 wide-body A330neo aircraft. And the Polish airline Lot could order 60 A220s. Apparently, an order from Germany is also being discussed. Vacation airline Condor is negotiating the purchase of 40 Airbus jets from the A320neo family of models, Bloomberg said, citing people familiar with the case. Airbus and Condor did not want to comment on the information.
New orders are especially important to Boeing. The US group was way behind Airbus in the mass business with mid-range jets. In their market forecasts for the next 20 years, the two companies assume that approximately three-quarters of all aircraft deliveries are narrow-body aisles.
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