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Share Price: 456.60
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Change: -9.00 (-1.93%)
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UPDATE 2-Sales of grounded Boeing 737 MAX gather pace at Dubai Airshow

Tue, 19th Nov 2019 07:22

(Adds detail)

By Ankit Ajmera and Alexander Cornwell

DUBAI, Nov 19 (Reuters) - Boeing's 737 MAX took
centre stage at the Dubai Airshow on Tuesday as airlines
announced plans to order up to 50 of the jets worth $6 billion
at list prices despite a global grounding in place since March.

Kazakhstan flag carrier Air Astana said it had signed a
letter of intent to order 30 Boeing 737 MAX 8 jets for its Fly
Arystana subsidiary.

Air Astana, which operates Airbus and Embraer
jets in its main network, said it was confident in
Boeing's ability to resolve problems with the MAX.

Global regulators banned commercial flights of Boeing's
fastest-selling jet in March after two fatal accidents.

Plans for the jet's return to commercial service have been
pushed back to early 2020 as Boeing finalises software and
training revisions that need regulatory approval.

"We are making flying affordable for the people of
Kazakhstan," Air Astana Chief Planning Officer Alma Aliguzhinova
told reporters, adding that budget carrier Fly Arystana would
start taking the jets in late 2021.

The airline plans to hold 15 aircraft directly and may
finance the rest through a lease transaction, she said, adding
that Air Astana would not change the composition of its main
fleet.

Separately, another airline signed a firm order for 10
Boeing 737 MAX 7 and 10 Boeing MAX 10 jets, a person familiar
with the matter said. The airline's name was not disclosed.

Boeing has used the past two major industry events to try to
secure market momentum for the grounded MAX, which is seen as
key to the planemaker's financial health over the coming decade.

A letter of intent between Boeing and British Airways owner
IAG for 200 jets, which grabbed the spotlight at the
Paris Airshow in June, has yet to be finalised as the European
holding company discusses the fleet change with subsidiaries
that currently use Airbus for medium-haul operations.

In other business coinciding with the largest Middle East
air show on Tuesday, Saudi budget airline Flynas agreed to buy
long-range A321XLR jets.

The airline's chief executive had said on Monday that Flynas
was in talks to exercise purchasing options for some or all of
40 Airbus A320neo narrowboday jets.

Airbus unveiled a provisional order in Dubai for 8 of its
small A220 jets from Air Senegal. Britain's easyJet
exercised options for 12 more Airbus A320neo aircraft.

Also coinciding with the show, leasing giant GECAS was
expected to confirm an order for 25 Airbus planes, including 12
A330neo jets powered by engines from Rolls-Royce, a
competitor to GECAS parent company General Electric.

However, there were no immediate signs that Dubai's Emirates
was ready to finalise a provisional order for 40 Boeing 787
Dreamliners, part of a complex set of interlocking deals driving
fleet changes at the world's largest international airline.

The fate of the order hinges on negotiations over the larger
Boeing 777X, for which Emirates is the largest customer.
Emirates has indicated it wants to restructure the order after
delays and sources say it could use the pending 787 deal as
leverage.
(Writing by Tim Hepher
Editing by Jason Neely and David Goodman)

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A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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