The aircraft maker is warning customers of further delays to aircraft deliveries, with timelines extending by 3 to 6 months
BOEING has won an order for 35 of its 737 Max aircraft from the US aircraft leasing unit of Tokyo Century. This includes the largest variant of the 737 Max family – the Max 10.
Aviation Capital will buy 16 Max 8 aircraft and 19 of Boeing’s largest single-aisle jet – the yet to be certified Max 10 – the company said on Friday (Jul 12). The aircraft should be delivered by 2031.
The company – an indirect wholly owned subsidiary of Tokyo Century – which owns and manages 364 aircraft, did not disclose the value of the deal.
An earlier transaction with Airbus for almost 60 single-aisle planes that are yet to be delivered, along with some other aircraft, means the group has outstanding orders worth about 1.3 trillion yen (S$11 billion).
The US lessor said it was ordering in anticipation of greater demand for air travel, meaning additional airlines will seek to lease aircraft, particularly more fuel-efficient ones.
For Boeing, the order is a boost during one of its lowest ebbs as it faces constraints on the production of its cash-cow 737 single-aisle jet.
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This follows the fallout from a near disaster in early January when the door plug of an almost-new Alaska Airlines Max jet blew out mid-flight.
It was reported on Friday that Boeing has started warning customers of further delays to 737 Max deliveries, with timelines slipping by three to six months.
This comes after the US Federal Aviation Administration – which regulates civil aviation in the country and surrounding international waters – said it will not allow Boeing to hike output of its narrow-body craft beyond a 38-jet monthly pace.
The manufacturer will have to convince the federal agency that quality controls are in place, and its supply chain can keep pace. BLOOMBERG
