Boeing logs big order from Southwest

Boeing logs big order from Southwest

(Reuters) - Boeing Co bagged a initial organisation sequence for a new 737 MAX fuel-efficient, narrowbody plane, as partial of a $19 billion understanding with Southwest Airlines that a jet builder calls a largest sequence ever.

The sequence for 208 narrowbody planes includes 150 MAX aircraft and puts Southwest, a constant Boeing customer, initial in line to take smoothness of a arriving revamp of a best-selling 737, that will underline a new energy-efficient engine.

The sequence reflects clever direct for fuel-efficient planes as a airline attention struggles to miscarry from a unpleasant downturn and cope with flighty oil prices. The Southwest understanding is also one of a final vital aircraft orders adult for grabs from U.S. carriers looking to reinstate aging models.

"It's been a unequivocally good year for orders, unequivocally driven by a re-engined platforms for Airbus and Boeing," pronounced Peter Arment, an aerospace and invulnerability researcher with Sterne, Agee & Leach. "We do design that to continue in 2012."

He pronounced Boeing would expected hoard some-more orders for a 737 MAX from existent customers, and remarkable a association was now competing with arch opposition Airbus for an sequence from United Continental Holdings , a world's largest carrier.

Delta Air Lines systematic 737-900ER 100 Next-Generation extended-range 737 planes in August, following a hulk sequence in Jul from now-bankrupt American Airlines for 460 single-aisle jets value adult to $40 billion, an sequence Boeing separate with Airbus.

The MAX orders, total with a clever existent reserve for other 737 models, will concede Boeing to lift prolongation rates to record levels on one of a many essential craft programs, Arment said.

"Longer term, it's going to assistance beget some additional gain energy for a company," Arment added.

MORE ORDERS EXPECTED

Boeing reported commitments for 948 MAX airplanes and pronounced a figure could stand to 1,500 by a finish of subsequent year. It pronounced a Southwest understanding was a largest organisation sequence ever in dollar value and a series of airplanes.

"It truly is Christmas come early for a Boeing Co," Jim Albaugh, Boeing's arch executive for blurb planes, told a press lecture hold in Dallas on Tuesday to announce a Southwest order.

Southwest also pronounced it will buy 58 737 Next-Generation aircraft. The normal bonus conduit has a swift of 699 planes, including 88 Boeing 717s acquired when it bought AirTran this year.

The planemaker pronounced a MAX, that is competing with Airbus's re-engined A320neo family, cuts fuel bake by an additional 10 percent to 12 percent over stream single-aisle airplanes. CFM International, a corner try between General Electric Co and France's Safran , is providing a MAX engines.

Boeing on Tuesday also announced initial list prices for a 737 MAX aircraft. The 737 MAX 8 will sell for a catalog cost of $95.2 million, Boeing pronounced on a website, while a incomparable 737 MAX 9 will sell for $101.7 million.

Shares of Boeing were adult 1.1 percent to $71.71 in New York Stock Exchange trading.

(Reporting by Kyle Peterson in Chicago, Karen Jacobs in Atlanta and Bijoy Koyitty in Bangalore; Editing by Derek Caney and John Wallace)

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