2 Boeing Best Sellers That Keep Creating History

Aircraft manufacturer Boeing (NYSE: BA  ) has more than 12,000 commercial planes in service carrying passengers and cargo. Its strong product portfolio includes the 737 family, 747 jumbo jet, the 747-8 family, 767 models, the 777, and the 787 Dreamliner. Here's the lowdown on Boeing's top two aircraft that played a huge role in making the company what it is today.

The narrow-body 737
The fact that the 737 family is Boeing Commercial Airplanes' highest-selling plane should come as no surprise. But not many know that the 737 is the first commercial jetliner to cross the 10,000-order mark -- achieved in 2012. The first 737-100 was delivered to Lufthansa in 1967, and it entered full service in 1968.   

Boeing 737, Source: The Motley Fool

Boeing is currently working on the 737 Max, the reengineered version of the 737, which has firm orders for more than 2,100 units, and is due to enter service in 2017. As seen in the chart below, the 737 forms the lion's share of the jet maker's total commercial deliveries. During the past 12 years (2002-2013), the company dispatched 3,707 of these jets. In 2002, 737s accounted for 60% of the total deliveries, which went up to 81% in 2010. Last year, the narrow-body jet formed 69% of the total dispatches.

737 airplane deliveries over past 12 years. Chart made by author.

Boeing's backlog ended June 30 stands at 5,237, of which every three of four aircraft orders are for the 737. According to Boeing's website, it received gross orders for 604 of the jets through July 22, 2014, which tallies net orders at 550, adjusted for 54 cancellations. To manage the mounting 737 backlog and ensure timely delivery, the production level has been ramped up from 38 jets a month to 42, and will be further increased to 47 a month in 2017. At current production rates, Boeing's single-aisle backlog translates to more than seven years of production. Serving passengers for more than four decades, the jet's order flow remains steady, with a seemingly bright future.

Boeing forecasts that demand for new planes between 2014 and 2033 will be 36,770, and 70% of this will be for single-aisle jets. So, 737 will get its fair share of orders, continuing to support the company's top- and bottom-line growth.

The wide-body 777
The 777, Boeing's second-highest-selling jetliner in the past 12 years, is extremely popular among airlines across the globe. The twin-engine, wide-body aircraft has five passenger versions (accommodating between 305 and 440 passengers), and a freighter variant. The 777 program's roots go back to 1990, the year of its launch. The jet entered service in 1995, flown by United Airlines

777 airplane deliveries during past 12 years. Chart made by author.

At present, the American aero major is developing 777's successor, dubbed the 777X, which would consume 12% less fuel compared with competing planes. The company is scheduled to commence 777X production in 2017, with its first delivery slated for 2020.

The chart above shows that Boeing sold 778 of the 777s in the past 12 years. In 2007, the 777 formed 19% of the total deliveries, but 2013 was best in terms of volume, with 89 deliveries.

The 777 has a firm backlog for 339 jets as of June 30. And in early July, Boeing bagged a historic order win worth $56 billion to deliver 150 of the 777X to Emirates. The company's website shows that the jet maker received net orders for 219 777s in 2014 through July 22, which includes the Emirates' order. At the current production level of 8.3 a month, the 777 backlog will clear in more than three years, and Boeing is expecting to make a smooth transition to the 777X.

British Airways Boeing 777-200, Source: Wikimedia Commons.

Boeing CEO Jim McNerney is confident of filling the gap, as delivery slots are packed till 2017. Marketing vice president Randy Tinseth said, "There's no question it will be a challenge -- we have three years of production [to fill] and we have six years to do it." The 777 is one of the strongest products in Boeing's portfolio. With the 777X, the company's dominance in the wide-body segment is poised to be further cemented.

The crux
The 737 and 777 respectively embody the company's success in the narrow-body segment and its supremacy in the wide-body space. With the reengineered versions of the two aircraft, Boeing is solidifying its competitive edge. Though developmental risks are unpredictable, the fact that the newest editions are updated variations of the existing models minimizes pitfalls. These two best sellers have been Boeing's trump cards, and will continue to take the aero major to newer heights.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (6) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 16, 2014, at 6:09 PM, fpl1954 wrote:

    I find it interesting that Airbus tries to out-Boeing Boeing, and you read all these articles about how Airbuss has sold X number of 737 clones, or is improving their 777 clone. Boeing can do that two, and if they both keep rehashing the same SOS, they will end up making identical planes for identical prices and 50% of the market each.

    What we need is an all new concept, a "Tesla" from someone. Boeing would be great, but I think they are focused on increasing profits from the SOS.

    One of these days some mfr, probably Chinese, will address the shortcomings of all these planes, which are well known, obvious, and ignored by the only company that can change them.

    It's like what Apple did to Nokia. Apple didn't introduce a better Nokia and steal customers away. Apple introduced a new paradigm for phones, and created new customers. Nokia users were among the last to join the new market Apple created.

    Nokia had no response other than try to copy Apple. Guaranteed Apple came up with the Iphone by simly asking people what they wanted. Guaranteed all the Nokia shortcomings were well known to the users. All Nokia needed to do was listen, and respond, and we all be carrying N-phones.

  • Report this Comment On August 16, 2014, at 7:33 PM, tonyatn wrote:

    So what. If the SERVICE is bad and they treat you like sardines in a can, I don't care what kind of "aircraft body" I am in.

  • Report this Comment On August 16, 2014, at 11:19 PM, sabebrush6 wrote:

    Boeing builds great airplanes. My motto is: If it ain't Boeing, I ain't going.

  • Report this Comment On August 17, 2014, at 1:43 AM, mememe wrote:

    Boeing tried a "Tesla" in the mid to late 90's. It was called the Sonic Cruiser, no one wanted it after they found out how much it would cost. Flying at .86 Mach was good enough for the cattle in back. The 787 was developed in response to what the market really wanted.

  • Report this Comment On August 17, 2014, at 5:21 AM, Tyeward wrote:

    I´m not totally sold on the whole claim of the 737. Yes it´s the best selling aircraft combined but we need to get real with it. It´s not the same aircraft that it used to be. The only thing that´s the same on this generation of 737´s that´s across the board is that it has the same cross section. That´s actually not a bad thing. The problem with the 737 is that it´s idea has to be revamped a bit. Boeing really needs a 757 replacement and I think the 737 would fit that niche if they were to just stretch the -9 a little bit more and give it a formidable range to be able to do transatlantic thin routes without any problems. If Boeing is really wanting to hit Airbus where it would really hurt, that´s should be it´s market target. A 737 with the same tech that went into the 787 capable of ORD-LHR for instance would be worth the investment. Airlines would flock to that product without hesitation.

  • Report this Comment On August 17, 2014, at 1:23 PM, DRayZ wrote:

    The 737 and 777 have been innovative all through their product life and have adapted well to changing customer requirements. But, if the A380 continues it's 'success' as the AirBus flagship model, Boeing might not have much to worry about.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3069361, ~/Articles/ArticleHandler.aspx, 9/4/2015 12:07:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

ICRA Online

ICRA Online provides data, research, and analytics solutions. Our research team of accountants, management graduates, and media specialists, does in-depth company analyses, going beyond news, and diving deep into numbers. We write on industrial sectors like automotive, aerospace, and machinery, making it our business to take a 360 degree view of every company we cover.

Today's Market

updated 2 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:05 PM
BA $131.02 Up +0.39 +0.30%
The Boeing Company CAPS Rating: ****