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Boeing's Commercial Order Book Contains a Special Gift From the U.S. Navy

By Rich Smith – Feb 27, 2014 at 1:48PM

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All 16 of the 737 planes ordered this week will go for conversion into Navy P-8A Poseidons.

Boeing (BA -3.60%) on Thursday released its latest report on airplane orders received -- and canceled -- through late February, showing an increase in the latest week.

To date this year, the aerospace giant has booked:

  • 98 "gross" orders for various flavors of its 737 regional airliner.
  • Four orders for the 777 airliner.
  • One 747 order.
  • One 787 order.

No new order cancellations have come in since last week. So after subtracting the (still) 12 orders for single-aisle 737s lost so far this year, Boeing is left with 92 net orders booked to date in 2014 -- 16 more than last week.

The real story here is where those 16 orders for supposedly civilian 737s came from: the U.S. Navy. On Tuesday, the Navy awarded Boeing a contract to supply 16 of the company's new P-8A Poseidon Multimission Maritime Aircraft, a sub-hunting aircraft built upon a 737 fuselage.

These 16 737s, which appeared in the order book for Boeing's commercial airplanes division this week, will in the months to come shift over to the "deliveries" page for the airplane manufacturer's defense, space and security division.

Boeing's P-8A Poseidon. Source: U.S. Navy.


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