As the Farnborough International Airshow continued today Boeing (NYSE:BA) announced three orders totaling $8.3 billion at list prices, bringing its two-day total to $14.3 billion. However, many customers end up negotiating to pay less than list prices for aircraft. Boeing also revealed a partnership with Africa's largest defense and aerospace business to develop defense initiatives across a variety of international markets.
The biggest announcement from Boeing came when it revealed Air Lease Corporation (NYSE:AL) ordered 26 airplanes valued at $3.9 billion at list prices. The order includes 20 737 MAX airplanes -- valued at $2 billion -- and six 777-300 Extended Range (ER) models for $1.9 billion.
"Additional 777-300ER and 737 MAX airplanes in our portfolio provide the economics and passenger-pleasing experiences our airline customers require," noted the CEO of Air Lease Corporation, Steven Udvar-Hazy, in the announcement. "The 777 has maintained a broad customer base and will continue to do so well into the future. The 737 MAX represents game changing efficiencies and improvements for the environment in the single-aisle market."
Altogether Air Lease Corporation has ordered 104 737 MAX airplanes, and this was the 100th order of 777 models from its CEO. Udvar-Hazy has been in the airline industry since 1973 when he founded the business that became International Lease Finance Corporation.
"We are honored to work with ALC and their excellent record of placing new 777s and 737 MAX airplanes with leading airlines around the world," said Boeing Commercial Airplanes president and CEO Ray Conner.
But the orders didn't stop there as Boeing also revealed leasing and financial firm CIT Group (NYSE:CIT) placed an order for 10 787-9 Dreamliners, valued at $2.5 billion at current list prices. In total, it has placed 20 orders for 787 models, including 16 787-9 models following today's announcement.
"These aircraft will add to our growing fleet of fuel efficient aircraft that remain in high demand from our airline customers ... " said CIT Transportation & International Finance president, Jeff Knittel, in the announcement.
The smallest order -- if you can consider an order with list prices of $1.9 billion small -- for Boeing today came from leasing company Intrepid Aviation. The order is for six 777-300ER models, but it does have the ability to purchase four more 777s, which would bring its total value to $3.2 billion.
This marked the first direct order from Intrepid with Boeing.
Lastly, Boeing announced it and Paramount Group -- the largest privately owned defense and aerospace business in Africa -- agreed to collaborate to provide "aircraft and land systems solutions for customers in Africa and other major markets that face a range of security challenges."
This will encompass a variety of areas including border security, the movement of heavy products and personnel across major distances, coastal security, as well as disaster relief and humanitarian efforts.
"Boeing and Paramount will be able to provide new or existing customers with a unique partnering of defense solutions and capabilities, including the retrofitting or refurbishment of existing platforms, systems integration, as well as training and maintenance support for any new acquisitions," said the president and CEO of Boeing Defense, Space and Security, Chris Chadwick, in the announcement.
Today's announcements marked another significant day for Boeing at the Farnborough Airshow, as yesterday it announced it had received orders with list prices of more than $6 billion.