Boeing’s Largest Order Ever Comes From Indonesian Airline
Boeing Co (NYSE:BA) secured a bumper order from Indonesian budget airline PT Lion Mentari Airlines for 230 aircraft valued about $22.4 billion at the Singapore Airshow.
The order, Boeing’s largest ever, includes 201 aircraft of the in-development model 737 MAX and 29 of the extended range 737-900. The order also includes 150 options. Lion Air’s President Director, Rusdi Kirana, said that export-credit agency financing, bank loans and sale-leaseback deals would be utilized to fund the purchase. The fast-growing and profitable airline may also float an IPO once its market share grows to 60 percent from the current 51 percent. The airline carried an estimated 27 million passengers last year, a growth of 30 percent.
Airlines are ordering more of the 737 MAX aircraft because of its fuel economy and reduced carbon emissions. The plane enters service in 2017 and will use engines made by CFM International, a JV between GE (NYSE:GE) and Safran SA.
Airbus won an order for 35 A320neo aircraft from a Kuwaiti company. Chinese aircraft maker, Commercial Aircraft Corp. announced that it had received orders for 20 of its C919 plane from a leasing unit of Bank of China Ltd.
Here’s how shares of Boeing are trading now:
Boeing Co. (NYSE:BA): BA shares recently traded at $75.11, up $0.26, or 0.35%. They have traded in a 52-week range of $56.01 to $80.65. Volume today was 1,260,609 shares versus a 3-month average volume of 5,257,320 shares. The company’s trailing P/E is 14.12, while trailing earnings are $5.34 per share.
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