Boeing Ends Airliner Order Drought as Korean Air Commits to Buy Dreamliners
18 June 2019 - 9:15PM
Dow Jones News
By Robert Wall and Andrew Tangel
LE BOURGET, France--Boeing Co. (BA) on Tuesday secured a
commitment from Korean Air to buy 787 Dreamliners, putting behind
it a two-month airliner-order drought in the wake of the grounding
of its 737 MAX fleet.
Boeing entered the Paris Air Show with a negative 125 net orders
for this year, reflecting light new bookings and a raft of
cancellations, including from India's financially struggling Jet
Airways (India) Ltd (532617.BY). It hadn't any new orders in April
or May.
The biennial Paris Air Show is typically a place for plane
makers to showcase new products and rack up large airliner orders.
But this year Boeing has had to balance that with handling the
aftermath of the two 737 MAX crashes in October and March that
killed a total of 346 people and have idled the fleet world-wide as
it works on a fix.
Boeing said Korean Air would introduce 20 of the largest version
of the Dreamliner, the 787-10, and 10 more slightly smaller 787-9s.
The deal has a value of $6.3 billion before industry-standard
discounts. Some of the planes are being acquired by plane-rental
firm Air Lease Corp. (AL) and placed with the Asian carrier.
Rival Airbus SE (AIR.FR) on Tuesday also continued its order
haul, including for its newly launched A321XLR introduced at the
Paris Air Show on Monday.
Philippine budget carrier Cebu Pacific on Tuesday said it
ordered 10 of the new planes, with first delivery in 2024, along
with 16 A330-900 widebody and five A320neo single-aisle jets.
Saudi Arabian Airlines added to an earlier A320neo deal, taking
as many as 100 of the planes, including 15 A321XLR, Airbus
said.
Write to Robert Wall at robert.wall@wsj.com and Andrew Tangel at
andrew.tangel@wsj.com
(END) Dow Jones Newswires
June 18, 2019 07:00 ET (11:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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