-Air Lease Corp. orders 75 Boeing 737 Max Plains
-Other Lessor Companies expected to sign 737 Max deals
-Boeing plans to build larger version of 787 Dreamliner in South
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By DANIEL MICHAELS And JON OSTROWER
FARNBOROUGH, England-Boeing Co. (BA) Monday said it had an order
from Air Lease Corp. (AL) for 75 737 Max aircraft with a list value
of $7.2 billion, the first major deal at the start of Europe's big
air show.
Boeing is expected to win orders from at least two leasing
companies that should help the U.S. plane maker consolidate its
lead in orders over rival Airbus this year.
Boeing is also prepared to assemble the larger version of its
787 Dreamliner, which is being showcased at the Farnborough
International Air Show this week, at the second production facility
it has set up in South Carolina, a senior industry executive said
Monday.
Air Lease Corp.'s Chief Executive Steve Udvar-Hazy said Boeing
told him the 787-9 version of the Dreamliner that the aircraft
leasing company has ordered could be made at the North Charleston
factory that has just started producing the smaller 787-8
version.
Producing the 787-9 in South Carolina as well as its main
factory near Seattle would give Boeing more flexibility as it looks
to boost production to its target of 10 planes a month by the end
of next year from its current level of 3.5.
Mr. Udvar-Házy's comments came as Air Lease announced the firm
order for 75 of the new Boeing 737 Max, a deal that could be
expanded to as many as 100 aircraft.
Air Lease said it expected to take the first of the new planes
in 2018, a year after launch customer Southwest Airlines Co. (LUV)
is due to receive the plane.
Rival Airbus also is expected to announce deals at the air show
this week, including its first-ever order from an Israeli airline,
people familiar with the negotiations said.
Kuwait-based Aviation Lease & Finance Co. also is in talks
for the Boeing model, but an order may not be announced at the
Farnborough show, which began Monday near London. Executives at the
company weren't available for comment.
United Continental Holdings Inc. (UAL)in coming days could
confirm a long-expected order for 100 of the 737 Max and options to
buy 100 more, although its announcement is unlikely to occur at the
show, the people said. An airline spokesman declined to
comment.
The 737 Max would revise a Boeing's popular single-aisle model,
which already has been updated several times. Boeing is trying to
catch up with Europe's Airbus, which last year far outpaced Boeing
with orders for an update of its competing A320. The update, dubbed
the A320neo, has garnered more than 1,400 orders, while the 737 Max
has received fewer than 500.
Airbus, meanwhile, is completing deals that could double its
number of airplane orders this year when they are disclosed at the
air show this week, people familiar with the negotiations said.
Among contracts that the unit of European Aeronautic Defence
& Space Co. (EAD.FR) hopes to unveil in coming days is its
first from an Israeli carrier.
Arkia Israel Airlines Ltd. is in final talks for Airbus
A320-family single-aisle airliners, these people said.
An Airbus deal with Arkia would break a long-standing lock that
Boeing has had on the Israeli passenger-jet market. Israel's
national airline, El Al Israel Airlines Ltd. several years ago
placed an order with Airbus planes, but the contract was later
annulled by the government. Arkia executives couldn't be
reached.
An Airbus spokesman declined to comment about possible
orders.
Airbus also could disclose at the show its first order from
UTAir Group for A320-family planes. The Siberian carrier has been a
Boeing customer and last year ordered 40 Boeing 737s. UTAir
executives weren't available for comment.
Airbus hopes to disclose other orders this week, including one
from Philippine Airlines Inc. to increase its fleet of Airbus A330
long-range planes. The carrier didn't respond to a request for
comment.
Cathay Pacific Airways Ltd. (0293.HK) looks set to increase its
order for Airbus's planned A350 model with an order for the large
A350-1000 version. An A350 order from the Hong Kong carrier could
put Airbus in the black on the model for the year.
Airlines through June canceled seven more orders for the plane
than they had placed. Cathay already has 36 of the smaller A350-900
model on order.
The possible orders could top 200 planes, according one of the
people familiar with the negotiations.
Airbus through June had firm orders for 230 planes this year,
after cancellations. Boeing, in comparison, had 440 orders net of
cancellations through June 30. Airbus last year posted a record
1,419 net orders and company executives have said they expect fewer
this year.
A person familiar with Airbus's plans said it remained unclear
how many of the possible orders will be announced during the air
show.
Write to Daniel Michaels at daniel.michaels@wsj.com