Boeing’s Biggest Contract Surpassed

Bigger, Better Deal

Only days after closing its biggest deal in its history, Boeing Aircraft Company announced that an even bigger deal has been signed with a different air carrier.

Lion Air Sets Record for Boeing

Last Thursday Boeing announced that it had received an order from Lion Air, a private carrier based in Indonesia, for 230 aircraft. Included in this order are 201 redesigned Boeing 737 “MAX” planes and an additional 29 long-range 737s.

White House Announced Deal

The deal was announced by the White House during President Obama’s executive visit to Bali in Indonesia last week.

Discounted Prices Likely

The list price for the planes is about $21.7 billion, and Lion Air requested options for an additional 150 aircraft at a value of $14 billion. Together the deal is worth over $35 billion.
Boeing’s previous record-breaking deal, only a few days older than this new deal, was with Dubai’s Emirates Air, which ordered 50 Boeing 777s worth a total of $18 billion. It is expected that lower than list prices will be paid for the aircraft by both carriers due to the fact that large airlines, because they buy in bulk, can negotiate highly discounted prices.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com