The Boeing Company (BA) received a whopping $3.6 billion order from Air Europa, a Spanish carrier, for 14 units of 787-9 Dreamliners. This is one of the largest orders received by Boeing for a widebody jet from a Spanish carrier.
Booked in Dec 2014, Air Europa expects deliveries to begin as early as 2016. This will allow the Spanish carrier to increase its number of flights and destinations by about 50%.
Including the latest order, Air Europa's fleet will comprise a total of 22 787-8s and 787-9s. The airliner is presently transitioning to a long-haul fleet of exclusive Boeing aircraft.
The 787-9 is the next generation of the flagship Dreamliner. Compared to its predecessor, the new model has an extended fuselage structure, which enables it to carry 280 passengers over a distance of 8,300 nautical miles. Other benefits of the 787-9 include fuel efficiency and lower emissions. It burns 20% less fuel, resulting in an exceptional environment-friendly performance. It incorporates the design of the 787-8 model, while boasting of features like modern LED lighting, large windows, lower cabin altitude and cleaner air, thus enhancing passenger comfort.
In the race for supremacy in the commercial skies, this North American jet plane maker has surpassed its European rival Airbus in 2014 for the third consecutive year as the final delivery numbers are now in for the year. In the commercial business, Boeing reported record deliveries of 723 planes in 2014, about 11.6% higher than the year-ago figure (read: Boeing Commercial Delivery Track Record Spotless in 2014).
However, Airbus came out ahead on orders, signing a net 1,456 contracts versus 1,432 for Boeing. This can be attributed to the glitches Boeing faced with its much-hyped Dreamliner. Last year, Boeing lost the $14 billion Delta order to Airbus. Delta Air Lines Co. (DAL) was looking to replace its Boeing 747-400s and 767-300s aircraft but Boeing was unable to make an early delivery of its 787 fleet. As a result, Delta Air Lines placed orders for 50 dual-aisle wide-body jets to Airbus, which included 25 A350-900s and 25 A330-900neos.
Commercial airplane demand on the whole is expected to surge owing to rising passenger traffic from Asia-Pacific. According to the International Air Transport Association, global air traffic is expected to rise about 7% in 2015 as compared to 2014, which will lead to increased demand for Boeing airplanes.
Boeing currently has a Zacks Rank #2 (Buy). Equally well-placed stocks in the same sector include General Dynamics Corp. (GD) and Northrop Grumman Corporation (NOC).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment