The commercial airline producer The Boeing Co. (BA) received orders, amounting to $2.5 billion, for 19 airplanes from Air Lease Corporation (AL). The order comprises 14 Next-Generation 737-800s and 5 777-300ER (extended range) airplanes, both regarded as Boeing's two best-selling models.
Orders seem to flow freely for Boeing's commercial airplanes. Last week, Boeing received orders, amounting to $5.6 billion, for 20 airplanes of its 777 model from 2 airliners.
The 737 model, along with the 777 version, continues to be major pillars of Boeing's strength in the commercial airplane sector. Both these models continue to do well due to their fuel efficiency and lower operating costs compared to competing models.
Air Lease Corporation has already ordered 54 Next-Generation 737-800s in September 2010 and another 6 Next-Generation 737-800s in June 2011. This new order takes the total backlog to 79 aircrafts. The company is also into talks to purchase 4 787-9 Dreamliners from Boeing.
Boeing received 364 gross orders for new airplanes as of August 10, 2011, of which 67%, or 244 airplanes, were for 737 while 27.5%, or 100 airplanes, was claimed by the 777 model.
Boeing competes with Airbus for supremacy in the international commercial airplane market. In July 2011, Airbus received orders for 145 jetliners and delivered 40 airliners to its consumers, while Boeing lagged a little with orders for 115 airliners and delivery of 38 airplanes.
Boeing expects total revenue for 2011 in the range of $68–$71 billion out of which more than 50% or $36–$38 billion is expected to come from the commercial airplane segment. We nevertheless believe that Boeing's performance in the commercial segment is to some extent hampered by the delay in its delivery of 787 airplanes, forcing the company to lower its delivery guidance for 2011.
Chicago-based Boeing Co. has a Zacks #3 Rank, which translates into a short-term Hold rating. Boeing’s peers, across diverse niches, are General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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