The largest order at the show came from VietJetAir, which placed a firm order for 63 of Airbus’s A320 single-aisle plane and took purchase rights on 30 more. VietJetAir will also lease 8 more of the planes bringing the total to 101. At list prices, the 63 A320s would cost nearly $6.5 billion.
Boeing’s largest order came from Thailand’s Nok Air. The carrier committed to order 8 of Boeing’s Next Generation 737s and seven 737 MAXes. That deal is worth $1.45 billion at list prices
Prior to the start of the airshow, Boeing showed net orders for 2014 of just 35. Only one of those orders was for a 787 Dreamliner. Four more were orders for the 777. The remaining 30 orders were for various models of its Boeing 737.
Boeing also got some bad news on the military side of its business last week. The U.S. Navy has omitted funding for additional F/A-18E/F Super Hornets or EA-18G Growlers from its fiscal year 2015 budget. The company is going directly to members of Congress seeking to override the Navy’s decision. A Reuters report says that Navy officials would like to keep the planes, but budget pressures are forcing the move. If nothing is done, Boeing’s St. Louis assembly plant would likely close, costing most of the more than 15,000 Boeing employees in Missouri their jobs.
There’s still time for the Singapore Airshow to deliver a big order for either Boeing or Airbus, but it does not look likely to happen. What’s so odd is that growth in Asian air traffic is what these companies are banking on to fuel revenues and profits over the next 20 years. The Asian air carriers had better start doing their part.
Since setting a new 52-week high on January 22, Boeing stock has dropped nearly 8%. This might signal a buying opportunity, or it might signal some caution on the part of investors. After all, the company’s 787 Dreamliner continues to cause problems for its owners, and new customers are not exactly lining up to pay $85 million apiece for the problem-riddled aircraft.
Boeing stock closed at $130.16 on Friday in a 52-week range of $74.27 to $144.57.
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