In an announcement released early Thursday morning, Boeing Co. (NYSE: BA) said that Singapore Airlines has committed to purchasing 20 777-9s and 19 787-10 Dreamliners in addition to the airline’s previous order for 30 787-10s. At list prices, the new commitment is valued at $13.8 billion.
Singapore Airlines is the launch customer for the 787-10, the largest version of Boeing’s 787 family, and the 40 copies the airline has ordered have a list price value of $15 billion. First delivery of the 787-10 is scheduled for next year.
At a list price of $306.1 million, the 787-10 is the most expensive in the Dreamliner family. In a two-class configuration, the plane carries 330 passengers on flights of up to 6,430 nautical miles (about 7,400 statute miles).
When the new order is finalized, the company will add it to its order book. Boeing has taken 149 orders for the plane as of the end of December, not including the 19 planes in the latest order. Of 1,200 total orders for the three aircraft in the 787 family, Boeing’s backlog totaled 700.
The slowdown in the market for dual-aisle jets has led to increased competition between Boeing and Airbus for that piece of the market. Low fuel prices combined with a large number of the big planes coming off leases have glutted the market for older planes that can be purchased for far less.
The 20 777-9s included in Thursday’s announcement cost $400 million apiece and are the most expensive airplane on Boeing’s price list. In its order book the company does not distinguish among the three models in its new 777X family and reports a total of 306 orders, of which nearly half (150) came from a single customer, Emirates Airways.
Boeing’s generated a total return of 11.3% in 2016 and has added another 5.2% in 2017 as of last night’s close. The stock closed down about 0.8% at $163.81 and is inactive so far in Thursday’s premarket session. The 52-week range is $102.10 to $170.00, and the consensus 12-month price target is $171.70.
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