Boeing Company (NYSE: BA) announced Friday that Investment 777 Partners, a private investment firm in Miami, has agreed to buy 24,737 MAX 8 aircraft with the option to purchase 60 additional aircraft later.
What happened: Investment 777 Partners is a strategic investor in the aviation industry and plans to lease the 24 aircraft to its partners, including Canadian Flair Airlines, a low-cost passenger carrier.
“The 737-8 aircraft are a fantastic addition to our aviation portfolio and will enable our partners to take advantage of the aircraft’s better economic performance to deliver low fares to their passengers while reducing their carbon footprint,” said Joshua. , founder and managing partner of Investment 777 Partners, said. Wander.
Why it matters: Boeing has struggled to get off the ground after two fatal plane crashes. On March 10, 2019, all 157 people aboard Ethiopian Airlines flight 302 were killed when a Boeing 737 MAX 8 crashed six minutes after takeoff. Five months earlier on October 29, 2018, Lion Air Flight 610 crashed in Indonesia, killing all 189 passengers and crew members.
Following the March 10, 2019 crash, 30 countries banned the use of Boeing’s 737 MAX aircraft. Almost two years later when the restrictions were lifted, American Airlines Group Inc. (NASDAQ: AAL) became the first carrier to fly the 737 MAX when flight 718 departed Miami on December 29, 2020 en route to New York.
The nature cost Boeing and affiliated airlines billions of dollars in lost revenue.
What’s next: Airlines are slowly starting to place orders for Boeing’s 737 MAX aircraft, as bans are slowly being lifted around the world.
Reuters reported on Wednesday that Boeing is approaching a billion dollar deal Southwest Airlines Co (NYSE: LUV) for the purchase of 737 MAX 7 aircraft.
The number of aircraft that Suidwes can order is not clear, but at the time it was the largest order since the lifting of the restrictions.
Boeing believes that the order of Investment 777 Partners shows renewed confidence in it and that the purchase is a turning point for the company.
“777 Partners has earned a reputation for investing in high growth markets and we are delighted to welcome them to the Boeing 737 family,” said Ihssane Mounir, senior vice president of commercial sales and marketing at Boeing. an important order that speaks to 777 Partners’ belief in the 737-8 and the market recovery that lies ahead. ”
(Photo: Boeing)
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