Boeing nabs a nearly $1B order, signaling a strong global economy

By TransportationFOXBusiness

U.S. aircraft manufacturer Boeing (NYSE:BA) announced Tuesday at the Singapore Airshow it received nearly $1 billion in services orders.

“Predicted growth for aerospace services in the Asia Pacific brings opportunities to partner with local industry to understand the region’s greatest needs, invest in new capabilities to meet those needs, and then bring them to market quickly,” Boeing Global Services President and CEO Stan Deal said in a statement.

Continue Reading Below

The orders, which come after the Chicago-based company said it delivered a record number of planes last year amid a strong period of growth within the industry, stretch across the division’s four “capability areas,” which include parts, engineering, modifications and maintenance, digital aviation and analytics as well as training and professional services.

Multiple airlines from the Asia Pacific market, which is driving the aerospace cycle with more than 10% growth, are involved in the deal.

Some of the contacts signed include:

All Nippon Airways — Signed a deal for 36 landing gear exchanges for the 787 Dreamliner.

Malaysia Airlines — Signed an agreement for 48 landing gear exchanges for the Next-Generation 737. Operators will receive an overhauled and certified landing gear from an exchange pool maintained by the plane maker, stocked components and supporting parts will ship within 24 hours, Boeing said.

Nippon Cargo Airlines — Signed a five-year deal to renew Boeing unit Jeppesen’s charting and electronic flight bag services across its 747 fleet. Boeing purchased the navigation information company in 2000 from Tribune for $1.5 billion in cash.

Singapore’s Defense Science and Technology Agency — Agreed to engage in collaborative research and experimentation activities, powered by Boeing AnalytX.

More from FOX Business

Boeing also announced agreements with non-Asia Pacific companies on Tuesday, some of which include:

Alaska Airlines — Signed a deal to renew Jeppesen Flight Planning for its fleet of 737 jets.

Honeywell Aerospace — Inked a contract extending Aviall’s product support agreement as the exclusive distributor for Honeywell Aerospace through 2022. This covers interior and exterior lighting equipment for all commercial aftermarket product sales, including indicators, annunciators and other components used on commercial aircraft.

Lufthansa Group — Ordered 25 landing gear exchanges and overhauls across its 777-200F and 777-300ER fleets for AeroLogic, Lufthansa Cargo and Swiss International Airlines. Boeing said this will eliminate the need for operators to contract, schedule and manage the overhaul process.

Cargo airline DHL also ordered one 767-300ER converted freighter.

Boeing stock is up nearly 12% this year.

Continue Reading Below

What do you think?

Click the button below to comment on this article.