Planemaker Nets Deals for 737s, 777 Freighters

There's no denying this week has been a profitable one for The Boeing Company. On the heels of big 787 orders from Virgin Atlantic and Air Canada -- and a mix of 737 and 787 orders from Aviation Capital Group -- Boeing announced two 10-plane deals for its 737-800 airliner Thursday, as well as an order for six 777 Freighters.

Startup Indian carrier SpiceJet and Russia's S7 Group each ordered 10 737-800s, in deals valued at roughly $705 million apiece at list prices. It was the third order for the 737 from SpiceJet in as many years.

"The 737's reliability, low operating cost and passenger comfort provide unmatched value for both SpiceJet and its customers," said SpiceJet board director Bhulo Kansagra. "These aircraft are enabling us to add capacity on new and existing routes, and will continue to support SpiceJet's mission of being India's preferred low-cost airline."

Moscow-based S7 Group will operate the aircraft through S7 Charter, a newly-established charter airline that will use its 737-800s on routes connecting Moscow to numerous popular resort destinations outside of Russia.

"We thoroughly analyzed all aircraft currently available in the market before making our final decision," said Vladislav Filev, chief executive officer of S7 Airlines. "As a result, we chose the Next Generation Boeing 737-800, which we believe is the best aircraft of its class, is known for its reliability and fuel-efficiency, and which perfectly fits the S7 routes."

The Boeing 737-800 is the best-selling version of the highly successful Next-Generation 737 family, the most technologically advanced airplanes in the single-aisle market. The Next-Generation 737's market success has been confirmed by investors who consistently rank it as the most preferred single-aisle airplane due to its wide market base, superior performance efficiency and lowest operating costs in its class.

As of March 31, Boeing has logged 104 customers for the Next Generation 737 family, who have placed orders for more than 3,700 planes. The planemaker has more than 1,500 unfilled 737 orders on the books, with a value of more than $100 billion at current list prices.

Further up the Boeing model chain, private equity firm Oak Hill Capital Partners announced an order for six Boeing 777 Freighters, valued at about $1.4 billion list. The six-airplane order brings Boeing's total for the twin-engine freighter to 71 airplanes from 10 customers since its launch in May 2005.

"This is a great opportunity for us to work with the excellent team at Oak Hill Capital Partners as our newest 777 customer," said Ray Conner, vice president, Sales - Boeing Commercial Airplanes. "Oak Hill is well positioned to help in expanding the customer base for the 777 Freighter by allowing operators to experience the superior economics and reliability for which the 777 family is known."

The 777 Freighter is based on the long-legged 777-200LR Worldliner passenger airplane. The twin-engine cargo airplane provides revenue payload capability of 229,000 pounds (104 tonnes) with a range of 4,885 nautical miles (9,047 km), and the lowest trip cost of any large freighter.

FMI: www.boeing.com, www.spicejet.com, www.s7.ru/en, www.oakhillcapital.com/