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.