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Wed, Nov 10, 2010

Boeing Firms Orders For 31 737-800s A Dozen 777s, And Eight Dreamliners

SpiceJet, Midwest Airlines (Cairo), Saudi Arabian Airlines All In Line New Planes

It would appear that Boeing's decision to ramp up the production line on single aisle airplanes was pretty much on target. The planemaker has seen a pretty steady number of orders coming in for its 737, and recently firmed up 31 more orders for the aircraft.


SpiceJet 737-800

The bulk of those came from Indian budget carrier, SpiceJet, which announced an order for 30 Next-Generation 737-800s with winglets in the presence of U.S. President Obama late last week. 

Valued at about $2.3 billion at list prices, SpiceJet had declared its intent to purchase Boeing's Next-Generation 737-800 in July this year. This order was previously attributed to an unidentified customer on Boeing's orders and deliveries website. SpiceJet currently operates a fleet of 24 Boeing 737-800s and 737-900ERs (extended range).

"SpiceJet is already operating a sizable fleet of 737-800s and 737-900ERs and the new order underscores the airline's confidence in the airplane," said Dinesh Keskar, vice president of Boeing International and president of Boeing India.

"The aviation sector in India is recovering and business and leisure travel is on the rise. With the addition of the new 737s, it will help us expand SpiceJet's domestic network as well as support the launch of our international destinations," said Neil Mills, chief executive officer, SpiceJet.

On Monday, Cairo-based Midwest Airlines announced an order for one Next-Generation 737-800, which was also previously was attributed to an unidentified customer on Boeing's orders and deliveries website.

The order was announced at the AVEX International Airshow. Midwest Airlines, a charter operator, currently operates two leased 737-800s, with a third scheduled for delivery in early 2011.

“Our decision to further expand our fleet of 737s is based on the airplane’s proven efficiencies,” said Magdeldin Refaat, general manager, Midwest Airlines. “The 737-800 is ideally suited to our operational requirements allowing us to connect markets in Northern Europe to upper Egypt all year round without payload restrictions. Additionally, the 737 gives us a competitive edge in the charter market with the lowest seat-mile cost compared to similar airplanes."


Saudi Arabian Airlines 777-300ER

A third previously-unannounced mid-east carrier firmed up an order for a dozen larger planes. Saudi Arabian Airlines announced an order for 12 Boeing 777-300ERs (extended range), with an option for 10 more, valued at $3.3 billion at average list prices. Saudi Arabian Airlines also said it will buy eight Boeing 787 Dreamliners for its long haul fleet. The airline completed an arrangement with Boeing and Kuwait-based leasing company ALAFCO to transfer orders for the eight Dreamliners from ALAFCO to Saudi Arabian Airlines.

The 777-300ER is the world's largest long-range twin-engine jetliner, and is capable of carrying up to 365 passengers up to 7,930 nautical miles (14,685 km). Saudi Arabian currently owns and operates 23 Boeing 777-200ERs.

"Our decision to order the 777-300ER is part of a long-term growth strategy to expand and modernize our fleet with newer, more fuel-efficient airplanes, and is based on the airplane's proven efficiencies," said H.E. Eng. Khaled Al-Mulhim, director general of Saudi Arabian Airlines. "We see direct benefit because of the 777-300ER's improved fuel efficiency, seat-mile costs and the economics of operating a twin-engine airplane over long distances."

Saudi Arabian Airlines took delivery of its first 777, a 777-200ER in December 1997 and since then has deployed the 777 on a number of short-, medium- and long-haul routes.

"Saudi Arabian Airlines is one of Boeing's very first customers in the Middle East, with a relationship that goes back several decades," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. "In fact, in 1961 Boeing was privileged to have witnessed Saudi Arabia's entry into the jet age with a Boeing 707 when it became the first in the Middle East to operate a jet airplane. Today's order is yet another milestone in our relationship and is also a powerful endorsement of 777, which is one of our most successful airplanes to date."

FMI: www.boeing.com

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