Boeing and Airbus announced a full roster of big orders at Farnborough on Tuesday. Brazil's Embraer unveiled some impressive letters of intent as well.
These are some of the big transactions announced Tuesday at the Farnborough Air Show outside London:
* Airbus SE agreed to sell 60 A220-300 jets valued at $5.4 billion to a startup U.S. airline backed by JetBlue Airways founder David Neeleman, bolstering the aircraft’s prospects less than a month after the planemaker took control of it. Deliveries will start in 2021, Airbus said. It’s the second major commitment for the A220 in a week, following an order of similar size with JetBlue itself. The value is based on list price, before customary discounts. Neeleman said in a statement that “after years of U.S. airline consolidation, the conditions are improving for a new generation of U.S. airline to emerge, focused on passenger service and satisfaction…The A220 will enable us to serve thinner routes in comfort without compromising cost, especially on longer-range missions.”
* Air Lease Corp. announced orders and commitments for up to 78 Boeing airplanes, including 75 737 MAX 8s and three 787-9 Dreamliners. Valued at $9.6 billion at current list prices, the agreement would grow ALC’s 737 MAX portfolio to 213 jets. BOeing and Air Lease said the three 787-9s and the first 20 737 MAX airplanes of the order are firm purchases, while the subsequent 55 737 MAXs are commitments.
*Russian air freight company Volga-Dnepr Group and affilated U.K. company CargoLogicHolding signed a letter of intent to acquire 29 Boeing 777 Freighters and confirmed an order for five Boeing 747-8 jumbo jet freighters. All those 777F orders are particularly significant because they help sustain production of the 777 line in Everett ahead of the ramp up of the forthcoming 777X.
* Boeing and lessor Aviation Capital Group announced an order for 20 737 MAX 8 airplanes, valued at $2.34 billion at list prices. The agreement means ACG has now ordered 100 of the planes. “The 737 MAX is core to our strategic growth plans, as the airplane continues to command strong interest in the marketplace,” said Khanh T. Tran, CEO of ACG. “This order expands our diverse portfolio, which includes three 737 MAX variants, providing us with more flexibility and some of the most advanced single-aisle jets to serve our customers.”
* GE Capital Aviation Services (GECAS) agreed to buy up to 35 additional 737-800 Boeing Converted Freighters to serve the express air cargo market The deal includes 20 firm orders and an option for 15 more. Together they would bring GECAS’ 737-800BCF order book to 50 planes.
* Meanwhile Embraer, which is working on a slowly developing joint-venture deal with Boeing, announced potential deals potentially worth $15 billion, according to the FlightGlobal industry website. The agreements for its E-Jet E1 and E2 families of aircraft include letters of intent for orders from Azul (21 E195-E2s), Republic Airways Holdings (100 E175s with an additional 100 purchase rights) and Wataniya Airways (10 E195-E2s with 10 purchase rights), FlightGlobal reported.
Besides the deals, the air show is an opportunity for the aerospace giants to showcase their work.
Information from Bloomberg News is included in this report.