Boeing clinches deal with Qatar for 50 new freighter jets

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Boeing (BA +4.7%) bounces to the top of Monday's Dow Jones leaderboard after confirming Qatar Airways agreed to purchase as many as 50 of its new 777X freighter jets, becoming the first buyer of the future plane.

Qatar Airways said it commits to a firm order for 34 jets with options for 16 more, a total purchase worth more than $20B at current list prices and the largest freighter commitment in Boeing history by value.

The two companies also signed a memorandum of understanding for a firm order of 25 737-10 aircraft and purchase rights for 25 additional airplanes, with a total value of nearly $7B at current list prices.

General Electric (GE +1.9%) also received an order valued at more than $6.8B from Qatar Airways for its GE9X engines.

The announcement was made at a White House event with Boeing's commercial unit chief Stan Deal, Qatar Airways CEO Akbar Al Baker and U.S. Secretary of Commerce Gina Raimondo.

The news of the Qatar deal comes days after Airbus revoked a deal with Qatar for the competing A321neo, as part of an increasingly bitter dispute between the two companies.

Comments

[mk1992]

Looking at the right side column of Related Stocks, all the military industrial stocks are getting sold. What gives? Would have thought they would be going up with Ukraine on all the front pages??? Any thoughts?

[Adambombfx]

@mk1992 Sliver of hope: Kremlin sees a diplomatic path on Ukraine

apnews.com/...

This is why and energy also down today.

[User 48828829]

china certificate and purchase should move the price higher by 5% - 10%

230 per share this year ?

[montauk77]

@blue_angels When will news announce?

[Iflyvolaris]

Really good news for BA's freighter prospects against the A350. COVID has certainly shifted the balance of air traffic in the direction of pure freight. At least some of this shift is likely permanent with changes in business practices.

Getting Qatar to also buy in on the 737 was good as well although these are "provisional orders" whatever that means?

[mk1992]

@Iflyvolaris 737 MAX - 25 firm orders with option to take another 25.

[kevinconnolly]

Life is a marathon-------baby steps, to walking to jogging to running. And yes the arrogance and pettiness and stupidity took down Boeing for a few years-------hopefully these "Big Machers"--------know the score and wake up. Long BA !!

[ILikeTreez]

Glad for GE, but the last sentence gave me concern.

It mentioned an "increasingly bitter dispute" between Airbus and Boeing apparently as a result of this transaction. That could become more worrisome until some issues are addressed between these two giants.

[vavemula]

@jeffreyzinkan dispute between Qatar and airbus not between boeing

[ILikeTreez]

@vavemula I read it differently. Don't think Qatar is a company. The link gives me the impression that Boeing and Airbus are at odds over the Qatar deal and that the "increasingly bitter dispute" is between those two companies - perhaps over other deals as well. Admittedly, I don't follow this issue that closely.

[mk1992]

@jeffreyzinkan Just google Qatar Airbus cancelled orders. Boeing has nothing to do with the spat.

[Adambombfx]

BA LONG !

[Jacobin777]

Boeing losing the Qantas and KLM order were big losses. If Boeing can get British Airways to commit to the B737MAX then it will be a great win for Boeing (along with the Allegiant Airlines order).

[Parkspec]

White House event?? Must be a big moment.

[meadowlandscris]

@Parkspec I'd say 20 billion is a pretty big moment. Especially when the grand poobah of Quatar is sitting eating lunch at the White House.

[Parkspec]

@meadowlandscris Boeing did this - Biden didn't.

[crankypants007]

@Parkspec Unless of course Donnie was in the WH - then it would have been all him, the great deal maker, right? Typical...

[umfan001]

Great news for BA as they will continue to dominate the market for freighters well into the future.

[Bond787]

Great news for US workers

[Andrew Shapiro]

Another positive for $BA suppliers lil $PFIN $SPR and others.

[Aang]

Forgot to mentioned the other biggie: 50 737MAX orders