Boeing, Thai Airways Announce Order for 45 787 Dreamliners to Grow Fleet and Network

Rhea-AI Summary

Boeing and Thai Airways announced a significant order for 45 787 Dreamliners to modernize and expand the airline's fleet and international network. The new jets will be equipped with GEnx engines to reduce environmental impact and support the company's carbon neutral goals by 2050. This strategic investment aims to enhance operational efficiency, meet growing demand, and create opportunities for tourism and trade.

Insights

Aerospace Industry Analyst

The recent purchase of 45 Boeing 787 Dreamliners by Thai Airways represents a significant investment in fleet modernization and expansion. This move is indicative of the airline's strategy to capitalize on the growing demand for air travel in Southeast Asia. The 787-9 model, known for its fuel efficiency and reduced emissions, aligns with the global aviation industry's shift towards more sustainable operations.

The Dreamliner's fuel efficiency, which is up to 25% better than the models it replaces, not only offers cost savings on fuel but also positions Thai Airways favorably in the context of rising environmental concerns. The investment in GEnx engines further enhances this positioning, potentially offering long-term cost savings and aligning with carbon-neutral goals.

From an industry perspective, the substantial order contributes to Boeing's backlog and reflects positively on its commercial outlook in Southeast Asia. The region is expected to experience a significant increase in widebody fleet needs and this order supports Boeing's projection of a three-fold increase over the next 20 years.

Financial Analyst

Thai Airways' acquisition of the 787 Dreamliners is a strategic move with potential financial implications for both the airline and Boeing. For Thai Airways, the capital expenditure for the new aircraft will be substantial; however, the expected operational efficiencies and the ability to serve new routes should contribute to revenue growth and potentially improve the airline's competitive edge.

For Boeing, this order is a strong signal to investors and the market, as it was previously listed as unidentified on their Orders & Deliveries website. Finalizing such a significant deal can have a positive impact on Boeing's stock market performance, as it reflects confidence in the company's product and may lead to increased sales projections for the region.

This order also may influence Boeing's supply chain and production schedules, potentially impacting its financials and stock price. Investors will be watching closely for how this order affects Boeing's quarterly and annual financial results, as well as the company's guidance for future performance.

Economist

The purchase of new aircraft by Thai Airways has broader economic implications, particularly for Thailand's economy and the Southeast Asian aviation market. The introduction of more efficient aircraft can enhance the airline's operational efficiency, which could lower costs and possibly reduce ticket prices, stimulating demand for air travel.

Increased tourism and trade, fostered by the expansion of Thai Airways' international network, could have a multiplier effect on the Thai economy. The aviation sector is a key driver of economic growth and investments that improve connectivity can have positive spillover effects on related industries such as tourism, hospitality and trade.

Furthermore, the enhanced capacity offered by the 787-9s could lead to increased competition among airlines in the region, potentially leading to more competitive pricing and services, which would benefit consumers and the overall economy.

SINGAPORE, Feb. 20, 2024 /PRNewswire/ -- Boeing [NYSE: BA] and Thai Airways announced today the flagship carrier placed an order for 45 787 Dreamliners as the airline looks to modernize and grow its widebody fleet and international network. Thai Airways selected the 787-9 to support its long-term strategy to renew and expand its fleet with more efficient jets, as well as open new routes to support high demand for air travel across Southeast Asia.

"To accomplish our company's and the national carbon neutral goals by 2050, the 45 new Boeing 787 Dreamliners will be equipped with GEnx engines, which are known for their cutting-edge technology and reduced environmental impact," said Chai Eamsiri, Thai Airways CEO. "Furthermore, we are confident that the acquisition of the 787 Dreamliners will ultimately benefit our customers and support the growth of our country's economy."

Thai Airways flies widebody jets ─ including 777s and 787s ─ to nearly 60 domestic and international destinations, including the Middle East, Asia and Europe. With more 787-9s in their fleet, the airline will operate more efficiently, as the Dreamliner family reduces fuel use and emissions by up to 25% compared to the airplanes it replaces.

"Thai Airways' strategic investment in the 787 Dreamliner builds on our long-standing partnership and signifies the airline's commitment to operate a modern, efficient and flexible fleet," said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. "This order will support Thai Airways' ability to meet demand, foster tourism and trade, and create further opportunities for this carrier."

The order, which was finalized in December 2023, was listed as unidentified on Boeing's Orders & Deliveries website. Boeing's 2023 Commercial Market Outlook for Southeast Asia projects that the region's widebody fleet will see a three-fold increase over 20 years, with growing demand for nearly 800 airplanes including passenger jets such as Boeing's 787 Dreamliner family and 777X, as well as freighter models.

At 20 feet (6 meters) longer than the 787-8, the 787-9 will enable Thai Airways to fly nearly 20% more passengers farther and build on routes first opened by the 787-8. Since revenue service began in 2011, the 787 family has launched more than 390 new nonstop routes around the world.

Boeing's partnership with Thai Airways and support of the country's aviation industry span more than 60 years. Boeing's presence in Thailand includes offices in Bangkok and support for important causes including STEM education, programs for people with disabilities and sustainable livelihood through permaculture methods. 

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company's core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.

Contact
Amber Mizerak
International Sales Communications, Southeast Asia & Oceania
+65 9783-1571 (Singapore)
amber.mizerak@boeing.com

Boeing Media Relations
media@boeing.com

 

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SOURCE Boeing

FAQ

How many 787 Dreamliners did Thai Airways order from Boeing?

Thai Airways placed an order for 45 787 Dreamliners from Boeing.

What type of engines will be equipped in the new Boeing 787 Dreamliners ordered by Thai Airways?

The 45 new Boeing 787 Dreamliners will be equipped with GEnx engines known for their cutting-edge technology and reduced environmental impact.

What is the purpose of Thai Airways' order for 45 Boeing 787 Dreamliners?

The purpose of the order is to modernize and expand Thai Airways' fleet and international network, support carbon neutral goals by 2050, enhance operational efficiency, meet growing demand, and create opportunities for tourism and trade.

How will the 787-9 model benefit Thai Airways' operations?

The 787-9 model will enable Thai Airways to fly nearly 20% more passengers farther, operate more efficiently, reduce fuel use and emissions by up to 25%, and build on routes first opened by the 787-8.

What is Boeing's projection for the Southeast Asia widebody fleet in the next 20 years?

Boeing's 2023 Commercial Market Outlook for Southeast Asia projects a three-fold increase in the region's widebody fleet over 20 years, with growing demand for nearly 800 airplanes including passenger jets like the Boeing 787 Dreamliner family and 777X.