SMBC Aviation Capital Orders 14 Boeing 737 MAX Jets

Rhea-AI Summary

Boeing (NYSE: BA) announced that SMBC Aviation Capital has ordered 14 additional 737-8 jets, expanding its 737 MAX portfolio to 121 jets. This order comes as airlines anticipate a strong recovery in air travel and seek to modernize their fleets for improved fuel efficiency and reduced emissions. Recent demand for the 737 MAX has surged following its return to service. The new 737-8 model offers enhanced capabilities, flying 3,550 nautical miles, and achieving a 16% reduction in fuel use and CO2 emissions compared to its predecessors.

Positive

• SMBC Aviation Capital expands 737 MAX portfolio to 121 jets, indicating strong demand.
• The 737-8 model offers 16% better fuel efficiency and reduced emissions, appealing to airlines.
• The order aligns with projections for a robust recovery in air travel.

Negative

• None.

SEATTLE, May 25, 2021 /PRNewswire/ -- Boeing [NYSE: BA] and SMBC Aviation Capital today announced the lessor is positioning its portfolio for air traffic recovery by ordering 14 additional 737-8 jets, growing its 737 MAX portfolio. The new order comes as airlines prepare for a robust return to air travel and modernize their narrowbody fleets to reduce fuel use and carbon emissions.

"We are pleased to have concluded an agreement with Boeing for the purchase of 14 low-cost carrier configured 737 MAX aircraft which is an aircraft we are seeing increased customer demand for following its successful return to service," said Peter Barrett, CEO of SMBC Aviation Capital.

The new purchase builds SMBC Aviation Capital's 737 MAX portfolio to 121 jets, expanding their investment in Boeing's single-aisle family. SMBC Aviation Capital also continues to incorporate new 737 MAX airplanes into the global fleet. In the first quarter of 2021, the lessor delivered 13 737-8s to customers, including 11 planes to Southwest Airlines in the U.S. and two planes to TUI in Europe.

"SMBC has been actively managing its portfolio in a very dynamic market. With this new order for the fuel-efficient 737-8, the lessor is well positioned to help its customers capture domestic travel demand in several countries and regions," said Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. "We are honored by SMBC's trust in the 737 family, and we look forward to partnering with them to support airlines for the market recovery ahead."

The SMBC Aviation Capital purchase follows recent orders and commitments from Alaska Airlines, Southwest Airlines and United Airlines. The total number of gross orders and commitments for the 737 MAX this year now exceeds 250 airplanes.

A member of the 737 MAX family, the 737-8 is designed to offer more fuel efficiency, reliability and flexibility in the single-aisle market. The 737-8 can fly 3,550 nautical miles – about 600 miles farther than its predecessor – allowing airlines to offer new and more direct routes for passengers. Compared to the airplanes it replaces, the 737-8 also delivers superior efficiency, reducing fuel use and CO2 emissions by 16% and also reducing operating costs.

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 and living the company's core values of safety, quality and integrity. Learn more at www.boeing.com.

SMBC Aviation Capital is one of the world's leading aircraft lessors, with 85 airline customers in 36 countries. At 31 March 2021, the company owns and manages 496 aircraft. Established in 2001, the company was acquired in 2012 by a consortium comprising of two of Japan's biggest companies SMFG and Sumitomo Corporation. For further information go to https://www.smbc.aero/  

Contact:
Dmitry Krol
Boeing Communications
+1 (206) 661-2903
Dmitry.krol@boeing.com

View original content:http://www.prnewswire.com/news-releases/smbc-aviation-capital-orders-14-boeing-737-max-jets-301298174.html

SOURCE Boeing

FAQ

What is Boeing's latest order announcement involving the stock symbol BA?

Boeing announced that SMBC Aviation Capital ordered 14 additional 737-8 jets, raising its 737 MAX portfolio to 121 jets.

How does the new 737-8 jet compare to previous models?

The 737-8 can fly 3,550 nautical miles and offers a 16% reduction in fuel use and CO2 emissions compared to its predecessors.

What market trends influenced Boeing's recent aircraft orders?

The increase in aircraft orders aligns with the anticipated recovery in air travel as airlines modernize fleets.

Who is the CEO of SMBC Aviation Capital?

Peter Barrett is the CEO of SMBC Aviation Capital, which is actively expanding its aircraft portfolio.