Boeing launches new jet with flurry of orders

Tue Jun 20, 2017 10:49am EDT
 
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By Tim Hepher and Victoria Bryan

PARIS (Reuters) - Boeing (BA.N: Quote) unveiled a new version of its bestselling 737 aircraft on Monday, injecting life into a faltering civil aviation market as French President Emmanuel Macron flew in to open the world's biggest air show in Paris.

After years of booming orders driven by increased air travel and more fuel-efficient planes, passenger jet manufacturers are bracing for a slowdown in demand while they focus on meeting tight delivery schedules and ambitious production targets.

In a sign of their more modest expectations, some companies have cut back on staffing and catering at this year's Paris show and made less space available for the media.

But Boeing generated a burst of activity on the opening day by launching the 737 MAX 10 to plug a gap in its portfolio at the top end of the market for single-aisle jets, following runaway sales of the rival Airbus (AIR.PA: Quote) A321neo.

The U.S. planemaker said it had more than 240 orders and commitments from at least 10 customers for the new 737, which can carry up to 230 people in a single-class configuration.

"Many airports are running out of capacity and for those airports this is a perfect aircraft," said Ajay Singh, the chairman of low-cost Indian airline SpiceJet (SPJT.BO: Quote), as his company signed a provisional deal to buy 40 MAX 10s.

However, Airbus immediately hit back with an order for 100 of its popular A320neo planes from leasing company GECAS, as well as a deal for 12 A321neos with Air Lease Corporation.

Airbus sales chief John Leahy brushed off the latest Boeing challenge, saying that much of the interest in the MAX 10 was from existing Boeing customers switching orders from other models.   Continued...

 
A Boeing 737 Max takes part in a flyng display at the first day of the 52nd Paris Air Show at Le Bourget airport near Paris, France June 19, 2017. REUTERS/Pascal Rossignol