Focusing on the Boeing orders, Lufthansa Group announced Tuesday
a landmark 737 MAX order for up to 100 jets that will
see Europe's largest airline group restore the Boeing 737 family into
its fleet. This commitment includes a firm order for 40 737-8 airplanes with 60
options.
"It is a good strategic decision for the Lufthansa
Group to order Boeing 737 aircraft again for the first time since 1995,"
said Carsten Spohr, chairman of the Executive Board and CEO of Deutsche
Lufthansa AG. "Around 60 years ago, Lufthansa was co-developer and launch
customer of this globally successful model [the 737]. With the new modern,
quiet, economical, and efficient 737-8 aircraft, we are making progress both in
modernizing our short- and medium-haul fleet and in achieving our carbon CO2 reduction targets."
Boeing says the 737 MAX reduces CO2 emissions by 20%
and has a 50% smaller noise footprint compared to older-generation airplanes.
"We are delighted to see the 737 return to an original
launch customer's fleet," said Stan Deal, president and CEO of Boeing
Commercial Airplanes.
Lufthansa launched the Boeing 737 in 1967, taking delivery
of the first of 146 737s until its final delivery of a 737-300 in 1995. The
airline retired its last 737 in 2016 as it started its group-wide fleet
modernization program.
Lufthansa wide-body orders
The Lufthansa Group has placed a series of wide-body orders
in recent years to accelerate the replacement of older airplanes. Its current
backlog includes firm orders for 34 787 Dreamliners, seven 777-8 Freighters,
and 20 777-9 airplanes.
Price upgrade for BA shares
The Lufthansa order may provide more fuel to the fire in the
upward trend in Boeing’s stock. Market analysts say good news concerning the
737 MAX jet is driving the price higher.
News indicating improved delivery performance and the
growing belief in its sustainability caused Deutsche Bank analyst Scott
Deuschle to upgrade Boeing’s rating from Hold to Buy on Monday and bumped his
price target up from $270 to $320. The new price target implies shares could gain
another 22% in the months ahead.
On Tuesday, the pre-market price for Boeing (NYSE: BA) was
up 0.30% ($0.79) at $261.20 per share.
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