Russia's Rostech to Order 35 Boeing 737 MAX Jets
Boeing (NYS: BA) today announced a deal to sell Aviation Capital Services, the airplane leasing division of Russian Technologies (aka Rostech), 35 of its new, re-engined 737 MAX jetliners.
The deal is valued at more than $3 billion using current list prices, according to the company.
Precise terms of the deal were not disclosed. Boeing's official price list shows that the three main versions of the 737 MAX available for sale, the MAX 7, MAX 8, and MAX 9, retail for anywhere from $82 million to $107.3 million apiece.
Historically, large purchasers of multiple planes, such as Rostech, are able to negotiate better prices than the list price. Moreover, this is Rostech's first purchase of the 737 MAX, and the first time Boeing has succeeded in selling the plane anywhere in the Commonwealth of Independent States, for that matter -- yet another factor that suggests Boeing may have sold the planes for less than list price. The first 737 MAX is scheduled for delivery in August 2018.
Boeing calls Russia and the CIS "one of the commercial aviation industry's fastest-growing regions," and believes the market there can absorb as many as 1,140 new airliners over the next 20 years.
The article Russia's Rostech to Order 35 Boeing 737 MAX Jets originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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