Boeing Receives Commitment Valued at $724 Million
It's been a solid year-long ride for Boeing as its share price as soared nearly 80% higher and the aviation juggernaut doesn't look to slow down anytime soon. Over the weekend, its machinist union agreed to a contract extension that will keep production and likely the final assembly of its next generation 777X at its Everett, Wash., plant. That's a good sign for investors as moving the assembly to another location with a less experienced workforce could have created production problems and delays.
Monday brought more good news for the company. Boeing and Air Algerie today announced an agreement for eight 737-800 commercial airplanes. The order, when completed, will be worth $724 million to Boeing and its investors. Boeing's 737-800, the next generation of its popular 737 single-aisle airplane, has sold more than 4,500 airplanes to the world's leading airlines and this agreement will help Boeing strengthen its presence in the region.
"Air Algerie has been a major player in North African aviation for more than 50 years and has already experienced the enhanced performance and improved economics of the 737-800," said Van Rex Gallard, vice president of Sales for Africa, Latin America, and the Caribbean, Boeing Commercial Airplanes, in a press release. "Today's commitment for additional 737-800s underlines Air Algerie's position as a leading carrier committed to providing its passengers with a wide choice of destinations and exceptional in-flight comfort."
This is another positive sign for Boeing investors as the 737 family is the "most technologically advanced single-aisle airplane family" in the industry, according to the company. That's great because growth in the single-aisle commercial airplane segment looks to surge in the coming decades, according to Boeing predictions.
The article Boeing Receives Commitment Valued at $724 Million originally appeared on Fool.com.Fool contributor Daniel Miller has no position in any stocks mentioned, and neither does The Motley Fool. 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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