Boeing's Next-Generation Plane Scores $3.8 Billion
On Wednesday, Boeing announced that SunExpress, a Turkish carrier, had completed an order for 15 737 MAX 8s and 25 next-generation 737-800 planes. Further, Boeing stated, "The order, valued at more than $3.8 billion at list prices, also includes options for 10 additional 737 MAX 8s." Even better? The order is the largest in Sun Express' history and brings the total number of 737 MAX orders to almost 1,800. Here's what else you need to know.
According to Boeing, the 737 Max is designed for maximum efficiency, maximum reliability, and maximum passenger appeal. Further, it's part of Boeing's newest family of single-aisle planes, expands on the 737's next-generation line, and, as it's a part of the 737 family, is one of Boeing's most popular commercial planes .
However, that doesn't mean the 737 family is without competition. European Aeronautical Defense and Space's Airbus A320 line is a direct competitor to the 737, and when it comes to sales, both Boeing and Airbus aren't shy about touting their plane as better than the other. In fact, on it's official 737 Family page, Boeing states, "the 737s will have on average 590 fewer delays and therefore avoid disrupting 65,000 fewer passengers when compared to a fleet of A320s."
As such, when one of these companies scores a major contract win over the other, it's cause for celebration -- and perhaps just a bit of gloating.
What to watch
Boeing's 737 family is extremely important to Boeing's bottom line. Not only is it incredibly popular when it comes to sales, but when it comes to future airplanes sales, single-aisle planes are expected to play a growing role. This is especially true for major markets like the Asia-Pacific region. Both Boeing and Airbus have valued this market at well over $1 trillion for the next 20 years, and agree that demand will be highest for single-aisle airplanes. Consequently, investors would do well to keep close tabs on Boeing's 737 sales, as well as actual deliveries.
Boeing isn't the only company with potential for profit
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
The article Boeing's Next-Generation Plane Scores $3.8 Billion originally appeared on Fool.com.Katie Spence and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.