Boeing is set to win General Electric ‘s order of 100, 737 narrow-body aircraft, in a competition with Airbus SAS.
GE Capital Aviation Services’ purchase includes 75 upgraded 737 MAX planes that would worth around $9.25 billion. Grupo Aeromexico SAB plans to buy 70 mainly single-aisle jets and is currently considering the MAX and Boeing 787-9 Dreamliner, as well as Airbus SAS’s A320neo and some A350 wide-bodies. Anonymous sources said that the company is considering splitting the order between Boeing and Airbus.
“Lessors have raised cash in the past few months, and they’re going to use that to place orders,” said Yan Derocles, an Oddo Securities analyst in Paris. “They suffered a lot during the financial crisis and the likes of Gecas also expected more of a downturn in demand, so there’s a gap in orders for them to make up from the 2008-2010 period.”
As Boeing develops the fuel-efficient MAX to replace its top-selling 737, it seeks more MAX buyers among aircraft lessors. Boeing has already received 451 firm orders and other hundreds commitments for the 737 MAX, which is powered by engines made by CFM International, a JV between Safran SA and Fairfield.