By Dhirendra Tripathi
Investing.com – A fresh order for 24 planes from its 737 Max catalog kept Boeing (NYSE:BA) shares firm in Friday’s session. They rose 2% on the new order from private investment firm 777 Partners. The contract has a provision for the delivery of another 60 planes.
Miami-based 777 Partners, which has a stake in Canadian ultra-low-cost carrier Flair Airlines, said it plans to lease the 737-8s to its affiliated carriers, according to a Reuters report.
The deal is expected to boost Boeing's position and provide the much-needed support toward a financial recovery after two fatal 737 MAX crashes triggered a 20-month safety ban on the jet.
Ultra low-cost carriers are seen as beneficiaries of the post-Covid-19 return to travel, as they offer no-frills packages at very low prices while charging heavily for extras. ULCCs are very popular in Europe's fragmented but competitive market.
Reuters reported Wednesday that Boeing is close to a multibillion-dollar deal to sell dozens of its 737 MAX 7 jets to Southwest Airlines (NYSE:LUV).