DALLAS – Boeing has received an order for 35 737 MAX aircraft, including the largest model of the single-aisle series from Tokyo Century Corp.'s US aircraft leasing division, Aviation Capital Group (ACG).
The leasing company said in a statement on Friday that it will purchase 16 Boeing 737-8 aircraft and 19 of the still uncertified 737-10 in anticipation of increased air travel demand.
Following an incremental 737 MAX order last year, this new purchase increases ACG's 737 MAX commitment to 82 orders. The leasing company expects deliveries by 2031. Last month, the lesser delivered one Boeing 737-8 on long-term lease to WestJet (WS).
The value of the transaction was not disclosed by Aviation Capital, which is the owner and manager of 364 aircraft. The company has outstanding orders worth about 1.3 trillion yen (US$8.2 billion) due to an earlier transaction with Airbus SE for nearly 60 single-aisle planes that are still pending delivery in addition to a few additional aircraft.
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Order Amid Shifts and Moves
This 737 MAX deal comes as Boeing realigns its priorities with its purchase of Spirit AeroSystems, a move that seems to signal the manufacturer's move to run its production like "the great engineering firm" it was instead of running it like a business, as Boeing ex-CEO Harry Stonecipher famously said was his intention back in 2000.
Boeing's cash cow 737 MAX single-aisle jet production is constrained because the Federal Aviation Administration (FAA) won't let the company increase its narrow-body aircraft output beyond a monthly pace of 38 aircraft until it is satisfied that quality controls are in place and the supply chain can keep up.
In The Airways Podcast season five finale, we dive into the latest developments in the aviation industry, including the Boeing-Spirit AeroSystems tie-up. Tune in!