Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Boeing scores year's first 737 MAX order with Polish airline Enter Air

Published 08/19/2020, 01:05 PM
Updated 08/19/2020, 03:00 PM
© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York
BA
-
ENTP
-

By Ankit Ajmera and Sanjana Shivdas

(Reuters) - Boeing Co (N:BA) won its first order for the grounded 737 MAX aircraft this year, after Poland's Enter Air SA (WA:ENTP) agreed to buy up to four variants of the jet, the U.S. planemaker said on Wednesday.

The jet's recertification is still hanging in the balance more than a year after its worldwide grounding due to two fatal crashes, and the planemaker's woes have been compounded by the coronavirus crisis hitting air travel.

Boeing's customers have canceled more than 400 orders for the 737 MAX jets this year, the company said last week. Based on a tighter accounting standard, the 737 MAX order cancellations and conversions to other aircraft models now stand at 864.

The planemaker said on Wednesday that Enter Air placed a new order for two 737-8 aircraft with options for two more jets. When the purchase agreement is fully exercised, Enter Air's 737 MAX fleet will rise to 10 aircraft, Boeing said.

"Although it is significant because it's the first MAX order since December 2019, it's a small order ... (Enter Air) likely got a significant discount," S&P Global Ratings analyst Chris DeNicolo said.

Enter Air said it had reached a deal with Boeing to address the impact from the 737 MAX groundings, and would defer the deliveries of previously ordered MAX airplanes following weak air travel demand.

"Following the rigorous checks that the 737 MAX is undergoing, I am convinced it will be the best aircraft in the world for many years to come," Enter Air board member Grzegorz Polaniecki said.

The carrier took deliveries of two 737 MAX planes in 2018 and currently has four unfilled orders for the jet.

© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

Boeing's shares were up about 1% at $171.60.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.