Gulf carrier Qatar Airways ordered $18.6 billion worth of Boeing Co jetliners, a deal that includes firm orders for 40 widebody aircraft and a letter of intent to purchase up to 60 narrowbody 737 MAX 8 jets, Boeing and the airline said on Friday.
The order for up to 100 jetliners helps fill out Boeing's order book in a year when sales have slowed sharply, and amid tough price competition with European rival Airbus.
The deal includes 30 of Boeing's 787-9 Dreamliners, 10 of its 777-300ER aircraft plus the 737 MAX 8 options.
It is significantly larger than a deal for five Boeing 777-300ER aircraft worth $1.7 billion that the carrier had been expected to place during Britain's Farnborough Airshow in July.
That announcement was postponed by the Qatari government in an effort to speed up US approval of its purchase of Boeing fighter jets, sources familiar with the situation said.
The firm orders announced on Friday are worth $11.7 billion at list prices, with an additional value of $6.9 billion if all of the 737 MAX options are exercised. Airlines typically receive steep discounts on large orders.
Boeing shares were down 0.7 percent at $133.51 in afternoon trading on the New York Stock Exchange.
The Qatari order is likely to further intensify concern among US airlines about what they term unfair subsidies that Gulf carriers receive.
Earlier on Friday, Delta Air Lines Chief Executive Officer Ed Bastian said Qatar Airways, Etihad Airways and Emirates airline had received $50 billion in illegal subsidies, financing that allows the carriers to offer some 30 flights a day to the US at fares substantially below what US airlines can offer.
The United Arab Emirates and Qatar together have a population the size of the US state of Ohio, but "they have more widebodies on order than all the Chinese airlines and US airlines combined," Bastian said at an event in New York.
"That doesn't sound fair, that doesn't sound free," he said. The three Gulf carriers deny receiving subsidies, and other powerful US businesses, including FedEx Corp and Boeing, oppose changes to Open Skies agreements with Gulf nations.
Tags:
Travel