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Boeing Gets 26 Orders for New 787

Posted on: Friday, 25 November 2005, 12:00 CST

By Staff And Wire Reports

Boeing Co. shares closed at nearly a five-year high Monday after the company announced deals for 26 Boeing 787 Dreamliners from two leasing companies.

The list price for both orders is $3.4 billion, but big customers normally get a discount.

The orders extended Boeing's momentum in its heated competition with Airbus SAS and helped propel its stock price up $2.05, or 3.1 percent, to close at $69. The price on the New York Stock Exchange was the shares' highest close since Dec. 8, 2000.

The announcement, made during the second day of the Dubai Air Show in the United Arab Emirates -- the region's largest aircraft exhibition -- makes ILFC the first leasing company to buy the Dreamliners. ILFC, which is buying 20 of the jets, is a unit of American International Group Inc.

A second leasing company, Low-Cost Aircraft Leasing, announced an order for six Boeing 787s.

According to LCAL founder and CEO Clive Joy, the orders are valued at about $780 million and deliveries are expected to begin in September 2009.

Joy said the new company, which made its debut at the air show Monday, is in final negotiations for an additional nine 787 Dreamliners.

Boeing touts the 787, which is scheduled to enter service in 2008, as up to 20 percent more fuel-efficient than any similar plane on the market today. The plane is competing with rival Airbus' planned A350, which is due to enter into service with airlines in 2010.

Components of the Boeing 787 are to be manufactured in Tulsa at Spirit AeroSystems Inc. Such work also is expected to provide opportunities for local aerospace subcontractors.

ILFC will receive the first aircraft in January 2010 and has the option of buying four more of the aircraft.

"The 787 will meet the demand we expect from our airline customers for the breakthrough passenger comforts and operating efficiencies of the Dreamliner," said Steven Udvar-Hazy, chairman and CEO of ILFC.

The company, with clients worldwide -- including Air France-KLM, Lufthansa AG, Emirates Airlines, Hong Kong's flagship airline Cathay Pacific Airways Ltd. and Air India -- has ordered 698 Boeing jets since 1977.

"This is a great day for the 787 and our partnership with ILFC," said Alan Mulally, president and CEO of Boeing's commercial airplanes division. "To have this leading global lessor choose the 787 is a bellwether endorsement for the industry and for the passenger appeal of our newest airplane."

Indian based Kingfisher Airlines also announced Monday that it agreed to buy 30 new Airbus A320 Family aircraft for $1.9 billion. Kingfisher already flies seven A320s and has three Airbus A319s due to be delivered by December. The new order, which will comprise a mix of A319s and A320s, will be delivered by early 2008.

On Sunday the chairman of Emirates Airlines said the carrier has placed an order for 42 Boeing 777 jets worth $9.7 billion at list prices, while China has signed a deal to buy 70 Boeing 737 airliners valued at $4 billion. Chinese airlines also will buy 80 more soon, the government said Sunday during a visit to Beijing by President Bush.

The Tulsa World Business staff contributed to this Associated Press report.

Source: Tulsa World

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