The Boeing Co. has signed an $18.6 Billion deal with United Arab Emirates Qatar Airways. The Doha based airline has pledged to purchase 100 Boeing airplanes. The airplanes include 60 Boeing-737 (Max 8) jets, and a combination of 40 Boeing-777s and Boeing 787s.
This comes quite soon after Qatar Airway’s CEO Akbar Al Baker made good his threats to reject A-320s from Airbus, which have reportedly had problems with their engines. The company’s purchase of the Boeing 737 will be its first narrow-body jet purchase since 1979.
The rivalry and competition for sales seems to be at an all-time high between Boeing and Airbus. The CEO of Qatar Airways was however quick to point out that their preference for the Boeing purchase deal was not a message to Airbus. The Airline still intends to honor its deal with Airbus for a 2011 order for 50 A320neo.
This is a big boost to Boeing which is about to start its commercial service ahead of its second quarter next year. The company had suffered a 1.4% drop in shares before this deal. Deliveries to Qatar are expected to begin in 2018.
Aircraft manufactures have been suffering from low sales because of a general global economic drop in travel. Airlines have also been struggling to maintain and gain new travelers amidst high competition for air routes and also from other modes of travel.
Qatar Airways is a state-owned airline that was started in 1994. It flies to over 150 destinations worldwide, and has a fleet of 184 aircraft. The company employs more than 40,000 global workers.
Boeing an American owned aircraft manufacturer founded in 1916 by William Boeing, has a production output of 745 aircraft. It manufactures both commercial and defense aircraft among other engineering and operational outputs.