Exclusive: Boeing in talks with Alaska Air for potential 737 MAX order after jet’s return to service

Exclusive: Boeing in talks with Alaska Air for potential 737


2/2
© Reuters. FAA Chief Steve Dickson returns in a Boeing 737 MAX aircraft in Seattle

2/2

By Eric M. Johnson and Tracy Rucinski

SEATTLE/CHICAGO (Reuters) – Boeing Co (N:) is in discussions to sell 737 MAX jets to Alaska Air Group Inc (N:) once the plane returns to service following a lengthy grounding, three people familiar with the matter said.

The talks are part of a series of negotiations between Boeing and several airlines over jet orders or compensation after the 737 MAX was banned worldwide following two fatal crashes.

Boeing and Alaska Air declined to comment.

Any deal would be subject to U.S. Federal Aviation Administration approval of proposed 737 MAX safety upgrades.

Alaska Air already had ordered 37 of the jets before the grounding. If confirmed, a new order from such a major carrier would give Boeing’s 737 MAX a sorely needed commercial boost as the U.S. planemaker tries to move beyond a crisis that has hammered its finances.

It would also mark a post-crisis test of the balance of power between Boeing and Airbus (PA:). The European planemaker is battling to keep a foothold in Alaska Air. That carrier once exclusively used Boeing jets, until it acquired Airbus operator Virgin America.

However, any new deal between Alaska Air and Boeing is expected to include significant discounts given the MAX’s woes and plunging demand for airplanes during the coronavirus crisis, industry sources said.

The talks are among several discussions Boeing is having with airlines, hoping to stimulate demand for the jet when it returns to the air. Analysts caution cutting prices too far could rattle some existing customers.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME