Will Boeing Get An Order For 737 MAX From Qatar Airways?
Zacks Investment Research | Jul 13, 2016 08:27AM ET
While Qatar Airways and Airbus Group (PA:AIR) SE (OTC:EADSY) are at loggerheads over unresolved faults related to the latter’s A320neo model, the situation may turn out to be beneficial for The Boeing Co. (NYSE:BA) . According to sources, Boeing is presently in talks with the airline for an order of up to 30 jets.
Factors Driving the Potential Order
Earlier this year, Qatar Airways cancelled the first delivery of the A320neo jets due to delayed dispatch of the same. At the Farnborough Air show, the airline’s Chief Executive Officer (“CEO”), Akbar Al Baker had said that further cancellations would follow unless Airbus takes the necessary steps to adhere to the delivery timeline. To date, Qatar Airways has received only one jet out of the 10 that were supposed to be delivered this year.
There is, however, another reason behind Qatar Airways’ cancellation of its order for the A320neo jets. The airline has been facing some problems from the jet’s engines, which are manufactured by Pratt & Whitney, a subsidiary of United Technologies Corp. (NYSE:UTX) . With regard to this issue, Baker has warned Airbus that the airline will not accept any order delivery until the problems have been dealt with.
Meanwhile, the airline intends to look for other companies that can meet its demand for planes.
The Farnborough Air Show also saw Baker revealing Qatar Airways’ plans to purchase 25–30 jets, including the current 737 Next-Generation model and the upcoming successor of 737 MAX. The airline intends to enter into agreements as soon as certain issues have been resolved.
Zacks Investment Research
Get The News You Want
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.