Boeing Wins Big With Qatar Airways (NYSE:BA)

On the fourth day of the Farnborough International Airshow, Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) both were able to present some final orders as the trade part of the show came to a conclusion. While Airbus did announce orders, it is Boeing that likely will be seen as the winner of the day once again with a very important order from Qatar Airways placing an order that according to earlier analysis from The Aerospace Forum was likely to happen.

Boeing Bags Qatar Airways Order and Cargolux Preference Expression

During the final day of the trade part of the show, Boeing had three major announcements. The first one was an order from Qatar Airways for the Boeing 737 MAX 10 adding yet another customer for the type after signing Delta Air Lines earlier during the show. In January this year, I highlighted Boeing as a potential beneficiary of the legal battle with Airbus which resulted in cancellations by Airbus for Airbus A350 orders and Airbus A321neo orders which actually were not part of the dispute between the two companies. Just days later, Boeing and Qatar Airways announced an order for the Boeing 777-8F as well as a Memorandum of Understanding for up to 50 Boeing 737 MAX 10 jets.

Interestingly, Qatar Airways CEO Akbar Al Baker said during the first days of the airshow that the MoU for the Boeing 737 MAX 10 jets had lapsed and this was also state in the court handling between Airbus and Qatar Airways. What can be said is that it is a rather fast lapse of the tentative agreement being at most 5 months since the agreement was presented. So, this seemed like an expected move to force Airbus back to the negotiation table which failed before the airshow and on the airshow and forced Qatar Airways to actually commit in a firm agreement with Boeing which it did on the final day of the airshow ordering 25 Boeing 737 MAX 10 aircraft.

However, Boeing’s press release contained the following wording, which somewhat suggests that the firm order is built on the Memorandum of Understanding that was announced earlier this year:

Boeing [NYSE:BA] and Qatar Airways today finalized an order for 25 737 MAX airplanes, providing the flag carrier’s short- and medium-haul fleet with improved economics, fuel efficiency and sustainable operations. Company leaders announced the order for the 737-10, Boeing’s largest and most efficient single-aisle jet, in a signing ceremony at the Farnborough International Airshow.

Relatively late during day 4 of the show, Boeing announced that Saltchuk Aviation had placed an order for three Boeing 767-300BCFs with an optional for an additional unit. The order follows after Saltchuk Aviation placed its first order with Boeing for four firm 767-300BCF in early 2021. With a 51.6 tons capacity the Boeing 767 freighter line is considered a workhorse in the freighter market.

The final major agreement from Boeing was the selection of the Boeing 777-8F by Cargolux to replace its Boeing 747-400 freighter fleet. No details on the number of aircraft were disclosed and as a result, we see this agreement as a very early stage agreement that does not count towards the tally for the airshow. We, however, do know that Cargolux does operate 16 Boeing 747-400 freighter aircraft. So, once finalized we could see Cargolux order 16 Boeing 777-8Fs.

Airbus gains A321neo orders

Airbus has been the jet maker that really hasn’t performed nearly as well as one would have expected during the airshow which its marketing team usually turns into a big PR spectacle, but on the final day there was still some order news. LATAM Group ordered 17 Airbus A321neos and showed interest in an undisclosed number of Airbus A321XLR aircraft while the Ministry of Interior of Rhineland-Palatinate ordered two H145 helicopters to replace its H135s.

Conclusion

In total there were announcements covering 48 aircraft valued $2.6 billion. That would make it the slowest day of an already slow airshow. However, I wouldn’t say that the final day of the trade show was less interesting. Airbus saw some order inflow and given how slow the airshow was for the European jet maker every announcement counted. Boeing on the other hand had a faster airshow and while the last day was not record-breaking by any measure, the order from Qatar Airways and the selection of the Boeing 777-8F is a good step forward whereas interests in its converted freighter line up was once again underlined.

In the coming days, I will be reviewing all announcements in preparation for a wrap up report for the Farnborough Airshow where we provide a highlight on the most important agreements and provide further insights by slicing the numbers in various meaningful ways for investors.