Boeing Co.’s share price down, Qatar Airways to purchase 50 more 777X

Boeing Co. managed to steal spotlight at the Farnborough show, with Qatar Airways expressing commitment to double their order of 50 units of the new 777-9X aircraft.

Mr. Akbar Al Baker, who is the current Chief Executive Officer of Qatar Airways revealed at the Farnborough International Air Show that the deal between the companies for the purchase of a total of 100 jets is estimated to 40 billion dollars at list prices. In addition, eight current-generation 777 freighters were also ordered by Qatar Airways. The deal is considered as the largest one announced at the Air Show in 2014.

“This represents the largest aircraft order in our history for a single aircraft type. The 777s we currently have form the backbone of our fleet,” Mr. Akbar Al Baker said in a press conference today, which was cited by Bloomberg. “We want to expand that business, because this is also a profit center for the airline. We could compete with leasing companies. Wherever they require airplanes, we will lease.”

The 777X models, which comes in 2 versions, the 8X and the 9X, are designed specifically for the Gulf airlines, with longer range and higher heat resistance. Qatar Airways and Emirates were the moving forces behind Boeings design, with the two airlines now holding orders for a total of some 250 units of the 777X model.

Boeing Co. was 0.32% down to close at 129.10 dollars per share yesterday, marking a one-year change of +23.86%. According to information published on CNN Money, the 23 analysts offering 12-month price forecasts for Boeing Co. have a median target of 157.00, with a high estimate of 175.00 and a low estimate of 127.00. The median estimate represents a +21.61% increase from the last price of 129.10.