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Boeing Co. managed to win an order from Japan-based lessor SMBC Aviation Capital Ltd. estimated at $8.5 billion, coming at a time of increased demand for new planes in Asia in order to meet travel growth in the region.

The President and Chief Executive Officer of the Boeing Commercial Airplanes unit – Mr. Ray Conner said in a statement: “This order is another example of our history of partnership with SMBC Aviation Capital and Japan. Todays announcement from a top leasing company is a vote of confidence in our 737 MAX and helps SMBC Aviation Capital capture the strong demand in the single-aisle market.”

SMBC Aviation Capital, which is an aircraft-leasing business managed by Japan-based Sumitomo Mitsui Financial Group Inc., said in a statement that the order involves a total of 80 737 Max 8 units. The delivery is expected in the period between 2018 and 2022. The transaction is considered as the biggest single order of 737 Max models by a lessor.

The executives of both Boeing and SMBC revealed that a large portion of aircraft demand is expected to come primarily from low-cost carriers, which have been expanding their reach in Asia after posting rapid growth in both Europe and the US. The deal is also considered helpful for Boeing, which will be provided with the opportunity to bolster its positions on one of its strongest markets apart from the US.

Boeing Co. fell 0.10% on Friday to close at $125.45 per share, marking a one-year change of -5.37%. The company is valued at $88.72 billion. According to CNN Money, the 23 analysts offering 12-month price forecasts for Boeing Co. have a median target of $155.00, with a high estimate of $175.00 and a low estimate of 4101.00. The median estimate represents a +24.55% increase from the last price of $124.45.

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