Boeing officially announced last Friday that it has successfully made two different deals for the sale of about 150 of the company’s 737 MAX jets. The worth of the deal is reported to be about $18 billion.
Green Africa Airways, a Nigerian-based startup airline signed one of the commitments to get about a hundred MAX 8 aircraft. That is evenly divided into 50 options and 50 firm aircraft. In total, it is worth $11.7 billion, however, sources claim that the new airline has plans to seek out discounts from the American airline manufacturer. Green Africa Airways has plans to first concentrate strictly on domestic services before launching into the creation of a schedule that wholly supports pan-Africanism.
The Commercial Market Outlook of Boeing on a 20-year scale has already estimated that Africa airlines will need about 1,190 newly built airplanes within two decades from now.
Deal With Flyadeal
Boeing also announced on Friday that Flyadeal of the Middle East would make a commitment to get thirty 737 Max 8 jets as well as an option to get additional 20 jets. Flyadeal is a Saudi Arabian Airlines subsidiary and also seeks to majorly focus on offering domestic services.
The deal’s total price list is currently pegged at $5.9 billion. According to sources, Boeing has reported that its 737 Max holds the record of the fastest-selling plane in its history. Also, Boeing said that the airplane has over 4,800 orders from more than 100 customers all around the world.
Joint Venture With Embraer
Adding to its announcements, the firm also announced that it had already given its approval to a joint venture agreement with Embraer, the Brazilian jet manufacturer. The deal is said to be with about $4.2 billion and a judge in Brazil opposed the deal. The judge raised questions as to whether the 20% participation in the deal was going to be beneficial to the national interests of the country.
Embraer has commented that it intends to appeal that decision. In addition, it stated that it would continue to seek the approval of the government of Brazil. Analysts are of the opinion that that proposed venture by Boeing is in a bid to level up with Airbus. It will be recalled that the European airline giant acquired a majority stake in the C-Series plane of Bombardier.
Justice Approves Deal
Media outlets have reported that another Brazilian justice has reportedly decided to allow Embraer and Boeing conclude their joint venture agreement. That would overrule a previously ordered temporary injunction which halted the progress of the joint venture agreement. The new decision was announced by Therezinha Cazerta who is the President of the Federal court. According to Cazerta, the matter isn’t within the purview of the court. The previous stalling of the approximately $5.26 billion deal was at the instance of Judge Victorio Neto, the same judge who also foiled the intentions of the companies on an earlier occasion this month.
Labour unions claim that the joint venture is more of a sale, the effect of which would be to move the bulk of the airline’s business to America. Under the terms of the deal, Boeing is expected to receive the larger percentage of the venture which is 80% while the rest would go to Embraer. It is also expected that all the commercial aviation processes of Embraer would be taken up by the subsidiary. Embraer has been at the forefront of championing this agreement and that is born out of the necessity to ensure that the airline remains competitive.
Embraer holds the spot of the third largest civil aviation aircraft producer. In addition, the firm is also into the production of different series of military, commercial and business airplanes for the local Brazilian market as well as the international market at large. On its end, Boeing is the largest aviation firm in the world and it has most of its factories in the U.S. Boeing is also America’s largest exporter of airplanes.