Qatar Airways places colossal $96 billion order for aircraft and services
Fresh Take:
In a whopper of a deal, Qatar Airways has ordered a staggering 210 aircraft from Boeing, worth an estimated $96 billion, as announced during Donald Trump's visit to the emirate. This news is a massive boost for Boeing, which has been gradually recovering after a few rocky years yet still grappling with accelerating production and deliveries.
This order, the largest ever for Boeing in terms of value, surpasses the 220 aircraft order Air India placed in 2023, most of which were single-aisle 737 MAX aircraft. In contrast, Qatar Airways' order is exclusively wide-body, comprising 787 Dreamliners and 777X aircraft.
Donald Trump touted the deal as "the largest aircraft order in Boeing's history," stating it represented over $160 billion for 160 aircraft, calling it a "record." The discrepancy between his words and the White House's figures could be attributed to the difference between firm orders and options.
As for the cost of each aircraft, the list price of a 787 Dreamliner hovers around $250 million, and the 777X, about $440 million, though neither Boeing nor Qatar Airways has yet to reveal the exact breakdown between the two models.
Nicolas Owens, an analyst at Morningstar, commented, "This is a lot of aircraft, but you won't receive them for at least five years." As of the end of April, Boeing's order book totaled 6,282 aircraft.
The 777X, yet to receive certification from the Federal Aviation Administration (FAA), is currently undergoing testing. Boeing anticipates the first delivery in 2026.
Owens sees the inclusion of the 777X as a "sign of confidence from a long-standing customer." Following a series of difficulties, including quality issues, production slowdowns, and a lengthy strike, this order marks a positive step for Boeing, according to Owens.
The Qatar Airways order comes just hours after China resumed Boeing aircraft deliveries to Chinese customers, halted in response to tariffs imposed on Chinese products.
The deal was made public as Trump signed a series of accords in Doha alongside the Qatari emir, Sheikh Tamim bin Hamad Al-Thani, and covered topics like defense and the supply of MQ-9B drones.
During his Middle Eastern trip, Trump stirred controversy by announcing the lifting of sanctions against Syria and meeting with its Islamist president, Ahmad al-Assad. In Doha, Trump received a warm welcome, with the Qatari emir meeting him at the airport and Qatari fighter jets escorting his plane.
However, questions have been raised about Trump's visit, with the Democratic opposition accusing him of accepting the "largest foreign bribe in recent history" over a Boeing 747-8 offered by the Qatari royal family as a temporary replacement for his official plane and later for personal use.
The Qatar Airways order, predominantly comprising wide-body aircraft like the 787 Dreamliners and future 777X models, can be viewed as a significant political gesture, signaling confidence in Boeing technology. This deal, which is valued at over $96 billion and includes options for the 777X aircraft, comes as Boeing attempts to recover from a series of difficulties in production and deliveries, potentially indicating a positive shift in the company's political and economic relationships.
