Boeing (NYSE: BA) secured its first new order for the 737 MAX since November on Tuesday, announcing an order from Polish charter airline Enter Air for two aircraft, with an option for two additional jets.
A sequence of two plans in normal times would not provide much header, but given the problems that the 737 MAX has faced, each new sequence is remarkable. The aircraft has been grounded since March 2019 after a number of fatal accidents, and Boeing has maintained a large number of cancellations in recent months as airlines and leasing companies adjust delivery schedules due to the COVID-19 pandemic.
Image source: Boeing.
Enter Air is Poland’s largest charter carrier and has so far operated an all-Boeing fleet. Assuming the options are exercised, Enter Air would operate ten 737 MAX aircraft to go alongside 22,737 NGs.
The new mission will not do much to solve the problems of Boeing, which includes more than 400 aircraft built but not yet delivered by the foundation. But it is a symbolic win for the airline manufacturer, forced by the pandemic to cut production of the 737 MAX and other aircraft, and a second round of runway cuts is ready.
Ihssane Mounir, Boeing’s former vice president of commercial sales and marketing, said the company was “humbled by Enter Air’s commitment to the Boeing 737 family.”
Terms of the deal were not disclosed, but odds are strong Enter Air got a good deal on these planes. In addition to the sale, both sides have also finalized an agreement to address the commercial impact of the 737 MAX ground plan. Boeing said compensation would be provided “in a number of forms” and shifted over a period of time.
The settlement also revises the delivery schedule for previously ordered aircraft, likely to push back the delivery dates. But from Boeing’s perspective, it’s important to see a customer get back on the plane.
“Despite the current crisis, it is important to think about the future. To that end, we have agreed to order an additional 737-8 aircraft,” said Enterprise CEO and board member Grzegorz Polaniecki in the statement. “After the strict controls that the 737 MAX undergoes, I am convinced that it will be the best aircraft in the world for many years to come.”
