Tags: Boeing | Alaska | Air | Upgrade

Boeing Wins $5 Billion Order for Alaska Air’s Fleet Upgrade

Thursday, 11 Oct 2012 02:30 PM

Boeing Co. won an order for 50 narrow-body 737 jets, with a catalog value of about $5 billion, to refresh Alaska Air Group Inc.’s mainline fleet.

The firm orders, along with 25 placed previously, will allow the Seattle-based carrier to increase capacity to match air-travel demand, according to a regulatory filing. As many as two-thirds of the new aircraft will be used to replace older 737s in the airline’s fleet of 120 Boeing jets.

Alaska Air said 37 of the new planes will be Max variants carrying the Leap engine developed by CFM International, a partnership of General Electric Co. and French manufacturer Safran SA.

CFM, which valued the engine order at $1.2 billion, said Max customers will see fuel burn drop as much as 13 percent compared with the best CFM 56-powered 737. The power-plant manufacturer has been the sole supplier for all 737 jets since 1981.

Boeing began development of the Max as airlines pressed for aircraft that burned less fuel in response to surging prices. The jet was introduced in 2011 following competitor Airbus SAS’s decision to upgraded its narrow-body A320 with the neo variant.

Jet-fuel prices have climbed 42 percent to $3.23 a gallon in the two years through September, according to data compiled by Bloomberg.


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Boeing Co. won an order for 50 narrow-body 737 jets, with a catalog value of about $5 billion, to refresh Alaska Air Group Inc.’s mainline fleet.
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Thursday, 11 Oct 2012 02:30 PM
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