Boeing is showing some progress in its effort to return its 737 MAX program to active status following the seven-week strike by union workers. The best indicator of progress is a new order from Avia Solutions for 40 737 MAX 8 jets, which includes options for an additional 40 aircraft. If the order is fully subscribed for all 80 aircraft it could be worth more than $4 billion to Boeing, based on listed values for the MAX 8.
Boeing has nearly 6,500 orders outstanding for new 737 MAX aircraft, but its production is operating at a reduced rate due to federal oversight in place to ensure its quality and safety standards are upheld, and more recently due to the strike that halted production entirely.
Being unable to deliver new aircraft has significantly diminished Boeing’s revenues over recent years. Its October orders and deliveries report indicated just 14 planes completed prior to the start of the strike were delivered last month.
Boeing has stated that the sequence of steps involved in resuming production of the 737 MAX and 777 aircraft impacted by the strike will take several weeks.
The lack of new aircraft is beginning to affect the service of several Boeing customers, including Southwest Airlines and RyanAir, both of which have dozens of aircraft on order and deliveries delayed.
Avia Solutions Group’s new aircraft deliveries would begin in 2030.
Dublin-based Avia is an ACMI (aircraft, crew, maintenance, insurance) provider of commercial aircraft services for airlines and tour operators operating in more than 60 countries, including Avion Express, Smartlynx, Klasjet, Air Explore, BBN, Ascend Airways and Skytrans among others. These AOCs operate year-round in over 60 countries on behalf of various scheduled airlines and tour operators.
"ACMI providers such as Avia Solutions Group offer important, flexible capacity to meet the dynamic demand in our industry, and we are honored Avia has selected Boeing airplanes to help meet that demand from its customers," stated Boeing senior vice president Brad McMullen. "By choosing the 737-8, Avia Solutions Group is aligning with its customers' plans to operate increasingly fuel-efficient fleets that improve the passenger experience."
