Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Exclusive: Boeing in talks with Alaska Airlines for potential 737 MAX order - sources

10/08/2020 | 10:50pm EST
FILE PHOTO: FILE PHOTO: FAA Chief Steve Dickson takes off in a Boeing 737 MAX aircraft in Seattle

SEATTLE/CHICAGO (Reuters) - Boeing Co is in discussions to sell 737 MAX jets to Alaska Airlines once the plane returns to service following a lengthy grounding, three people familiar with the matter said.

The talks are part of a series of negotiations between Boeing and several airlines over jet orders or compensation after the 737 MAX was banned worldwide following two fatal crashes.

Boeing and Alaska Airlines, which is part of Alaska Air Group Inc, declined to comment.

Any deal would be subject to U.S. Federal Aviation Administration approval of proposed 737 MAX safety upgrades.

Boeing shares were up 1.6% at $167.22 on Thursday afternoon, while Alaska Air stock was up 4.1% at $38.54.

Alaska Airlines already had ordered 37 of the jets before the grounding. If confirmed, a new order from such a major carrier would give Boeing's 737 MAX a sorely needed commercial boost as the U.S. planemaker tries to move beyond a crisis that has hammered its finances.

It would also mark a post-crisis test of the balance of power between Boeing and Airbus. The European planemaker is battling to keep a foothold in Alaska Airlines, which had operated an all-Boeing fleet until it acquired Virgin America in 2016.

However, any new deal between Alaska Airlines and Boeing is expected to include significant discounts given the MAX's woes and plunging demand for airplanes during the coronavirus crisis, industry sources said.

It was not immediately clear how many jets it may buy.

The talks are among several discussions Boeing is having with airlines, hoping to stimulate demand for the jet when it returns to the air. Analysts caution cutting prices too far could rattle some existing customers.

After months of delays, and pending approval of design and operational changes, Boeing expects to resume 737 MAX deliveries to airlines before year-end in the United States.

Seattle-based Alaska Airlines flies 166 older Boeing 737s and 71 Airbus A320-family aircraft.

It has one of the strongest balance sheets among U.S. airlines and analysts believe it could emerge from the pandemic crisis in a competitive position relative to its peers.

Boeing is also negotiating with Irish budget carrier Ryanair, one of its largest customers, over compensation for delays in MAX deliveries and a potential new order.

(Reporting by Eric M. Johnson in Seattle and Tracy Rucinski in Chicago; Editing by David Gregorio and Matthew Lewis)

By Eric M. Johnson and Tracy Rucinski


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE -0.59% 88.83 Real-time Quote.-1.06%
ALASKA AIR GROUP, INC. -0.89% 54.47 Delayed Quote.5.69%
MAX'S GROUP, INC. -1.66% 6.5 End-of-day quote.-5.66%
RYANAIR HOLDINGS PLC -2.37% 14.845 Real-time Quote.-8.67%
THE BOEING COMPANY -0.76% 205.84 Delayed Quote.-3.11%
Latest news "Economy & Forex"
10:53aIndonesia's coast guard seizes Iranian and Panamanian tankers
RE
10:38aENERGY : rising raw material prices cause +4.5% hike for electricity and +5.3% for gas
PU
10:07aPolice to let protesting farmers into New Delhi on Republic Day - official
RE
10:04aUser Reports Indicate Reddit Is Having Problems - Downdetector
RE
09:53aTrump administration had no coronavirus vaccine distribution plan -White House
RE
09:25aAfter failed Carrefour bid, Couche-Tard seeks to reassure befuddled shareholders
RE
09:02aCASCADIA BLOCKCHAIN : Provides An Update on EBX
AQ
07:28aCanada's Trans Mountain pipeline sees fortunes shine after KXL's demise
RE
06:27aKuwait's emir reappoints PM to form new cabinet after parliament standoff
RE
06:18aUAE cabinet approves debt strategy to build local currency bond market
RE
Latest news "Economy & Forex"