Qatar's astounding $96 billion aircraft order granted to Boeing, setting a new record.
Exciting News: Qatar Airways Places Gigantic Boeing Order Worth $96 Billion
Qatar Airways has made waves by ordering an impressive 210 aircraft from Boeing, as announced at the White House during Donald Trump's visit to the emirate on May 14th. This is a significant boost for Boeing, which has been gradually recovering after a few tough years, although production and delivery speed still need a boost.
Record-Breaking Deal in the Books
The Boeing share price soared 0.62% during the New York Stock Exchange trading session that day, reaching its highest level in 15 months. While Boeing and its clients usually keep aircraft purchase prices confidential, this deal is likely the single largest Boeing order ever recorded. Although Air India placed an order for 220 aircraft in 2023, most of them were 737 MAX single-aisle aircraft, while Qatar Airways' offer consists entirely of wide-body 787 Dreamliner and 777X aircraft.
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During a press conference, Donald Trump stated, "This is the largest aircraft order in Boeing's history," and added that it represented over "$200 billion" for 160 aircraft. When compared to the White House figure, the discrepancy is explained by the distinction between firm orders (160 aircraft) and options (50). Qatar Airways has made firm commitments for 130 Dreamliners and 30 777-9 aircraft from the 777X family.
The list prices of a 787 Dreamliner are approximately $250 million, and a 777X comes in around $440 million, resulting in a total far lower than the communicated figures, since the allocation of options is not specified. Boeing chose not to comment on the announcement at first, while Qatar Airways remained unresponsive when contacted. The 777X is still undergoing testing before certification from the Federal Aviation Administration (FAA), with the first delivery expected in 2026.
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Nicolas Owens, an analyst at Morningstar, commented, "That's a lot of aircraft, but if you order one today, you won't receive it for at least five years." As of the end of April, Boeing's order book totaled 6,282 aircraft. After years of quality issues, Boeing was forced by the FAA to slow down 737 MAX production at the beginning of 2024 following an in-flight incident in early January. CEO Dave Calhoun resigned at the end of 2024, replaced by Kelly Ortberg, a sector veteran who spent most of his career at aerospace equipment manufacturer Rockwell Collins. Boeing also suffered a strike that lasted more than fifty days, blocking two crucial factories between mid-September and early November.
"It's good news, but Boeing won't gain anything from these aircraft for a long time", emphasized Nicolas Owens, who considered the inclusion of the 777X "a sign of confidence from a long-standing customer".
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In the first four months of the year, the group recorded 261 net orders. "They needed to get back on track, and it seems that Ortberg is succeeding", said Nicolas Owens. The Qatar Airways order coincided with the resumption of Boeing aircraft deliveries to Chinese clients, following a pause mid-April over tariffs imposed by Donald Trump on Chinese products imported into the U.S. Two countries agreed to drastically reduce these tariffs for 90 days, with the aim of reaching a trade agreement.
The announcement of the order took place as the American president signed a series of agreements in Doha alongside the Emir of Qatar, Sheikh Tamim bin Hamad Al-Thani. The agreements covered various areas, including defense, with the supply of MQ-9B drones. During his first stop in the region, in Riyadh, Donald Trump surprised by announcing the lifting of sanctions against Syria and meeting its Islamist president, Ahmad al-Assad. In Doha, Donald Trump was given a grand welcome similar to that in Riyadh.
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The stop in Doha, however, had a political backdrop. The Democratic opposition in the U.S. accused billionaire Donald Trump of accepting the "largest foreign bribe in recent history". In question was a Boeing 747-8 offered to Donald Trump by the Qatari royal family as part of arrangements for temporary use of the aircraft and later use after his term.
This record-breaking deal between Qatar Airways and Boeing could significantly impact the financial aspect of the business, as the estimated value of the order is suggestively the single largest Boeing order ever recorded. Moreover, the inclusion of cutting-edge technology like the 777X aircraft in the order underscores the confidence of Qatar Airways in Boeing's future offerings.
