The Boeing Company [NYSE: BA] and GE Commercial Aviation Services (GECAS) announced today the lessor's purchase of 20 Boeing Next-Generation 737s worth US$1.1 billion at list prices.
GECAS also is identifying itself as the customer for 12 Boeing 737s ordered last year that were attributed to an unidentified customer. These 12 airplanes will be delivered starting late this year and throughout 2006. All 12 have been placed with airlines.
The 32 airplanes on firm order, in conjunction with six 737s ordered last month for lease to Sky Europe, bring to 38 the firm commitments GECAS has made to the 737 family in the last year.
The 20 new airplanes are scheduled for delivery from 2006 into 2008. Six of these airplanes have already been placed with airlines.
"The Next-Generation 737 is popular among the world's airlines and we have been quite successful in placing the airplane with operators," said Henry Hubschman, president and CEO of GECAS. "Airlines appreciate the low operating costs, high reliability and the modern, flexible interior that meets their changing requirements. In addition the 737 maintains its value as an asset in our portfolio."
"The 737 is a great airplane for the leasing market, and we are working closely with GECAS to meet the demand generated by the recovery in commercial aviation," said John Feren, vice president of Leasing & Asset Management for Boeing Commercial Airplanes. "Over the years, GECAS has been a great partner and has leased hundreds of Boeing airplanes to fleets around the world."
GECAS has directly ordered a total of 301 Boeing jetliners and currently has more than 600 Boeing airplanes in their fleet.
The total GECAS Next-Generation 737 fleet is nearly 200 airplanes, which includes purchases from Boeing and from third parties. All are in operation with more than 30 different airline customers around the world.
GECAS offers the 737, 747, 757, 767 and 777 to operators. GECAS has been highly successful in placing Boeing airplanes with operators from every continent, including many of the world's most prestigious airlines.
GE Commercial Aviation Services (GECAS), a unit of GE Commercial Finance, is the commercial aircraft financing and leasing business of General Electric Co. GECAS has a fleet of more than 1,300 owned aircraft and offers a full range of aircraft fleet, financing and productivity solutions including operating leases, secured debt financing, engine leasing, spare parts financing and management, and pilot training. GECAS has offices in 22 cities worldwide serving more than 200 airlines in some 60 countries.
The Next-Generation 737 family delivers high profitability, optimum efficiency and reliability, and is 10 years newer than its competition. It is the fastest-selling jetliner of all time and the class leader in dispatch reliability. Boeing has received orders for more than 2,500 Next-Generation 737s since launching the program in 1993, with unfilled orders for more than 850 airplanes.