Boeing Is Confident Of Huge Jet Orders From Asia
Boeing is expecting many jet orders from Asia in the next 20 years and has its finger crossed.
Boeing Corporation is optimistic when it comes to receiving orders from the Asian market in the next 20 years. The aerospace giant lost a contract of order it had with the Singapore Airline to its major rival in the market, Airbus.
Boeing Co. is staying optimistic when it comes to receiving orders from Asia and Southeast Airlines, which will remain its customer for a while. According to the senior vice president of India and Asia Pacific, Boeing forecasts demand for 3,750 new jets, which will be worth almost $550 billion in the next 20 years. It is expecting 76% of these orders to be of its single aisle jet including the 737 and even Airbus’s A320.
The aerospace company and its rival, Airbus, might be participating in the Singapore Airshow, which has proved to be profitable in the past and helped to generate deals worth $32 billion. This year’s Airshow is expected to launch on Tuesday and will end on February 21. Boeing has to be extra cautious as almost 1000 companies are taking part in this show; hence, the aerospace company will have huge competition.
Boeing made another announcement this month that it will be making job cuts in the production department of its airplanes in order to save costs but it did not make any details public of making such a decision. According to Tony Tyler, general director of Air Transport Association, the airline in Asia might try to push back their placed orders because of softer profits.
The organization’s focus is on the market of Vietnam, Indonesia, and Myanmar. Rapidly growing ecofriendly airlines including Lion Air and others have already placed hundreds of order for Boeing and Airbus’s jets. Lion Air is one customer that exclusively belongs to Boeing in terms of orders for 737s.
The airplane maker success widely depends on the Asian Airlines and other customers for the next 20 years, with an estimation that 39% of the deliveries will be made to Asia in future. The company said that it is expecting adjusted earnings for this year between $8.15 to almost $8.35 per share, but the average forecast expects it to be $9.41 according to many experts and analysts. It is also expecting and is prepared for deliveries to go down from 762 last year to 740 and 745 this year.
Boeing stock closed at $108.63, going green by 0.18% on Tuesday, February 16.