(By Balaseshan) Aerospace giant Boeing Co. (NYSE:BA) said it has received an order worth $10.8 billion from Mexico's largest airline Aeromexico for 100 single- and twin-aisle airplanes.
Grupo Aeromexico's Chief Executive Andres Conesa said the order represents the biggest aircraft investment by a Mexican airline in the country's history and a major step in consolidating Grupo Aeromexico's international leadership position.
Aeromexico has commited to purchase up to 100 airplanes in an agreement that will fuel the airline's expansion. The commitment includes a mix of 90 737 MAX 8s and 9s, as well as ten 787 Dreamliners.
Equipped with new LEAP-1B engines from CFM International and improvements such as the Advanced Technology winglet, the 737 MAX reduces fuel burn and CO2 emissions by 13% and maintains the 8% operating cost advantage over future competition.
As a result of innovative technologies, the 787 Dreamliner offers unparalleled operating economics, fuel efficiency and passenger comfort. More than 850 787s are on order by 58 customers, a testament to the airplane's unique capabilities.
Grupo Aeromexico, the parent company of Aeromexico, operates its main hub out of the Mexico City International Airport. In 2011, the group transported more than 14 million passengers and offered close to 600 daily flights to different cities in Mexico, the United States, Canada, Central and South America, as well as Europe and Asia.
Earlier today, Boeing boosted its 2012 earnings forecast following better-than-expected quarterly results, driven by strong commercial airplane deliveries, which soared 27%.
For second quarter, Boeing's earnings per share (EPS) rose to $1.27 from $1.25, topping market expectations of $1.12. Revenue jumped 21% to $20.00 billion, breezing past consensus estimate of a 17 percent growth.
BA is trading up 2.17% at $73.59 on Wednesday. The stock has been trading between $56.01 and $77.83 for the past 52 weeks.