Boeing lands 100-plane 737 MAX order from SMBC at Farnborough

Boeing The Boeing Company ↗ 0.28% secured one of the marquee deals of the Farnborough International Airshow's opening day on Monday, with leasing giant SMBC Aviation Capital placing an order for 100 737 MAX jets, including 60 of the highest-capacity 737-10 variant and 40 737-8 aircraft.

A Landmark for the 737-10

The deal represents SMBC Aviation Capital's first-ever order for the 737-10, making it the single largest 737-10 commitment by a lessor. The agreement expands the Dublin-headquartered company's owned, managed, and committed portfolio for the 737 MAX family to 450 aircraft, cementing its position as one of Boeing's largest narrowbody customers among leasing companies.

Reuters reported ahead of the show's opening that SMBC was expected to place orders for around 100 narrowbody aircraft from each of the two major manufacturers, with Airbus also securing a parallel deal for A320neo-family jets. Bloomberg had reported on July 16 that Boeing and Airbus were competing to lock down the SMBC order, while industry sources indicated Boeing was in advanced discussions for approximately 100 737 MAX aircraft.aerospaceglobalnews+2

Boeing's Production Focus

The order arrives at a notable moment for Boeing. Just one day earlier, the head of Boeing's commercial airplane division told Reuters the company was focused on ramping up 737 MAX production rather than chasing new order announcements. The manufacturer has been working to increase output to 47 aircraft per month following earlier FAA-imposed production caps tied to quality control concerns.globalbankingandfinance+1

SMBC Aviation Capital has been a long-standing Boeing customer, having first ordered 80 737 MAX 8s in 2014 and subsequently adding to its portfolio with orders in 2021 and 2023. The lessor also recently placed 18 737-8 jets with EgyptAir as part of lease arrangements.smbc+2

Farnborough's Order Bonanza

Industry sources told Reuters that Airbus and Boeing were together expected to secure commitments for a little over 300 aircraft during the week-long show, which runs through July 24. Beyond SMBC, other anticipated announcements include widebody orders from Etihad Airways and Ethiopian Airlines.reuters+2