An investment company called 777 Partners has placed a firm order for 24 Boeing 737 MAX aircraft. The Miami-based company holds investments in low-cost carriers and has secured purchase rights for a further 60 of Boeing’s latest narrowbody product.
Last month saw Boeing experience its first month of net-positive orders since November 2019. Following the ungrounding of the 737 MAX, the planemaker has seen an increase in orders as confidence in the type returns. Today’s order from 777 Partners reaffirms the industry’s overall faith in the aircraft that was grounded for much of 2019 and 2020. To date, 15 carriers have resumed flights with the 737 MAX, while over 160 aviation authorities have given the type the green light.
Another new MAX order
Since the Boeing 737 MAX was ungrounded, the aircraft has received several high-profile orders from airlines such as Ryanair. Today the manufacturer clocked another order as 777 Partners agreed to purchase 24 Boeing 737 MAX 8 aircraft. The company didn’t say which airlines would fly the type. However, it did say that it would place the aircraft with its growing portfolio of low-cost carrier investments around the world.
The only airline that 777 Partners lists as being directly invested in is the Canadian low-cost carrier Flair, which has already placed its own order for the MAX. However, the company is also invested in the Value Alliance. This is an LCC alliance based in the Asia-Pacific region. According to the company, alliance members include,
- Cebu Pacific
- Cebgo
- Jeju Air
- Nok Air
- All Nippon Airlines
- NokScoot
- Scoot
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Commenting on the order, Joshua Wander, founder, and managing partner of 777 Partners, said,
“We could not be more excited to partner with Boeing on this transformative order for our growing aviation business. The 737-8 aircraft are a fantastic addition to our aviation portfolio and will enable our partners to leverage the jets’ superior economic performance to deliver low fares for their passengers while reducing their carbon footprint.”
A white tail sale?
Boeing currently has a stock of ready-to-go Boeing 737 MAX aircraft. Boeing had continued to manufacture the 737 MAX while the type was grounded. However, airlines canceled some of these orders for already built aircraft before the type’s return to service.
This has left Boeing with a surplus of 737 MAX 8 aircraft. Back in November, it was estimated that there were around 450 manufactured but undelivered 737 MAX aircraft. Of these, approximately 112 were said to be white tail aircraft not currently attributed to an order. It would make sense for 777 Partners to take these so-called white tail aircraft, as they are immediately available, and Boeing will have been keen to sell them, perhaps offering a decent discount to 777 Partners in the process of confirming such an order.
What do you make of this latest Boeing 737 MAX order? Let us know what you think and why in the comments!
