Boeing Company (BA.US) welcomes dual benefits of "order + regulation"! Wins order for 120 aircraft, gains FAA approval for final delivery of 737 Max and 787 new aircraft.

Boeing Company (BA.US) has locked in two consecutive orders at the Farnborough International Airshow in the UK. One large order comes from the aircraft leasing company SMBC Aviation Capital, which is the first significant deal to attract attention at this year's airshow. The other order comes from Philippine Airlines. As of the time of writing, Boeing Company's pre-market stock on Monday rose by over 1%. Airshows are usually the main occasions for Airbus and Boeing Company to compete for commitments to purchase large aircraft, and then formally announce the orders at signing ceremonies. This year's Farnborough airshow alternates with the Paris airshow, providing Boeing Company with the opportunity to expand its trading activities. Previously, due to an aircraft accident that occurred just days before the last airshow, this American aircraft manufacturer was absent from the previous event. SMBC announced on Monday that they will purchase 100 737 Max aircraft, including 60 of the larger Max 10 model and 40 of the Max 8 model. Aircraft leasing companies have become an increasingly important customer base for Airbus and Boeing Company. The leasing model allows airlines to modernize their fleets flexibly without having to purchase expensive aircraft directly. In the commercial aviation sector, single-aisle aircraft such as the 737 and A320 are the most widely used models, making them the most liquid and popular models in the aircraft leasing industry. After acquiring the US aircraft leasing company Air Lease earlier this year, SMBC further consolidated its position as the world's second-largest aircraft lessor, behind only AerCap. Boeing Company's second order comes from Philippine Airlines, marking the Southeast Asian airline's first purchase of Boeing Company aircraft in nearly twenty years. It is reported that the airline has agreed to purchase up to 20 787-10 "Dreamliner" aircraft, with deliveries expected to begin in 2031. According to an announcement from Philippine Airlines, the memorandum of understanding includes firm orders for 15 787-10 aircraft, with options for an additional 5 aircraft. This order from Philippine Airlines not only boosts Boeing Company's performance but also helps ensure that American-made aircraft continue to maintain their market share in a market dominated by Airbus. According to Philippine Airlines' annual report, as of the end of last year, the company's fleet consisted of 82 aircraft, including 10 Boeing Company 777s for long-haul routes, 4 Airbus A350 long-haul aircraft, and 11 Airbus A330 aircraft for operations in the Asia-Pacific region. In addition to orders, Boeing Company's production capacity expansion has reached a critical turning point. Following a near-disastrous accident involving a 737 Max aircraft in 2024, regulatory authorities found a series of quality issues at Boeing Company. Subsequently, the Federal Aviation Administration (FAA) restricted Boeing Company's aircraft production rate and revoked the company's authority to sign final release certificates for newly produced aircraft. However, this authority is set to be reinstated soon. The FAA announced that the decision to restore Boeing Company's related authority will formally take effect on July 20, reflecting the company's progress in improving quality management and regaining the trust of regulatory agencies. Meanwhile, the FAA stated that they will continue to supervise the quality level of this aircraft manufacturer. This reinstatement of authority is crucial for Boeing Company to expand production capacity, improve financial conditions, and regain an edge in competition with rival Airbus. Currently, the American aircraft manufacturer is working on stabilizing production of their "cash cow" product, the 737 series, with the goal of maintaining monthly production at 47 aircraft and gradually increasing it to 63 aircraft over the next few years. Earlier this month, Boeing Company officially inaugurated the fourth 737 Max assembly line near Seattle to deliver its growing backlog of orders, even though initial production on the new line will be lower. This new assembly line is a key element in Boeing Company's efforts to increase production of the 737 MAX series. Jennifer Boland-Masterson, a senior executive at Boeing Company, stated that they are currently using a low-rate production mode to identify and resolve various production issues and ensure smooth operation of the production line. She did not disclose the specific pace of expansion for this line, but stated that they will gradually hire more workers as capacity increases. US regulators also expect to approve the latest models of the 737 Max series in the coming months. While Rochedo did not provide a specific certification timeline for the 737 Max 7 and Max 10 models, he stated that Boeing Company is "getting closer every day" to approval. He noted that certification work for the 737 Max 7 is "very close to completion."