Boston, MA 09/24/2014 (wallstreetpr) – The Boeing Company (NYSE:BA) order-book could receive another uplift in the coming days after reports emerged that Kuwait Airways was planning to place an order for ten Boeing 777 jets. The deal is thought to be worth $3.2 billion. Boeing has this year given Airbus a major beating on the orders front as fuel efficient airplanes continue to receive positive reviews in the industry.
Increased Demand for Fuel Efficient Aircrafts
The Boeing Company (NYSE:BA) has already delivered over 461 airplanes this year compared to Airbus’s 389 highlighting that it’s fuel efficient airplanes are the talk of the town. The deal by Kuwait would be a surprise considering it is only in January where it entered into an agreement with Airbus to buy 25 new jets while also leasing 12 others. The deal was valued at $4.4 billion.
Aircraft demand has mostly increased as more airlines continue to upgrade to more fuel efficient planes that are expected to have an impact in the long run in terms of cost savings synergies. Airbus and the Boeing Company (NYSE:BA) are already disagreeing on the amount of airplanes that should be produced on a yearly basis. Boeing maintains that it manufactures it’s airplanes depending on the forces of demand from buyers and suppliers.
Increased production Capacity
The two giant plane makers have made the transition to fuel-efficient planes as demand in the space continues to grow. The demand for Airbus A320 and Boeing 737 is thought to be at it’s peak as airlines make a rush for narrow body jets that are fuel efficient. Boeing has reportedly announced plans to increase its production capacity from 42 airplanes a month to a high of 47 by 2016. Production could reach a high of 52 airplanes a month by 2018.
Airbus, on the other hand, plans to upgrade its production to 46 airplanes per month by 2016, from the current 42 airplanes a month.
