Boeing Company (NYSE:BA) is reportedly nearing what could be its second largest sale of the year for the 737 Max jets, engaging in exclusive talks with El Al Israel Airlines following a turbulent start to the year due to a significant mishap involving the aircraft model.
The deal, estimated to be worth between $2 billion and $2.5 billion, involves around 30 of Boeing’s 737 Max aircraft, including additional engines and spare parts, according to a report from Bloomberg.
Related: Boeing’s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident – What’s The Benefit?
The new aircraft will phase out older models, specifically the 737-800 and 737-900 jets that currently make up part of El Al’s fleet.
The transition is part of the carrier’s ongoing efforts to modernize its fleet, which exclusively comprises Boeing aircraft, both narrow-body and wide-body.
El Al had previously considered a competitive bid from Airbus SE (OTC:EADSY) for the fleet upgrade, highlighting the competitive dynamics in the aircraft manufacturing industry.
Also Read: Boeing’s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul
This potential agreement marks a significant rebound for Boeing, which faced intense scrutiny and criticism from regulators, legislators, and the airline industry following a January incident.
During that event, a fuselage panel detached from a 737 Max during flight, sparking safety concerns and investigations.
The deal with El AI is second only to an earlier order in March by American Airlines Group Inc. (NASDAQ:AAL), which included 85 of the same model, showcasing a recovering trust in the 737 Max’s safety enhancements.
Boeing stock has lost more than 14% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares are trading lower by 0.44% at $189.28 in premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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