Boeing said Tuesday that startup Indian airline Akasa Air, a brand of SNV Aviation, ordered 72 737 Max Jets “valued at nearly $9 billion at list prices.”
Akasa “plans to offer commercial flights starting in the summer of 2022 and use its new fleet of 737s to meet the growing demand across India,” the companies said.
The Akasa Air order includes two styles of the 737 Max, the 737-8 and the high-capacity 737-8-200.
Shares of Boeing, the Chicago aerospace giant, recently traded at $231.88, off 0.5%. They have climbed 7% in the past month.
The 737 Maxx was grounded worldwide from March 2019 until November 2020 after two accidents killed 346 people.
SNV Aviation is backed by Indian billionaire Rakesh Jhunjhunwala.
Morningstar analyst Burkett Huey last month cut his fair value estimate for Boeing stockto $249 from $260 “to reflect a slower ramp-up in 737 Max production and deliveries to reflect these headwinds and an extension of the near-term 787 headwinds,” he wrote.
“Wide-moat-rated Boeing reported sequentially worse earnings in the third quarter, as the pausing of 787 deliveries due to manufacturing problems crept into financial results.
“While these results are disappointing, we’re more concerned about the continued grounding of the 737 MAX in China and the lighter-than-expected 737 MAX deliveries from inventory, indicating that demand is somewhat softer than we had previously expected….
“We’re slowing down our delivery projections below Boeing’s, as the delivery pace suggests that the market cannot support the roughly 500 MAX deliveries Boeing expects.
“We’ve updated our long-term production assumptions accordingly to reflect production increases off a lower base.”