Boeing didn't disclose terms of the deal but said the "significant investment" would involve engineering, manufacturing and flight test resources for Aerion's AS2 jet, which is set for launch in 2023 and claims a top speed of Mach 1.4, or around 1,000 miles per hour. The move adds the high-speed commercial jet market to Boeing's arsenal of business units, which collectively grew fourth quarter earnings by 79% and delivered group revenues of $28.34 billion.
"Boeing is leading a mobility transformation that will safely and efficiently connect the world faster than ever before," said Boeing NeXt vice president Steve Nordlund. "This is a strategic and disciplined leading-edge investment in further maturing supersonic technology. Through this partnership that combines Aerion's supersonic expertise with Boeing's global industrial scale and commercial aviation experience, we have the right team to build the future of sustainable supersonic flight."
Boeing shares traded over the $400 mark for the first time Tuesday, gaining 3.3% to close at a record high of $410.18 in trading in New York, a move that extend's the stock's year-to-date gain to around 26.2% and values the Chicago, Illinois-based industrial giant at about $230 billion.
Boeing said last week that it expects record commercial airplane deliveries of between 895 and 905 aircraft, the company said, up from 805 last year. while group revenues will like hit a range of $109.5 billion to $111.5 billion, well ahead of the consensus forecast of $106 billion.
With margins improving to at least 10.5%, Boeing hinted, earnings should come within a range of $19.90 to $20.10, firmly ahead of the Refinitiv forecast of $18.30 per share.