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Boeing Stock Jumps After $3.7 Billion 737 MAX Aircraft Sale to 777 Partners

Boeing said Miami-based 777 Partners boosted its 737 MAX order by adding another 30 planes at a list price of $3.7 billion

Boeing  (BA) - Get Boeing Company Report shares moved higher Tuesday after the planemaker unveiled a $3.7 billion order for new 737 MAX jets to Miami-based private investment group 777 Partners.

Boeing said 777 will buy an additional 30 737 Max aircraft, taking its overall total to 68, as it expands its fleet to affiliated, low-cost carriers around the world.

The new order adds to fresh optimism for the troubled aircraft, which was grounded by global regulators in 2019 following fatal crashes in Indonesia and Ethiopia, following a move by China's Civil Aviation Authority to issue an "airworthiness directive" earlier this month that clear its return to service in the world's biggest airplane market. 

"We greatly appreciate 777 Partners for their trust in our products, including repeat orders for the 737 MAX and expanding their fleet to include the high-capacity 737-8-200 model," said Boeing's vp for commercial sales, Ihssane Mounir. "777 Partners is enabling growth for its affiliated low-cost carriers by leveraging the 737 family's flexibility, reliability and efficiency to serve passengers for years to come." 

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Boeing shares  were marked 1.7% higher in early Tuesday trading to change hands at $209.30 each, a move that still leaves the stock with a six-month decline of around 17.2%.

Earlier this fall, Boeing said China, the world's second-largest economy but the largest aircraft market, would likely need 8,700 new airplanes over the next two decades, a figure that translates to overall sales of around $1.47 trillion.

A further $1.8 trillion will likely be needed to service both its existing and future fleet additions over the next 20 years, Boeing said.

Boeing's 2021 Market Outlook, its annual analysis of long-term market dynamics, sees overall demand for around 43,610 over the next two decades, a figure that represents around $7.2 trillion in value but is down from its 2019 forecast of 44,040.

Boeing's ten year forecast sees global demand for 19,000 commercial airplanes valued at around $3.2 trillion, the company said, as cargo fleets expand to meet expanding e-commerce sales in major economies around the world.