On Wednesday, an enormous deal was reached between budget airline FlyDubai and aeronautical super power Boeing. The innovative airplane supplier will produce 225 of their popular MAX single-aisle jet airplanes, an agreement that’s worth $27 billion dollars.
The news came at the Dubai Airshow, which is the same venue where previous agreements between the two companies have been finalized and announced. The first order came in 2008, when FlyDubai purchased 50 Next Generation 737-800s from Boeing, and they were the first airline to integrate the Boeing Sky Interior. The second deal was announced at yet another Dubai Airshow in 2013, which comprised of 75 MAX and 11s Next Generation 737-800s.
This most recent deal details a purchase of 175 737 MAX planes, in addition to the purchase rights of an additional 50 MAX planes, which include a combination of the 737-10, the largest of Boeing’s MAX narrow-body planes, as well as 737-9s and 737-8s. The massive order has a positive impact on the economy, according to Boeing, the purchase will keep many tens of thousands of jobs with U.S. Boeing factories and suppliers for years to come.
Boeing wasn’t the only airline in consideration in for the government owned airline. Reports say that FlyDubai was also looking at Airbus’ A320 airplanes, that are comparable in size. That FlyDubai chose Boeing’s plane isn’t much of a surprise given the past relationship between the companies, and the prestige of the MAX planes. Just two hours before the Boeing and FlyDubai deal, Airbus announced their own deal to sell their 430 of their A320 to Indigo Partners.
The 737 MAX planes are Boeing’s fastest selling plane to date. So far, orders exceed the 4000 mark, and come from 92 different customers.
The delivery of the planes is on a ten-year schedule. First delivery of planes will begin in 2019.