Boeing (NYSE: BA) has suffered in the stock market this year. The company has been the center of a jet safety and compliance scandal, with two deadly failures on its 737 MAX aircraft. Jets of this type have been grounded worldwide since earlier this year and may not be recertified for service until at least the end of July.
However, the company received some positive press over the weekend, with Air New Zealand (OTC: ANZLY) announcing on Sunday that it has ordered eight Boeing 787-10 Dreamliner jets for its long-range fleet.
Confidence in Boeing’s Products
While Air New Zealand is a smaller operator with a fleet of 115 aircraft under its main brand and subsidiaries, it is seen as a world leader in aviation safety. The company was listed amongst the Top 20 Safest Airlines by Airline Ratings in 2019. Ratings are awarded based on historical incidents, safety innovation, and successful launches and operation of new aircraft.
The company is an operator of Boeing 777-200ER, 777-300ER, and 787-9 Dreamliner aircraft. It was announced on Sunday that the company has now placed an order for eight newer Boeing 787-10 Dreamliner aircraft, with a total value of $2.7 billion.
Comments on Boeing’s service and support will be a boost for the beleaguered aerospace company. Air New Zealand CEO Christopher Luxon said in a statement that “The 787-10 is longer and more fuel efficient. However, the game changer for us has been that by working closely, we’ve ensured the 787-10 will meet our network needs, including the ability to fly missions similar to our current 777-200 fleet.”
Air New Zealand is a customer of Boeing Global Services, a division of Boeing that provides health management for aircraft. A proprietary digital solution takes real time analytics from operating aircraft to make decisions around support tools and maintenance to increase both safety and efficiency.
Positive Press Will be Welcomed by Boeing
Boeing has been under pressure with recent 737 MAX failures and the revelation that the company self-certified many of its software and safety features for the FAA. Air New Zealand’s order bucks the trend of cancellation threats from other Boeing Customers.
Still has a long way to go to regain trust and confidence in the wider aviation market. However, this is a positive step that will not be missed by investors.
Boeing stock is down -16.31% over the last three months but is up 10.05% for the year so far. Investors could find today’s prices to be compelling, especially considering that stock is likely to recover once currently grounded 737 MAX jets are back in the air.
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