Boeing Wins Order to Supply Up to 60 737 MAX Jets to Malaysia Airlines

The Boeing Company BA recently secured an order from Malaysia Aviation Group to supply 18 of its 737-8 and 12 737-10, as well as options for 30 more 737 MAX commercial aircraft. These aircraft will not only improve the efficiency of Malaysia Airlines' fleet and expand its seating capacity but will also enable the company to enhance the whole in-flight experience while prioritizing the demands of its passengers. This contract win should significantly boost Boeing’s commercial airplane business segment.Boeing has faced significant challenges over the last few months, including a major financial loss, safety concerns and production delays of its commercial aircraft. This new order, along with a recent defense contract to design, build and deliver its next-generation fighter aircraft under the Next Generation Air Dominance program, will boost Boeing’s prospects.Boeing’s Presence in Malaysia The Boeing 737 has served as an essential component of Malaysia Airlines' single-aisle fleet for nearly 60 years. Boeing's presence in Malaysia includes Boeing Composites Malaysia, the company's first fully owned production facility in Southeast Asia. The manufacturing facility makes composites and subassemblies for all Boeing commercial aircraft, including the 737 MAX.Malaysia Airlines presently runs more than 50 737 aircraft, and the addition of new 737-8 and 737-10 jets will offer operational commonality and the best per-seat costs in their class, leading to a 20% decrease in emissions and fuel consumption.Boeing’s Expansion in Southeast Asia Boeing's 2024 Commercial Market Outlook projects that Southeast Asia air travel will more than triple in the next 20 years, with annual growth of 7.2%. More than 4,720 new airplane deliveries are expected by 2043. Undoubtedly, such solid market growth offers strong expansion opportunities for Boeing, one of the largest commercial jet makers in the world.Boeing already enjoys a strong business footprint in Southeast Asia and has been the manufacturer of premier commercial jetliners for decades. The company’s commercial portfolio includes 737, 767, 777 and 787 families of aircraft, as well as the Boeing Business Jet line, which serves the Southeast Asia market.Boeing is well-known across the region in nations such as Thailand, Malaysia, Vietnam, Singapore and a few more. Boeing Commercial Training Solutions' Singapore Facility is the company's largest aviation training center in Asia.Opportunities for Other Aerospace Companies Other prominent aerospace players that have a strong presence in the Southeast Asia market are mentioned below:Airbus Group EADSY: The company has been an essential player in Singapore's aerospace industry, with strong ties in commercial aviation, defense, space and helicopters. With more than 640 sold aircraft, including the A320neo Family, A330neo, A350 and A380, the company is the top commercial aircraft provider for Singapore Airlines.Airbus has a long-term (three to five years) earnings growth rate of 7.5%. The Zacks Consensus Estimate for EADSY’s 2025 sales calls for an improvement of 6.5% from the prior-year reported figure.General Dynamics Corp. GD: The company’s Jet Aviation maintenance hub in Singapore offers a wide range of aviation services, including fixed-wing maintenance, refurbishment, engineering, Fixed-Base Operator, aircraft management and charter services.GD boasts a long-term earnings growth rate of 9.8%. The Zacks Consensus Estimate for GD’s 2025 sales implies an improvement of 5.5% from the prior-year reported figure.Textron Inc. TXT: The company has a strong presence in Southeast Asia. Its Singapore Service Center offers maintenance, repair and overhaul services for its aircraft, including legacy models. The facility also specializes in the installation of upgrades and modifications as well as unscheduled maintenance.Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales suggests an improvement of 6.9% from the prior-year reported figure.BA Stock Price Movement In the past six months, shares of Boeing have risen 17% against the industry’s decline of 7%.Image Source: Zacks Investment ResearchBA’s Zacks Rank Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks