Boeing Finalizes $6.6 Bln Order For 61 737 MAXs From Copa Holdings

(RTTNews) - Aerospace giant Boeing, Inc. (BA) finalized Friday an order for sixty-one 737 MAX 8 and MAX 9 airplanes from Latin American airline operator Copa Holdings, S.A. (CPA), valued at $6.6 billion at list prices. Copa will be the first airline in the region to operate the 737 MAX 9 on deep South American routes.

The order is billed as the largest commercial transaction ever between a Panamanian and a U.S.-based company. The historic agreement was signed by the CEOs of both companies in the presence of U.S. President Barack Obama and Panama President Juan Carlos Varela Rodriguez.

"Copa is proud to sign this landmark order in the presence of our two presidents. The Next-Generation 737 is the backbone for our fleet today, and our order for the 737 MAX shows our continued commitment for the future to bring people together across all of the Americas using the most modern and efficient airplanes in the sky as well as our Hub of the Americas in Panama City," Copa CEO Pedro Heilbron said.

Panama City-based company Copa Holdings will use the airplanes to replace existing airplanes and support the carrier's plans for strategic growth.

The unprecedented demand for 737 MAX is fueled by air traffic growth and the need for more fuel-efficient airplanes.

The aircraft has been quite popular particularly with airplane leasing companies due to its 14 percent more fuel efficiency and lowest operating costs with an eight percent operating cost per seat advantage over tomorrow's competition, particularly the A320neo from French aerospace giant Airbus Group N.V. (EADSF, EADSY).

The 737 MAX is a new-engine variant of the world's best selling Boeing 737 airplane and builds on the strengths of Next-Generation 737.

The plane incorporates the latest-technology CFM International LEAP-1B engines to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The latest quiet engine technology will also reduce the aircraft's noise footprint by up to 40 percent.

The current order from Copa Holdings continues the momentum of the 737 MAX in the marketplace, with the total number of 737 MAX orders to date reaching 2,715 airplanes from 57 customers worldwide.

"Copa has a history of leading the way for Latin America's aviation industry, and this order shows their dedication to continuous improvement in performance, customer satisfaction and efficiency," Boeing Chairman and CEO Jim McNerney stated.

In Friday's regular trading session, CPA is currently trading at $106.95, up $1.50 or 1.42% on a volume of 0.11 million shares. In the past 52-week period, the stock has been trading in a range of $87.00 to $157.98.