The Boeing Company (NYSE: BA) has announced that $6.1 billion contract was signed with Ruili Airlines. According to the contract, Boeing will deliver 60 single aisle body 737 MAX commercial aircrafts. Ruili Airlines is a young airlines company in China that is already runs operations using five Boeing 737 aircrafts. The other 60 are expected to be completely delivered by 2025.
The 737 MAX is a relatively small airplane, that is most efficient for airlines who plan to schedule more domestic flights, or flight to destinations in neighboring countries. The demand for small airplanes has increased drastically over the last five years. This is not the first order of the new aircraft. Overall, Boeing received orders of 189 from the beginning of the year. The stock of the company increased in value by more than 13% year to date.
In addition to the 737 MAX, Boieng also expects to profit from the 787 Dreamliner planes, which is known for carbon composite fuselage. Boeing has invested approximately $50 billion in the development and productions of the Dreamliner, and the long-term projections for liner’s performance are very promising, and Boeing works to convert a record order backlog into cash.