Aeromexico Buying 100 Boeing Planes

28 July 2012

MEXICO CITY (AFP) - Aeromexico, Mexico's largest airline, plans to buy 100 airplanes from US aerospace giant Boeing in an almost $11 billion deal, the companies said.

Grupo Aeromexico has committed to buy a mix of 90 single-aisle 737 MAX 8s and 9s, as well as 10 twin-aisle 787 Dreamliners.

"This order represents the largest investment program for a domestic airline in Mexican commercial aviation history and a major step forward in consolidating Grupo Aeromexico's international leadership position," said Grupo Aeromexico's chief executive, Andres Conesa, in a statement.

When finalized, the Aeromexico order will be worth $10.8 billion at list prices, the statement said.

Conesa said the airline was expanding its medium- and long-term fleet plan supported by its US partners Boeing and General Electric, which builds engines for the planes.

Aeromexico operates an all-Boeing fleet for airplanes larger than 100 seats.

The airline, which operates more than 550 daily flights to cities in Mexico and internationally, transported 14 million passengers last year.

Both the 737 MAX and the 787 Dreamliner are Boeing's latest fuel-efficient aircraft.

Dreamliner deliveries to Aeromexico were expected to begin in 2013, while those of the 737-8 MAX would start in 2018.

The new 737 MAX, based on the 737, the world's best-selling plane, has more than 1,200 orders and commitments, according to Boeing. First deliveries are set to begin in the fourth quarter of 2017.

The much-delayed 787 Dreamliner is made mostly of composite materials. It is the first mid-size plane capable of flying long-range routes and is the fastest-selling widebody plane in history, the Chicago-based company says.

Japanese launch customer All Nippon Airways received its first 787 in September 2011, three years behind schedule.

News of the Aeromexico deal came hours after Boeing posted a three percent rise in second-quarter profit, to $967 million, boosted by a 27 percent jump in commercial aircraft deliveries.

Boeing raised its 2012 earnings and revenues outlook.