Turkish carrier Pegasus orders 100 Boeing 737 MAX 10 jets

(Reuters) - Boeing (NYSE:BA ) said on Thursday Turkish low-cost carrier Pegasus Airlines had placed a firm order for a hundred 737 MAX 10 aircraft, offering a welcome boost for the U.S. planemaker recovering from a crippling worker strike earlier this year.

The deal is worth some $5.85 billion after typical industry discounts, according to estimated delivery prices from UK-based Cirium Ascend. Boeing shares rose 2.7% in morning trading.

The Pegasus order takes the total orders for the largest model in the 737 MAX family above 1,200 jets, Boeing said in a statement.

The model, however, is yet to be certified by the U.S. Federal Aviation Administration (FAA). Problems related to the engine anti-ice system have delayed certification of the MAX 10 and the MAX 7, the smallest model in the MAX family.

Deliveries are expected to begin in 2028, Pegasus said. Planemakers get a bulk of the cash when the jet is delivered to a customer.

The planemaker expects to burn cash next year after a seven-week strike halted most jet production, including its cash-cow 737 MAX.



Pegasus, which has seen a rapid recovery in travel after the pandemic, told Reuters earlier this year it was working on a jet order to continue its fast-paced growth into the next decade.

The airline also has an option to order 100 more MAX 10 aircraft, which it will evaluate converting into firm orders in the coming years, based on market conditions and fleet needs.

Source: Investing.com