The Boeing Company (BA) Receives New Orders But Losing Market Share to Lockheed Martin Corporation (LMT) in Military Airplanes

The Boeing Company (NYSE:BA), on September 20, 2014, stated that it has received an order of 20 737 MAX 8s from Ethiopian Airlines. The total price of the order is higher than $2.1 Billion and including options for purchase of additional 15 737 MAX 8s.

Van Rex Gallard from Boeing, vice president of sales in the Region, stated that;

“This historic order for Boeing and our partner Ethiopian once again positions the carrier at the heart of African aerospace innovation with the acquisition of the 737 MAX,”

The Boeing Company (NYSE:BA) recently announced its projection for Asia Pacific Region. According to study of Boeing, 440,000 of commercial airline pilots and technicians will be required over the next 20 years and this region will constitute the 39% of the global demand of the airline personnel.

Bob Bellitto, director from customer group of Boeing flight services stated that;

“The Asia Pacific region is seeing tremendous economic growth and is set to become the largest air travel market in the world, …, That growth rate means booming career opportunities for those interested in becoming commercial airline pilots and maintenance technicians over the next two decades. These are strong, stable and challenging jobs in one of the most technologically advanced industries in the world.”

Previously, Ryanair Holdings plc (ADR) (NASDAQ:RYAAY) also announced its plan of buying 200 of the higher-capacity Max 200 model from The Boeing Company (NYSE:BA) and the deliveries are planned to be started in 2019.

According to recent article of Wall street Journal, The Boeing Company (NYSE:BA) is losing its market share in military planes and most of the US defense budget is allocated for F-35 Joint Strike Fighter program of Lockheed Martin Corporation (NYSE:LMT). The defense share of The Boeing Company (NYSE:BA)’s total revenues has been decreased from 56% in 2003 to 38% in 2013 according to the article.

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