Boeing Hits Milestone with 777, Supports $91 Fair Value
Boeing (NYSE:BA), one of the biggest aircraft manufacturers in the world recently celebrated the occasion of manufacturing its 1,000th 777 jetliner. The aircraft will be delivered to Dubai based Emirates Airways later this month. This is a significant milestone for the company as 777 is the fastest twin aisle airplane ever to reach this mark. This indicates the successful deployment of Boeing’s strategy to target commercial airplanes as its major growth driver in the coming years. Commercial airplanes are also the most valuable division of Boeing, accounting for nearly 53% of the stock’s value.
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Boeing 777’s value proposition of advanced long range capabilities and improvement environmental performance coupled with Boeing’s strong reliable production system has helped it become the favorite choice for commercial airlines all over the world.
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Last year was exceptionally good for this family of aircraft as Boeing recorded 200 orders from 22 customers, setting a record for the highest in an annual year. This beat the second highest of 154 recorded in 2005. Due to this, Boeing has decided to increase its production of 777’s by 20% from next fall, taking it from 7 to 8.3 aircraft per months. It plans to be able to produce 100 777 jetliners every calendar year from 2013. Boeing has until now recorded orders of 1,361 777’s from 64 customers around the globe.
As a fitting gesture, Boeing will be delivering this 1,000th plane to Emirates, the biggest operator of these jetliners. It currently has 102 777’s in its fleet along with 84 passenger aircraft and 9 freighters on order. Emirates is the only airline in the world to operate all six airplanes of the 777 family. The 1,000th 777 which will be delivered to Emirates is a 777-300ER (extended range) model that seats 360 passengers in a three-class configuration. Emirates expects the long range haul capabilities of this aircraft to play a critical role in its quest to develop Dubai as the gateway to worldwide air travel.