Boeing Wins $523 Million Ukrainian Airline Contract

SEATTLE, Washington -- Boeing Co., the world's second biggest commercial airplane maker, won an order from AeroSvit Ukrainian Airlines valued at $523 million for seven 737 aircraft.

Boeing 737-800 aircraft

The airline has also purchased rights for seven more of the 737-800s and will use the new jetliners to replace aging planes in its all-Boeing fleet, the Chicago-based planemaker said today in a statement.

Boeing Chief Executive Officer James McNerney boosted production last quarter to hasten delivery on a 737 order backlog of about 1,500 planes valued at more that $100 billion.

The 737, Boeing's top seller, is popular with low-fare airlines and carries a list price of $50 million to $85 million.

Kiev, Ukraine-based AeroSvit plans to replace its entire 737 fleet of 13 planes with the order, its first purchase directly from Boeing.

Prior to the announcement, Boeing's Web site said the order came from an identified customer.

Shares of Boeing, which booked orders for 688 airliners through July 31, rose $1.40, or 1.3 percent, to $105.93 at 4:02 p.m. in New York Stock Exchange composite trading.

Separately, Copa Holdings SA, parent company of Panama City-based Copa Airlines, said today it received loan-guarantee commitments from the U.S. Export-Import Bank for the purchase of six 737s.

Only one of the commitments is final. The remaining five are preliminary, Copa said in a statement. The carrier has 14 of the aircraft on backorder.

The Ex-Im Bank is an independent U.S. government agency that encourages American exports by providing government guarantees to commercial banks to finance trade.

The Washington- based lender authorized $12.1 billion in transactions last year.

Boeing on Tuesday won a 737 order for 20 planes valued at as much as $1.4 billion from Canada's second-biggest carrier, WestJet Airlines Ltd.

The contract amounts are based on list prices, which don't include discounts traditionally given to airlines.

Source: Bloomberg