Boeing Gets Kuwait Air Deal After Losing Delta Order

Boeing received an order from Kuwait Airways Thursday, a day after losing a $14 billion deal from Delta Air Lines (NYSE:DAL) to rival Airbus.

Kuwait Airways will buy 10 wide-body 777-300ER jets from Boeing (NYSE:BA) in a deal valued at $3.3 billion at list prices. Airlines typically get a discount for large orders. The aircraft are set for delivery starting in November 2016.

Boeing shares were up 0.2% on the stock market today.

Middle Eastern airlines have been expanding rapidly, wanting to make the region into a travel hub for European and Asian jet-setters. Airports in the region also feature luxury lounges, shopping and spas to lure more tourists and business travelers.
Last year, Dubai-based Emirates Airline, Abu Dhabi’s Etihad Airways and Qatar Airways ordered a total of 225 Boeing 777 planes at the Dubai Airshow.

While the plane’s range and engine size exceed what 95% of customers need, it suits the needs of carriers like Emirates because its General Electric (NYSE:GE) GE9X engine can be used in hot conditions, analysts at AirInsight said in an earlier report.
Late Wednesday, Reuters reported that Airbus won a 50-plane, $14 billion order from Delta. Airbus beat out Boeing, as Airbus’ A330neo could be delivered earlier than Boeing’s 787 Dreamliner, sources told the news service. The deal includes Airbus A350-900s and A330s.

Delta had said earlier that it would buy up to 50 wide-body jets to replace Boeing 747-400s and 767-300ERs, and was considering the Airbus A330 and A350 as well as Boeing’s 777 and 787.

The Aerospace/Defense group is ranked No. 97 out of the 197 industry groups IBD tracks.

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