A boy looks at a Malaysia Airlines Boeing 737-800 aircraft (foreground) on the tarmac at Kuala Lumpur International Airport in Sepang outside Kuala Lumpur June 27, 2014.
The passengers and crew of the missing Malaysia Airlines Flight MH370 most likely died from suffocation and coasted lifelessly into the ocean on autopilot, a new report released by Australian officials on Thursday said. Reuters/Samsul Said

American aircraft maker Boeing Co (BA.N) will roll out its much awaited 737 MAX jetliner on Dec. 8 from its Renton factory in Washington. It has already received more than 3,000 orders. Boeing said it is on track to meet the jetliner’s delivery schedule in the third quarter of 2017, reports Reuters, quoting an email statement from the Chicago-based company.

The new aircraft is an upgraded version of its existing 737 jets, which Boeing is offering as a sophisticated new option with better fuel efficiency and reduced operating costs. For the 737 Max aircraft production, Boeing has opened a new production line in Renton. In terms of pricing, Max will cost an average US$110 million (AU$152.38).

Sale strategy

Meanwhile, BOC Aviation, which is the aircraft leasing arm of the Bank of China has placed a big order to buy 22 Boeing 737 jets, worth US$2.27 billion (AU$3.14 billion). This was the substantial order received by Beijing since September. According to analysts, the order will be evenly divided between the new 737 Max jets and existing 737 jets. The equal distribution into new and old models reflects Boeing’s strategy to keep production lines busy until the delivery of 737 Max jets starts in the third quarter of 2017.

The new order from BOC supplements its August 2014 order for 82 Boeing jets valued at US$8.8 billion (AU$12.19 billion). BOC has plans to buy 203 new aircraft. Its current inventory has 253 owned and managed aircraft, used by 59 airlines globally. Lessors like BOC are in the business of leasing out aircraft to airline companies that allow them to reduce costs, a report from Reuters noted.

Discounting

The Business Journal in a report noted that Boeing is now favoured by many airlines and lessors because of the discounting for new jets, as a strategy to optimise the orders for its 737 next generation models.

What makes good news for Boeing is BOC Aviation is preferring a larger stock of 737s which it acquired in the past also.

“BOC Aviation has played an important role in the success of the 737 program and we’re delighted they have again put their confidence in Boeing and the 737 family,” noted Dinesh Keskar, Boeing’s senior vice president for Asia Pacific, in a statement.

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