Qatar Airways has made headlines with an ambitious agreement to purchase up to 210 jets from the American aerospace leader, Boeing. This significant order, valued at approximately $96 billion, was announced by US President Donald Trump during his recent tour of the Middle East. The White House revealed that this monumental deal is projected to support around 154,000 jobs annually in the United States, showcasing the positive impact of such agreements on the economy.
This order marks the largest-ever procurement of 787 Dreamliners, Boeing's wide-body aircraft designed for long-haul flights. While both Qatar Airways and Boeing have yet to provide official comments on this deal, it signals a strong partnership between the airline and the manufacturer, especially as Boeing seeks to recover from recent challenges.
The announcement of this order follows a series of setbacks for Boeing, including a manufacturing crisis triggered by the blow-out of a panel on one of its aircraft in January 2024. This incident led to a significant slowdown in production and resulted in over $10 billion in losses last year. Despite these challenges, Boeing's stock has seen a rebound of approximately 20% since January, indicating growing investor confidence in the company's recovery strategy.
Boeing's CEO, Kelly Ortberg, reported to investors in April that the company's recovery plan was progressing well, with the delivery of 130 aircraft in the first quarter of the year exceeding expectations. The firm currently has a backlog of 5,600 planes, which translates to more than seven years of production ahead.
The deal with Qatar Airways not only includes the 787 Dreamliners but also features the advanced 777X aircraft. This agreement is part of a broader initiative, with over $240 billion in economic deals between the US and Qatar announced during Trump's visit. The partnership further solidifies a longstanding relationship, as Qatar Airways already operates 150 Boeing aircraft and has more than 130 additional jets on order.
President Trump emphasized the significance of this order at the signing event, stating, "It's the largest order of jets in the history of Boeing. That’s a record, Kelly, and congratulations to Boeing." His remarks reflect the administration's commitment to bolstering the aerospace industry and creating jobs.
As part of the same diplomatic tour, Boeing also secured a commitment from Saudi Arabia's Avilease, which plans to purchase 20 737 MAX planes, with options for an additional 10. Furthermore, British Airways' parent company, IAG, announced an order for 32 787-10 aircraft worth $13 billion, which was highlighted by Trump as part of his US-UK trade announcement, with deliveries scheduled to commence in 2028.
The easing of trade tensions between the US and China has also positively influenced Boeing, as Chinese customers, who had previously halted aircraft acceptance due to escalating tariffs, are now resuming orders. Given the numerous hurdles Boeing has faced, including last year’s strike, the recent deals signify a crucial victory for the company as it navigates its path to recovery.
In summary, the historic order from Qatar Airways not only underscores the airline's commitment to expanding its fleet but also marks a pivotal moment for Boeing as it strives to regain stability in the wake of recent challenges. As the aerospace giant continues to forge strategic partnerships and overcome obstacles, the industry watches closely for the next steps in its recovery journey.
