Lufthansa places massive order to buy new 787-9 aircraft; Boeing shares rise amid 737 MAX groundings

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Updated: March 14, 2019 7:57:59 PM

German carrier Lufthansa has placed a massive order with Boeing for purchase of new eco-friendly and modern aircraft 787-9, cited environmental concerns as the reason for replacing its old four-engine aircraft.

boeing 737 max crash, boeing plane crash, boeing, aviation sector, aviation industryLufthansa has just more Boeing and Airbus to its fleet.

German carrier Lufthansa has placed a massive order with Boeing for purchase of new eco-friendly and modern aircraft 787-9, possibly providing some relief to the US-based aircraft manufacturer from a crisis involving grounding of its best selling planes 737 MAX. Lufthansa will buy 20 Boeing 787-9 aircraft, which along with 20 new Airbus A350-900 planes will replace the airline’s old four-engine aircraft fleet, the company said in a statement.

Boeing Co shares rose in the US in Wednesday trading, ending up 0.5 percent at $377.14, recovering from a more than 3 percent fall in the afternoon, Reuters reported. Slated for late 2022 and 2027 delivery, both Airbus and Boeing aircraft have a list-price investment volume of 12 billion USD. However, the company didn’t disclose the actual deal price.

Lufthansa cited environmental concerns as the reason for replacing the aircraft. “By replacing four-engine planes with new models, we are laying a sustainable foundation for our future in the long run. In addition to the cost-effectiveness of the A350 and B787, the significantly lower CO2 emissions of this new generation of long-haul aircraft was also a decisive factor in our investment decision. Our responsibility for the environment is becoming more and more important as a criterion for our decisions,” Carsten Spohr, CEO and Chairman of Lufthansa Group, said in the statement.

Lufthansa added that with this, the operating cost of previous aircraft will get reduced by 20% and the carbon footprint will also be brought down by 25%, it said. The company also aims to modernise its long-haul fleet by next decade. Meanwhile, the airline also announced the sale of six of its 14 Airbus A380 planes to Airbus. By 2022-23, these six aircraft will leave Lufthansa, it said.

Boeing 737 MAX 8 tragedy

Boeing’s another aircraft 737 MAX 8 is being grounded by airlines and governments all across the globe. On 11 March 2019, an Ethiopian Airline plane to Nairobi crashed, killing 157 people on-board. Passengers from 33 countries were on the flight which included citizens from India as well. Recently, the US joined other countries such as India, France, Germany, UK and others in grounding Boeing Co’s 737 MAX 8 aircraft.

This was not the first crash involving Boeing 737 MAX. A Lion Air jet crash in Indonesian seas last year, which killed 189 people. However, Boeing 737 MAX 8 is the latest version of the 737 family, the world’s best selling modern passenger aircraft and one of the industry’s most reliable.

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