Boeing likely to announce major deals valuing $5 billion soon

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Reports have emerged that Boeing Co is close to signing deals worth $5 billion with two Asian carriers – SpiceJet of India and Lion Mentari Airlines PT of Indonesia – and will likely announce the deals soon.

The deals are said to be for Boeing’s 737 Max 10 aircraft. According to those familiar with the matter SpiceJet could acquire as many as 20 737 Max 10 aircrafts while Lion Mentari Airlines PT is in talks with Boeing for 20 airplanes, but could acquire as many as 50 from a combination of commitments and conversions of existing orders for smaller 737 Max jets.

The deals could be announced as early as next week, when Boeing is likely to unveil plans for the Max 10 at the Paris Air Show. The Chicago-based manufacturer is seeking a groundswell of orders to catch up to the fast-selling A321neo, Airbus SE’s largest narrow-body jet, which is capturing routes once dominated by Boeing’s out-of-production 757.

Negotiations haven’t been finalised, and agreements involving Boeing, SpiceJet and Lion could be delayed or fall apart, the people said. The 737 Max 10 is expected to sell for a little more than the shorter Max 9, which has a list price of $119.2 million before discounts that are customary for aircraft purchases.

Boeing is in talks with other companies including United Airlines for the Max 10, Bloomberg News reported last week.

Doug Alder, a Boeing spokesman, declined to comment. Representatives of SpiceJet and Lion didn’t immediately comment outside normal business hours.

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