December 10, 2024
Boeing Lands First Major 737 MAX Deal After Strike Resolution

Boeing Lands First Major 737 MAX Deal After Strike Resolution

Boeing has secured its first major 737 MAX order since the recent machinists strike, firming a deal with Avia Solutions Group for 40 737-8 MAX aircraft, with options for 40 more.
Render of an Avia Solutions Group Boeing 737-8 MAX in flight
Image Credit: Boeing

In a significant turnaround following its recent seven-week machinists strike, Boeing [NYSE: BA] has secured a major 737 MAX deal with global aviation leader Avia Solutions Group.

The agreement includes 40 737-8 MAX aircraft, with options for 40 more. This marks Boeing’s first substantial MAX order since production resumed after the labor disruption.

The strike, which lasted from late 2023 into early 2024, had significantly impacted Boeing’s production capabilities, resulting in delayed deliveries and potential order uncertainties.

Industry analysts estimate the work stoppage reduced Boeing’s output by approximately 80 aircraft. It makes this new order particularly crucial for the manufacturer’s recovery momentum.

Avia Solutions and ACMI Operations


As the world’s leading ACMI provider, Avia Solutions Group operates through multiple airlines worldwide, serving a diverse range of markets.

Their extensive network includes prominent carriers like Avion Express, Smartlynx, and Klasjet, alongside Air Explore, BBN, Ascend Airways, and Skytrans.

These operators collectively serve more than 60 countries through various airlines and tour operators. They provides essential capacity during peak seasons and periods of operational challenges.

“This order marks a milestone in our growth strategy,” said Gediminas Ziemelis, Chairman of Avia Solutions Group. “With our airlines carrying more than 35 million passengers yearly, these new aircraft will help us meet growing seasonal demands.”

“It’s a proud moment that showcases our company’s expansion phase and demonstrates our confidence in Boeing’s ability to deliver despite recent challenges.”

A Boeing 737 MAX 8 in flight.
Photo Credit: Boeing

Confidence in the 737 MAX


Despite recent issues, the 737-8 still stands out in the single-aisle market, offering good flexibility for both short and medium-range flights. This adaptability proves particularly valuable for ACMI operations, helping airlines manage peak seasons and unexpected operational challenges.

The aircraft’s efficiency and reliability make it an ideal choice for Avia Solutions Group’s diverse operational requirements across different regions and seasons.

Brad McMullen, Boeing’s senior vice president of Commercial Sales and Marketing, highlighted the partnership’s significance. “We’re proud to support Avia Solutions Group in meeting dynamic industry demands.”

“The 737-8 aligns perfectly with their customers’ goals for fuel efficiency and enhanced passenger experience. This order represents not just a business transaction but a vote of confidence in Boeing’s recovery and production capabilities.”

Render of an Avia Solutions Group Boeing 737-8 MAX in flight
Image Credit: Boeing

Flexibility for ACMI Operations


The aircraft’s practical design accommodates 162 to 210 passengers, depending on configuration, and can fly up to 3,500 nautical miles (6,480 km).

Beyond its operational benefits, the 737 MAX offers passengers modern comforts, including the distinctive Boeing Sky Interior and adjustable LED lighting systems.

For ACMI providers like Avia Solutions Group, which supply crucial flexible capacity to airlines, the 737-8’s efficiency and adaptability make it an invaluable addition to their fleet.

The aircraft’s fuel efficiency and operational versatility allow operators to maintain cost-effective service across their extensive network. At the same time, they are able to meet varying seasonal demands and route requirements.

Summary


The timing of this Boeing 737 MAX order suggests a strengthening recovery in the aviation sector and renewed confidence in Boeing’s production capabilities following the strike resolution.

It also indicates growing demand for flexible capacity solutions in the commercial aviation market. This is particularly so as airlines seek to optimize their operations through ACMI arrangements rather than maintaining larger permanent fleets.

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