Boeing Lands $4.9 Million in Aircraft Order, Loses $23 Million in Labor Settlement

Image via Flickr by Jetstar Airways

“Boeing, the world’s largest aerospace company, on Sunday announced a massive order for 50 jets worth $4.9 billion. The order came from Garuda Indonesia, the flag-carrier airline of Indonesia that is named after a mythical, giant bird,” according to USA Today.There is no word yet on whether the major order from the Indonesian airline came at a discount. Companies generally receive rebates from manufacturers when buying in bulk.

In addition to Garuda’s order, the company will upgrade its pre-737 Max 8 planes to the state-of-the-art current model.

Reuters notes, “Garuda said it currently operates 77 Boeing 737s and that the new order would give it the flexibility to grow and update its fleet as the market demands. Garuda said in November of last year that it planned to add up to 250 aircraft by 2025 to effectively double its fleet and meet demand in one of the world’s fastest-growing aviation markets.”

Garuda Indonesia’s latest order for the fuel-efficient 737 Max 8 aircraft is slated to start shipping in 2017.

Boeing has already started shipping additional orders to other key worldwide airliners including Virgin Atlantic Airways.

ABC News reports, “Boeing and rival Airbus have huge backlogs of commercial jet orders as airlines dealing with high fuel prices order more efficient planes. Boeing says it has received 2,295 orders for the 737 Max models from 47 airlines and other customers worldwide.”

This news follows the recent headlines regarding false labor charges against the plane producer. The company will pay $23 million to settle accusations about fabricated duties for contacted Air Force maintenance. The issue was allegedly due to improper charging practices on the government worker-made repairs to the Boeing’s C-17 Globemaster.

The American company employs over 169,000 workers. Boeing has offices and people in more than 66 countries around the world.

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