Boeing Makes $18 Billion Deal

Boeing, a United States aircraft manufacturing company, has made the biggest deal in the company’s history with Emirates Airlines.

CNN.com reported the companies told them, “U.S.-based Boeing has agreed tobuild 50 of its 777-300ER airliners for the Dubai-based Emirates Airlines.” The deal is worth $18 billion. The agreement also has the option to add 20 more airliners for $8 billion.

Boeing also told CNN.com, “At $18 billion, this is Boeing's largest deal as measured in dollars. This is a record year for the 777, with orders for this year totaling 182 so far.” Jim Albaugh is the president and CEO of Boeing Commercial Airlines.

MSNBC reported he said, “This is the largest order that has ever been placed with the Boeing company in our 95 year history and certainly we are very proud that Emirates has the confidence in us that they do.”

The deal helps the economy

The deal generates hope for the airline economy. CNN.com reported, “The magnitude of the deal provides a hopeful sign about the economy. Airlines in particular suffered when fuel prices spiked in 2008, and they have coped by eliminating their least fuel-efficient flights and by adding fees to services that were once included in the fare, like food, check bags and pet travel.”

The deal generates job security

This deal also means employment for many of the workers in the Boeing company. Associated Press writer,  reported Albaugh said, “It sustains a lot of jobs in the United States several thousand.” Albaugh also said, “Boeing currently churns out seven 777s per month and expects to raise production levels to a rate of 8.3 of the planes a month soon.”

This deal could lead to job growth within the company. The New York Times reported that the aircrafts will start to be delivered to the Emirates Airlines beginning in 2015.

Photo by moonm.