Boeing’s huge new 787 deal is a win for this jet engine supplier, too

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boeing ,B. A) announced on Tuesday the placing of a major order for 787 Dreamliners from a pair of Saudi Arabian Airlines general Electric ,ge) is ready to supply engines for the jet. Boeing stock declined on Wednesday.


Boeing said the brand Riyadh Air, owned by Saudi Arabia’s sovereign fund, would buy 39 jets, with an option to buy 33 more. The Dow Jones aviation giant said national carrier Saudia would also buy 39 jets, with an option for 10 more.

The Wall Street Journal reported on the Boeing-Saudi Arabia deal on Sunday. The deal covers widebody jets, which are often used on long-haul international flights.

In total, the Saudi Arabian carrier intends to buy 121 787 Dreamliner jets. According to The York Times, the new jets will be equipped with GE engines. The transaction is the fifth largest commercial order by value in Boeing’s history, the planner said.

Saudi Arabia is seeking to transform into a global aviation hub.

Financial terms were not disclosed. A report in Al Arabiya estimated that the order for the aircraft was worth $37 billion at list price.

The White House said that if all 121 aircraft are purchased, the Boeing Dreamliner deal would support more than one million American jobs.

The White House said it was “pleased that Boeing was finally able to conclude these deals with Saudi Arabia after years of discussions and intense negotiations in recent months.”

Boeing and airbus ,EADSY) reportedly vying for the Saudi deal.

BA Stock, GE Stock

Boeing shares fell 4.1% to 199.17 on the stock market today, snapping three days of gains. BA stock continues to trade below its 50-day moving after a four-day decline last week.

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Airbus stock fell 5.3% on Wednesday, hitting a 50-day line low. GE stock fell 3.8% to 87.77. The stock is trading near five-year highs. Management sounded upbeat about the long-term aviation outlook at an investor last week.

In mid-February, Boeing agreed to sell over 200 aircraft to Air India in a deal worth $34 billion, billed as one of the largest deals in the history of the airplane maker.

A Saudi deal with Boeing comes amid signs of easing tensions between the Biden administration and the Saudi government.

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