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Boeing inks two MAX 8 deals worth a maximum $17.6 billion

Key Points
  • Airlines in Saudi Arabia and Nigeria have chosen Boeing's narrow-body aircraft.
  • The U.S. aerospace firm is trying to finalize a joint venture tie-up with Brazilian company Embraer.
Spectators watch a Boeing Co. 737 Max 7 jetliner land on the opening day of the Farnborough International Airshow 2018 in Farnborough, U.K., July 16, 2018.
Simon Dawson | Bloomberg | Getty Images

Boeing announced Friday it had inked two separate deals to sell up to 150 of its popular 737 MAX jets worth a list price just shy of $18 billion.

The Nigerian-based Green Africa Airways signed a commitment for up to 100 MAX 8 aircraft, evenly split into 50 firm aircraft and 50 options.

The total number carries a list-price of $11.7 billion but the newly-minted airline will seek steep discounts from the U.S. manufacturer. Green Africa Airways is a start-up airline that plans to focus on domestic services first before building a pan-African schedule.

Boeing's 20-year Commercial Market Outlook has estimated that airlines in Africa will require 1,190 new airplanes within the next two decades.

A second deal was announced Friday by the Seattle planemaker, which sees the Middle East carrier Flyadeal commit to 30 737 MAX 8 jets with an option for 20 more. The airline, which is a subsidiary of Saudi Arabian Airlines, is to focus on domestic services.

The total list price for that deal is published at $5.9 billion.

Boeing has claimed that the 737 MAX is the fastest-selling airplane in the firm's history, with more than 4,800 orders from over 100 customers worldwide.

Embraer tie-up

In a busy week for announcements, Boeing also said that it and Brazilian jet manufacturer Embraer had approved the terms of a joint venture.

The deal, worth $4.2 billion, was blocked by a Brazilian judge this week who questioned whether Embraer's 20 percent participation in the spinoff firm was good for Brazilian national interests.

Embraer has said it's to appeal the decision and will continue to seek approval from the Brazilian government.

Boeing's proposed venture with Embraer is seen as an attempt to take on Airbus, after the European aerospace giant bought a majority stake in the Canadian firm Bombardier's C-Series plane.