London Daily

Focus on the big picture.
Wednesday, Jul 02, 2025

Qatar seals Boeing freighter deal with surprise 737 order

Qatar seals Boeing freighter deal with surprise 737 order

Qatar Airways handed Boeing Co (BA.N) a record launch order for 34 new 777X freighters and added at least 25 Boeing 737 MAX jets on Monday in a $30 billion-plus package during a Washington diplomatic visit, deepening U.S. economic links to the Gulf.

The deal is a boost for Boeing at a time when the U.S. planemaker is battling industrial and financial constraints, and reflects upheaval in the jet market after Qatar Airways engaged in a contractual and safety dispute with Europe's Airbus SE (AIR.PA).

Boeing shares rose almost 5% after the freighter order was unexpectedly topped up by an order for the Boeing 737 MAX. The deal was timed to coincide with a visit to Washington by Qatar's emir in which the United States hailed the Gulf state as a major ally.

That followed days of frantic negotiations after Airbus revoked an order for 50 competing A321neo aircraft as part of a heated dispute with Qatar Airways over flaws in a larger jet.

Qatar Airways Chief Executive Akbar Al Baker said negotiators had "lost a lot of sleep" in the intervening two weeks and took a swipe at Airbus.

"We like to build long-term relationships with trusted partners where both parties work together towards a common purpose," he told a White House signing ceremony attended by leaders from Boeing and engine maker General Electric Co .

Airbus declined comment.

The provisional order for up to 50 of the 737-10, the largest member of the MAX family, makes Monday's deal a potential 100-plane package including options for later add-ons. Reuters reported the 737 MAX deal earlier on Monday.

The cargo part of the deal represents the first order for a freighter version of the world's largest twin-engine passenger plane, the 777X, whose entry to service has been pushed back by more than three years to late 2023 or beyond.

Boeing is banking on sales of the huge freighter to shore up its leadership of the cargo market and head off a recent challenge from Airbus, with a freighter version of its A350.

"(The 777X) will be an absolute world-beater," Boeing Chief Executive Dave Calhoun said at Monday's signing ceremony.

ORDER CONVERSIONS


Boeing agreed to convert a third of Qatar's existing order for 60 777X passenger planes, for which there is currently less demand, to freighters in order to win the order.

Speaking on the sidelines of high-level meetings on energy security amid the Ukraine crisis, Al Baker trumpeted support for the U.S. economy from Qatar Airways, which has faced trade complaints from U.S. carriers over alleged subsidies.

"I am especially pleased that the aircraft order will further emphasise Qatar Airways' support for the U.S. economy and U.S. jobs," he said.

For Boeing, the deal marks a respite from a recent safety crisis over the MAX and delays with the 777X passenger jet and 787 Dreamliner, and a chance to win points for its own economic contribution after intense regulatory and political scrutiny.

Boeing said the freighter order would sustain more than 35,000 U.S. jobs with an annual economic impact of $2.6 billion.

Boeing has dominated air freight for years through its 767, 777 and 747 cargo jets, though it will be urgently pressing for more orders for the new freighter flagship.

About half of global cargo by value travels by air, and in turn half of that usually goes in the belly of passenger planes.

During the pandemic, many airlines have been forced to park unused passenger jets, driving up demand for cargo space on dedicated freighters at a time when e-commerce has been a lifeline for many during COVID-19 lockdowns.

But economists warn the trends could start to unravel as the pandemic eases.

Newsletter

Related Articles

0:00
0:00
Close
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
×