Just a year after a deep executive shakeup and prolonged existential crisis, American aircraft manufacturer Boeing has closed its largest order to date, supported by significant endorsement from President Donald Trump. This deal not only strengthens Boeing’s position in the global market but also demonstrates how quickly a company’s situation can improve with the right strategic leadership.
Historic Order Under Presidential Supervision
CEO Kelly Ortberg signed an agreement to deliver up to 210 widebody aircraft to Qatar Airways, including 787 Dreamliner models and larger 777X aircraft with engines from General Electric. The ceremony took place in the presence of President Trump and the Emir of Qatar.
The White House valued the deal at $96 billion, although customers typically negotiate significant discounts on such large orders. Wednesday’s announcement in the marble halls of the Qatari Royal Court brought significant success to all parties involved:
- Trump is fulfilling his mission in the Persian Gulf by securing commercial agreements worth trillions of dollars
- Qatar and its airline are strengthening relations with the US by supporting America’s largest exporter
- Boeing gains an order that reinforces its dominance in a region that is among the largest buyers of its most expensive aircraft
Details of the Record Deal
Qatar Airways has committed to purchase:
- 130 Boeing 787 Dreamliner aircraft
- 30 Boeing 777X aircraft
- With an option for an additional 50 widebody aircraft of either type
GE Aerospace separately announced that the agreement includes more than 400 engines, representing its largest order for widebody turbines to date.
Recovery After Crisis
Ortberg, who returned from retirement last year to help Boeing out of crisis, has faced challenging obstacles since taking office:
- An exhausting workers’ strike
- Repairing the company’s damaged financial balance through new financing
- Initiating increased production of key 737 Max and 787 Dreamliner models
Investors welcomed this deal enthusiastically, with Boeing shares climbing up to 3.1% to a 15-month high. Since April’s low of $128.88, shares have risen 50% and now reach their highest price since February 2024.
Strategic Importance for the Persian Gulf
Airlines in the Persian Gulf are among the largest customers for long-range aircraft. Emirates, Qatar Airways’ larger regional competitor, ordered more than 100 Boeing aircraft at the last Dubai Air Show in 2023.
Qatar Airways has long been among Boeing’s loyal customers, although it also operates a significant fleet of Airbus aircraft. Demand for widebody aircraft has increased since the pandemic as global routes reopened and airlines sought replacements for aging fleets.
This significant agreement clearly shifts Qatar Airways into Boeing’s camp, although the airline is also considering a smaller number of Airbus A350 aircraft, as Bloomberg reported last week.
