Boeing lands blockbuster order for 61 of its 737 jets

Ben Mutzabaugh | USA TODAY

Boeing has landed a blockbuster 61-jet order from Copa Airlines of Panama. The order would be worth $6.6 billion at list prices, though big airlines receive significant discounts on such orders.

The deal was announced on the sidelines of the Summit of the Americas, a gathering of North and South American leaders that's being hosted this year in Panama's capital city.

Copa CEO Pedro Heilbron and Boeing CEO Jim McNerney signed off on the order for 61 Boeing 737-MAX jets at a Friday ceremony attended by President Barack Obama and Panamanian President Carlos Varela. Trade officials said the deal is the biggest ever between U.S. and Panamanian companies.

Copa has long been a staunch Boeing customer. The carrier's current fleet of 98 aircraft includes 72 Boeing 737 jets of various models, according to the carrier's website. The remaining planes in Copa's fleets are mid-size E190 jets made by Brazilian manufacturer Embraer.

The Copa order announced Friday with Boeing is for the 737 MAX, a "next generation" update to Boeing's best-selling model. The aircraft, scheduled to debut in 2017, includes newer fuel-efficient engines as well as other design updates.

An analysis by The Seattle Times shows Copa's new 61-jet order comes while it also moved to cancel an existing order for five current model 737s. "So the net new order is for 56 airplanes," the Times writes. The newspaper suggests the actual value of the deal for 56 planes is be about $2.9 billion with "standard discounts," according pricing data the Times attained from aircraft valuation firm Avitas.

Copa has been on a growth spurt in recent years, capitalizing on the strategic position of its Panama City hub to expand both within Latin America and on routes to the United States. The airline bills its Panama City base as the "Hub of the Americas."

Copa has added several new U.S. destinations since early 2012, most recently announcing new service to New Orleans. The airline's other recently added U.S. cities include Boston, Fort Lauderdale, Las Vegas and Tampa.

Copa's new order includes both the 737 MAX 8 and 737 MAX 9 versions of the jet. Copa says it will use the planes both to replace existing older planes in its fleet and to "support the carrier's plans for strategic growth."

"The Next-Generation 737 is the backbone for our fleet today," Copa CEO Pedro Heilbron says in a statement.

Heilbron adds that "our order for the 737 MAX shows our continued commitment for the future to bring people together across all of the Americas using the most modern and efficient airplanes in the sky as well as our Hub of the Americas, in Panama City."