DOHA, Qatar: Qatar signed an agreement with US aircraft manufacturer Boeing on Wednesday to purchase 160 jets for Qatar Airways during US President Donald Trump’s visit to the Gulf Arab country.
Trump said the deal was worth $200 billion as and Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani witnessed the signing ceremony in Doha.
The deal was announced during Trump’s second stop on a tour of Gulf states after he struck a string of deals with Saudi Arabia on Tuesday.
Trump said Boeing CEO Kelly Ortberg told him at the signing ceremony that “it’s the largest order of jets in the history of Boeing, that’s good”.
Trump added: “It’s over $200 billion, but 160 in terms of the jets, that’s fantastic. So that’s a record, Kelly, and congratulations to Boeing. Get those planes out there, get them out there.”
The order, which the White House said was Boeing’s largest ever for wide-body jets, deepens ties between the US aerospace giant and the giant Middle East carrier.
Qatar Airways will honour a “$96 billion agreement to acquire up to 210 American-made Boeing 787 Dreamliner and 777X aircraft powered by GE Aerospace engines,” according to a White House fact sheet.
“This is Boeing’s largest-ever widebody order and largest-ever 787 order,” it said.
Comprehensive details about the order were not available. Boeing declined immediate comment.
Supply chain problems
The order represents a win for new Boeing CEO Kelly Ortberg, although analysts noted that the planes won’t be delivered for at least five years due to industry backlogs.
Both Boeing and rival Airbus, which has also sold extensively to Qatar Airways, have struggled in recent years with supply chain problems as they have taken thousands of plane orders amid strong airline demand. Boeing has also been beset with safety and labour problems that have limited output.
Ortberg joined Trump for part of Wednesday’s signing ceremony that also included defence agreements and the purchase by Qatar of American MQ-9B drones, after about two hours of talks with Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani, AFP reported.
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The list prices of the 777X and 787 Dreamliner suggest the total value of the Boeing deal is well under $200 billion. The $96 billion figure in the White House factsheet also appears to include some business for GE Aerospace.
Plane backlog
Trump’s Qatar visit is the second destination of his Gulf tour, after a first stop in Riyadh, where he made a surprise announcement lifting sanctions on Syria and met the country’s president.
Since 2016, Boeing has received 118 gross orders from Qatar Airways and delivered 65 planes to the carrier, according to Boeing’s website.
Morningstar analyst Nicolas Owens said the order represents “good news” for Boeing, but noted that it would be years before Boeing receives revenues for the jets in Wednesday’s order.
“If you’re ordering a plane today it’s not going to be on your landing strip for at least five years,” Owens said.
Owens said the announcement is also a “vote of confidence” in the much-delayed 777X, which is still be certified, with Boeing pointing to first deliveries in 2026.
Shares of Boeing rose 1.6 percent after midday.
