Boeing Shares Climb as It Lands Orders for 787s

Boeing Co. shares closed at nearly a five-year high Monday after the company announced deals for 26 Boeing 787 Dreamliners from two leasing companies. The list price for both orders is $3.4 billion.

The orders extended Boeing’s momentum in its heated competition with Airbus and helped propel its stock up $2.05 to $69 after briefly reaching $69.48. The closing price was the shares’ highest since Dec. 8, 2000.

The announcement was made during the second day of the Dubai Air Show, the region’s largest aircraft exhibition. International Lease Finance Corp., which ordered 20 Dreamliners, is the first leasing company to buy the aircraft. The company is a unit of American International Group Inc.

A second leasing company, Low-Cost Aircraft Leasing, announced an order for six Boeing 787s several hours later. According to Low-Cost Aircraft founder and Chief Executive Clive Joy, the order is valued at about $780 million and deliveries are expected to begin in September 2009.

Joy said the new company, which made its debut at the air show Monday, was in final negotiations for an additional nine 787 Dreamliners.

Boeing says the 787, which is scheduled to enter service in 2008, is as much as 20% more fuel-efficient than any similar plane on the market today. Boeing’s plane is competing with rival Airbus’ planned A350, which is due to enter into service with airlines in 2010.

International Lease Finance will receive its first Dreamliner in 2010. It has the option of buying four more of the aircraft.