Boeing Co (NYSE:BA) shares took flight after the aerospace manufacturer confirmed two Saudi Arabian airlines have placed orders for up to 121 of its 787 Dreamliner jets in a deal valued by the White House at $37bln.
State-owned carrier Saudi Arabian Airlines ordered 39 of the planes, with options for 10 more, and newly formed airline Riyadh Air would get 39 jetliners, with options for 33 more.
The company did not disclose a timeline for the deliveries of the planes.
The jets will be fitted with General Electric (NYSE:GE) GEnex engines, a disappointment for Rolls-Royce Holdings PLC (LSE:RR.) whose Trent 1000 engines, which are capable of running on a 50% sustainable fuel blend, were not chosen despite being thought to be in the running.
Boeing shares had added 4.3% at US$212.24 shortly before noon in New York. GE shares had also risen 4.2% to US$92.67.
It follows the largest transaction in the history of the company last week, when Air India ordered up to 220 Boeing aircraft.
The airline said the deals will support over a million jobs in the US aerospace supply chain over 44 states.
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