By Eric M. Johnson and Tracy Rucinski
SEATTLE/CHICAGO (Reuters) - Boeing Co
The talks are part of a series of negotiations between Boeing and several airlines over jet orders or compensation after the 737 MAX was banned worldwide following two fatal crashes.
Boeing and Alaska Airlines, which is part of Alaska Air Group Inc
Any deal would be subject to U.S. Federal Aviation Administration approval of proposed 737 MAX safety upgrades.
Boeing shares were up 1.6% at $167.22 on Thursday afternoon, while Alaska Air stock was up 4.1% at $38.54.
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Alaska Airlines already had ordered 37 of the jets before the grounding. If confirmed, a new order from such a major carrier would give Boeing's 737 MAX a sorely needed commercial boost as the U.S. planemaker tries to move beyond a crisis that has hammered its finances.
It would also mark a post-crisis test of the balance of power between Boeing and Airbus
However, any new deal between Alaska Airlines and Boeing is expected to include significant discounts given the MAX's woes and plunging demand for airplanes during the coronavirus crisis, industry sources said.
It was not immediately clear how many jets it may buy.
The talks are among several discussions Boeing is having with airlines, hoping to stimulate demand for the jet when it returns to the air. Analysts caution cutting prices too far could rattle some existing customers.
After months of delays, and pending approval of design and operational changes, Boeing expects to resume 737 MAX deliveries to airlines before year-end in the United States.
Seattle-based Alaska Airlines flies 166 older Boeing 737s and 71 Airbus A320-family aircraft.
It has one of the strongest balance sheets among U.S. airlines and analysts believe it could emerge from the pandemic crisis in a competitive position relative to its peers.
Boeing is also negotiating with Irish budget carrier Ryanair
(Reporting by Eric M. Johnson in Seattle and Tracy Rucinski in Chicago; Editing by David Gregorio and Matthew Lewis)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)