From Seattle, Wash., Friday morning came the announcement from Boeing (NYSE:BA) that its has taken an orderr from Korean Air for two 777-300ER extended-range passenger jets, a deal worth about $596 million, according to a press rleas from the airplace manufacturer.
“Korean Air has been a valued Boeing customer for over five decades and we are honored the airline has again chosen the 777-300ER to expand its long-haul fleet,” said Ihssane Mounir, Boeing vice president of sales and marketing for Greater China and Korea, in a press release. “The 777-300ER’s advanced technology and innovative features will continue to provide the airline with tremendous economics and reliability. Korean Air’s growing fleet of Boeing twin-aisle airplanes validates its commitment to excellence in flight.”
The client in this deal, Korean air, has indicated in the past a desire to improve its flight experience for passengers on long-distance travels to Asia. This purchase is intended to make aesthetic more pleasing, with larger stow bins, state-of-the-art LED lighting and sculpted sidewalls.
Shares of BA stock was down about 1 percent prior to this announcement. In the moments following, the stock lowered further, about 1.2 percent to just less than $74.
This new sale, while modest by many standards, may be monitored closely by hedge funds like Ken Fisher’s Fisher Asset Management and Phill Gross and Robert Atchinson’s Adage Capital Management. At the end of March, Fisher was invested $383 million in BA stock, while Adage was holding a $250 millon stake after increasing its stock hold by nearly 150 percent during the first quarter of 2012.