Boeing sells first 737 max planes since deadly crashes with showstopper deal of 200 jets

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The Paris Air Show is typically an Airbus stronghold where the European plane maker unveils its biggest orders, relegating Boeing Co. to bit player.

This year was shaping up to be particularly difficult for the U.S. manufacturer, which is reeling from two deadly crashes that grounded its all-important 737 Max jet. Boeing Chief Executive Dennis Muilenburg came to the event with a focus on “humility and learning” rather than chasing deals.

That was until the second day, when Boeing pulled off a stunning turnaround with the help of one of the world’s most respected airlines. British Airways owner International Airlines Group signed a letter of intent for 200 of the single-aisle Max planes — a commitment valued at $24 billion that gives Boeing the opportunity to turn around the negative narrative surrounding its biggest source of profit.

Boeing stock jumped 5.4% on Tuesday.

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Boeing couldn’t have hoped for a stronger endorsement to win back trust from wavering customers and a jittery public. IAG Chief Executive Willie Walsh — himself a former 737 pilot — personally vouched for the Max, saying that he’d board one himself if he could and that he had been on a simulator to run through Boeing’s proposed changes.

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IAG’s Walsh, who is Irish and wears a buzz-cut hairstyle, has a reputation as a no-nonsense corporate leader. He said he gained confidence in the Max during sessions on the flight simulator. Those included a version with a software update Boeing is preparing for the Maneuvering Characteristics Augmentation System — the system implicated in the crashes.

“It was very helpful to see it in operation and understand the changes Boeing were proposing,” Walsh said.

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“I wouldn’t ask anybody to do something I wouldn’t do myself,” Walsh, who flew 737 jets for about 18 years, told reporters at the Paris Air Show. “If you ask me, I would get on board a Max tomorrow.”

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Although Boeing drew a blank on the air show’s opening day (and watched Airbus pull in $13 billion in deals), Tuesday began more upbeat for Boeing. The Chicago company landed an order for 20 787 Dreamliners from Korean Air Lines. Then came the IAG deal — the first commercial endorsement for the Max since the model was grounded.

Negotiations came down to the wire, and it wasn’t clear until Tuesday afternoon that Boeing would clinch the deal, according to a person with knowledge of the matter. Airbus was blindsided, another person said. After Walsh penned a contract with Boeing commercial airplanes chief Kevin McAllister, Boeing staffers high-fived one another and hugged. McAllister said he was “truly honored and humbled” by Walsh’s endorsement.

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