Boeing Gets a Boost

By: Anneken Tappe · September 12, 2023 · Reading Time: 2 minutes

The Deal

Boeing (BA), one of America’s largest manufacturers, just had a huge win. The company signed a $7.8 billion deal with Vietnam Airlines to supply 50 737 Max jets, according to the White House. That’s right, the deal occurred on the sidelines of President Joe Biden’s visit to the Southeast Asian nation.

The two governments have been discussing a U.S.-infusion of military supplies for Vietnam. These two deals could be early signs it will come to fruition. Moving forward, Boeing, and other U.S. defense companies will likely continue to explore deals to provide equipment to the Vietnamese government.

Due to Boeing’s size, its decisions have major implications for the U.S. economy. The contractor’s deal with Vietnam Airlines will support as many as 30,000 jobs for Americans.

Boeing shares initially rose on the news, but ended the day marginally lower on Monday. Still, the deal matters: Boeing is one of the biggest components of the Dow Jones Industrial Average and the health of the company can skew the performance of the index to some extent.

Boeing’s Max Struggles

The 737 Max is Boeing’s bestselling jet. But between 2019 and 2022, the fleet was grounded following two deadly crashes that involved the plane. Faulty software was blamed and Boeing struggled with the aftermath of the tragedies.

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