Boeing secures 24 737 MAX orders from investment firm 777 Partners

Boeing Co said on Friday private investment firm 777 Partners has agreed to buy 24 737 MAX airplanes with an option to purchase a further 60.

Boeing's shares rose about 1.6% in premarket trading.

Miami-based 777 Partners, which has a stake in Canadian ultra-low-cost carrier Flair Airlines, said it plans to lease the 737-8s to its affiliated carriers.

The deal is expected to boost Boeing's position and provide the much-needed support towards a financial recovery after two fatal 737 MAX crashes triggered a 20-month safety ban on the jet.

"The 737-8 aircraft are a fantastic addition to our aviation portfolio and will enable our partners to leverage the jets' superior economic performance to deliver low fares for their passengers while reducing their carbon footprint," said 777 Partners founder Joshua Wander.

US airlines that had to park and retire aircraft during the coronavirus crisis are beginning to position their business for a recovery as vaccine distribution gains pace.

Ultra low-cost carriers, or ULCCs, are seen as the winners of the COVID-19 crisis as they offer a no-frills experience at low prices and charge heavily for extras like bags. ULCCs are pervasive in Europe's fragmented market but are yet to catch up in the United States.

Reuters exclusively reported on Wednesday that Boeing is close to a multibillion-dollar deal to sell dozens of its 737 MAX 7 jets to Southwest Airlines Co.

Alaska Airlines agreed in December to buy 23 737 MAX 9 jets and European budget airline Ryanair bought 75 jets.

The single-aisle 737-8 can fly 3,550 nautical miles, about 600 miles farther than its predecessor.