General Electric Company: Travel Service to Lease First Boeing 737 MAX from GECAS


GECAS, the commercial aircraft leasing and financing arm of General Electric Company (NYSE:GE), has taken delivery of its first 737 MAX 8 Travel Service —the largest carrier in the Czech Republic.

Read more: Two SEC Investigations Set to Keep General Electric Investors Sidelined; RBC Cuts Price Target

“GECAS is very pleased to further strengthen its business relationship with Travel Service by delivering the airline’s first Boeing 737 MAX 8 airplane. GECAS has been a partner with Travel Service since its inception in 1998 with five 737-800s currently on lease to this dynamic airline,” said Felix McArdle, Senior Vice President, GECAS Sales & Marketing. “The delivery of this latest-technology airplane outfit with LEAP-1B engines from CFM International is the first of 10 that will be leased by GECAS to Travel Service. The MAX will enable the airline to continue to grow profitably and in an environmentally friendly way. GECAS wishes Travel Service every success with these advanced new airplanes.”

“We are pleased that Travel Service is among the first airlines to include 737 MAX into its fleet”, said Roman Vik, Chief Executive Officer Travel Service. “As Travel Service is dynamically expanding and growing, the new Boeing 737 MAX airplane will fully support our ambitious development plan and competitive advantage. Thanks to a new modern fleet, Travel Service will be able to launch direct flights to new destinations and enhance the travel experience of our customers.”

“Travel Service is one of the fastest growing operators in the region and we are delighted that it is adding the 737 MAX to its all-Boeing fleet, boosting capacity for its upcoming summer season schedule,” said Monty Oliver, vice-president of Europe Sales, Boeing Commercial Airplanes. “The 737 MAX will provide Travel Service with unmatched reliability and a premium on-board experience for its passengers.”

Shares of General Electric closed yesterday at $16.17, up $0.22 or 1.38%. GE has a 1-year high of $30.59 and a 1-year low of $15.80. The stock’s 50-day moving average is $17.46 and its 200-day moving average is $21.52.

On the ratings front, GE stock has been the subject of a number of recent research reports. In a report issued on January 30, Stifel Nicolaus analyst Robert McCarthy maintained a Hold rating on GE, with a price target of $17, which implies an upside of 5% from current levels. Similarly, on January 29, Credit Suisse’s Julian Mitchell maintained a Hold rating on the stock and has a price target of $16.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Robert McCarthy and Julian Mitchell have a yearly average return of 16.8% and 12.7% respectively. McCarthy has a success rate of 83% and is ranked #200 out of 4755 analysts, while Mitchell has a success rate of 71% and is ranked #306.

Overall, 3 research analysts have rated the stock with a Sell rating, 10 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $17.3 which is 7.0% above where the stock closed yesterday.