This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Airbus Woes No Boon for Boeing

The crisis in Airbus' widebody aircraft program has big implications for the world's two principal planemakers and for a handful of international carriers, but U.S. airline operators are offering a collective shrug.

Airbus said last week that its A380 deliveries would be delayed for a second time, raising fears about customer commitment to the controversial long-range plane that's capable of seating more than 500 passengers.

Investors fled the shares of European Aeronautic Defence & Space Co., which owns 80% of Airbus, and bid up the stock of competitor Boeing (BA - Get Report).

For Airbus, the timing regarding the A380 delay was made worse by the fact that it comes as the company is also redesigning its proposed new A350 amid far greater enthusiasm for Boeing's planned 787.

To consultant Scott Hamilton, who publishes an online newsletter about Airbus and Boeing, it's no surprise that U.S. passenger carriers haven't ordered the A380 or for that matter raised any particular concerns.

"The A380 is not a North American airplane," Hamilton said. "It's for Asia and the Middle East." Though it's conceivable that Northwest Airlines (NWACQ) or UAL (UAUA), the major U.S. carriers to Asia, could one day place orders, he said, the primary customers are international airlines like Emirates, Singapore Air, Malaysia Airlines and Qantas.

US Airways (LCC) is the only U.S. customer for the A350, while FedEx (FDX - Get Report) and UPS (UPS) are the only U.S. airline operators with orders for the A380. And, of course, the latter two don't carry passengers.

Helping Hand

The US Airways order is for 20 Airbus 350s with deliveries starting in 2012, but it's "not the issue du jour for us," Executive Vice President Scott Kirby said in an interview. "We have bigger fish to fry right now. We are comfortable with the path [Airbus] is on. Everyone believes they will redesign the aircraft, and we think that's a good thing, just like other customers do."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
BA $139.94 0.65%
FDX $156.46 0.59%
CAL $30.89 -1.60%
AAPL $111.50 1.80%


Chart of I:DJI
DOW 17,057.93 +7.18 0.04%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,826.9350 +16.1470 0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs