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

Do Airline Deals Favor Boeing or Airbus?

CHARLOTTE, N.C. -- Among the assets US Airways (LCC) would bring to a merger is one that its potential partner totally lacks -- an aircraft order.

If United (UAUA) were to merge with US Airways, it would gain access to an order for 92 narrowbody and widebody Airbus aircraft, with a list price around $10 billion, making the France-based airplane maker a likely winner if the two carriers successfully complete a deal.

That would mean Airbus could become the primary supplier for one of the two biggest U.S. airlines, a position it has never occupied.

The jury is still out, however, on whether Boeing (BA - Get Report) or Airbus would benefit more from a proposed merger between Delta (DAL - Get Report) and Northwest (NWA).

Delta has been a Boeing customer, while Northwest's big jet fleet is divided between planes made by Airbus, Boeing and McDonnell-Douglas, now part of Boeing. Delta CEO Richard Anderson has indicated the combined carrier would order from both manufacturers.

One thing is certain -- there is little unity in the fleets. Among the approximately 450 large jets at Delta and the 300 at Northwest, the only common aircraft is the Boeing 757, of which there are about 200. The combined fleet, says Teal Group aviation analyst Richard Aboulafia, would include "a plane for every occasion."

In the industry downsizing that took place after Sept. 11, many carriers used the opportunity to increase the commonality of their fleet types by shedding airplanes, but there has been no indication so far that a combined Delta and Northwest would follow that trend.
1 of 2

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 $134.80 0.00%
CAL $25.21 0.00%
DAL $41.67 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs