Boeing Co. (BA) - Get The Boeing Company Report shares slipped lower Wednesday, pulling the Dow deeper into the red, after Qatar Airways said it was not interested in the planemaker's mid-sized aircraft even after phasing out jumbo jets purchased from European rival Airbus (EADSY) - Get Airbus SE ADR - Level I Report .
Qatar Airways CEO Akbar al-Baker told reporters in Berlin that his airline would phase out the 10-year old A-380 from 2023, adding he was "not interested" in Boeing's planned mid-market aircraft, which the Chicago, Illinois-based planemaker plans to launch the following year. The comments were first reported by Reuters from the ITB travel fair in the German capital.
Boeing shares were marked 1.77% lower by mid-day trading and changing hands at $422.51 each, a move that has taken around 50 points from the Dow Jones Industrial Average, which was pegged 130 point lower on the session.
Airbus said last month it would formally scrap it struggling A380 jumbo jet program, adding the last of the last of the two-deck, 544-seat jumbo aircraft designed to challenge Boeing's 787 Dreamliner, will be delivered in 2021.
Airbus warned last year it would have "no choice but to shutdown" the program, which builds the largest passenger planes in the world, "if we can't work out a deal with Emirates", the largest carrier in the middle east and the super jumbo's biggest buyer.
Emirates, which snubbed Airbus at the Dubai Airshow in November 2017 when it opted for 787s at a list price of $15.1 billion, has purchased around 100 A380s over its decade-long existence, making it by far the most important buyer in the program.
Qatar Airways has been a major Boeing customer for several years and recently agreed to buy 36 of the planemaker's F-15 fighter jets for around $4 billion after receiving Pentagon approval in October 2016.
The Gulf carrier also agreed to buy 30 787-9 Dreamliners and 10 777-300ERs widebody jets, with an option for a further 60 single-aisle 737 Max8s, in a deal valued at just under $20 billion if all 100 planes are ultimately delivered.