Airbus, the large European airplane manufacturer, says that as much as one-third of its back orders are at risk. Things in the airline industry have gotten that bad, primarily because of the rising price of fuel.
According to Bloomberg, "Airbus has a record 3,663 planes in its backlog, worth 350 billion euros ($557 billion) at list price."
Last week, Boeing (NYSE: BA) gave an upbeat assessment of the sales trends that will keep the company successful over the next two decades. The firm did not indicate that the next few years may be a considerable threat to its revenue. Boeing may, in the end, find that its view of the aircraft market is wrong.
Shares in Boeing are already near a 52-week low, trading at $63.28, well down from the period's high of $107.83.
If Airbus's analysis of the market is right, Boeing could go much lower.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
7-14-2008 @ 8:16PM
Bob Bennett said...
The Seattle Times
Monday, July 14, 2008
Letters to the Editor
Tanker deal
Elephants and cheating
There is an elephant in the room that Boeing must discuss with the Department of Defense.
It is becoming obvious, at least to us, that the department is still punishing Boeing for past transgressions, probably to send a strong message to industry that the Pentagon will not tolerate cheating ["Air Force rebid may favor rival of Boeing," page one, July 10].
If we are right, then the die is already cast with regard to the tanker bid.
Robert K. Bennett
CEO
MBA Advisory Group
Sammamish, WA
www.missionbasedalignment.com