"Boeing is now definitely behind the eight ball. Like a freshman in college who missed a month, the student can catch up, but there's a lot of work to do," Bauer said. Boeing's shares closed Friday up 62 cents to $40.48.

Boeing's roll-out delay has hurt the company in two ways, Bauer said. First, there's the delayed revenue: pushing deliveries out directly hurts Boeing's top line, he said. Second, and perhaps more significant, Boeing has handed the sector's momentum back to rival Airbus, which has successfully launched its superjumbo A380, the largest passenger airline in the world and competitor to Boeing's legendary 747, he added. The First Call FY 2009/FY 2010 EPS estimates for BA are $5.21/$5.31.

"Clearly, Airbus won in 2008. The 787's delays have pierced Boeing's invincibility and made this a two-manufacturer dogfight, across flight objectives. Previously, Airbus was known as the chronically-late, chronically-over-budget manufacturer. Not any more. Airbus has made a statement that they will be a force in the jumbo market and the 787's delays shrinks Boeing's roll-out advantage over Airbus' A350 to about three years." Bauer added that he does not have a rating on or own shares in any aerospace company or airline.

What Bauer would love to see -- "An announcement by Boeing that the 787 will be available earlier than the Q1 2010 delivery commitment," he said.

The creature-comfort-filled 787 will be the world's most-fuel-efficient commercial airplane. That fact combined, with an likely 20-30% lower delivery price than the A350, is expected to enable Boeing to maintain its advantage in shorter routes, even as the A380 pushes the 747 in the intercontinental flight segment, Bauer said. But that advantage assumes no more delays for the 787; should they occur "the 787's advantage over the A350 will erode further," Bauer said. Boeing has 895 orders for the 787; Airbus, 966 for the A350.

Stock Analysis: Boeing's stock is not a buy here; further, if you already own shares, do not add to the position at this time. Also, look for Boeing's outlook to rise or fall, depending on updates regarding the 787's progress, and on potential order deferrals/cancellations in 2009 for a variety of commercial planes, due to the U.S./global recessions.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Bauer owns frequent flier miles in United Airlines (NYSE: UAUA) and American Airlines (NYSE: AMR). Lazzaro owns frequent flier miles in American Airlines (NYSE: AMR.).