Late Tuesday, aerospace firm Boeing (BA) announced its first major deal at the Dubai Airshow. While this is good news for BA, the bad news is that the majority of the $2 billion of deals available at the show went to rival Airbus. BA revealed nearly $900 million of deals with Algerian airlines, while Airbus announced $1.25 billion of confirmed orders.These orders bring the total dollar amount of orders at the Airshow to $5.67 billion for 42 aircraft. This total is a mere pittance compared to the $155.5 billion worth of deals scored in 2007. BA's Randy Tinseth noted, "it's a completely different market from two years ago," sentiment agreed upon by Airbus's CEO Tom Enders.
Both companies are aiming to use the Dubai Airshow as a chance to make contacts with Middle Eastern customers, as they are poised to come out of the economic doldrums faster than American and European customers.
Technically, BA has not weathered the economic downturn well. Of course, not many companies have. BA descended from its October 2007 high near the $108 region to its current spot in the $48 region. BA's 2009 nadir is $35.47 -- talk about your large drops. Is there any hope for a recovery? It will take some doing, as shares of BA are currently battling overhead resistance from their 10-month moving average. This trendline has capped the equity's last three monthly rallies.
The good news is that the stock is riding along support from its 10-week moving average. This trendline could help the equity power through the long-term resistance BA finds from its 10-month trendline.
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