Under the radar: Airlines' no longer deferring deliveries is bullish sign for global economy


Under the radar: Some trends are obvious enough and visible to all investors. Others are more-subtle, but are just as potent, and these often slip 'under the radar.'

Case in point: In another sign of an improving global economy, Airbus' Chief Operating Officer John Leahy has indicated that the market for commercial aircraft deliveries has improved, Bloomberg News reported.

"Six months, nine months ago, people were talking about delaying aircraft, Leahy told Bloomberg News at briefing at the Dubai air show. "I'm not hearing anything like that today."

So far in 2009, Airbus leads Boeing (BA) in the delivery of commercial airplanes, 437-430 through November 30, heraldnet.com reported.

Boeing's 2009 delivery total, of course, has been hurt by more than two years of delays for its 787 Dreamliner -- a next-generation commercial jet billed as being more-efficient than any commercial plane flown to date. Boeing officials say a test-flight for the 787 could occur as early as next week, The Wall Street Journal reported Monday (subscription required).

Economic Analysis: The significance of the aviation uptrend for investors? Commercial airplanes -- the big jets the typical person flies on -- represent huge investments by private airlines and by government-run airlines. Hence, if there's a doubt about a recovery, these buyers will seek to defer or even cancel orders, rather than have new planes sit used/underused most of the time. The fact that airlines are no longer talking about delaying deliveries is a bullish sign for the global economy.
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Last updated: February 10, 2012: 04:26 PM

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