Macquarie Securities upgraded Dow component Boeing (BA) to outperform from neutral Wednesday morning. The brokerage based its decision based on the fact that the aerospace company decided to increase production rates for some aircraft as airline traffic improves.

Macquarie cited BA's decision to up the rate on the 777 while keeping the pace on the 737 the reason for the upgrade. The brokerage house believes that these decisions will lead to a "9% increase in aircraft deliveries next year." Macquarie added that it appears that 787 flight testing "remains on track" and that it seems as if the company will land a tanker contract with the Air Force.

Boeing (NYSE:BA) posted net commercial airplane orders of 1,413 during 2007 - - a company record, the company announced Friday in a statement.

Boeing's 2007 net order total represents an eye-opening 35% increase from 2006's 1,044-airplane net order total and also represents the four straight year the company reached more than 1,000 orders. The 2007 order total is worth more than $150 billion at current prices.

Boeing now has 3,400 unfilled orders for commercial airplanes, the company said.

Boeing is closing-out 2007 in fitting fashion: with yet another order in an already record year for commercial plane orders for the company.

Boeing announced Thursday Australia-based Qantas has ordered 31 more 737-800 commercial jetliners, in a deal worth roughly $2.3 billion, Reuters reported.

The Boeing Company (NYSE: BA) officials told the Puget Sound Business Journal Friday that Qantas' order is the largest order for its 737 class single-aisle plane.

Two years ago, in December 2005 Qantas agreed to buy up to 115 next-generation 787 Dreamliners worth up to $6.1 billion, the Puget Sound Business Journal reported Friday.

People tend to forget that Russia was one of the lead builders of military aircraft for the past several decades. The country is now trying to turn that advantage to the commercial section. And, why not? The Boeing Company (NYSE: BA) and Airbus bring in tens of billions of dollars. In one country alone, China, Boeing said that there may be 3,600 new planes needed in the next twenty years.

According to Reuters, the former Soviet Union's largest warplane maker Sukhoi, is about to launch a new commercial plane called the Superjet. The first model will hold up to 98 people. It is likely to be competition for Brazil's Embraer and Bombardier. But, a slightly larger aircraft could eventually compete with Boeing's 737.

While there is no guarantee that Russia will begin to build larger commercial planes, it would certainly be an intelligent extension of the Superjet program. The global market for larger planes is $60 billion a year. And, it has only two competitors.

There have been stories for some time that indicate that China may get into the business of building commercial planes, but its does not have the history of developing aircraft that Russia does.

Look for a larger plane to come out of Russia within the next five years. There's no reason for the country to leave the lion's share of the market to the U.S. and the Europeans.

Douglas A. McIntyre is a partner at 2/7 Wall St.

Sometimes, a competitor's results can give more insight into a company's situation. In this case, European Aeronautic Defence & Space Co. NV (EADS) reported a first-quarter loss due to problems with its commercial aircraft division Airbus, the world's biggest planemaker. The Airbus division struggled with delays and rising costs on the A380 superjumbo as well as a weak dollar. It is the third consecutive loss EADS is reporting, although it beat analysts' projected loss.

The Chief Financial Officer of EADS had already told shareholders last week that the Airbus unit is expected to post another "significant" loss this year, but could return to profitability in 2008.

Compare this to Boeing Co.'s (NYSE: BA) first quarter results reported late April, where the company posted a 27% rise in profit, beating analysts estimates. In the first quarter, Boeing booked orders for 185 commercial planes, beating Airbus by 51, and it increased shipments of the 737, its best-selling model, by 15%.

Also, orders for Boeing's new fuel-efficient 787 are soaring with over 500 orders; it is the company's most successful aircraft introduction ever. Airbus will not have an answer in time, meaning Boeing might regain the lead in commercial aviation next year. Airbus's answer, the A350 XWB, will only enter service five years after the 787 begins commercial service in 2008.

Boeing just keeps looking better.