The traditional response -- and defense -- for a late delivery is 'Better late than never." Regarding The Boeing Company's (NYSE: BA) delayed 787 Dreamliner, the stance is, 'Better be great, or never.' The Dreamliner, Boeing's next-generation wide-body, has been dubbed the '7-Late-7,' due to the company's four delivery delays that have pushed back its first delivery to Q1 2010.

From a commercial aviation standpoint, delaying a delivering is like showing up late for the first semester of classes at college. In the 787's case, Boeing looks like it will arrive on campus about four weeks into the semester, so says stock analyst C. Leonard Bauer.

With the company having reached a tentative, new, 4-year contract agreement with its engineers, it appears Boeing will avoid a second, internecine work stoppage.

What Boeing will not be able to do, however, is avoid a decidedly downward revision in company and stock performance expectations, so says Stock Analyst C. Leonard Bauer.

U.S. business: A difficult decade

Bauer, not one to wax philosophic, nevertheless takes a historian's-like view of Boeing's actions -- and the actions of numerous other companies -- in recent years.

"It's as if we decided as a nation to place all of the most idiotic, self-defeating, and economically-damaging business decisions in one decade," Bauer said. "It's as if the whole business community attended the wrong business school." The Boeing Company's (NYSE: BA) shares rose 45 cents to $42.51 in Monday afternoon trading.

Boeing's (NYSE: BA) largest union, the International Association of Machinists and Aerospace Workers, is in its third day of a strike that's idled 27,000 workers. An aviation consultant argued that the strike could last more than a month, if history is any guide, Bloomberg News reported Tuesday.

However, Stock Analyst C. Leonard Bauer said what counts in work stoppages is not so much company/sector precedent, but "the reality of the facts on the ground ... the nature of the issues involved." Bauer added that he does not have a rating on nor own shares in Boeing.

"The two sides are reasonably close on the standard pay increase, it's pension payment increases and the use of outside contractor for work that the two sides are far from agreement on," Bauer said. "Boeing is booming now and the IAM wants some assurance that their retirees' pension will not go the way of other corporate pension plans, which were revised lower as corporations faced tougher times. The two sides are still pretty far apart on that issue, as well as on the use of outside contractors." Boeing's shares rose 80 cents to $64.71 in Tuesday morning trading.

Given the above, a strike of less than a month "would be a moral victory," Bauer said.

"We've looked at several ways to play anticipated growth in wind energy; we've also considered titanium makers for that industry's ties to the production of lightweight, modern aircraft," notes Bill Martin.

In his BullMarket.com, he explains, "While the two trends might not appear to have much in common at first glance, Hexcel Corp. (NYSE: HXL) offers a way to play both the aircraft and wind markets.

"The connection is the lightweight, composite materials Hexcel makes that are used by producers in both sectors. Hexcel develops and manufactures advanced structural materials.

"It is the largest U.S. producer of carbon fiber; the world's largest weaver of reinforcement fabrics; and the number-one producer of composite materials.

"Its product was initially developed for the aerospace industry, but is now used in a wide range of applications -- from golf clubs to satellite arrays, and from the rotor blades of wind turbines to life-saving monocoques for Formula 1 race cars.

"It's been a rollercoaster ride for Hexcel's stock in the past 12 months. The shares hit their one-year peak of $27.19 in December 2007; by January 22nd they had plummeted to $17.. The shares rebounded through May, only to fade again. Year to date, HXL is off about 15%.

Investors and readers are probably aware of production snags that have delayed two next-generation airplanes, Airbus' A380 Superjumbo and Boeing's 787 Dreamliner.

But now there's word of production delays for two existing aircraft, Airbus's A330 and Boeing's 777.

A shortage of seats, toilets, and galleys is slowing down A330 and 777 assembly lines, The Wall Street Journal reported Friday (subscription required). Managers at the world's two rival commercial aviation giants suggest the snags could affect this year's financial results, but neither company has issued an earnings warning.

Shares of Boeing (NYSE: BA) gained $1.87 to $66.56, while shares of Airbus' parent EADS rose 1.27 euros to 14.85 euros on the Paris Exchange, in Friday afternoon trading.

Contractor ramp-up issues

For Boeing and Airbus, the crux of the problem stems from the relatively small size of the contractors producing equipment such as jetliner galleys, toilets and business-class seats, The Journal reported. Stock Analyst C. Leonard Bauer told BloggingStocks Friday the problem Boeing and Airbus face is "an upside problem," but a problem nonetheless.

"It's called the problem of success. Jetliner orders and deliveries have risen more than 40% in five years and contractors are straining to keep up," Bauer said. "It had to happen sooner or later, because it's hard for contractors to in some cases double production of a part in two or three years." Bauer added that he does not have a rating on nor own shares in Boeing or Airbus.

Airbus said 2008 orders for the A380 superjumbo jet may be one-third lower than previously forecast, as higher fuel costs and an economic slowdown moderate travel growth, Bloomberg News reported Wednesday.

Airbus said it may receive about 20 orders in 2008 for the 525-seat A380 superjumbo, the world's largest commercial jetliner. Earlier, Airbus had projected up to 30 orders for the A380 in 2008.

Airbus' announcement did not negatively impact the stock, at least not at the outset. Shares of Airbus' parent EADS gained 28 cents to 14.95 euros in Wednesday afternoon trading on the Paris exchange.

Airbus has again delayed delivery of selected A380 superjumbo jets, saying the company's transition to automated production is behind schedule.

Airbus now expects to deliver 12 A380 planes in 2008, down from 13, and 21 planes in 2009, down from 25, the company announced Tuesday.

Promoted as the world's most economical, large aircraft, the A380 is about two years behind schedule. The A380 will seat 525 passengers in a normal configuration, at least 50-120 seats more than its chief competition, Boeing's (NYSE: BA) 747, the wide-body industry standard.

In Europe, shares of Airbus's parent EADS were virtually unchanged on the news, down just 2 euro cents to 12.72 euros in afternoon trading. Boeing's shares gained five cents to $84.87.

Airbus announced Wednesday that it beat rival Boeing in 2007 deliveries but trailed it in new orders.

Airbus said it delivered 453 planes to Boeing's 441 in 2007, according to a company statement. Meanwhile, Boeing (NYSE: BA) bested European-based Airbus in 2007 net new orders, 1,413-1,341. Airbus' 2007 delivery total was up 19 from 2006's 434. Airbus said it expects to deliver 470 planes in 2008.

"2007 was a challenging year but also successful year for Airbus," Airbus President and CEO Tom Enders said. "We were successful in the market and mastered the industrial challenges of the production ramp up, the timely delivery of the first A380, and the implementation of the Airbus Power 8 turn-around program. 2008 will be as challenging on all fronts. But I am sure that, with the dedication of our people and all involved, we shall master them. On the commercial side, I anticipate that our order intake will be above our deliveries."

Delay city

Airbus has been plagued by a series of production setbacks as it rolls-out two new commercial aircraft deemed critical to the aerospace giant's early 21st century aviation strategy: the 500-seat A380 superjumbo jet and the A350.

Boeing has delayed the delivery of the first 787 Dreamliner until early 2009 instead of late 2008, saying the rate at which jobs are being completed has not improved sufficiently to maintain the current schedule.

It's the second delay for the commercial aviation giant, which previously had delayed the introduction of the next-generation plane by six months. The 787's maiden flight will now occur near the end of Q2. The company underscored that the fundamental design and technologies for the 787 remain sound.

Investors early Wednesday took Boeing's delay announcement in stride. Boeing's (NYSE: BA) shares rose 16 cents to $78.02 in Wednesday morning trading.

The 787 Dreamliner program has encountered several bottlenecks due to parts shortages and assembly delays. Boeing has 817 orders for the plane, which is considered critical to its early 21st century commercial aviation strategy as it battles with rival Airbus.

Boeing announced Tuesday that it is still on track to fly its first 787 Dreamliner in Q1 2008 and deliver the plane to its first customer, All Nippon Airways, by the end of 2008, The Wall Street Journal reported (subscription required).

Boeing (NYSE: BA) also confirmed full-build 787 aircraft production plans. Earlier this year, Boeing delayed delivery of the 787 by six months to about December 2008, instead of May 2008, due to a parts shortage and also to complete additional work previously assigned to contractors, Bloomberg News reported. Boeing's shares were down 40 cents to $92.33 in Tuesday mid-day trading.

Boeing has 762 orders for the 787, valued at about $120 billion. Analysts view an aerospace company's ability to deliver planes on time as critical to the company's future prospects, due to the high cost airlines incur for delayed planes. Delayed plane deliveries also discourage future plane orders, analysts generally agree.



In addition to the 787's next-generation passenger amenities and substantially improved fuel efficiency, the plane also serves as a touch-point in the aerospace battle between Boeing and Airbus.

There are signs that Europe's laissez-faire stance toward the Euro may not remain so laissez-faire in the months ahead.

European officials from a variety of corners - - public, private, corporate - - are beginning to express concern about the increasingly strong euro currency.

In the German weekly Welt am Sonntag, Airbus CEO Louis Gallois indicated that the strong euro will affect Airbus' sales and competitive position versus rival The Boeing Company (NYSE: BA): "It is very clearly an existential threat -- not immediately, but in the long-term," Gallois told the newspaper. "On this basis we can no longer plan effectively for the future."

Airbus sells its planes in dollars but about half its costs are in euros, which makes the company sensitive to a rise in the euro vs. the U.S. dollar, despite the company's hedging efforts.

Regarding the Dubai Air Show, it looks like Boeing (NYSE: BA) and Airbus are eyeball-to-eyeball, and so far, neither has blinked.

This year's Dubai Air Show has ensured that 2007 will be a record year for commercial jetliner orders, Reuters reported, with the two aerospace giants signing more than $82 billion in orders at the show.

For 2007, Airbus' orders should surpass the 1,111 amassed in 2005, Chief Executive Officer Tom Enders said. Boeing, which had 956 orders through Oct. 6 and does not forecast orders, is within 66 planes of having its third straight record year, Bloomberg News reported.

Those of you reading this while jammed into a center coach seat might want to move on to another story, one that doesn't deal with a Saudi prince's new ride, the 6,000 square foot 'Flying Palace" custom Airbus A380.

Billionaire Prince Alwaleed bin Talal is paying well over list ($320 million) for his sky limo/air estate. While Airbus would not reveal details of the customization, the possibilities are vast. The cabin is as wide as three Shaquile O'Neils laid end to end, as long as six Weinermobiles, with as much area as 24 rooms at Motel 6. That's plenty of room to pimp it up with a swimming pool, or a go-cart track, bowling alley, IMAX theater, quilt loom, foosball, lawn darts or Frisbee golf course, or sauna complete with its own live birch trees. Think on that the next time you try to prop your laptop on a tray the size of a dollar bill.

This is not the Prince's initial foray into luxury air travel. He is presently the only owner of a private Boeing (NYSE:BA)747, which will probably become his beater plane, the one the kids take to college.

Sure it's two years late, but that does not take away from the excitement as the first Airbus A380 Superjumbo plane was delivered today. The first company to get the revolutionary plane is Singapore Airlines, which is now the proud owner of the world's largest passenger plane.

It was definitely a rocky road for Airbus maker European Aeronautic Defence and Space Co. (LSE: EAD). Delays on this project have taken their toll on the company in terms of personnel, profits and reputation. On the road to today's product handover, Airbus has torn through 5 CEOs, billions of dollars in extra costs, and a restructuring plan that will likely result in the loss of around 10,000 jobs. As if that's not bad enough, the company is also dealing with the fact that Boeing (NYSE: BA) was able to take its #1 sale spot in 2006.

While it is great to see the new A380 being delivered, it would be foolish to think that this marks of the end of hard times for the company. There is still an ongoing investigation in Airbus' parent company EADS over "massive insider trading" that the French Financial Markets Authority has claimed to uncover in its preliminary investigation into trading allegations against the company's senior managers.

The age of the Concorde may be past, but it's not too late to grab a little piece of the former jet-setting glamor. Pieces of the defunct Concorde jets went on sale on Friday in southern France. Among the more than 850 lots up for auction are cockpit gauges, landing gear parts, plates and silverware, and even a toilet seat. Not included is the Concorde's instantly recognizable needle nose.

The auction is intended to raise money for a museum and park in Toulouse, home to Airbus, the world's largest commercial airplane maker. Airbus profit has fallen of late as Airbus struggles to revive its business by selling plants and laying off employees. It also has had to put up with interference in its efforts to develop the A380 from the French and German governments, which are shareholders in Airbus's parent, European Aeronautic, Defence, and Space Co. (EADS).

If pieces of the Concorde don't do it for you, how about a 157-year-old Scotch whisky (went for £294,000), letters from Confederate General Robert E. Lee (went for $61,000), a signed photo of Marilyn Monroe (went for £9,000), or even a part in a Will Ferrell movie (went for $47,000) via eBay (NASDAQ: EBAY)? You never know what you might find at auction.