BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Boeing 787's wing flaw: A data point the U.S. economy does not need]]>http://www.bloggingstocks.com/2009/08/03/boeing-787-s-wing-flaw-a-data-point-the-u-s-economy-does-not-n/http://www.bloggingstocks.com/2009/08/03/boeing-787-s-wing-flaw-a-data-point-the-u-s-economy-does-not-n/http://www.bloggingstocks.com/2009/08/03/boeing-787-s-wing-flaw-a-data-point-the-u-s-economy-does-not-n/#commentsFiled under: ,

Word that Boeing's next-generation plane, the 787 Dreamliner, may not fly until 2010, according to The Seattle Times, is bad news not just for the company, it's a negative data point for the U.S. economy.

The 787's engineers must correct a wing flaw that extends to inside the plane: 17 long stiffening rods, called "stringers," on each wing's upper skin, sustained damage that occurred just beyond the aircraft's "limit load," which is the maximum load the wing is expected to bear in service, The Times said. In other words, the wing damage occurred when the wing was well below the load the wings must bear to be federally certified to carry passengers.

Continue reading Boeing 787's wing flaw: A data point the U.S. economy does not need

Boeing 787's wing flaw: A data point the U.S. economy does not need originally appeared on BloggingStocks on Mon, 03 Aug 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 DreamlinerBABoeingcommercial aviationinthenewstravelMon, 03 Aug 2009 11:00:00 EST<![CDATA[Ray of Light: Boeing says 787 still on schedule for Q1 2010 delivery]]>http://www.bloggingstocks.com/2009/03/10/ray-of-light-boeing-says-787-still-on-schedule-for-q1-2010-deli/http://www.bloggingstocks.com/2009/03/10/ray-of-light-boeing-says-787-still-on-schedule-for-q1-2010-deli/http://www.bloggingstocks.com/2009/03/10/ray-of-light-boeing-says-787-still-on-schedule-for-q1-2010-deli/#commentsFiled under: , ,

In this market, where a sneeze by a hedge fund manager can cause the Dow to fall 200 points, or so it seems, you take the positive data points where you can get them.

Boeing supplied one on Tuesday, reaffirming that its next-generation 787 Dreamliner remains on schedule for its earlier-stated Q1 2010 delivery and Q2 2009 first test flight, the company announced during a presentation at the J.P. Morgan Aviation and Transportation conference.

Continue reading Ray of Light: Boeing says 787 still on schedule for Q1 2010 delivery

Ray of Light: Boeing says 787 still on schedule for Q1 2010 delivery originally appeared on BloggingStocks on Tue, 10 Mar 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 DreamlinerBABoeingcommercial aviationfeaturedTue, 10 Mar 2009 13:30:00 EST<![CDATA[Is that plane Boeing's 787 or the 7-Late-7 Dreamliner?]]>http://www.bloggingstocks.com/2009/02/16/is-that-plane-boeings-787-or-the-7-late-7-dreamliner/http://www.bloggingstocks.com/2009/02/16/is-that-plane-boeings-787-or-the-7-late-7-dreamliner/http://www.bloggingstocks.com/2009/02/16/is-that-plane-boeings-787-or-the-7-late-7-dreamliner/#commentsFiled under: ,

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.

Continue reading Is that plane Boeing's 787 or the 7-Late-7 Dreamliner?

Is that plane Boeing's 787 or the 7-Late-7 Dreamliner? originally appeared on BloggingStocks on Mon, 16 Feb 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>747787787 DreamlinerA350A380Airbusbusiness travelcommercial aviationleisure traveltravelMon, 16 Feb 2009 17:30:00 EST<![CDATA[With 787, 747-8 roll-outs delayed, runway getting bumpy for Boeing]]>http://www.bloggingstocks.com/2008/11/17/with-787-747-8-roll-outs-delayed-runway-getting-bumpy-for-boei/http://www.bloggingstocks.com/2008/11/17/with-787-747-8-roll-outs-delayed-runway-getting-bumpy-for-boei/http://www.bloggingstocks.com/2008/11/17/with-787-747-8-roll-outs-delayed-runway-getting-bumpy-for-boei/#commentsFiled under: , ,

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.

Continue reading With 787, 747-8 roll-outs delayed, runway getting bumpy for Boeing

With 787, 747-8 roll-outs delayed, runway getting bumpy for Boeing originally appeared on BloggingStocks on Mon, 17 Nov 2008 15:41:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>747-8787787 DreamlinerA380AirbusBABoeingcommercial aviationEADSexportstravelMon, 17 Nov 2008 15:41:00 EST<![CDATA[Boeing, Airbus may end up 'storing' 200 new planes in the desert]]>http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/http://www.bloggingstocks.com/2008/11/12/boeing-airbus-may-end-up-storing-200-new-planes-in-the-desert/#commentsFiled under: ,

In the quarters ahead, new autos may not be the only inventory item piling up.

A 'really big ticket item' -- new commercial airplanes -- may start piling up, as well. Boeing and Airbus may end up with as many as 200 new planes without buyers in 2009 because airlines are unable to obtain funds to pay for them, due to the credit crunch.

In the second half of 2008, banks and other sources of capital decreased lending to airlines -- and to just about everyone else, it seems -- on concerns the loans won't be paid back. Other banks are decreasing lending primarily as a means of rebuilding damaged balance sheets.

The lending cutback may create a funding gap of about $65 billion at Boeing next year, and a $20 billion gap at Airbus. Boeing Capital Corp., the airplane manufacturing giant's financing unit, is expected to make $1 billion in loans to customers in 2009.

Continue reading Boeing, Airbus may end up 'storing' 200 new planes in the desert

Boeing, Airbus may end up 'storing' 200 new planes in the desert originally appeared on BloggingStocks on Wed, 12 Nov 2008 17:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AirbusBABoeingcommercial aviationcredit crunchcredit marketsEADSexportsinthenewsTARPU.S. TreasuryWed, 12 Nov 2008 17:25:00 EST<![CDATA[As China contracts, GE stabs Boeing in back with China aircraft buy]]>http://www.bloggingstocks.com/2008/11/04/as-china-contracts-ge-stabs-boeing-in-back-with-china-aircraft/http://www.bloggingstocks.com/2008/11/04/as-china-contracts-ge-stabs-boeing-in-back-with-china-aircraft/http://www.bloggingstocks.com/2008/11/04/as-china-contracts-ge-stabs-boeing-in-back-with-china-aircraft/#commentsFiled under: , ,

The global aircraft business sure is complex. Big companies are both suppliers and customers of each other. There are only two major competitors -- but one new one, backed by the Chinese government -- threatens to alter the structure of the industry. And aircraft are so expensive that financing is the critical fuel that keeps the industry going. Meanwhile, the global economic slowdown threatens to cut demand for air travel and slice that capital flow.

This complexity comes to mind in analyzing a General Electric Co. (NYSE: GE) threat to Boeing (NYSE: BA) -- which it leveled by placing a $750 million order for five aircraft -- with an option to buy 20 more -- with China's Commercial Aircraft Corporation of China (CACC). CACC was formed earlier this year through the merger of China's two state aircraft makers, AVIC I and AVIC. And the expansion does not stop there -- today China announced plans to acquire a foreign general aviation aircraft maker to "shore up its technology capabilities."

GE's CACC buy is hurting one of GE's biggest customers -- that's because GE Aviation sells billions worth of engines to Boeing. And GE's aircraft financing unit -- GE Capital Aviation Services -- is in competition with American International Group's (NYSE: AIG) aircraft financing unit, International Lease Finance Corp. -- which is one of Boeing's biggest customers.

Continue reading As China contracts, GE stabs Boeing in back with China aircraft buy

As China contracts, GE stabs Boeing in back with China aircraft buy originally appeared on BloggingStocks on Tue, 04 Nov 2008 09:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AIGaircraftaviationBAChinacommercial aircraft corporation of chiinacommercial aviationCommercialAircraftCorporationOfChiinaCommercialAviationfeaturedGETue, 04 Nov 2008 09:58:00 EST<![CDATA[American Airlines' Q3 earnings fall 74% on fuel costs, orders 42 Boeing 787s]]>http://www.bloggingstocks.com/2008/10/16/american-airlines-q3-earnings-fall-74-on-fuel-costs-orders-42/http://www.bloggingstocks.com/2008/10/16/american-airlines-q3-earnings-fall-74-on-fuel-costs-orders-42/http://www.bloggingstocks.com/2008/10/16/american-airlines-q3-earnings-fall-74-on-fuel-costs-orders-42/#commentsFiled under: , ,

Just call it a quarter of modest progress for AMR, despite the earnings per share loss.

AMR Corp., parent of American Airlines, posted a third quarter loss, excluding items, but also said it will order 42 next-generation planes from Boeing -- signaling that cost-cuts and increased efficiency may very well position the carrier for better quarters ahead.

AMR Corp (NYSE: AMR) reported a Q3 earnings per share of a loss of $1.39, excluding one-time items.

Analysts surveyed by Reuters had expected AMR to report a Q3 earnings per share loss of $1.36. AMR posted Q3 revenue of $6.4 billion. AMR's shares rose 60 cents to $9.38 in Thursday morning trading.

Continue reading American Airlines' Q3 earnings fall 74% on fuel costs, orders 42 Boeing 787s

American Airlines' Q3 earnings fall 74% on fuel costs, orders 42 Boeing 787s originally appeared on BloggingStocks on Thu, 16 Oct 2008 12:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 Dreamlinerairline sectorAmerican AirlinesAMR Corp.commercial aviationinthenewstravelThu, 16 Oct 2008 12:20:00 EST<![CDATA[Through it all, Boeing and machinists' union keep fighting]]>http://www.bloggingstocks.com/2008/10/14/and-through-it-all-boeing-machinists-union-remain-at-odds/http://www.bloggingstocks.com/2008/10/14/and-through-it-all-boeing-machinists-union-remain-at-odds/http://www.bloggingstocks.com/2008/10/14/and-through-it-all-boeing-machinists-union-remain-at-odds/#commentsFiled under: , , , , ,

In the space of a short month, the financial universe has been reordered.

Europe and the United States have launched major interventions plans to stabilize the global financial system. China has cut interest rates and pledged to help further to normalize financial flows. The Treasury Secretary of Russia and the U.S. Treasury Secretary are negotiating with the same goal in mind.

There's even been progress on New York's Second Avenue Subway Line, second only to, perhaps, the Burma Road in the length of time needed to complete a public works project.

Meanwhile, in Seattle . . . Boeing and the union representing machinists remain at loggerheads over a new contract, with work idled since September 6.

The work stoppage is costing Boeing (NYSE: BA) about $100 million per day, Bloomberg News reported. Even worse, lack of progress toward a new contract with the International Association of Machinists and Aerospace Workers could ultimately cost both sides much more, says stock analyst C. Leonard Bauer.

"If the strike is not settled in a week it invariably will force another roll-out delay in the first 787 Dreamliners, and in other airplanes, which would be major operational setbacks for Boeing and the machinists," Bauer said. "We're talking purchase delays and order cancellations by airlines. That will both lower projected revenue and result in lost jobs." Bauer added that he does not have a rating on nor own shares in Boeing or any airplane manufacturer.

Continue reading Through it all, Boeing and machinists' union keep fighting

Through it all, Boeing and machinists' union keep fighting originally appeared on BloggingStocks on Tue, 14 Oct 2008 12:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 DreamlinerairlinesairplanesBABoeingcommercial aviationemerging marketsInternational Association of Machinists and Aerospace WorkersinthenewstravelTue, 14 Oct 2008 12:55:00 EST<![CDATA[Potential Boeing 787 order delay for Japan ends sad September for investors]]>http://www.bloggingstocks.com/2008/09/30/potential-boeing-787-order-delay-for-japan-ends-sad-september-fo/http://www.bloggingstocks.com/2008/09/30/potential-boeing-787-order-delay-for-japan-ends-sad-september-fo/http://www.bloggingstocks.com/2008/09/30/potential-boeing-787-order-delay-for-japan-ends-sad-september-fo/#commentsFiled under: , ,

What a September.

The Yankees fade during the stretch and don't make the play-offs. And Yankee Stadium, The House That Ruth Built, has closed, forever. Meanwhile, the stock market frequently looks like it wants to close.

Well, at least Boeing (NYSE: BA) is doing well. No, wait, Boeing too is closed, temporarily, due to a strike.

And now there's word that Boeing will reassess its 787 Dreamliner delivery schedule for the Japanese market once the ongoing strike ends, Reuters reported Tuesday.

Analysts fear that a failure of Boeing and the International Association of Machinists and Aerospace Workers to reach an agreement that has idled 27,000 machines could further push-back the 787's delivery timetable. The IAM strike began September 6. Boeing has already delayed delivery of its next-generation 787 airplane by 18 months. Boeing's shares rose $1.52 to $56.99 Tuesday afternoon amid a broader market rally.

Not a September Sinatra would sing about

"I guess this September was meant to be a month with all bad news, because it certainly seems that way," Stock Analyst C. Leonard Bauer said. "Boeing was one of the few bright spots on a pretty dismal domestic economic landscape. Great new products, solid orders, a good future for the company and the stock. But then management and the union can't agree on compensation. Pretty sad."

Continue reading Potential Boeing 787 order delay for Japan ends sad September for investors

Potential Boeing 787 order delay for Japan ends sad September for investors originally appeared on BloggingStocks on Tue, 30 Sep 2008 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 DreamlinerA350AirbusairlinesBoeingcommercial aviationInternational Association of Machinists and Aerospace WorkersinthenewsmachinstsTue, 30 Sep 2008 17:15:00 EST<![CDATA[At this rate, a Boeing strike of 'only' a month would be a moral victory]]>http://www.bloggingstocks.com/2008/09/09/at-this-rate-a-boeing-strike-of-only-a-month-would-be-a-moral/http://www.bloggingstocks.com/2008/09/09/at-this-rate-a-boeing-strike-of-only-a-month-would-be-a-moral/http://www.bloggingstocks.com/2008/09/09/at-this-rate-a-boeing-strike-of-only-a-month-would-be-a-moral/#commentsFiled under: , ,

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.

Continue reading At this rate, a Boeing strike of 'only' a month would be a moral victory

At this rate, a Boeing strike of 'only' a month would be a moral victory originally appeared on BloggingStocks on Tue, 09 Sep 2008 13:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>787787 DreamlinerA380AirbusBABoeingcommercial aviationemerging marketsfeaturedInternational Association of Machinists and Aerospace Workersstrikework stoppageTue, 09 Sep 2008 13:20:00 EST<![CDATA[Boeing 787 Dreamliner backlog seen hinging on strike vote]]>http://www.bloggingstocks.com/2008/09/03/boeing-787-dreamliner-backlog-seen-hinging-on-strike-vote/http://www.bloggingstocks.com/2008/09/03/boeing-787-dreamliner-backlog-seen-hinging-on-strike-vote/http://www.bloggingstocks.com/2008/09/03/boeing-787-dreamliner-backlog-seen-hinging-on-strike-vote/#commentsFiled under: , ,

For Boeing (NYSE: BA), there's more hinging on today's machinists' contract vote than the company's primary labor costs over the next three years.

"The fate of future orders for the 787 Dreamliner could weigh in the balance," stock analyst C. Leonard Bauer told BloggingStocks Wednesday.

About 27,000 members in the International Association of Machinists and Aerospace Workers union in Washington State, Oregon and Kansas will vote today concerning whether to accept a three-year contract, The Associated Press reported Wednesday. Contact vote results are expected Wednesday night.

Shares of Boeing (NYSE: BA) rose 90 cents to $66.79 in Wednesday morning trading.

Despite Boeing's offer of a $5,000 signing bonus and a pay increase totaling 11% over the 3-year contract, its passage is hardly a slam dunk, Bauer said. "I know the media likes to portray every major union contract as a big deal, but this one really is a big issue. There are a lot of nervous parties watching this vote, parts suppliers to Boeing, businesses in the affected regions, and of course, almost every major airline around the world," Bauer said. "A protracted strike at Boeing would jeopardize several commercial airplane delivery timetables."

Work stoppage could hurt 787 orders

Continue reading Boeing 787 Dreamliner backlog seen hinging on strike vote

Boeing 787 Dreamliner backlog seen hinging on strike vote originally appeared on BloggingStocks on Wed, 03 Sep 2008 12:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>787787 DreamlinerA350Airbusairline sectorBABoeingcollective bargainingcommercial aviationemerging marketsEUEuropean UniongdpInternational Association of Machinists and Aerospace WorkersInternationalAssociationOfMachinistsAndAerospaceWorkersinthenewslabor relationsU.S. economyWed, 03 Sep 2008 12:35:00 EST<![CDATA[Boeing could lose $3.5 billion per month if machinists strike]]>http://www.bloggingstocks.com/2008/08/29/boeing-could-lose-3-5-billion-per-month-if-machinists-strike/http://www.bloggingstocks.com/2008/08/29/boeing-could-lose-3-5-billion-per-month-if-machinists-strike/http://www.bloggingstocks.com/2008/08/29/boeing-could-lose-3-5-billion-per-month-if-machinists-strike/#commentsFiled under: , ,

This is not the way to kick off the fall production season, typically a time when companies introduce new products and plans. Boeing (NYSE: BA) could lose up to $3.5 billion per month in revenue if a threatened strike by a machinist union occurs next week, USAToday reported Friday.

The potential action by the International Association of Machinists and Aerospace Workers could also delay the 787 Dreamliner program and other aircraft programs. About 27,000 machinists in Washington state, Oregon and Kansas would be affected.

Boeing's latest contract offer calls for an 11% pay increase in annual increments of 5%, 3%, and 3%, Bloomberg News reported Friday. Machinists would also get a $2,500 payment if they approve the new contract by September 3.

Stock Analyst C. Leonard Bauer told BloggingStocks Friday Boeing "will probably have to increase its offer to the IAM, given what's at stake for Boeing."

"Boeing is in a position where it can increase its labor cost base. Revenue remains strong, with large backorders," Bauer said. "Those facts, plus the fact that Boeing can not afford any more delays in the 787 program, means the IAM has the upper hand in these contract negotiations. I'm sure the machinists don't want a strike, either, so my call would be for Boeing to up its pay raise offer to 6%, 5%, and 5% for a 16% pay increase." Bauer added that he does not have a rating on nor own shares in Boeing.

Continue reading Boeing could lose $3.5 billion per month if machinists strike

Boeing could lose $3.5 billion per month if machinists strike originally appeared on BloggingStocks on Fri, 29 Aug 2008 09:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>787787 DreamlinerBABoeingcommercial aviationfeaturedInternational Association of Machinists and Aerospace Workerslabor relationsstrikeunionsFri, 29 Aug 2008 09:25:00 EST<![CDATA[For U.S. travelers, more packed planes, but more free flight vouchers]]>http://www.bloggingstocks.com/2008/08/25/for-u-s-travelers-more-packed-planes-but-more-free-flight-vou/http://www.bloggingstocks.com/2008/08/25/for-u-s-travelers-more-packed-planes-but-more-free-flight-vou/http://www.bloggingstocks.com/2008/08/25/for-u-s-travelers-more-packed-planes-but-more-free-flight-vou/#commentsFiled under: ,

There's a downside and an upside to the new air travel reality in the United States.

The downside: look for more, packed flights as airlines reduce fleets to cut costs by eliminating unprofitable flights, and with it the (remaining) empty seats on planes, The New York Times reported.

The upside: airlines are required to offer a greater payout, if you're bumped from a flight.

Airlines' load factor seen increasing

Stock analyst and frequent flier C. Leonard Bauer told BloggingStocks U.S. airlines' load factor - - the percent of seats sold per flight - - is likely to increase from its current 79% sector average. "Basic math. Considerably fewer planes and roughly the same amount of travelers means more flights close to capacity."

And overcapacity. Bauer said he expects bumps - - people with a boarding pass who can't fly because the airline overbooked the plane - - to increase during the next six months. However, bumps may trend lower in 2H 2009, if passenger traffic slows on the heels of the U.S. economic slowdown, he said.

In any event, if you're bumped, your air travel-denominated compensation will be better than it was three years ago, Bauer said, due to federally-required higher payouts. [Bauer added that he does not own shares in or have a rating on any airline or airplane manufacturer. However, Bauer does have frequent flier miles/points in American Airlines (NYSE: AMR).]

Continue reading For U.S. travelers, more packed planes, but more free flight vouchers

For U.S. travelers, more packed planes, but more free flight vouchers originally appeared on BloggingStocks on Mon, 25 Aug 2008 13:42:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airline sectorAMRbusiness travelcommercial aviationinthenewsleisure traveltravelMon, 25 Aug 2008 13:42:00 EST<![CDATA[Global airline industry seen losing $6 billion in 2008]]>http://www.bloggingstocks.com/2008/08/21/global-airline-industry-seen-losing-6-billion-in-2008/http://www.bloggingstocks.com/2008/08/21/global-airline-industry-seen-losing-6-billion-in-2008/http://www.bloggingstocks.com/2008/08/21/global-airline-industry-seen-losing-6-billion-in-2008/#commentsFiled under: , , , ,

Airlines globally could lose $6.1 billion in 2008, on soaring oil prices and financial market dislocation, the head of the International Air Transport Association said, The Wall Street Journal reported Thursday (subscription required).

Giovanni Bisignani, managing director of the IATA, which represents 230 airlines, called the sector "a fragile industry in a crisis" and that it's "bracing for more situations of airlines collapsing," due to high fuel prices and lower revenue, The Journal reported. Further, the air travel slowdown, once thought to be contained to developed nations, has spread to global air travel's plum: Asia, he added.

Airline slowdown could hurt Boeing, Airbus

Stock analyst and frequent flier C. Leonard Bauer told BloggingStocks Thursday if the Asian hemisphere is slowing, to go along with sluggish revenue statistics in Europe and the United States, the slowdown "would have wide implications, not just for airlines, but for airplane manufacturers Boeing and Airbus."

"Further consolidation globally, was a given, particularly in nations like India, which had too many airlines even before the global economy slowed, but the concern now is that national carriers will postpone or cancel plane orders," Bauer said. "From a U.S. perspective, that could mean bad news for Boeing. And what's bad news for Boeing is bad news for the U.S economy. Airplane sales have been one of the U.S. economy's few bright spots." [Bauer added that he does not own shares in or have a rating on any airline or airplane manufacturer. However, Bauer does have frequent flier miles/points in American Airlines (NYSE: AMR).]

Continue reading Global airline industry seen losing $6 billion in 2008

Global airline industry seen losing $6 billion in 2008 originally appeared on BloggingStocks on Thu, 21 Aug 2008 14:11:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Airbusairline sectorAsiaBABoeingbusiness travelChinacommercial aviationEADSemerging marketsEuropeIATAIndiaInternational Air Transport Associationinthenewsjet fuelleisure traveloil pricesoil shockopen skiestravelUnited StatesThu, 21 Aug 2008 14:11:00 EST<![CDATA[American Airlines, British Air, Iberia sign joint venture deal]]>http://www.bloggingstocks.com/2008/08/14/american-airlines-british-air-iberia-sign-joint-venture-deal/http://www.bloggingstocks.com/2008/08/14/american-airlines-british-air-iberia-sign-joint-venture-deal/http://www.bloggingstocks.com/2008/08/14/american-airlines-british-air-iberia-sign-joint-venture-deal/#commentsFiled under: , , , ,

American Airlines, British Air and Spain's Iberia have signed a joint business agreement on flights between North America and Europe, American Airlines announced Thursday.

American (NYSE: AMR) added that the three airlines plan to file for global antitrust immunity from U.S. officials and will also apply from the same in Europe.

Under the deal announced Thursday, the three airlines will cooperate commercially on flights between the United States zone (encompassing Canada and Mexico) and the European Union (including Switzerland and Norway), while continuing to operate as separate, legal companies.

Analyst: 'an absolute, positive, must deal'

Stock Analyst C. Leonard Bauer told BloggingStocks Thursday rival competitors may argue that the deal will reduce competition internationally, but in Bauer's interpretation the agreement is "an absolute, positive, must deal," due to the changing nature of flight and air travel.

"The reality is, we're becoming a global travel marketplace, not just a national one, one that will eventually be accessible to everyone, and in this decade the key players will compete on transcontinental and global routes," Bauer said. "That means the carriers need global scale and the American-British Air-Iberia deal accomplishes that. It is an absolute, positive, must deal." (Bauer added that he does not have a rating on nor own shares in any airline. However, Bauer does have frequent flier miles/points in American Airlines.)

Continue reading American Airlines, British Air, Iberia sign joint venture deal

American Airlines, British Air, Iberia sign joint venture deal originally appeared on BloggingStocks on Thu, 14 Aug 2008 12:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airline sectorBritish Airwaysbusiness travelCanadacommercial aviationEUEuropeEuropean UnionIberia SAinthenewsjoint venture agreementsjoint venture operationsleisure travelMexicoSpaintravelUnited StatesThu, 14 Aug 2008 12:12:00 EST<![CDATA[Parts shortage slowing assembly of Boeing's 777, Airbus' A330]]>http://www.bloggingstocks.com/2008/08/08/parts-shortage-slowing-assembly-of-boeings-777-airbus-a330/http://www.bloggingstocks.com/2008/08/08/parts-shortage-slowing-assembly-of-boeings-777-airbus-a330/http://www.bloggingstocks.com/2008/08/08/parts-shortage-slowing-assembly-of-boeings-777-airbus-a330/#commentsFiled under: , ,

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.

Continue reading Parts shortage slowing assembly of Boeing's 777, Airbus' A330

Parts shortage slowing assembly of Boeing's 777, Airbus' A330 originally appeared on BloggingStocks on Fri, 08 Aug 2008 14:52:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>777787787 DreamlinerA330A380A380 superjumboAirbusairline sectorBABoeingbusiness travelcommercial aviationEADSinthenewsleisure traveltravelFri, 08 Aug 2008 14:52:00 EST<![CDATA[Transportation issues will be critical to the health of 21st century U.S. economy]]>http://www.bloggingstocks.com/2008/08/07/transportation-likely-to-loom-large-in-21st-century-u-s-economy/http://www.bloggingstocks.com/2008/08/07/transportation-likely-to-loom-large-in-21st-century-u-s-economy/http://www.bloggingstocks.com/2008/08/07/transportation-likely-to-loom-large-in-21st-century-u-s-economy/#commentsFiled under: , , , ,

Given the smorgasbord of economic demands and concerns -- domestic and foreign -- likely to face the new U.S. president, investors (and taxpayers) can justifiably ask 'Where's all the money going to come from to pay for these programs?'

Legitimate question, but one, for now, we'll let the political process sort out. (Current Gallup Daily Tracking Poll as of August 6, 2008, for the U.S. presidential election: Obama, 46%, McCain, 44%.)

Electing U.S. Sen. Barack Obama, D-Illinois, or U.S. Sen. John McCain, R-Arizona, will produce different programs and revenue priorities, due to the parties' different sources of power, but the argument forwarded here is that -- regardless of who becomes the new president -- the office holder should address transportation in a comprehensive way. Here are the major concern areas:
  • Mass transit: We're early into the $4 gas era, of course, but initial U.S. Department of Transportation data indicates Americans are driving less and using mass transit more. The trouble is, many mass transit systems (rail, commuter rail, subway, bus) need to be expanded/upgraded to handle the increased ridership. Bigger, better mass transit systems will save the United States hundreds of billions of dollars in oil costs, not to mention the environmental benefits.

Continue reading Transportation issues will be critical to the health of 21st century U.S. economy

Transportation issues will be critical to the health of 21st century U.S. economy originally appeared on BloggingStocks on Thu, 07 Aug 2008 16:21:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airlinesairportsbusesbusiness travelcarsclimate changecommercial aviationcommuter railelectric carsenvironmentgasoline pricesgdphybridsleisure travelmass transitMcCainnatural gas vehiclesObamaoil pricesoil shockOPECrailroadssubwaystransportationtravelU.S. economyvehiclesThu, 07 Aug 2008 16:21:00 EST<![CDATA[A saving grace for airlines: Wi-Fi in the sky]]>http://www.bloggingstocks.com/2008/08/06/a-saving-grace-for-airlines-wi-fi-in-the-sky/http://www.bloggingstocks.com/2008/08/06/a-saving-grace-for-airlines-wi-fi-in-the-sky/http://www.bloggingstocks.com/2008/08/06/a-saving-grace-for-airlines-wi-fi-in-the-sky/#commentsFiled under: , , , , , , ,

These days in commercial aviation, airlines are finding ways to operate more efficiently amid the toughest sector conditions since the first oil shock in 1973-74.

And while there's no love lost between passengers and the major carriers' unconventional way of increasing total consumer flying costs by adding separate baggage fees, there's one a-la-carte fee the public may be willing to pay for: a fee for internet access on airplanes.

Delta Air Lines (NYSE: DAL) announced it will start offering broadband internet service on domestic flights as early as October, The Washington Post reported Wednesday. Other airlines, including Continental (NYSE: CAL), Southwest (NYSE: LUV), and Virgin America are planning or testing internet services. (Delta will merge with Northwest Airlines (NYSE: NWA), pending U.S. Justice Department approval.)

Analysts generally credit JetBlue (NASDAQ: JBLU) with raising coach class amenity standards for flights in the United States when it introduced satellite TV and other services on its flights.

Delta's service will cost a $9.95 flat fee for flights lasting three hours or less and $12.95 for flights longer than three hours.

Public seen receptive to Wi-Fi fee

Stock analyst and frequent flier C. Leonard Bauer says Internet fees would be "a lucrative revenue stream" for the airlines, and ironically one that will probably be popular with the public.

Continue reading A saving grace for airlines: Wi-Fi in the sky

A saving grace for airlines: Wi-Fi in the sky originally appeared on BloggingStocks on Wed, 06 Aug 2008 14:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airline sectorairlinesAirlineSectorbusiness travelcommercial aviationCommercialAviationinthenewsleisure traveltravelWi FiWiFiWed, 06 Aug 2008 14:55:00 EST<![CDATA[There may be a 'micro airline' on your itinerary in the near future]]>http://www.bloggingstocks.com/2008/08/05/in-the-near-future-there-may-be-a-micro-airline-in-your-itine/http://www.bloggingstocks.com/2008/08/05/in-the-near-future-there-may-be-a-micro-airline-in-your-itine/http://www.bloggingstocks.com/2008/08/05/in-the-near-future-there-may-be-a-micro-airline-in-your-itine/#commentsFiled under: , , ,

What's one over-the-horizon trend that passengers (and investors) would be wise to monitor closely? Micro airlines.

Micro airlines will be small carriers that target the leisure travel market, stock analyst and frequent flier C. Leonard Bauer told BloggingStocks Tuesday.

Bauer is quick to point out that these carriers don't exist today -- the commercial aviation sector's financials can't currently support them -- but when design advances (including composites), increased engine efficiency, and a drop in oil and aviation fuel prices turn in the airline sector's favor, look for micro carriers to sprout, he predicted.

A streamlined air itinerary

Further, Bauer doesn't count current 'regional airlines' or 'express airlines' such as United Express as micro airlines because micro airlines will differ from the former in one significant way: "They'll have vastly reduced check-in times compared to regional airlines," Bauer said. "For a portion of the leisure travel public, this will be the deal-clincher." Bauer added that he doesn't own shares in nor have a rating on any airline.

Continue reading There may be a 'micro airline' on your itinerary in the near future

There may be a 'micro airline' on your itinerary in the near future originally appeared on BloggingStocks on Tue, 05 Aug 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>airline sectorbusiness travelcommercial aviationDallas Forth Worth International Airportexpress airlinesHartsfield Atlanta International AirportLaGuardia International Airportleisure traveloil pricesregional airlinestravelUALUAL Corp.Tue, 05 Aug 2008 16:30:00 EST<![CDATA[Boeing says Q2 results will contain 22-cent charge for delays]]>http://www.bloggingstocks.com/2008/07/10/boeing-says-q2-results-will-contain-22-cent-charge-for-delays/http://www.bloggingstocks.com/2008/07/10/boeing-says-q2-results-will-contain-22-cent-charge-for-delays/http://www.bloggingstocks.com/2008/07/10/boeing-says-q2-results-will-contain-22-cent-charge-for-delays/#commentsFiled under: ,

Boeing said Thursday its Q2 results will contain a charge "of approximately 22 cents per share on previously acknowledged delays on its airborne early warning & control program."

Boeing (NYSE: BA) added that it continues to expect F2008 and F2009 earnings per share of $5.70-$5.85 and $6.80-$7.00, respectively.

The Reuters F2008 and F2009 earnings per share consensus estimates are $5.97 and $6.97, respectively.

Boeing's shares fell 30 cents to $65.29 in pre-market trading on the news

Stock analyst C. Leonard Bauer said Boeing's 22-cent "is unfortunate," but not something that changes Boeing's solid, strong commercial aerospace story, as a value proposition. "Boeing is still on-track to deliver earning growth in 2008 and 2009, which is no small achievement given current U.s. economic conditions," Bauer said. Bauer added that he does not have a rating on nor own shares in Boeing.




Continue reading Boeing says Q2 results will contain 22-cent charge for delays

Boeing says Q2 results will contain 22-cent charge for delays originally appeared on BloggingStocks on Thu, 10 Jul 2008 10:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>BABoeingcommercial aviationinthenewsThu, 10 Jul 2008 10:31:00 EST