Boeing (BA) on Watch as JAL Places Landmark Order with Airbus
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Price: $166.81 --0%
Overall Analyst Rating:
NEUTRAL (
Down)
Dividend Yield: 2.4%
EPS Growth %: +11.0%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 2.4%
EPS Growth %: +11.0%
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Boeing Co. (NYSE: BA) might be headed lower Monday following news that Japan Airlines (OTCBB: JALFQ) signed a purchase agreement for 31 Airbus A350 XWBs (18 A350-900s and 13 A350-1000s), plus options for a further 25 aircraft. List price on the order was about $9.75 billion.
News of the order comes following long delays and safety issues that Boeing had with its 787 Dreamliner. JAL was one of the first airlines in 2013 to report issues with the 787, specifically tied its the jet's batteries, leading to a worldwide grounding.
One executive for JAL said that the grounding of the 787 playing no role in the company's decision to go with Airbus.
JAL peer All Nippon Airways is expected to place an order next year to replace its aging 777 fleet, which it plan to start retiring in 2020. ANA also experienced problems with Boeing's 787 earlier this year and may go with the A350 or 777X.
Airbus is a unit of European Aeronautic Defence & Space Co. (OTCBB: EADSY). Shares of Boeing are flat early Monday.
News of the order comes following long delays and safety issues that Boeing had with its 787 Dreamliner. JAL was one of the first airlines in 2013 to report issues with the 787, specifically tied its the jet's batteries, leading to a worldwide grounding.
One executive for JAL said that the grounding of the 787 playing no role in the company's decision to go with Airbus.
JAL peer All Nippon Airways is expected to place an order next year to replace its aging 777 fleet, which it plan to start retiring in 2020. ANA also experienced problems with Boeing's 787 earlier this year and may go with the A350 or 777X.
Airbus is a unit of European Aeronautic Defence & Space Co. (OTCBB: EADSY). Shares of Boeing are flat early Monday.
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