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Monday, October 09, 2006

Bad New For Airbus, Good News For Boeing? (BA)

Another CEO left Airbus. And he just got there in July. But, parent EADS, controlled by the Germans and French governments, apparently meddled too much in the turnaround plans for the A380 super-jumbo jet. Anout every other week, the project seems to be delayed again.

Airlines like Virgin Atlantic are beginning to look at cash compensation for the A380 delay or cancellation of their orders.

As the rumors of trouble have come out of Europe, Boeing's stock has continued to rise. Over the last month, it has gone from $72 to $83.

Boeing seems to be picking up orders for its 787 due to issues at Airbus. But, so far AIrbus has held its A380 orders in place, despite the fact that Boeing is producing a slightly smaller jumbo, the 747-8, and it will be ready in 2009. If large customers begin to cancel the A380 orders in volume and move to Boeing, the balance between the two big aircraft companies could move in Boeing's direction, and stay that way for years.

Attention Boeing shareholders.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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