The Boeing Company (BA) and Airbus Ink Deals in Paris. Should You Buy Suppliers?

Page 1 of 2

“I love Paris When it Sizzles,” Cole Porter

The Paris Air Show was a success for major airplane makers Airbus and The Boeing Company (NYSE:BA). At the show, the two companies reported more than $160 billion in orders.

The orders add to an already large backlog of planes, providing stable multi-year growth for the aerospace suppliers TransDigm Group Incorporated (NYSE:TDG), Hexcel Corporation (NYSE:HXL) and B/E Aerospace Inc (NASDAQ:BEAV).

A big show for new orders

The Boeing Company (NYSE:BA)

Airbus and The Boeing Company (NYSE:BA) are always battling for orders at the high profile Paris and Farnborough Air shows, held in alternating years in France and the United Kingdom.

This year was no different. Airbus came out on top, notching deals for 466 planes worth more than $70 billion. In dollar terms, that just about matched the $72 billion sold at the 2011 Paris show.

At the 2013 show, Airbus orders were strongest from Asian operators, including Singapore Airlines, and U.S. operators, including United Airlines, who ordered 35 A350-1000s. Airbus took its A350XWB into the air for the first time above the show.

Boeing also had a strong showing. The company debut a 787-10 that can hold more passengers and inked agreements for 442 planes worth $66 billion. The Boeing Company (NYSE:BA)’s Paris orders brought its net 2013 orders to 692 planes. That’s a big showing compared to the 2011 Paris Air Show when Boeing reported orders worth $22 billion.

Overall, industry orders came in at roughly $170 billion at the Paris show.

The orders add to an already bulging backlog of planes

The new Airbus orders add to a backlog of 4,928 planes at the end of May. Boeing’s backlog exited this Spring north of 4,400.

That has both manufacturers working closely with suppliers to ramp capacity to fuel faster production. Both makers view capacity growth as inevitable in order to meet an expected doubling of passenger planes over the next two decades.

Airbus entered 2012 with plans to build 570 planes, following production of 534 in 2011, thanks to a ramping of monthly A320 production to 42 per month. By year end it had delivered 588 aircraft, exceeding its plans.

Over at The Boeing Company (NYSE:BA), the company delivered 601 planes last year and Boeing hopes to deliver even more this year as it increases 737 production from 38 a month to 42.

The swelling orders and ramping production schedule suggests aerospace suppliers are in for a multi-year run of stable revenue and profit growth.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!