The recent crash landing of the Asiana Airlines flight 214 would have been a major setback for frequent flyers with regard to safety. It is not only about this incident, but any other flying accident that sends out shock-waves in the passenger fraternity.
For The Boeing Company (NYSE:BA) however, this accident testified to the quality of design and tenacity of its airplanes, as experts claimed that the design of the Boeing 777 involved in the crash landing helped prevent the aircraft from burning and breaking up, which could have taken more lives. This is good news for the company that has been facing serious technical issues with the 787 Dreamliner since its launch.
The incredible 787 returns
The company announced the return of the 787 in its last earnings call a couple of months back following a rigorous testing program and hours of work devoted by experts from The Boeing Company (NYSE:BA) and other organizations. Apart from this encouraging news, investors also derived fresh optimism from its second quarter delivery numbers. The company reported delivery of 169 commercial airplanes, with the 737 Next Generation, the best-selling commercial jet across the globe, topping the list.
The year-to-date delivery number now stands at 306, implying that the company delivered more than half its jets in the second quarter. This is healthy news for investors because it will have a positive impact on revenue and earnings, which are due in few days.
Delivering an excellent show
As this fool article reports, the Paris Air Show, the world’s largest air show, helped The Boeing Company (NYSE:BA) in expanding its order book. The company released details about orders in the first week of July, which clearly conveyed an increase in numbers as compared to last month. Both Boeing and Airbus, giants in commercial aviation, displayed their mettle at the air show with the motive to book maximum purchase orders for their aircrafts.
The A350, the latest wide bodied jet from Airbus that directly competes with The Boeing Company (NYSE:BA)’s 787 made an appearance at the show. Statistically, Airbus got ahead of Boeing as it confirmed purchases of approximately $68.7 billion as compared to Boeing’s $66 billion over the first four days of the show.
Extension of the 787 family
The Boeing Company (NYSE:BA) announced its latest addition to the 787 family, the 787-10 Dreamliner, at the Paris air show, claiming it to be the most efficient jet liner. The ever increasing demand in commercial aviation has necessitated the presence of fuel efficient jets that could travel long distances. The company built its range of 787 jetliners keeping this objective in mind.
Fuel-efficient jets enable airline companies to charge lower fares to its customers, which is a much needed strategy to combat fierce competition. This has sparked a huge battle between Airbus and Boeing, both competing to take a commanding position for the supply of such jets.
Airbus’s A350 XWB has offered tough competition to the 787 in terms of efficiency and seating capacity. Its debut flight was a hit, helping Airbus garner more than 69 orders for the jet, totalling $21.4 billion. Though Boeing experienced a bumpy ride with the 787, its dedicated rework has paid off with the FAA approving the changes made to the aircraft. Thus, Boeing is back into the fight, stronger than before.
Boeing also did a good job in the defense segment as indicated by its delivery numbers. In this space, it competes with Lockheed Martin Corporation (NYSE:LMT), which designs and manufactures military aircraft. Recently, it bagged a contract worth $138.5 million to provide Communications Technical Support Services, or CTSS, to the U.S. Air Force Central Command. The company is a leader in defense technology and has received such big contracts earlier.