Boeing Comeback Seen Tempered by Economies
Last edited Thu Jul 5, 2012, 05:42 PM - Edit history (1)
(Bloomberg) Boeing Co. (BA)’s chance to eclipse Airbus SAS (EAD) at the industry’s largest air show next week risks being overshadowed by a faltering economy and its European rival setting up a manufacturing hub in the U.S.
Orders at the expo starting July 9 in Farnborough, England, probably will trail the 441 announced jet purchases valued at $46.4 billion at the 2011 show as demand wilts amid Europe’s debt crisis and a Chinese slowdown. That’s the backdrop for Boeing to peddle its new 737 MAX after Airbus’s A320Neo dominated last year’s event in Paris.
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“In good times, when airlines are feeling buoyant, they rush to order planes,” said Zafar Khan, an analyst at SG Securities in London. “That may not be the case in the current economic climate.”
Global air traffic grew 5.6 percent in May, the smallest gain since January, the International Air Transport Association said July 2. Cargo traffic, which tracks the economy more closely than passenger travel, was down 1.9 percent this year through the first five months. .................(more)
The complete piece is at: http://www.bloomberg.com/news/2012-07-04/boeing-risks-stumble-with-air-show-comeback-as-economies.html