Boeing Airplanes

Boeing Sees Commercial Aircraft Demand Up; Airbus Gets Order

Boeing CEO Dennis Muilenburg said that demand for passenger jets is rising, and it sees 38,000 needed over the next two decades.

Muilenburg told the French newspaper Le Figaro that “in commercial aviation, demand is not dipping, on the contrary,” adding that Boeing will increase its annual delivery rate to 900 planes in five years, up from 750 planes for 2016.

But Morgan Stanley warned that Boeing’s  exposure to Asia and the Middle East could increase the risk of cancellations due to cash-strapped economies relying on oil as well as slowing growth. They said demand for the 737 was growing but Bombardier‘s new C-Series jet will be be a formidable opponent for the line.

Meanwhile, Boeing’s European rival Airbus announced Thursday that AWAS, an Irish leasing company, ordered 15 single-aisle planes, which include 12 A320s and three bigger A321s. The deal has a list price of $1.5 billion.

AWAS’s CEO said he was bullish on the single-aisle market, and the order comes just weeks after the company cancelled a deal for two A350 long-range jets.

http://www.investors.com/news/boeing-started-at-overweight-on-margin-expansions-commercial-demand-up/

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