Boeing (BA) is expected to beat out European rival Airbus (EADSY) for a widebody jet order from United Airlines (UAL), according to reports, potentially marking another win in that category for the U.S. aerospace giant.
“Airbus doesn’t have United,” a source told Reuters Friday, added that Boeing has the upper hand because United already flies the 787 and has an option for more.
But that doesn’t completely leave Airbus out in the cold. Other sources said Airbus could compete again for another order.
Boeing stock rose 2.1% to 351.23 on the stock market today, clearing a 348.67 cup-with-handle base, but in below-average volume. Airbus dipped 0.9%, and United lost 1.5%.
The European aerospace company already lost out on A330 orders in favor of the 787 with American Airlines (AAL) and Hawaiian Airlines (HA).
The American Airlines order was especially tough for Airbus, as the carrier also canceled an Airbus order that US Airways placed before it was bought by American.
Instead, Boeing got an order for 47 787 Dreamliners, worth $12.3 billion at list prices.
Meanwhile, Airbus has only sold 214 A330neos to 13 customers and President Trump’s announcement to withdraw from the Iran nuclear deal puts the sale of nearly 30 of the jets to Iran Air in jeopardy.
SOURCE: Investor’s Business Daily