Boeing 787 Orders Swell - Analyst Blog


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The international commercial airplane producer, The Boeing Co. ( BA ) announced that it received orders for two 787-9 from Air New Zealand. The order for the two airplanes is valued at $455.6 million at list prices.

Air New Zealand booked its first two 787-9 airplanes on August 25, 2004. Subsequently, the carrier booked six more airplanes. The present booking takes the total count to 10.

Boeing's 787 variant is the first passenger jetliner manufactured mostly of lightweight and environmentally friendly composite material; a welcome change from traditional materials like aluminum and titanium. The new airplane was preferred by airline companies at it also promises fuel efficiency, consuming 20% less fuel than the airplanes of its peers.

Boeing's first delivery of 787 model was delayed by more than three and a half years but these unmatched features have made this airplane one of the most favored one among customers. Till date, the net order for the 787 model has crossed 800 airplanes.

Boeing expects its revenue contribution from the commercial airplane segment between $47.5 billion and $49.5 billion in 2012. The company expects to deliver 35 to 42 787 airplanes to its customers in 2012. Boeing has already delivered five 787airplanes to its customers in the first two months of this year and is expected to meet its full-year target.

Boeing expects the commercial airplane market to pick up rapidly over the next twenty years. Through that time period, 33,500 commercial airplanes, valued more than $4.0 trillion, are expected to be delivered. 43% of the total value is expected to come from twin aisle airplanes.

We see Boeing as advantageously placed to capitalize on the expected surge in demand with its dominating position in the twin aisle commercial space thanks to its 787 and 777 models.

Chicago-based Boeing Co. has a Zacks #3 Rank (short-term Hold rating). The company competes with the likes of General Dynamics Corp. ( GD ), Lockheed Martin Corporation ( LMT ) and Northrop Grumman Corporation ( NOC ) in various niches.

BOEING CO ( BA ): Free Stock Analysis Report
GENL DYNAMICS ( GD ): Free Stock Analysis Report
LOCKHEED MARTIN ( LMT ): Free Stock Analysis Report
NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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