The Boeing Company
(
BA
) has entered into an agreement with SELEX Sistemi Integrati, S.p.A
- a Finmeccanica company - to work together on the Single European
Sky ATM Research ("SESAR") program's development phase. SELEX
Sistemi Integrati is a leading industry supplier of air traffic
management and airport systems.
Single European Sky ATM Research is a collaborative project that
aims at overhauling the European airspace and its Air Traffic
Management ("ATM") completely. It is the European air traffic
modernization program that helps to confront Europe's air traffic
management challenges. By synchronizing and concentrating on all
relevant research and development efforts, the main objective of
SESAR is to enable the modernization of the European air traffic
management system.
In collaboration with SELEX, Boeing will assist in the research
of flight data modeling and data link communications for all phases
of flight, and system-wide information management. Both parties had
signed a Memorandum of Collaboration, in October 2011, to work
towards the compatibility of global air traffic management
systems.
On a stand alone basis, Boeing Company is a premier jet aircraft
manufacturer and one of the largest defense contractors in the U.S.
We expect commercial aircraft growth momentum to be maintained by
planned production rate increases and a globally diversified
customer base. The company is also supported by the U.S. defense
budget that is skewed towards a number of prominent Boeing
programs.
Despite Boeing's balanced exposure to commercial aircraft and
defense equipment, the company competes with industry majors like
Lockheed Martin Corporation
(
LMT
) and
Northrop Grumman Corporation
(
NOC
).
Headwinds in the global airline industry along with expected
cutbacks in the U.S. defense budget loom large. The company
presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
stock.
BOEING CO (BA): Free Stock Analysis Report
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