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Wed, Jun 30, 2010

Boeing, Airbus Could See A Good Year

Aging Fleets, Expensive Fuel Could Drive Buying Binge

Financial analysts say an airline buying binge could mean improved bottom lines for both Boeing and Airbus, as airlines' fleets age and fuel remains stubbornly high.

An analysis in Forbes online suggests that carriers large and small are operating fleets that are in "dire" need of an upgrade, which could significantly add to the order books of both Boeing and Airbus, and which would also be beneficial to the companies that supply the plane makers with parts and services.

The analysis suggests that Asia and the Gulf states are already buying airliners, and that central and eastern Europe are expected to add to the trend. Boeing has already announced a production hike for the Next Generation 737 after boosting numbers on the 747 and 777. And deliveries of the first Dreamliners are still expected to be on track for this year.

And then there's the KC-X wildcard, as DoD and the Air Force evaluate proposals to replace the aging fleet of KC-135 tankers. That's sure to be bonanza for one of the two manufacturers.

FMI: www.boeing.com, www.airbus.com

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