The Simplified Investor

A Blog about Stocks and Market Forces

Posts Tagged ‘Airlines’

Can Boeing’s 787 Dreamliner Get off the Ground - or will Airbus Ride the A380 to New Heights?

In the battle for supremacy in the aircraft business, there are only two real players - Boeing Company (NYSE:BA) and Airbus (EPA:EAD).  These two companies compete for market share in commercial and military planes, with demand far exceeding each company’s manufacturing ability, and both have a long order backlog.  Some of Boeing’s customers, for example, will wait as long as five years before the planes they ordered are delivered.  And while they fill these orders, both companies must keep innovating.  As oil prices continue to soar, and airline companies like Delta and American Airlines struggle with tight margins, planes that fly faster, fit more passengers, and consume less fuel are at a premium.

And so each company has designed its own new super-plane - for Airbus, the A380, and for Boeing the 787 Dreamliner.  The Airbus plane has already debuted (its first flight was in October 2007), while Boeing continues to get hit by production delays, and the Dreamliner is optimistically scheduled for release in third quarter 2009.

Boeing 787 Dreamliner vs. Airbus A380

Boeing 787 Dreamliner vs. Airbus A380


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The Secret Ingredient to Southwest’s Success - LUV the Hedge

Southwest Airlines (NYSE:LUV) reported earnings today - and for the 69th straight quarter, the airline turned a profit. Its quarterly net income increased 15% from a year ago, to $321 million. These results are worth a closer look, considering the rest of the major airlines lost a combined $6 billion in the second quarter. How does Southwest stay in the black as the rest of its peers bleed red? The secret - it hedges its fuel prices better than anyone in the business

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