FedEx flips to Boeing

[link|http://www.businessweek.com/investor/content/nov2006/pi20061107_920672.htm?chan=top+news_top+news+index_investing|Business Week]

Memphis-based FedEx Express, a unit of FedEx Corp. (FDX) said Nov. 7 that it's switching from Airbus to buy at least 15 new aircraft from Boeing (BA), triggering a rally in shares of the aerospace giant.

After Airbus delayed its delivery of the A380, FedEx cancelled its order for 10 and switched to the new deal with Boeing. Now FedEx is buying 15 new Boeing 777 Freighter aircraft with options for an additional 15.

Airbus is in some deep crap. I expect the EU countries will end up bailing them out, it would be too much of a disaster to let if fail. And the whole Airbus / Boeing competition is marked by the losing side being supported by the local government.

But this isn't a small issue that can be glossed over with a few easy inflated contracts. The A380 is a disaster, and it will take the company years to recover.

Jay

Post #272,530 by JayMehaffey 11/7/06 9:18:07 PM Reply	FedEx flips to Boeing [link\|http://www.businessweek.com/investor/content/nov2006/pi20061107_920672.htm?chan=top+news_top+news+index_investing\|Business Week] Memphis-based FedEx Express, a unit of FedEx Corp. (FDX) said Nov. 7 that it's switching from Airbus to buy at least 15 new aircraft from Boeing (BA), triggering a rally in shares of the aerospace giant. After Airbus delayed its delivery of the A380, FedEx cancelled its order for 10 and switched to the new deal with Boeing. Now FedEx is buying 15 new Boeing 777 Freighter aircraft with options for an additional 15. Airbus is in some deep crap. I expect the EU countries will end up bailing them out, it would be too much of a disaster to let if fail. And the whole Airbus / Boeing competition is marked by the losing side being supported by the local government. But this isn't a small issue that can be glossed over with a few easy inflated contracts. The A380 is a disaster, and it will take the company years to recover. Jay
Post #272,534 by a6l6e6x 11/7/06 9:54:11 PM Reply	How sweet it is! Hey, I've got a few BA shares and any day I get 5+% bump in a stock, that's a good thing. But besides that, multi-government subsidized businesses are just not workable. Too many political considerations in doling work out to sub-contractors. It's another Tower of Babel. Not that Boeing is squeaky clean in that department. Alex When fascism comes to America, it'll be wrapped in a flag and carrying a cross. -- Sinclair Lewis
Post #273,924 by mmoffitt 11/26/06 11:02:06 AM Reply	So shines a good deed in a weary world. bcnu, Mikem It would seem, therefore, that the three human impulses embodied in religion are fear, conceit, and hatred. The purpose of religion, one might say, is to give an air of respectibility to these passions. -- Bertrand Russell
Post #273,935 by tuberculosis 11/26/06 1:32:07 PM Reply	Helps to local economy raises property values. Good for me. [link\|http://www.blackbagops.net\|Black Bag Operations Log] [link\|http://www.objectiveclips.com\|Artificial Intelligence] [link\|http://www.badpage.info/seaside/html\|Scrutinizer]

Welcome to IWETHEY!