Even after a stong run-up that began in 2003 and several product delays and run-ins with the Federal government, Boeing’s shares have risen from $70 at the beginning of the year to $90.
And, Boeing shares could go higher.
The turmoil at competitor Airbus gets more wild by the day. Airbus parent EADS has given the airframe manufacturer the go ahead to sell its A350 jetliner that competes with Boeing’s new 787. Fundng for the Airbus project will come from cost cuts, current cash flow and supplier financing. The company may also have to request capital from its goverment shareholders.
In other words, Airbus plans to herd cats to get its new plane financed
The Airbus funding situation is so complex and relies on several factors, none of which is guaranteed to stay in place. Boeing could not hope for better.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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