Airbus A320neo beats out Boeing in AMR’s order
By Christopher Hinton, MarketWatch
July 20, 2011
WASHINGTON (MarketWatch) — France’s Airbus and its more fuel-efficient A320neo triumphed over Boeing Co. as American Airlines said Wednesday it would split orders for new aircraft between the two manufacturers.
The split not only broke Boeing’s 15-year monopoly at American, it also highlighted the Chicago-based manufacturer’s strategic error in not being able to offer a new, more fuel efficient engine with its popular 737 aircraft, said Robert Stallard, analyst with RBC Capital.
Boeing had said it would decide before the end of the year whether it would re-engine the 737 or design a completely new aircraft. Management appeared to be leaning toward a new design, but some customers had been pushing for a new engine that could enter service more quickly.
“The order has effectively confirmed that Boeing is going to re-engine the 737 rather than build a completely new narrow-body aircraft,” Stallard said, in a note to clients. “We spoke to Boeing this morning, and they confirmed this.”
American Airlines ordered 460 new planes from the manufacturers — 260 jets from Airbus, a unit of EADS , and 200 from Boeing. The carrier also has options to purchase 100 more planes from Boeing and 365 from Airbus, including 280 A320neos.
“We view this whole affair as triumph for Airbus ... winning the lion’s share of this record order,” Stallard said.
Shares of EADS added more than 2% in Paris, while Boeing, part of the Dow Jones Industrial Average, rose 1% o $71.30 ahead of the open on Wall Street.
Ft. Worth, Texas-based AMR Corp. is the corporate parent of American Airlines.
http://www.marketwatch.com/story/airbus-a320neo-beats-out-boeing-in-amrs-order-2011-07-20
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