https://www.bloomberg.com/news/articles/2022-07-01/china-southern-inks-12-2-billion-deal-with-airbus-for-96-jets
Looks like Airbus and COMAC are now the new duopoly in China.
3 replies (most recent on top)
Boeing loses the lucrative China market for the foreseeable future and Boeing stock price increases 5%. It would appear some investors are still drinking the Boeing Kool-Aid. I suspect the next Boeing quarterly report that will be released in couple weeks might give these investors a reality check.
The only reason they don’t completely own the 737 321 market is because they’re not able to ramp up production fast enough to meet the demand for the aircraft. When they reach a production rate of 70 airplanes a month it will take an additional 30 airplanes a month orders away from Boeing. It will take Boeing at least 10 years to bring a new airplane to market to compete which is 10 years of losing sales to airbus. Very bad times ahead for Boeing
Yep, and most importantly, the airplanes Airbus sells are sold at a positive profit margin unlike the Boeing sales in recent years to their customers stuck with Boeing airplanes like Alaska, American and Southwest. Hard to be competitive for the long haul when don't make a profit... Reckon Boeing will need to sell even more of their facilities as there is still a long line of executives leaving soon who need their million dollar severance packages.