T = Trends for a Stock’s Movement
Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management, and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corp.
Over the past several years, the focus of the aviation world has been set on the new Boeing Dreamliner, which has been marred by problem after problem. But according to Kazakhstan-based carrier Air Astana, the company is set to unveil plans for a new mid-sized aircraft that will fill the hole in Boeing’s lineup vacated by the 757 when its production ended in 2005. Air Astana had been speaking with Boeing about the new model, and is eager to buy it, according to Bloomberg. Discussions between the two companies occurred at the International Air Transport Association annual meeting early in June, and Air Astana president Peter Foster came away confident Boeing will build the aircraft. “They made absolutely clear that this is now firming up and that they’ll be making an announcement soon,” Foster said.
Following the 757′s discontinuation almost ten years ago, there has been a hole in the aircraft-makers lineup. Boeing is hard at work on the new 737 Max, which has yet to hit the market, and has been famously trying to get the Dreamliner in the sky and shipped to customers. But if the interest shown by Air Astana and many other carriers is any indication, mid-range, mid-sized aircraft may be where the market is turning. As many carriers’ fleets of mid-range planes begin to age, the market is opening up and waiting for a replacement. It’s been unknown whether or not Boeing would willing to jump into the fray. Also speaking with Bloomberg, Boeing spokesperson Doug Alder didn’t confirm or deny that the company was set to announce a new addition to its product offerings, but that it was keeping an eye on the market. “We continue to watch trends and speak to our customers to determine what the market will require in the years to come,” he said. “Today, we’re very focused on our current development programs: the 777X, the 737 Max, and the 787-10.” If interest in a 757 successor is not just limited to foreign carriers, which it is most likely not, Boeing could have a giant opportunity on its hands.