Should You Take a Chance With Boeing?
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.
Following a report of a $4.4 billion deal with Indian budget carrier SpiceJet, Boeing is rumored to be in discussions for a $5 billion contract with India’s Jet Airways for a new order of Boeing’s 737 MAX aircraft. Dinesh Keskar, the senior vice president of sales for Asia Pacific at Boeing, told Reuters that he was also in discussions with state-owned Air India over sales of the MAX jets, but that these talks were not as “intensely involved” as they were with Jet. The deal includes fifty of the new planes; sources told Reuters that the deal had “essentially been completed” and that the planes were already listed under Boeing’s “business with undisclosed customers” in its order backlog.
Keskar said the fuel-efficient nature of the 737 MAX planes — which are 14 percent more fuel efficient compared with its 737 planes — is making them especially attractive to Indian carriers, which have been hurt by high fuel costs. “Yes, the Indian market right now is going through its difficulties. … Today, everybody is selling below cost. And that means they are losing money,” Keskar said in an interview with Reuters at the Hyderabad Airshow. “I think India will come out of it. We do see some improvements that are coming up.”