Government Shutdown: Hard Times for Airbus, Not For Boeing
Count Boeing Co. (NYSE:BA) as one company that has actually benefited from the government shutdown, which is now almost in its third week.
The Financial Times reports that while Boeing has largely been unaffected by the impasse between Democrats and Republicans on the federal budget, the government shutdown has strongly affected its most fierce rival — Airbus. The situation has inadvertently handed a huge disadvantage to Airbus, which has been unable to deliver four aircraft to the U.S.
Although aircraft made by both Boeing and Airbus are grounded until they receive certificate or registration from the U.S. Federal Aviation Administration (or FAA) — a process that can’t move forward due to the shutdown — Boeing has been granted exceptions by the FAA that allow the airplane-maker to take the upper-hand. Specifically, the FAA has granted Boeing the authority to inspect and approve several well-established aircraft types for delivery on the government’s behalf.