Boeing stock hits new high after Qantas 787 order
Boeing, a component of the Dow Jones Industrial Average, said it's finalizing the details of the sale, which is structured to include orders for 45 Dreamliner jets with options for 20 more. Qantas also has purchase rights for an additional 50 planes.
"I think the stock will be flat for a short period of time here but by the end of 2007 it will be a $100 stock," said Paul Nisbet, aerospace analyst with JSA Research
If the order is a victory for Boeing, it is a defeat for Airbus, which had offered its A330 and A350 models to Qantas. For a 787 with a list price of $135 million, the 45-aircraft order is valued at more than $6 billion.Tallying up the options and the rights for all the planes gives the deal a value of $15.5 billion.
Before the Qantas deal, Boeing had 185 firm orders for 787s this year, more than any other Boeing plane except the smaller 737, which has attracted 462 orders.Both planes have been an important driver of Boeing's surge in orders this year.
For both Boeing and Airbus, it is non-American carriers that are eager for new planes, while U.S. airlines weather a turbulent market. Nisbet noted that Boeing's 747 is outselling the superjumbo Airbus A380 this year and the 777 is outselling the A330 and A340.
"Airbus is really having some difficulty with the widebody aircraft," he said.
Because the plane is lighter owing to the composite construction, and uses fuel efficient engines, it will burn less fuel - a strong selling point at a time when jet fuel prices are a big burden on the industry.