EADS gains on monster A320 order; BAE Systems halts sell-off of unit
- Airbus secures a record-breaking order for 180 A320-family aircraft from IndiGo, boosting shares in parent company EADS by 4.7%.
- The order includes 150 A320neos, making IndiGo a launch customer for this reworked version of the A320 family.
- Engine selection for the order will be announced by IndiGo at a later date.
- Shares in Airbus suppliers, such as GKN and Meggitt, also rise following the order announcement.
- Other aircraft manufacturers, including Bombardier and Embraer, experience share price increases.
- BAE Systems decides not to sell its Platform Solutions unit after failing to reach an agreement with potential buyers, causing its shares to ease by 0.1%.
The order is a breakthrough for Airbus, which announced the A320neo in Dec-2010. The order is the largest single firm order for large jets in commercial aviation history, and also makes IndiGo a launch customer for the A320neo. Engine selection will be announced by the airline at a later date.
The order helped to push up shares in Airbus suppliers, with GKN gaining 3.9% and Meggitt up 1.9%. Shares in other aircraft manufacturers were also higher, with Bombardier up 3.4% and Embraer gaining 1.4%. Boeing shares were down 0.2%.
Meanwhile, BAE Systems shares eased 0.1% on Tuesday. The company announced that it will not sell its Platform Solutions unit, which manufactures aerospace and hybrid vehicle components. The company had been unable to reach agreement with interested buyers, which reportedly included General Electric, Eaton Corp and Honeywell International, as well as private equity firms.
Selected original equipment manufacturers' share price movements: (% change): 11-Jan-2011
