EADS and Boeing surge, Expedia takes a tumble
Major aircraft manufacturers started the week well, with EADS (parent of Airbus) rising 3.6% in trading on Monday and rival Boeing climbing 2.8%.
Boeing received more welcome news in the form of more aircraft orders. Canadian LCC, WestJet, ordered 14 new B737NGs, while Boeing also received a USD1.2 billion contract to support military transport aircraft on Friday. Trading down yesterday was Embraer, which lost 1.4%.
Rolls-Royce gained 1.4%, on news that its power systems unit had received GBP73 million in orders to support several Chinese gas pipeline projects. German engine manufacturer, MTU Aero Engines, was also up on Monday (+1.8%), despite indications late last week that European governments may reign in some of their planned Eurofighter acquisitions, which would affect both MTU and Rolls-Royce.
Online travel and booking company lost 2.6% on more news covering the various lawsuits the company is faced with at the moment. Expedia will reportedly have to pay out more than USD120 million to a class-action lawsuit after bundling its hotel charges with tax recovery charges and service fees, violating consumer protection legislation.
Selected Aviation suppliers’ daily share price movements (% change): 24-Aug-09