|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||33.25 - 33.49|
|52 Week Range||20.84 - 37.28|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||30.36|
|Forward Dividend & Yield||0.47 (1.34%)|
|1y Target Est||N/A|
LONDON/PARIS (Reuters) - Shares in Airbus and other key French exporters fell on Monday as Europe and the United States edged closer toward tit-for-tat sanctions in a long-running dispute over aircraft subsidies. The World Trade Organization has approved a U.S. request to impose tariffs on some European goods in the latest chapter of a two-way dispute over aircraft subsidies which could also lead to European reprisals, two people familiar with the case said. Both sides have won partial rulings in their favor in a 15-year dispute involving billions of dollars of domestic support for planemakers Airbus and Boeing .
● Airbus led the explorers lower on reports that the World Trade Organization had formally approved a US request to impose tariffs on some European goods, the latest chapter in a 15-year tit-for-tat dispute over aircraft subsidies. The settlement panel on the Airbus-Boeing dispute had sent a confidential ruling to the European Commission and the US Trade Representative that gave the US the right to impose “punitive tariffs” on EU products “from cheeses to Airbus planes and parts”, Politico reported. The WTO still needs to rule on an Airbus counterclaim that Boeing was being supported by subsidies from the US government, which is running six to nine months behind Boeing’s claim against Airbus.
Vietnam's Vietravel Airlines plans to launch its first flight next year, Chief Executive Vu Duc Bien said, joining a rising number of entrants in one of the world's fast-growing aviation markets. Vietravel Airlines, owned by the country's leading tour operator Vietravel, will start with three to four leased planes and expects to place an order for Airbus SE or Boeing Co narrow-body jets at the Singapore Airshow in February, which will be scheduled for delivery within five years, Bien told Reuters in an interview on Thursday.
Embraer hopes to see more orders for its newest passenger plane by the end of the year, an executive said on Thursday, as Boeing readies to take over the Brazilian planemaker's commercial jets division in what could mark the next phase of its rivalry with Airbus . Manufacture of the E195-E2, as Embraer's plane is known, will soon be controlled by Boeing, which needs regulatory approval to close on the deal to buy 80% of Embraer's commercial jets division for $4.2 billion. Embraer on Thursday delivered its first E195-E2 plane, which will seat about 140, to Brazil's No. 3 airline Azul at its headquarters in Sao Paulo state.
(Bloomberg Opinion) -- President Donald Trump seems to be setting the stage for renewed talks with Iran over its nuclear program, raising the prospect of easing U.S. sanctions in exchange for a meeting with the Iranian president. Unless he reconsiders his goals for these negotiations, he’s going to make a serious mistake.After abrogating the nuclear deal that his predecessor signed with Iran in 2015, Trump has stated his basic conditions for a new one: “no nuclear weapons, no ballistic missiles and a longer period of time.” That last phrase is the problem. It refers to the “sunset provisions” included in the previous agreement that defined exactly when some of its key terms would expire, thus allowing Iran to resume enriching uranium to high levels.Almost as soon as the deal was signed, critics warned that these provisions would only defer Iran’s pursuit of nuclear weapons until 2030, when they were set to expire. President Barack Obama’s administration contended that, even if Iran were so inclined, it would take a year — what nuclear scientists call “breakout time” — to make a bomb. This, the Obama team thought, would be time enough for the world to pressure leaders in Tehran to desist.That timeline was hopelessly optimistic, as events have since shown. It has taken Iran mere weeks this summer to blow past the agreed-to limits on its stockpile of enriched uranium. It is now threatening to deploy more advanced centrifuges, greatly shrinking the time required to reach weapons-grade.Nor is there any doubt that Iran wants nuclear weapons. Abundant in oil and gas, it has no other rational reason for a nuclear program. A previous covert effort to make such weapons ended only when the regime was caught red-handed operating a secret uranium-enrichment facility at Natanz and a heavy-water facility in Arak.Perhaps the biggest drawback of the sunset provisions was that they were shortsighted. By the time they kicked in, Iran would’ve had 15 years to collect hundreds of billions of dollars in oil revenue, build up its military strength, and boost its support for proxies like Hezbollah. The regime would be in a far stronger position to resist international sanctions, and a future American president would find it far harder to rally support, at home or abroad, for a punitive military operation.Iran would also be more deeply integrated into the world economy, greatly raising the cost to all nations of trying to rein it in. It’s hard to imagine Europe — by then used to selling Iran billions of dollars’ worth of Airbus passenger jets, Mirage fighters and Mercedes sedans — going along with any renewed sanctions, let alone a military campaign.It was for these reasons that Rex Tillerson, Trump’s first secretary of state, characterized the 2015 deal as “kicking the can down the road again for someone in the future to have to deal with.” Kicking it a little further, as Trump now proposes, would not make the deal stronger; it would give Iran still more time to build up a war chest and yet more leeway to make a breakout for nuclear weapons.In contrast, Iran right now is the weakest it has been in decades, and manifestly wilting under Trump’s “maximum pressure” campaign. Rather than push for an extended sunset, Trump should hold out for a complete termination of Iran’s nuclear activities and an end to its other threatening behavior — such as its ballistic-missile program and its support for terrorist groups across the Middle East — in exchange for readmission into the world economy.This chance may never come again.\--Editors: Bobby Ghosh, Timothy Lavin.To contact the senior editor responsible for Bloomberg Opinion’s editorials: David Shipley at firstname.lastname@example.org, .Editorials are written by the Bloomberg Opinion editorial board.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
French customs officials chose trucks carrying Airbus wing parts and baby equipment imported from the UK for special inspections on Thursday in a rehearsal for a possible no-deal Brexit that could disrupt cross-Channel trade. “We are preparing as if there is no deal,” said Gérald Darmanin, the French budget minister responsible for customs, as the Brittany Ferries vessel Mont St Michel from Portsmouth disgorged trucks and holidaymakers’ cars and caravans on to the Ouistreham dock in the early morning drizzle. as early as October 31 is now the most likely outcome despite more than two years of EU-UK negotiations, and it has been accelerating preparations with manufacturers, truckers and logistics groups to handle the nearly 5m truck movements a year between French ports and the UK — 80 per cent of them from other EU countries such as Germany and Spain.
(Bloomberg) -- Boeing Co.’s 737 Max may return to service on a “phased” timetable if regulators around the world approve the grounded jet to fly at their own pace instead of closely following the lead of U.S. officials.“The principle schedule risk on that continues to be regulator alignment around the world,” Chief Executive Officer Dennis Muilenburg said Wednesday after reiterating the company’s estimate that the Max will be approved to return early in the fourth quarter. “A phased ungrounding amongst regulators around the world is a possibility.”The next few weeks will be critical for the planemaker as the flying ban on the Max approaches the six-month mark. Boeing engineers are wrapping up work on more than 500 queries from global regulators, who have delved into the jet’s flight-control system beyond the software linked to two fatal crashes.But it’s unclear whether airworthiness officials around the world are prepared to move in lockstep with the Federal Aviation Administration, which has primary oversight because the Max is built in the U.S. The agency’s counterpart in the European Union has recently stressed that it is carrying out an independent review that will include week-long flight tests of the Max, the newest version of the workhorse 737.Boeing extended gains while Muilenburg spoke at a Morgan Stanley conference, and the shares advanced 3.4% to $382.15 at 2:17 p.m. in New York. With some analysts predicting the Max crisis could drag into 2020, investors were relieved to hear Muilenburg’s assurance that Boeing is making “solid progress.”European ScrutinyU.S. regulators have established a certification management team for the Max, meeting regularly with counterparts from Europe, Canada and Brazil, the CEO said. Boeing has completed 600 flights testing its redesign of the system, known as MCAS, that has been linked to the two accidents.Since mid-year, the planemaker has done a “second-wave evaluation” of the entire Max software and flight control systems with regulators, he said.Even so, the European Union Aviation Safety Agency has signaled its concerns with the jetliner along with plans to send its own pilots to the U.S. to test redesigned systems. Among other things, EASA is examining whether the Max’s angle-of-attack sensors are sufficiently robust.Sensor MalfunctionBoth crashes -- one in Indonesia in October, the other in Ethiopia in March -- occurred after a malfunction of one of the sensors, which measure whether the plane’s nose is pointed up or down relative to the oncoming air.Muilenburg acknowledged that EASA has expressed concern with Boeing’s angle-of-attack architecture, which relies on two sensors while Airbus SE’s A320 family uses three. But he suggested that the matter could be addressed without modifying the Max with new hardware.“I don’t see those as divisive,” Muilenburg said of the EASA queries. “I just think those are questions that we need to answer as part of the process. Questions around things like angle of attack, system design, recognize that our architecture on Boeing airplanes is different than Airbus airplanes.”‘Bare Minimum’EASA told Bloomberg on Tuesday that having two vanes is considered “the bare minimum requirement to meet the safety objectives.” But the agency also said that the issue could be addressed through flight-crew procedures and training, design enhancements “or a combination of the two,” EASA said.Aviation executives have expressed worry that a widening split between regulators in the U.S. and Europe will extend the grounding, potentially sowing confusion and anxiety as officials work to approve the resumption of commercial flights.AerCap Holdings NV CEO Aengus Kelly and United Airlines Holdings Inc. CEO Oscar Munoz were among executives sounding the alarm over the increasingly tenuous alliance last week.Alexandre de Juniac, who heads the International Air Transport Association, a trade group for airlines, said he was “worried and disappointed” by the lack of unity among regulators. Air Lease Corp. founder Steven Udvar-Hazy called it “uncharted territory.”Supply-Chain RiskLifting the Max grounding would clear airlines to bring the plane out of storage while enabling Boeing to resume deliveries of its best-selling jet. But if the reviews are delayed or another technical issue emerges, the Chicago-based planemaker will face tough decisions over whether to slow or even temporarily halt work at a Seattle-area factory.One risk for Boeing is long-term damage to its supply base. Subcontractors on the Max could shift capacity to other manufacturers, including Airbus, or lay off thousands of workers.Boeing is playing close attention to workforce issues and the health of its supply chain as it studies production options, Muilenburg said. The company’s “bias” is to continue to churn out the jets at the current 42-per-month pace while awaiting regulators to clear the Max to fly, he said.(Updates with new details of Max review in sixth paragraph.)To contact the reporter on this story: Julie Johnsson in Chicago at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Boeing is in the news a lot, but investors wondering if the stock is a good buy now should also look at the aerospace giant's fundamentals and its chart.
Due to the 737 MAX's grounding, Boeing (BA) has seen a massive decline in aircraft deliveries. BA shipped 18 commercial aircraft in August, down 72% YoY.
(Bloomberg) -- Italy has lined up behind a British bid to build Europe’s next jet fighter in competition with France and Germany.Italian companies including Leonardo SpA and Avio Aero, a division of General Electric Co., signed a statement of intent in London Wednesday to partner with BAE Systems Plc, Rolls-Royce Holdings Plc and other U.K. firms on the Tempest jet, BAE said by email.While Leonardo’s British arm was already a participant in the fledgling program, the division had previously made clear that its Rome-based parent wasn’t involved and remained open to joining the rival program led by France’s Dassault Aviation SA and the German fighter business of Airbus SE.Leonardo’s involvement means BAE is aligned with its existing partner on the Eurofighter program, while Airbus is splitting from Eurofighter to team with Dassault, which currently produces the rival Rafale warplane. Sweden, whose Saab AB builds Europe’s third fighter, the Gripen, is already in the Tempest camp, having signed a memorandum of understanding in July.Britain embarked on the fighter initiative, which includes missile maker MBDA and could extend to non-European partners such as Turkey or Japan, after France and Germany said they’d formed a new combat-aircraft alliance. Some defense experts have said the two programs are still likely to come together to cut costs and compete with the next generation of U.S. warplanes.To contact the reporter on this story: Christopher Jasper in London at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Andrew Noël, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European regulators have ordered immediate checks on recently delivered versions of some Airbus helicopters after a crash in Arctic Norway last month killed five Norwegians and their Swedish pilot. Norwegian investigators have not discovered a root cause of the AS350 B3E helicopter crash on Aug. 31, but preliminary findings prompted Airbus Helicopters, the world's largest commercial helicopter maker, to call for precautionary checks on parts linking the engine and main gearbox. An emergency airworthiness directive issued on Wednesday by the European Union Aviation Safety Agency (EASA) makes those checks compulsory before the aircraft make their next flight.
Up against rival talks featuring historian Simon Schama, BBC presenter Mishal Husain and novelist Jeanette Winterson, I was concerned about how many would attend our session. It was standing-room only to listen to Tom Mackay, chief financial officer of Virgin Atlantic, Sandra Bour Schaeffer, a leading Airbus engineer and innovator, and Gary Smith, head of transformation at easyJet. Smith said easyJet was working with Wright Electric, a US company, to develop an electric aircraft for its services, which are short-haul.
Boeing reported another weak month of orders and deliveries amid the global 737 Max grounding, drifting further behind its archrival in deliveries this year
(Bloomberg) -- The European Aviation Safety Agency plans to send its own pilots to the U.S. to conduct flight tests of Boeing Co.’s grounded 737 Max jet before it is returned to service.The European regulator is conducting what it calls an “independent” review of the 737 Max before it’s returned to service after being grounded for almost six months since the second fatal crash involving a malfunctioning flight-control system.“EASA intends to conduct its own test flights separate from, but in full coordination with, the FAA,” Janet Northcote, an agency spokeswoman, said in an email in response to questions. “The test flights are not scheduled yet, the date will depend on the development schedule of Boeing.”The crashes -- one off the coast of Indonesia in October and a second in Ethiopia in March -- were triggered by a malfunctioning sensor known as an angle-of-attack vane that measured whether the plane’s nose was pointed up or down relative to the oncoming air. Boeing has two such sensors on all its aircraft, while other manufacturers, including the Blagnac, France-based Airbus SE, have used three or more to ensure more redundancy.EASA is also examining whether Boeing’s use of two vanes is sufficient, Northcote said. The regulations don’t necessarily require an additional one must be added. Safety could be addressed “through improvement of the flight crew procedures and training, or through design enhancements, or a combination of the two,” EASA said.EASA said two vanes are considered “the bare minimum requirement to meet the safety objectives,” and in the agency’s experience “an architecture with three vanes can more easily be found compliant with the regulation.”The European regulator’s concerns include the ability of pilots to handle an angle-of-attack failure during takeoff or other critical phases of flight. In the two 737 Max crashes, the erroneous data from failed angle-of-attack sensors prompted multiple cockpit alarms, including a false stall warning and altitude and airspeed gauges that didn’t agree with each other.“We are not being prescriptive in the way these concerns should be addressed,” Northcote said.Requiring the addition of new equipment to the 737 Max -- and possibly other Boeing models -- would add a significant complication to returning the plane to service. If EASA broke with the U.S. Federal Aviation Administration on the issue, it could also roil the aviation manufacturing world, which in recent decades has striven to become more consistent between different governments.The U.S., Europe, Canada and Brazil, which all have major airline manufacturing companies, have entered into multiple agreements to improve cooperation and to standardize their certification rules.While the major regulatory agencies normally defer large amounts of the certification work to the nation where the plane is being built, it’s also not uncommon for them to conduct additional reviews and separate flight tests.The FAA, for example, used its own pilots to conduct tests of the Airbus A380, A350, A330 neo and the A320 neo before certifying them for use in the U.S., the agency said in a statement.“We have always conducted a thorough familiarization flight program for new validation type certificate aircraft and major derivatives to evaluate the airplanes’ handling qualities and to validate certain flight test points that would normally be accomplished on a domestic flight test program,” the agency said.The FAA is likely to conduct its certification flight for the 737 Max in October, according to people briefed on the matter. Boeing has estimated that the plane will return to service early in the fourth quarter of this year. The company had earlier said it wanted to submit its final certification package by September.Meanwhile, dozens of people representing family members of the Ethiopian Airlines crash victims held a vigil in Washington on the six-month anniversary of the March 10 crash on Tuesday.Shortly after a smaller group of 11 people whose relatives died in the crash met with Transportation Secretary Elaine Chao, about 100 gathered outside her office holding photos of the dead and demanding “justice.”“We want the aviation industry to be safe,” Beza Alemu, whose brother Mulusew Alemu was killed in the crash, told reporters. “We want the FAA and other certification agencies to recertify all the aircraft, not only the 737 Max.”Alemu came to Washington from Saint Louis.Nadia Milleron of Massachusetts, whose daughter Samya Stumo was on the plane, said Chao said she would help the group, but made no promises to the group’s key demands, such as a more thorough review of the plane’s certification.The Transportation Department said in a statement that Chao appreciated the opportunity to meet with the family group.(Updates with FAA statement, victims’ families marching in Washington starting in 13th paragraph.)\--With assistance from Julie Johnsson.To contact the reporters on this story: Alan Levin in Washington at email@example.com;Richard Weiss in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In the eight months through August, deliveries totaled 276 aircraft, compared with 481 last year. Chicago-based Boeing has not delivered any of its 737 MAX aircraft since the single-aisle plane was grounded worldwide in March after two fatal crashes in Indonesia and Ethiopia. U.S. airlines have removed the grounded jet from their flight schedules until December or early next year.
In another setback, Boeing's (BA) long-haul and wide-body 777X variant failed a stress test. The test was part of the FAA's certification process.
(Bloomberg Opinion) -- The grounding of Boeing Co.'s 737 Max after a pair of accidents killed 346 people might seem an unmitigated disaster for the world's airline industry. Look at flight data, though, and you can glimpse a grim benefit supporting carriers' bottom lines.To see why, it’s worth remembering just how crucial the 737 and its arch-rival, the Airbus SE A320, are. Each plane family constitutes about a third of the roughly 24,000-strong global passenger airline fleet. Other aircraft put together – including all wide-body planes like the 747, 787, A330 and A380, turboprops and smaller jets like the Bombardier Inc. CRJ – make up the remaining third. According to Boeing, a 737 takes off or lands somewhere in the world every 1.5 seconds, and there are about 2,800 in the air at any one time.If anything, that probably underestimates their importance in terms of air traffic. Narrow-body aircraft like the 737 and A320 fly shorter distances and are turned around more times. In the U.S., they depart from airports roughly two to three times a day for every time a wide-body jet takes off, according to the Massachusetts Institute of Technology’s Airline Data Project. By a very rough back-of-the-envelope estimate, the two aircraft together account for about 80% of global departures.That matters because one of the most important determinants of airline profitability is load factor, the share of seat capacity filled by paying passengers. Flying planes involves very high fixed costs, but once more than about 70% of seats are filled, the marginal cost of dealing with an additional passenger will be far outweighed by the revenue to be earned from selling the ticket – one reason that last-minute bookings can be such good value. Load factor, in turn, is largely a function of whether airlines have over-estimated or under-estimated the pace of passenger traffic growth, and how that relates to the capacity they’re putting into the market by buying or leasing planes and using them more or less frequently.This year has been an uncertain one for carriers on that front. The impact of the trade war and general darkening economic outlook has meant that the International Air Transport Association’s forecast from the end of last year of a 6% pace of passenger traffic growth is likely to be a significant overestimate. In the first six months of the year, the increase was just 4.7%. If capacity had matched the forecast pace of traffic growth, that would have pushed load factors down by about a percentage point to below 81%, around the levels where profitability starts to struggle these days.(1)But capacity has instead grown by just 3.3% from a year earlier in the most recent three-month period – in no small measure because of what’s happening to the 737 Max.The worldwide grounding of the aircraft in March following accidents in Indonesia and Ethiopia took 387 aircraft out of service at a stroke. Had original plans to gradually increase production to 57 aircraft a month this year gone ahead and deliveries kept pace, there could have been nearly 900 in the skies by the end of 2019. As it is, Boeing is still struggling to fix software and clear regulatory demands, and operators are now drawing up their schedules as if it won’t be flying until December or even next year.There is, to be sure, a certain amount of slack in the commercial-jet market. Some of those new 737s would have replaced older models that might have gone out of service altogether – but most older planes leaving airlines’ fleets would have been sold on to leasing companies and rented, so there’s still a marked tightening in the market. If the planes remain grounded through year-end, nearly 10% of the global 737 fleet that airlines expected to be in operation this year will be out of action.That appears to be tightening the supply of seats. Industry-wide load factors hit record seasonal highs in April, May and June, according to IATA. July load factors were the highest for that month in any year barring 2017, according to separate data compiled by Bloomberg, and short-haul load factors that month were the best ever. As a result, the industry appears to be riding out the ongoing fall in ticket prices which has pushed revenues per passenger, per kilometer, down 2.9% over the past year.The 737 Max scandal has been one of the darkest clouds the airline industry has flown through. So far, though, it’s staying aloft.(1) Of 22 airlines with load factors of 81% or below in the most recent financial year, just seven reported more than a few million dollars of net income, according to data compiled by Bloomberg.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
French judges have dropped charges against Air France and Airbus over an air crash in 2009 that killed all 228 people on board, putting the emphasis on human error for the loss of control of the plane. 216 passengers and 12 crew members died, making the crash the deadliest in the history of Air France.
The United States hopes to see a decision from the WTO in the next week or two about the level of tariffs Washington may impose after winning a case about European subsidies to Airbus, the U.S. ambassador to Brussels said Wednesday. Ambassador Gordon Sondland said the two sides could still reach an agreement to settle a pair of 15-year-old legal cases over subsidies for aircraft development, but Washington hoped to recover damages caused to U.S. industry by the illegal EU launch aid for Airbus.
Montreal–Mirabel International Airport will get C$107 in investments to improve air freight and logistics at the cargo-only facility, which also hosts a production site for the Airbus 220 aircraft. Minister ...
The United States hopes to see a decision from the WTO in the next week or two about the level of tariffs Washington may impose after winning a case about European subsidies to Airbus, the U.S. ambassador to Brussels said Wednesday. Ambassador Gordon Sondland said the two sides could still reach an agreement on aircraft subsidies, but Washington hoped to recover damages caused to U.S. industry by the EU launch aid for Airbus.