Latest news with #Max10
Business Insider
4 days ago
- Business
- Business Insider
A New Assembly Line at Everett? Boeing Stock (NYSE:BA) Slips as Expansion Considered
We know that aerospace stock Boeing (BA) has been struggling to get its production back up to snuff, even to hit the limits established by the Federal Aviation Administration (FAA). But Boeing might be on track to get its production back up and running full-tilt, and a new expansion could be proof of that. The news did not sit well with shareholders, though, as share prices slipped fractionally in Friday afternoon's trading. Confident Investing Starts Here: Boeing wants to get its numbers back up, particularly as the Chinese market is coming back online and offering up a potential new gold mine of orders for Boeing. In fact, Kelly Ortberg—Boeing's CEO—recently noted that the Everett plant may get an entire production line for the 737 Max 10 jet. The interesting part about this is that the jet in question has not yet been certified by the FAA for use, despite efforts to get it to that point. Boeing has had plans to ramp up the new Max production capabilities in the works since 2023, reports noted, but the plans have not yet been made concrete. With this new line, it represents a huge step forward and the very real possibility of the Max 10's certification soon. After all, why set up a production line for a plane you are not allowed to build by law? Another DEI Shutdown Meanwhile, Boeing also pared back a diversity, equity and inclusion (DEI) program, which works to bring it toward a goal of '…ensur(ing) compliance with the law.' Boeing shut down both events and funding for two programs: diversity councils and business resource groups. Boeing has nine such groups within its operations, serving as 'affinity groups,' or groups that worked '…connect and develop individuals with a common interest or identity, including race and gender.' It is worth noting that these groups are apparently 'open to all workers,' though one wonders how those workers who are not in line with the affinity group in question are treated. Boeing has already shuttered its entire DEI department as far back as November, and its head ultimately left Boeing altogether. Is Boeing a Good Stock to Buy Right Now? Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 17.21% rally in its share price over the past year, the average BA price target of $213.37 per share implies 3.34% upside potential.
NBC News
6 days ago
- Business
- NBC News
Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says
Boeing 's airplane deliveries to China will resume next month after handovers were paused amid a trade war with the Trump administration, CEO Kelly Ortberg said Thursday, as he brushed off the impact of tit-for-tat tariffs with some of the United States' largest trading partners this year. Ortberg had said last month that China had paused deliveries. 'China has now indicated … they're going to take deliveries,' Ortberg said. The first deliveries will be next month, he told a Bernstein conference on Thursday. Boeing, a top U.S. exporter whose output of airplanes helps soften the U.S. trade deficit, has been paying tariffs on imported components from Italy and Japan for its wide-body Dreamliner planes, which are made in South Carolina, Ortberg said, adding that much of it can be recouped when the planes are exported again. 'The only duties that we would have to cover would be the duties for a delivery, say, to a U.S. airline,' he said. Regarding the rapidly changing trade policies that have included several pauses and some exemptions, Ortberg said, 'I personally don't think these will be … permanent in the long term.' He reiterated that Boeing plans to ramp up production this year of its best-selling 737 Max jet, which will require Federal Aviation Administration approval. The FAA capped output of the workhorse planes at 38 a month last year after a door plug that wasn't secured when it left Boeing's factory blew out midair in the first minutes of an Alaska Airlines flight. Ortberg said the company could produce 42 Max jets a month by midyear and assess moving up to 47 a month about half a year later. The company's long-delayed Max 7 and Max 10 variants, the largest and smallest planes in the narrow-body family, are scheduled to be certified by the end of the year, he said. Many airline executives have applauded Ortberg's leadership since he took the reins at Boeing last August, tasked with stemming years of losses and ending reputational and safety crises, including the impact of two fatal Max crashes. CEOs have long complained about delivery delays from the company that left them short of planes during a post-pandemic travel boom. 'I do think Boeing has turned the corner,' United Airlines CEO Scott Kirby told CNBC's ' Squawk Box ' earlier Thursday. He said supply chain problems are limiting deliveries of new planes overall. 'We over-ordered aircraft believing the supply chain would be challenged,' he said.
CNBC
20-05-2025
- Business
- CNBC
Bernstein raises its price target on this stock with a 'history of momentum'
Bernstein is doubling down on its bullish outlook on Boeing . Analyst Douglas Harned maintained his outperform rating on Boeing shares and assigned a fresh price target of $249, up from $218. His new target suggests roughly 21% upside for the stock, which is up 16% this year. Harned sees a strong growth runway for Boeing and said its defense business could return to being a powerful cash generator. He also highlighted recent developments such as Boeing's restart of deliveries to China, its deal with Qatar Airways announced last week to provide up to 210 widebody jets and easing tariff concerns. "Positive events support the stock's upward momentum," the analyst wrote in a Monday note to clients. "Last week, we saw large new widebody orders, a restart of deliveries to China, and support for defense programs, raising our confidence in Boeing's growth path. There is still more upside potential." "None of this is without risk, given Boeing's many missteps over the last decade. But, as positive elements appear to line up, we believe there is more risk in not owning a stock with a history of momentum," Harned added. To be sure, the analyst still has concerns about seemingly light May 737 deliveries so far and timing for certification on Boeing's 737 Max 7 and Max 10 aircrafts. Harned's rating comes nearly a month after he upgraded Boeing to outperform from market perform. The analyst had cited Boeing's progress on 737 Max and 787 production ramps, improvement in defense performance, and strong cash position that outweighed concerns of tariff impacts as his reasoning for the upgrade. Analysts polled by LSEG have an average price target on Boeing shares that indicate just 1% potential upside. Twenty of the 29 covering the stock have a strong buy or buy rating.
Telegraph
01-05-2025
- Business
- Telegraph
Ryanair threatens to ditch Boeing for Chinese jets over Trump tariffs
The boss of Ryanair has threatened to cancel orders with American aircraft maker Boeing and buy from Chinese manufacturers instead if Donald Trump's trade tariffs push up costs. In a letter to top US lawmakers, Michael O'Leary criticised Washington's trade war with Beijing and warned that a 'material' impact on the price of aircraft could prompt his company to take its business elsewhere. The Irishman said Ryanair could even turn to state-owned Commercial Aircraft Corporation of China (Comac), a threat sure to anger Mr Trump, who has made isolating China a key aim of his trade war. Ryanair, the largest carrier in Europe, is currently waiting on the delivery of 29 Boeing 737 Max 200 planes, out of a total order of 210. It has also ordered 150 Max 10 jets, the largest in the 737 family, for delivery from 2027 with the option of another 150 afterwards. Aircraft manufacturers rely on complex supply chains that criss-cross both the US and Europe. Mr Trump's tariffs mean that the industry, which previously enjoyed duty-free status, is facing a raft of unexpected costs. Manufacturers have signalled to shareholders that they will seek to pass these on to customers rather than absorb them. But the suggestion is unlikely to go down well with airlines. In his letter, first reported by Reuters, Mr O'Leary told American lawmakers: 'If the US government proceeds with its ill-judged plan to impose tariffs, and if these tariffs materially affect the price of Boeing aircraft exports to Europe, then we would certainly reassess both our current Boeing orders, and the possibility of placing those orders elsewhere.' Mr O'Leary said there had been no conversations with Comac, but said Ryanair would 'of course' consider Chinese aircraft if they were up to 20pc cheaper than those made by Boeing's arch-rival, Airbus. Comac has been trying to compete with short-haul models sold by Airbus and Boeing with its C919 plane, which entered service in China two years ago. It has not yet been certified by aviation regulators in Europe. It is not the first time Mr O'Leary, who has run Ryanair since 1994, has suggested he may be open to buying Chinese planes. Ryanair previously announced a partnership with Comac in 2011, although it resulted in no actual orders. In an interview in March with the news website Skift, he said: 'The Chinese are basically building a f---ing [Airbus] A320. 'So if it was cheap enough, then we'd order it. Ultimately the aircraft will be certified. We're always focused on buying aircraft at the lowest possible price and at the most opportune time. 'I don't care who makes them, whether it's Boeing, Airbus, or Comac.' Some analysts have speculated that Mr O'Leary's public statements are a negotiating tactic. Raja Krishnamoorthi, the most senior Democrat on the house committee on the Chinese Communist Party, warned against placing orders with Comac, arguing that it had close ties to the Chinese military and had likely benefited from intellectual property theft. 'Respectfully, US and European airlines should not be even contemplating the future purchase of airplanes from Chinese military companies,' he said in a letter to Mr O'Leary. Boeing is a top American exporter and has already suffered consequences from Mr Trump's trade policies.
Khaleej Times
06-02-2025
- Business
- Khaleej Times
777X — Futuristic jet on track for 2026 debut
The futuristic 777X is on track for commercial flight operations as Boeing resumed testing of its long-delayed widebody aircraft in January and is expected to deliver first airplane early next year, experts say. Analysts and experts said the resumption of 777X test flights is a good omen for the aviation industry and will benefit international airlines in general and Gulf carriers in particular as the twin-engine aircraft remain an integral part of their long-term strategies to update their fleet with latest fuel-efficient jet. Leading Gulf airlines have placed huge orders for the 777X — the successor to Boeing's 777 series, offering greater flight range and higher seating capacity. Boeing, which has secured more than 500 firm orders including 170 from Emirates and 60 from launch customer Qatar Airways, promoted the 777X as the world's largest and most efficient twin-engine jet. Other major customers include Singapore Airlines, Cathay Pacific Airways and Lufthansa, according to an aviation industry analytic company Cirium. The aircraft, which will be offered in three variants, including a freighter model, is one of three new aircraft Boeing hopes to have airworthiness certification this year, along with the 737 Max and Max 10. The resumption of testing is a positive sign for the 777X programme. However, it is crucial for Boeing to address all outstanding issues and complete the certification process without further delays, according to the experts. The aircraft, which will be offered in three variants, including a freighter model, is one of three new aircraft Boeing hopes to have airworthiness certification this year, along with the 737 Max and Max 10. For passengers, the Boeing 777X is a really exciting plane, given that many airlines plan to introduce new cabin concepts on these aircraft. Over a dozen airlines who placed order for 777X are desperate to add these planes to their fleet. No further delays Saj Ahmad, Chief Analyst at London-based StrategicAero Research, said Boeing had already delayed 777X entry into service until 2026, and with flight testing resuming again, there will be a lot of pressure to ensure that there's no further delivery date slippages. 'While Emirates has started inducting its new fleet of A350-900s, which will open up new markets with a need for less capacity, 777X remains integral to their long term plans – not just to replace the existing 777-200LR, 777-300ER and A380 fleets, its vital to their future growth ambitions too. With a mix of 205 777Xs on order, this airplane will ultimately form the backbone of Emirates operations at its new home at Al Maktoum International, Dubai World Central,' Ahmad told BTR. In tandem with suppliers, Boeing is working on ensuring the engine thrust links are tested and redesigned to cope with the heavier and all new fuel efficient GE9X engine. There's no question that 2024 was a terrible year for Boeing, compounded by a lengthy industrial strike — as the company re-establishes its production capability, Boeing equally has to satisfy the (Federal Aviation Administration) FAA and European Union Aviation Safety Agency (EASA) that its residual work and testing on the GE9X engine thrust links are in compliance with regulatory requirements on its pathway to certification. 'Already 13 years after launch, 777X is as important to Boeing as it is with its customer base — not least because Emirates' influence on the design and performance of the jet has shaped it to become a future workhorse for the next 20-30 years. Execution of a successful flight test programme will provide a confidence boost and its almost certain that Emirates will gear up to buy more 777Xs – that could even materialise at this November's Dubai Airshow too. A gamechanger aircraft Andrew Charlton, managing director at Geneva-based consultancy Aviation Advocacy, is of the view that the futuristic airplane will be delivered as per plan next year. 'I think that as much as these things can be predicted, the aircraft will be on track. Boeing cannot afford to let that timeline slip, frankly,' Charlton told BTR. Elaborating, he said the original 777 was one of the most important aircraft in the history of aviation and it totally changed the business model for airline that hitherto had used very large 747 aircraft to connect with big hubs and then distribute passengers onto small B737/A320 aircraft. 'That created 'dumbbell' networks with huge national hubs and limited service to all the other cities in that country, via the hub. The 777 was a gamechanger. It carried fewer passengers than a 747, but did so on two, more fuel efficient, engines. That changed the economics of serving a huge number of 'non-hub' cities around the world, from Manchester in the UK to Melbourne in Australia,' he said. Furthermore, it meant that for airlines in the Gulf, it was possible to build huge 'hourglass' networks that were completely disruptive of the old business model. 'We have never looked back.' Charlton said the 777X is about a metre shorter than the original 747 but uses only two engines, which themselves are taking advantage of improving efficiency and development. 'Will it be a gamechanger? No, but it will definitely be a game tweaker… It will allow for more passengers to fly from more airports (in an environment of quick growth in many parts of the world) and for airlines to be able to continue to offer a widening range of destinations. It is an aircraft that could have been designed explicitly for the Gulf market, given its range and size,' he said. In reply to a question why Emirates and other major airlines eagerly awaiting 777X despite delaying it's delivery many times, he said: 'The benefits will outweigh the delay, in my opinion.' Airlines awaiting new plane John Strickland, director of JLS Consulting, was sceptical about the commercial launch of 777X next year and said the aircraft has experienced so many delays so far that it is difficult to be sure. 'It will very much depend on successful completion of its remaining flight certification programme. The airlines are eager to receive the aircraft,' Strickland told BTR. He said 777X will be the largest aircraft available in the market, coming close to the capacity offered by current and previous Airbus A380 and Boeing 747 models but offering superb two engine efficiency versus four. 'Emirates needs the aircraft to invest in fleet renewal for its current 777-300 ER fleet whilst also being able to exploit new opportunities from its long range and higher capacity,' he said. Why is the Boeing 777X special The 777X features new engines, new composite wings, and technologies from the Boeing 787. The 777X introduces the latest innovative technologies, including the most advanced, fuel-efficient commercial engine ever. In addition, the fourth-generation 777X composite wing has a longer span than today's 777. > The new Boeing 777X will be the world's largest and most efficient twin-engine jet, unmatched in every aspect of performance. > With new breakthroughs in aerodynamics and engines, the 777X will deliver 10 per cent lower fuel use and emissions and 10 per cent lower operating costs than the competition. > The 777X offers low-risk, profitable growth, industry-leading reliability and seamless integration with the 777 and 787 Dreamliner families for even more flexibility. > With a spacious, wide cabin, new custom architecture and innovations from the 787 Dreamliner, the 777X will deliver the flight experience of the future.
