Latest news with #RichardAboulafia
Yahoo
4 days ago
- Business
- Yahoo
Will Paris Air Show Signal Shift In Aerospace Trade? Analyst Flags EU Tariff Risks, Order Delays
On Friday, BOfA Securities analyst hosted Richard Aboulafia, a partner at AeroDynamic Advisory, to discuss expectations for the upcoming 2025 Paris Air Show. The analyst says that regarding news of potential 50% EU tariffs, Aboulafia warned that the Air Show could foreshadow how future international negotiations might unfold. The analyst notes that the EU might draw lessons from recent agreements in China and the Middle East, which mainly included aerospace and defense products. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000. Nevertheless, the analyst writes that given the EU's own substantial aerospace and defense industry, which it aims to protect, U.S. aerospace and defense interests might become a point of contention rather than an incentive in these discussions. Regarding Boeing Company (NYSE:BA), Aboulafia views recent deals in the Middle East and China as setting a precedent for other nations' trade negotiations, suggesting orders will be held back as bargaining chips, noted the analyst. The analyst writes that, for both Airbus SE (OTC:EADSY) and Boeing, Aboulafia doesn't foresee many airlines placing large new orders, primarily due to a lack of new aircraft programs and existing backlogs exceeding 10 years for their most popular models. Further, the analyst noted that, as previously disclosed, Aboulafia doesn't anticipate any major new commercial aircraft program unveilings due to ongoing supply chain issues and global macroeconomic constraints. In the defense sector, Aboulafia expects numerous companies to compete for subsystem roles on programs like NGAD/the F-47 and CCA. Additionally, Aboulafia anticipates an outsized presence of unmanned aerial systems at the show, predicting a focus on lower-tech, expendable variants rather than highly sophisticated systems, says the analyst. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum. Photo: Shutterstock Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Will Paris Air Show Signal Shift In Aerospace Trade? Analyst Flags EU Tariff Risks, Order Delays originally appeared on
The Independent
15-05-2025
- Politics
- The Independent
Trump's Qatari plane needs so many upgrades it may face flight restrictions and need a military escort
The plane offered to President Donald Trump by Qatar may be subjected to flight restrictions outside the U.S. and require a military escort because it's not prepared to safely carry the president. Despite politicians and the public having intense reservations over accepting the gifted jet, Trump has made it clear he plans to utilize the airplane. If the plan goes ahead, the plane would have to undergo massive renovations to be outfitted with the correct security and communication systems to serve as Air Force One. In the meantime, the plane may face limitations in order to ensure the president's safety, such as no international travel or flying with military escort jets, former officials told Reuters. Air Force One is designed to ensure the president's safety while traveling and allow the team to communicate securely. Those planes are outfitted with state-of-the-art defensive equipment, in-flight refueling capability and specific communications technology, current and former officials told the Washington Post. For the plane offered by Qatar, a Boeing 747-8, to meet those same standards, it would need to be ripped apart in a costly and lengthy renovation. Or, to avoid that and allow Trump to use the plane sooner, the president would likely have to disregard current security measures or find alternative methods to make up for security concerns. As commander-in-chief, Trymp could wave any and all safety requirements, however, an Air Force official told Reuters. Richard Aboulafia, the managing director of AeroDynamic Advisory, a consulting firm, told Reuters that a military escort may be necessary because the plane doesn't have 'the electronic warfare and missile warning system and whatever else you associate with survivability on Air Force One.' He added that travel in the plane could also be limited to domestic flights since the U.S. cannot ensure the same level of security in international air spaces. Mark Cancian, a senior adviser at the Center for Strategic and International Studies, reiterated how intense the security measures on Air Force One are supposed to be. "Air Force One is designed to be survivable in all kinds of environments, including a nuclear war," Cancian told Reuters. Air Force One does not typically fly alongside fighter jet escorts. Cancian expressed doubt over the feasibility of short-term upgrades allowing the president to use the Qatari jet. 'I don't think it's possible,' Cancian added.
Daily Tribune
21-04-2025
- Business
- Daily Tribune
Tariffs could lift Boeing and Airbus plane prices even higher
Commercial plane prices, already lifted in recent years due to pandemic supply chain shocks, are poised to climb further as Boeing and Airbus are buffeted by trade tariffs. "Compared with 2018, prices for commercial jets have risen by around 30 percent," an aviation expert told AFP on condition of anonymity. The American and European aerospace giants have grappled with higher expenses for primary materials such as titanium, components and energy, as well as overall labor cost pressures. To resolve a labor strike, Boeing late last year agreed to a new contract with its Seattle-based machinist union that lifted wages by 38 percent over four years. Just months earlier, Spirit AeroSystems, a major supplier to both Boeing and Airbus, reached an agreement with similar wage increases. Richard Aboulafia, managing director at consultancy AeroDynamic Advisory, said items that have inflated "at a particularly high rate" include castings, forgings and "anything titanium... especially since all that Russian capacity has been cut off from the US and, to a lesser extent, from Europe." Aboulafia estimates prices for materials and equipment have risen 40 percent since 2021. That's before Trump's 25 percent tariffs on steel and aluminum, which are used in planes. "It's kind of ironic, raw materials were not a problem, but Donald Trump is determined to make them a problem," Aboulafia said. Inflation in aviation has been accelerating, and "that's only going to get worse with these tariffs that are being imposed," agreed John Persinos, editor-in-chief at Aircraft Value News. "These tariffs are disastrous."
Khaleej Times
20-04-2025
- Business
- Khaleej Times
Tariffs could lift Boeing and Airbus plane prices even higher
Commercial plane prices, already lifted in recent years due to pandemic supply chain shocks, are poised to climb further as Boeing and Airbus are buffeted by trade tariffs. "Compared with 2018, prices for commercial jets have risen by around 30 percent," an aviation expert told AFP on condition of anonymity. The American and European aerospace giants have grappled with higher expenses for primary materials such as titanium, components and energy, as well as overall labour cost pressures. To resolve a labour strike, Boeing late last year agreed to a new contract with its Seattle-based machinist union that lifted wages by 38 percent over four years. Just months earlier, Spirit AeroSystems, a major supplier to both Boeing and Airbus, reached an agreement with similar wage increases. Richard Aboulafia, managing director at consultancy AeroDynamic Advisory, said items that have inflated "at a particularly high rate" include castings, forgings and "anything titanium... especially since all that Russian capacity has been cut off from the US and, to a lesser extent, from Europe." Aboulafia estimates prices for materials and equipment have risen 40 per cent since 2021. That's before Trump's 25 per cent tariffs on steel and aluminum, which are used in planes. "It's kind of ironic, raw materials were not a problem, but Donald Trump is determined to make them a problem," Aboulafia said. Inflation in aviation has been accelerating, and "that's only going to get worse with these tariffs that are being imposed," agreed John Persinos, editor-in-chief at Aircraft Value News. "These tariffs are disastrous." What's more, the newer generation of planes, such as the Boeing 737 MAX and 787 Dreamliner and the Airbus A321neo, can command premium prices thanks to their lower fuel consumption. Listed prices a 'fiction' The impact of tariffs is not reflected in the companies' stale official pricing literature. Boeing has not updated its figures since 2023, while Airbus' catalogue is untouched since 2018. "Catalogue prices were a complete work of fiction," Aboulafia said. "You got 50 per cent off for showing up dressed nicely." Airbus decided to abandon the use of catalogue prices "a long time ago" because they "were not closely correlated to the final price, which was based on each specific contract in terms of plane configuration and detail," the company said. The aerospace companies will often negotiate additional services such as plane support or training at a discounted level when aircraft are delivered, said the expert who requested anonymity. Such deals make the official listed price less meaningful, they added. Contracts for new planes typically include adjustment clauses for inflation, while pricing can also be tweaked if deliveries are delayed. Since the contracts are usually denominated in dollars, there can also be allowances for swings in exchange rates. Boeing told AFP that it evaluates price based on production costs and other market factors, but does not discuss the details publicly since they pertain to competition. Both Boeing and Airbus currently have a substantial backlog of plane orders that will keep them occupied through the end of the decade. But that strong demand has not in itself boosted pricing much. "It's a very competitive situation," said the expert. "The two companies fight for every transaction and that impacts pricing." Most airlines opt to do business with both Airbus and Boeing. "Before Covid, Boeing and Airbus competed for a market where prices were really lower, maybe even too low," said Manfred Hader of consultancy Roland Berger. But airlines have been able to afford more expensive planes in the post-lockdown period, where there has been strong travel demand, boosting ticket prices and airline profitability, Hader said. In February, Japanese carrier ANA ordered 77 planes from Boeing, Airbus and Brazilian firm Embraer, providing updated catalogue prices that show an increase from earlier levels. The order priced Boeing's 787 Dreamliner at around $386 million and the 737 MAX at $159 million, compared with $292 million and $121.6 million in 2023, according to AFP calculations. It priced the Airbus A321neo at around $148 million compared with the $129.5 million in the 2018 catalogue.
Observer
20-04-2025
- Business
- Observer
Tariffs could lift Boeing and Airbus plane prices
New York - Commercial plane prices, already lifted in recent years due to pandemic supply chain shocks, are poised to climb further as Boeing and Airbus are buffeted by trade tariffs. "Compared with 2018, prices for commercial jets have risen by around 30 percent," an aviation expert told AFP on condition of anonymity. The American and European aerospace giants have grappled with higher expenses for primary materials such as titanium, components, and energy, as well as overall labor cost pressures. To resolve a labor strike, Boeing late last year agreed to a new contract with its Seattle-based machinist union that lifted wages by 38 percent over four years. Just months earlier, Spirit AeroSystems, a major supplier to both Boeing and Airbus, reached an agreement with similar wage increases. Richard Aboulafia, managing director at consultancy AeroDynamic Advisory, said items that have inflated "at a particularly high rate" include castings, forgings, and "anything titanium... especially since all that Russian capacity has been cut off from the US and, to a lesser extent, from Europe." Aboulafia estimates prices for materials and equipment have risen 40 percent since 2021. That's before Trump's 25 percent tariffs on steel and aluminum, which are used in planes. "It's kind of ironic, raw materials were not a problem, but Donald Trump is determined to make them a problem," Aboulafia said. Inflation in aviation has been accelerating, and "that's only going to get worse with these tariffs that are being imposed," agreed John Persinos, editor-in-chief at Aircraft Value News. "These tariffs are disastrous." What's more, the newer generation of planes, such as the Boeing 737 MAX and 787 Dreamliner and the Airbus A321neo, can command premium prices thanks to their lower fuel consumption. - Listed prices are a 'fiction' - The impact of tariffs is not reflected in the companies' stale official pricing literature. Boeing has not updated its figures since 2023, while Airbus' catalogue is untouched since 2018. "Catalogue prices were a complete work of fiction," Aboulafia said. "You got 50 percent off for showing up dressed nicely." Airbus decided to abandon the use of catalogue prices "a long time ago" because they "were not closely correlated to the final price, which was based on each specific contract in terms of plane configuration and detail," the company said. The aerospace companies will often negotiate additional services such as plane support or training at a discounted rate when aircraft are delivered, said the expert, who requested anonymity. Such deals make the official listed price less meaningful, they added. Contracts for new planes typically include adjustment clauses for inflation, while pricing can also be tweaked if deliveries are delayed. Since the contracts are usually denominated in dollars, there can also be allowances for swings in exchange rates. Boeing told AFP that it evaluates price based on production costs and other market factors, but does not discuss the details publicly since they pertain to competition. Both Boeing and Airbus currently have a substantial backlog of plane orders that will keep them occupied through the end of the decade. But that strong demand has not in itself boosted pricing much. "It's a very competitive situation," said the expert. "The two companies fight for every transaction, and that impacts pricing." Most airlines opt to do business with both Airbus and Boeing. "Before Covid, Boeing and Airbus competed for a market where prices were lower, maybe even too low," said Manfred Hader of consultancy Roland Berger. But airlines have been able to afford more expensive planes in the post-lockdown period, where there has been strong travel demand, boosting ticket prices and airline profitability, Hader said. In February, Japanese carrier ANA ordered 77 planes from Boeing, Airbus, and Brazilian firm Embraer, providing updated catalogue prices that show an increase from earlier levels. The order priced Boeing's 787 Dreamliner at around $386 million and the 737 MAX at $159 million, compared with $292 million and $121.6 million in 2023, according to AFP calculations. It priced the Airbus A321neo at around $148 million compared with the $129.5 million in the 2018 catalogue.
