BOEING NEEDS TO RELEASE MORE 737 UPGRADE DETAILS AS PRESSURE BUILDS

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:52

BOEING NEEDS TO RELEASE MORE 737 UPGRADE DETAILS AS PRESSURE BUILDS

As the global stock markets begin to move downward to finally reflect economic reality, we have to note the pounding that US airlines have taken over the past 24 hours (US finance below). This is all a bit of a joke, as just as airline stocks are offloaded oil is falling rapidly, a bounce for many airline stocks is now inevitable as value shows. On the other hand FLY Leasing remains undervalued and its share price remains under the actual book value. Set against the background of Air Lease and its oversubscribed IPO and inflated price we have to wonder what has gone wrong for FLY stock, either way FLY is a safe haven in a storm it seems.
Boeing may soon be forced to announce additional details of what it plans to do with regard to upgrading the 737 as Garry Kelly of Southwest beings to increase the pressure.

A press release was issued yesterday stating that Garry Kelly and Tom Enders have been in conversation with the former having “called Airbus to congratulate” the latter on the success of the A320neo with the correspondence said to be ongoing and friendly. Then yesterday Garry Kelly praised Boeing’s decision to re-engine the 737 to CNBC television “I applaud Boeing for that decision,” he told CNBC television. “We’re the world leader in the 737, so obviously it’s in our selfish interest to see that aircraft improve.”

In an interview with Fox Business Network, Kelly hedged his earlier comments in the face of perhaps seeming anti-American when he stated that Southwest was not in talks aimed at placing an order for the A320neo. “We’re talking exclusively with Boeing and that’s only fair because that’s what we want to make work,” he said. Obviously that is not the case and by bringing in Airbus, Garry will be able to strike a very good deal with Boeing so he is doing his job well in positioning for a good deal, no doubts there.

Meanwhile thus far the main impact of the Boeing announcement on the 737 upgrade has been the sharp increase in 757 values as owners breathe a sigh of relief that Boeing will not be developing a new, twin-aisle replacement for the type. The 757 has shown true grit during the economic crisis and the aircraft remains under valued in many respects but the introduction of the 787 and A350 should see this type tail off into aviation history.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:52
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Feditorial-comment%2Fboeing-needs-to-release-more-737-upgrade-details-as-pressure-builds%2F"> registered </a> users can comment.