Airbus Bags Order For 15 More Aircraft From Emirates Following A Public Dispute: What's Going On?
Portfolio Pulse from Lekha Gupta
Airbus SE (OTC:EADSF) secured an order for 15 additional A350-900s from Emirates Airlines, bringing the total order to 65 aircraft. This follows a public dispute at the Dubai Airshow where Emirates criticized Rolls-Royce Holdings PLC (OTC:RYCEY)(OTC:RYCEF) over engine durability issues. The deal is seen as a compromise after the dispute. Airbus also made sales to Ethiopian Airlines and EGYPTAIR this month. Airbus shares (OTC:EADSY) closed down 1.14% at $35.43.
November 16, 2023 | 12:34 pm
News sentiment analysis
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POSITIVE IMPACT
Airbus SE received an additional order for 15 A350-900s from Emirates, indicating continued business growth despite recent disputes.
The additional order from Emirates Airlines is a positive development for Airbus, suggesting confidence from Emirates despite the recent public dispute. This could signal to investors that Airbus is maintaining its commercial relationships and resolving issues effectively.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Airbus SE's shares closed down following the news of the Emirates order and the public dispute, but the new order may offset concerns.
While the share price of Airbus closed lower, the new order from Emirates could mitigate the negative impact of the public dispute. The short-term effect on the stock might be neutral as the market absorbs both the positive and negative news.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Rolls-Royce's dispute with Emirates over engine performance may affect its stock, but the resolution with Airbus could alleviate some concerns.
Similar to RYCEY, the dispute with Emirates could negatively impact Rolls-Royce's stock (RYCEF). However, the fact that Airbus and Emirates reached a compromise may suggest that the issue could be resolved, which might limit the negative impact.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 70
NEGATIVE IMPACT
Rolls-Royce faces criticism from Emirates over engine durability, which could negatively impact investor sentiment.
The public dispute between Emirates and Rolls-Royce regarding engine durability issues could harm Rolls-Royce's reputation and investor confidence, potentially leading to a short-term negative impact on the stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 70