Boeing To Ink A Landmark Deal As Thai Airways Reportedly Favors 787 Dreamliner Over Airbus - Is Airbus' Loss Boeing's Gain?
Portfolio Pulse from Nabaparna Bhattacharya
Boeing Company (NYSE: BA) is close to finalizing a deal with Thai Airways International Public Co. (OTC:TAWNF) for up to 80 of its 787 Dreamliners. The deal, which includes firm orders, options, and purchase rights, is expected to be announced soon. This development comes after Boeing's recent $52 billion deal with Emirates. Airbus SE (OTC:EADSF) (OTC:EADSY) lost out on this opportunity due to pricing issues with Rolls Royce Holdings Plc (OTC:RLLCF), the exclusive engine supplier for Airbus's A350. The pricing deadlock has led to public criticism from customers like Emirates and Thai Airways. Boeing's shares were trading slightly lower in premarket.
December 08, 2023 | 2:22 pm
News sentiment analysis
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NEGATIVE IMPACT
Airbus SE lost a potential deal with Thai Airways to Boeing, which may negatively impact investor sentiment due to ongoing pricing issues with engine supplier Rolls Royce.
Airbus's loss of the Thai Airways deal to Boeing, partly due to the pricing deadlock with Rolls Royce, could lead to negative investor sentiment in the short term, potentially affecting Airbus's stock price.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Similar to EADSF, Airbus SE's American depositary receipt (ADR) may see a negative impact due to the company missing out on the Thai Airways deal in favor of Boeing.
As an ADR representing Airbus's stock, EADSY is likely to mirror the negative sentiment affecting EADSF due to the lost deal with Thai Airways, potentially leading to a short-term decline in its stock price.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Rolls Royce Holdings Plc may face investor scrutiny due to its pricing stance that has led to Airbus losing deals, potentially impacting its stock price negatively.
Rolls Royce's pricing issues with Airbus have contributed to the loss of a deal with Thai Airways, which could lead to negative perceptions among investors and a possible short-term dip in Rolls Royce's stock price.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
Thai Airways' decision to favor Boeing over Airbus for its widebody jet order could reflect positively on the company's strategic procurement decisions.
While the deal is significant for Boeing and Airbus, the direct short-term impact on Thai Airways' stock is less clear, as it depends on the financial terms of the deal and the airline's broader strategy.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Boeing is on the verge of securing a significant deal with Thai Airways for up to 80 787 Dreamliners, which could boost its sales momentum following a recent large deal with Emirates.
The news of a potential deal with Thai Airways is likely to be viewed positively by investors, as it not only represents a significant sales opportunity but also a competitive win over Airbus. This could lead to a short-term uptick in Boeing's stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90