The Germans are not even buying from themselves. At least not airplanes. Airbus, Airbus, a subsidiary of Franco-German EADS, has been flogging its 380 super-jumbo as the next big thing. But, Lufthansa is having none of it. The airline has ordered 20 of the new stretch 747s, worth $5 billion, and took options on another twenty.
The Airbus 380 has been plagued by techical issues and missed deadlines, and EADS is struggling to get financing and may have to go to its goverment shareholders for cash. The big Lufthansa order is not the kind of news that the company needed.
Boeing, on the other hand, must be doing a victory dance in the end zone. It stock is up over $1 to almost $91. And, as Airbus gets thumped, that could continue.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
