Transportation
Boeing Wins at Air Show
09/07/12 10:42
The Farnborough International Air Show is an iconic global aviation event. The event is held every two years and lasts for two weeks. The first week consists of the event’s trade exhibition and then moves on to a public air show. The true value of this event is realized within the week’s trade exhibition. In 2010, $47 billion worth of orders were announced during the event. The 2012 event got off to a promising start. On the first day Boeing (NYSE: BA) announced an order for 75 planes worth $7.2 billion from Air Lease Corp. (NYSE: AL). The order is for the new, fuel-efficient 737 MAX, 60 of the MAX 8 version and 15 of the MAX 9 version.
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Creative Ways to Cut Airline Fuel Costs
15/06/12 12:27
One of the largest costs for airline operators is fuel. Southwest Airlines (NYSE: LUV) was able to offset this large cost for years by hedging contracts for their fuel. This is partly what allowed them to maintain their status as the low-cost operator and forced competitors to lower their prices below operating costs just to compete. Back before Southwest’s fuel contracts expired, I worked for their competitor American Airlines at a regional airport. American Airlines lost money on every flight that they sent to the hub because they were forced to price competitively with Southwest. When Southwest was nearing the end of their fuel contracts they began to make cuts elsewhere, refusing to give up their competitive advantage.
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Motley Fool Blog Network "Embraer Will Rally"
22/05/12 13:39
Embraer (NYSE: ERJ) is the world's top manufacturer of midsize aircraft. Production of regional jets has been strained lately by high fuel costs and slow global recovery, but eventual uptick could lead to a rally point for the company and its shares. ADR's of Embraer have increased 29% already this year. Embraer is the world's third largest commercial aircraft maker, trailing behind Boeing (NYSE: BA) and EADS' Airbus. But the fact that it is trailing simply means that it has more room to expand and grow. Embraer appears to be seizing the opportunities that lay ahead.
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Motley Fool Blog Network "Airlines Are Off To A Great Start in 2012"
04/05/12 07:36
Airlines have long been consider a dismal investment opportunity by most investors. High regulations increase already high costs of operation, which in turn reduces any profit there might have been. Profit is scarce in this industry. This makes industry-wide competition pretty fierce. This competition is more often a disservice to the airlines, as it shrinks profits even further. I worked for a regional airline once. Due to competition we did not make a single dime on flights into our hub. We actually lost money on every flight. But we had to keep ourselves in the competition, hoping that the connecting flights they took from the hub would make up for the initial loss. Maybe some airlines are beginning to figure out how to make a profit.
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