Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

THE BOEING COMPANY

(BA)
  Report
Delayed Nyse  -  04:00 2022-09-23 pm EDT
131.26 USD   -5.37%
09/24Ethiopian Airlines consortium wins bid for new Nigeria airline
RE
09/23Industrials Slide on Economic Concerns -- Industrials Roundup
DJ
09/23Boeing, Devon Energy fall; Guidewire, Dollar Tree rise
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

American Airlines places deposit on 20 supersonic planes

08/16/2022 | 04:24pm EDT

DALLAS (AP) — American Airlines has agreed to buy up to 20 supersonic jets and put down a non-refundable deposit on the planes that are still on the drawing board and years away from flying.

Neither American nor the manufacturer Boom Supersonic would provide financial details Tuesday, including the amount of American's deposit.

American, which also took options for 40 more Boom Overture planes, becomes the second U.S. customer for Boom after a similar announcement last year from United Airlines for 15 jets.

It has been nearly 20 years since the last supersonic passenger flight by Concorde, the British-French plane that failed to catch on because of the high cost — both for passengers and airlines.

Boom CEO Blake Scholl insists his company's plane will be different when it debuts in 2029, with tickets costing about $4,000 to $5,000 to fly from New York to London in about three and one-half hours.

“There are tens of millions of passengers every year flying in business class on routes where Overture will give a big speed-up,” Scholl said in an interview, “and airlines will be able to do it profitably.”

Boom says its plane will have a top speed of 1.7 times the speed of sound, or about 1,300 mph, and carry between 65 and 80 passengers.

Skeptics have questioned Boom's ambitious timetable, especially in light of the many years it has taken Boeing, an established manufacturer, to get planes or even retrofits to planes approved by the Federal Aviation Administration.

Notably, Boom does not yet have an engine manufacturer lined up. It is talking with Rolls Royce and others.

“With a supersonic jet, you don't design a plane, you design an engine first,” said Richard Aboulafia, an aerospace analyst at consultant AeroDynamic Advisory. “This is just a collection of freehand drawings until that engine happens.”

Boom says the plane will fly entirely on sustainable aviation fuel, often made from plant material, which is currently in short supply and very expensive.

Boom, which is based in Denver and plans to build the Overture in North Carolina, says the program will cost between $6 billion and $8 billion. The plane carries a list price of $200 million, although other manufacturers routinely give airlines deep discounts.

Last month, Boom announced changes to the plane's design to make it simpler and less expensive to build and maintain. The most striking change was going from three engines, including a different type on the tail, to four identical engines under the delta-shaped wings.

The market for four-engine planes is shrinking. The Boeing 747 is used mostly for hauling cargo now, and Airbus shut down production of the A380 in 2021. The vast majority of passenger jets flying today have two engines.

Four-engine planes “are that much worse from every standpoint, from economics to emissions,” Aboulafia said. “Nobody wants more engines, the answer is fewer engines."

While American and United have said they'll buy Boom's plane, Delta Air Lines, the other big U.S. carrier that could use it on long international flights, isn’t ready to join them.

“I have a lot more questions than answers still,” Delta CEO Ed Bastian said Tuesday on Fox Business. “Until we are confident that we could actually generate a reliable return from the aircraft, that’s not where we’re investing.”

American Airlines said the supersonic plane will change travel.

“Looking to the future, supersonic travel will be an important part of our ability to deliver for our customers,” said Derek Kerr, the airline's chief financial officer.

The union representing American's pilots questioned the timing of the airline's investment in planes that won't be available for several years at best. American has struggled this summer, canceling more than 9,300 flights since June 1 — more than double the cancellations at United, Delta or Southwest — according to FlightAware.

“Investing in today’s operation should be management’s sole focus,” said Dennis Tajer, a spokesman for the union. “If there aren’t any changes to how management schedules this airline and its pilots, these will just be supersonic cancellations.”

David Koenig can be reached at www.twitter.com/airlinewriter

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source Associated Press News

All news about THE BOEING COMPANY
09/24Ethiopian Airlines consortium wins bid for new Nigeria airline
RE
09/23Industrials Slide on Economic Concerns -- Industrials Roundup
DJ
09/23Boeing, Devon Energy fall; Guidewire, Dollar Tree rise
AQ
09/23Boeing to Pay $200 Million to Settle SEC Charges Over Misleading Statements on 737 MAX ..
MT
09/23The gap between reality and fiction
MS
09/23MARKETSCREENER'S WORLD PRESS REVIEW : September 23, 2022
MS
09/22Boeing Reaches $200 Million Settlement In US Over Misleading Claims Related To 737 MAX ..
MT
09/22NEWS HIGHLIGHTS : Top Company News of the Day
DJ
09/22Boeing Agrees to Pay $200 Million in Settlement of SEC Charges Over Misleading Statemen..
MT
09/22Boeing pays $200 million to settle SEC charges over 737 Max
AQ
More news
Analyst Recommendations on THE BOEING COMPANY
More recommendations
Financials (USD)
Sales 2022 70 025 M - -
Net income 2022 114 M - -
Net Debt 2022 41 087 M - -
P/E ratio 2022 348x
Yield 2022 -
Capitalization 77 944 M 77 944 M -
EV / Sales 2022 1,70x
EV / Sales 2023 1,28x
Nbr of Employees 142 000
Free-Float 58,6%
Chart THE BOEING COMPANY
Duration : Period :
The Boeing Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE BOEING COMPANY
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 20
Last Close Price 131,26 $
Average target price 215,56 $
Spread / Average Target 64,2%
EPS Revisions
Managers and Directors
David L. Calhoun President, Chief Executive Officer & Director
Nicole R. Nason Vice President-Federal Affairs for Aviation
Brian J. West Chief Financial Officer & Executive Vice President
Lawrence W. Kellner Non-Executive Chairman
Gregory L. Hyslop Chief Engineer, EVP-Engineering, Test & Technology
Sector and Competitors
1st jan.Capi. (M$)
THE BOEING COMPANY-34.80%77 944
AIRBUS SE-18.14%70 426
TEXTRON INC.-23.02%12 571
DASSAULT AVIATION32.84%10 210
AVICOPTER PLC-45.45%3 622
AVICHINA INDUSTRY & TECHNOLOGY COMPANY LIMITED-38.03%3 281