I'm surprised no one's posted the recent Reuters bylines regarding the 747X and the EADS IPO launch. I'm usually too lazy to start a thread on my own, but 2 days have passed and nothing.
1. 747X Press Release. Check the Friday news from Boeing. This launch appears to be definite with Boeing claiming an official launch within 6-9 months. This based on favorable airline reaction to both passenger and freighter versions. The company claims a 17% cost/mile advantage in the freighter version due to "middle floor" stregthening problems with the A3XX and a 4% advantage in the pax models. I think claims like this at such an early stage are questionable, but Airbus hasn't responsed beyond the usual comparisons toi the existing 744. KAL, the third largest freighter carrier operator in the world (surprise surprise to me at least) has declared interest in the Boeing model.
2. The EADS IPO is scheduled to go live in Paris, Frankfurt and Madrid on Monday. Why London wasn't included (#2 stcok trading market after the NYSE) wasn't discussed. The news here is that the shares are oversubscribed, meaning there is "little" demand for the stock. All analysts agree why. First and foremost is the A3XX project and the insane price tag. Second is the declining EU budget for military contracts beyond 2003. Also a factor is the dual leadership role of French and German CEOs combined with the French government's demand for a 15% ownership stake in the new company. All this is seen as detrimental to a competitive operating environment compared to EADS's biggest competitors, Lockheed and Boeing. FYI-Boeing is tipped to win the $200 billion contract for the JSF program with Lockheed playing a subcontracting role. Lifetime value of this program is estimated in excess of $400 billion with services, spares and foreign deals included.
This posts is long, but hope some of you have comments.