Can The Boeing Company (BA) Grasp This Huge Opportunity?

Boeing’s Strong orders

Despite a battery problem in the 787, Boeing still received strong orders. Its Dreamliner was grounded worldwide by the FAA (Federal Aviation Administration) for four months due to lithium-ion battery problems and was recently returned to service. A few days back, technical problems arose in the 787 Dreamliner of United Continental Holdings Inc (NYSE:UAL) due to which the plane made an emergency landing.

In the last week of June came the second emergency landing by United Airlines’ Dreamliner. Recently, Poland Airline LOT postponed two Boeing Dreamliner flights due to technical problems arising in aircrafts, but it is still not confirmed whether the problem was due to overheating of batteries or any other technical fault. LOT was the first European company last year which added Dreamliner to its fleet.

Similarly, at the beginning of this month, All Nippon Airways cancelled a number of flights and Japan Airlines bound-back its flight due to engine problems in 787. In January, the Japanese airline grounded 50 Boeing 787s due to battery problems identified in two planes. Such troubles in the 787 are the reasons behind reduced The Boeing Company (NYSE:BA) orders at The Paris Air show, but these orders are still high despite a number of technical problems.

Conclusion

The Paris Air show proved that competition in the aircraft industry is increasing; which is a market worth trillions of dollars. Boeing and Airbus are working hard to produce top quality and fuel efficient jets to win more orders. However, it seems that Boeing has not been able to fix problems with its its Boeing 787, which might further reduce its orders. Both Airbus and The Boeing Company (NYSE:BA) are a good investment, but in case of single choice, I would pick Airbus over Boeing because Airbus has an opportunity to increase its orders at the coming Dubai Air show.

The article Can Boeing Grasp This Huge Opportunity? originally appeared on Fool.com and is written by Red Chip.

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