- Summary: It looks like yet another delay for Airbus' 380 superjumbo jetliner. The A380 was initially delayed last April, and an additional delay announced June 13th. Now, according to Mike Turner, CEO of 20% shareholder BAE Systems PLC, "all the ingredients are there" for further delays. Airbus' new CEO has said he will comment at the end of the month following an internal review. BAE Systems plans to bring a decision to its shareholders in early October regarding a sale of its stake to Airbus' main shareholder European Aeronautic Defence & Space Co. [EADS]. The current price tag for BAE's stake is €2.75 billion. According to industry analyst Scott Hamilton, the CEO of International Lease Finance Corp.--a large Airbus and Boeing customer--has said that he expects to see additional delays to the A380. EADS has said the delays will cost an additional $2.5 billion of operating profit over the next four years.
- Comment on related stocks/ETFs: Hillary Kramer believed before this news was released that Boeing (NYSE:BA) is ready for takeoff. Investopedia Advisor suggests that a sell-off in Boeing stock after an in-line quarter was unwarranted. See Boeing's Q2 earnings call transcript for details on the company's quarter.
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