Airbus' New Headache: Boeing Wins TAM SA Jet Order

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Boeing Loosens Airbus's Brazil Hold [Wall Street Journal]

Summary: For years, Airbus has been the dominant aircraft provider to Brazilian companies. Yesterday, Boeing Co., capitalizing on its rival's recent sales woes, signed an order from TAM SA, Brazil's dominant airline, to provide four 777 aircraft (pictured) - at a total value of more than $1 billion list price. Breaking Airbus' hold on Latin America, Boeing claimed the sale to be the first to a Latin American carrier. The company expects to deliver the first 777 to TAM's fleet by mid-2008. Tam's CEO Marco Antonio cited the 777's fuel efficiency and range as the main reasons his company chose the Boeing jets. None-the-less, TAM still does most of its business with Airbus, saying in a news release it expects to acquire at least 61 Airbus planes between now and 2010. The airline currently operates 93 airplanes and hopes to get that number up above 125 planes by 2010.
Related links: Boeing Q3 2006 Earnings Call Transcript • Airbus' Loss in Market Share is Boeing's Gain • The Jumbo Jet (Airbus) is Fast Becoming Irrelevant • Boeing is Set for Takeoff • Boeing's Earnings Crash As R&D Expenses Soar • Airbus Superjumbo Stalled at the Gates
Potentially impacted stocks and ETFs: TAM SA (TAM), Boeing (BA), Embraer-Empresa Brasileir de Aero. (ERJ) • iShares Dow Jones US Aerospace & Defense (ITA), PowerShares Aerospace & Defense (PPA),

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