Airbus Flies High at Paris Air Show; Delta, Boeing Negotiate $20B Order

On the opening day of the Paris Air Show, Airbus announced orders worth approximately $43 billion (list price), nearly ten times Boeing's $4.4b. Airbus said orders for 114 of 339 aircraft were for its A350, which has been plagued with problems, and significantly trailed orders for rival Boeing's 787 Dreamliner prior to the Show. Shares of Boeing fell 0.8% to $97.40 Monday, while Airbus parent EADS lost 0.6% in Paris. The Wall Street Journal says that Delta Airlines' CEO said the company is likely to order as many as 125 Boeing 787s ($20B list price) by the end of 2007 as it expands overseas. The order is still being negotiated; a Delta spokeswoman said the company is also in talks with Airbus. Separately, Boeing CEO James McNerney told a Spanish newspaper he expects rising aerospace competition from China. McNerney said "there is room for a third large planemaker in the next two decades," and noted China is also a "good client."

Sources: New York Times, Reuters, Wall Street Journal
Commentary: Boeing Announces 737 / 777 Orders • Airbus Secures Large A350 Sale To US Airways, Hopes To Build Momentum • Boeing's Conflicted Future
Stocks/ETFs to watch: Boeing (BA), EADS (Paris: 005730), Delta Air Lines, Inc. (DAL). ETFs: iShares Dow Jones US Aerospace & Defense (ITA), PowerShares Aerospace & Defense (PPA)
Earnings call transcripts: Boeing Q1 2007
Related: Paris Air Show Notebook [WSJ]

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