Boeing Has a Secret Weapon for Competing With the Airbus A321
When Boeing (NYSE: BA) launched the 737 MAX 10 earlier this year, many aerospace pundits panned it as a poor man's Airbus (NASDAQOTH: EADSY) A321. Nevertheless, the 737 MAX 10 won hundreds of orders and commitments at the 2017 Paris Air Show, including an important order conversion from U.S. airline giant United Continental (NYSE: UAL).
In fact, Boeing has a secret weapon that has helped it win all of United's new narrowbody aircraft orders recently: a "most-favored customer clause" granted by Airbus to American Airlines (NASDAQ: AAL). This clause could give Boeing a huge advantage in competing for an upcoming aircraft order from Delta Air Lines (NYSE: DAL).
Back in 2011, Airbus scored a major coup when American Airlines ordered 260 A320-family jets, after years as an all-Boeing airline. Indeed, it was this impending order that forced Boeing to create the 737 MAX to hang on to a portion of American's business.
Source: Fool.com
Boeing Co. Stock
Currently there is a rather positive sentiment for Boeing Co. with 49 Buy predictions and 12 Sell predictions.
With a target price of 209 € there is a positive potential of 23.67% for Boeing Co. compared to the current price of 169.0 €.
