Grand news for Boeing
Ethiopia has an airline?
Yes, of course Ethiopia has an airline. In fact, Boeing's VP of Sales for Latin American, African, and Caribbean calls EA "one of the premier airlines in Africa and around the world." It currently flies six 737s, nine 757s, 10 767s, and one McDonnell-Douglas 11BCF (which, if you look closely, makes this an all-Boeing fleet.)
EA is the first African airline to order this particular 777, which enjoys most of its sales success in the Middle and Far East (although Delta
Which is why this week's news was such a tragedy for Boeing.
Yes, you read that right. The big story today isn't the Boeing aircraft EA has already bought, or the Boeings EA is now buying ... but the Boeings it won't be buying. Because within 24 hours after announcing the 777 deal, EA signed a memorandum of understanding on a second, larger purchase: one dozen A350-900s manufactured by Boeing's archrival, Airbus.
The second deal, coming hard on the heels of the first, is a slap in the face to Boeing -- and an out-of-the-blue victory for Airbus. In one fell swoop, Airbus:
- Scored a deal more than twice as large as Boeing's ($2.9 billion versus $1.3 billion).
- Illustrated the consequences of Boeing's failure to deliver the Dreamliner on time (the A350 being Airbus's analog to Boeing's 787).
- And smashed Boeing's monopoly at Ethiopian Airlines. The all-Boeing fleet is no more.
It's not all bad news for U.S. companies, of course. Boeing and Airbus suppliers, for example, are often agnostic on whose planes their parts go into. Accordingly, none of Goodrich
Sooner rather than later, please.