Holly Hegeman, who reports on the airline industry for The Street.com (she is also publisher of PlaneBusiness Banter and, as she puts it, can usually be found "buzzing around her airline industry Web site, at www.planebusiness.com"), wrote a piece about Boeing today in her "Wing Tips" column. She warns that things may be getting worse for this company.
She writes: "Are all the shoes dropped? Is the company back on track? -- we answer a resounding 'No.' "
Ms. Hegeman discusses some worsening problems in her column today. "First major problem: the new Boeing 717 aircraft, the first major aircraft launch for the company since the Boeing 777. We said here last spring we did not think this aircraft was going to fly. Things have not improved. In fact, they have gotten worse."
She specifically notes that, as has been reported elsewhere, "Northwest Airlines (NWAC:Nasdaq), which is seeking to begin replacing its aging DC-9 fleet, will announce a $3.5 billion contract with Airbus within the next month. . . .
Moreover, the timing is bad according to Ms. Hegeman because "three weeks ago at the Farnborough Airshow, the Canadian aircraft manufacturer Bombardier (BBD:Toronto) announced that it is going to go full-steam ahead with the development of a new 90-seat version of its extremely popular Canadair Regional jet."
She sums up: "Forget all the other problems we have talked about in the past that Boeing is currently facing. This is the future we are talking about, and it does not look good."
Ms. Hegeman includes other facts relating to the problems Boeing faces in her column, and interested investors may want to check it out at The Street.com under "Wing Tips." She was warning about Boeing well before the stock started its rapid descent earlier this year. |
