What happened with the Boeing 787 crisis?

An Air India Boeing 787 Dreamliner crashed shortly after takeoff, with investigations pointing to a problem with the cockpit design where both engine fuel cutoff switches could be accidentally activated. This raised serious questions about the aircraft's safety features and design, leading to potential regulatory actions and a crisis of confidence from airlines and passengers.

How does a crisis at Boeing affect Airbus and other aerospace companies?

When a major aircraft manufacturer faces a crisis, airlines often reconsider or cancel their orders and look for alternatives. As Boeing's main competitor, Airbus is positioned to capture these redirected orders. This creates a ripple effect through the supply chain, with increased business for companies that supply parts and materials to Airbus aircraft, from engines to composite materials.

What are A330neo and A350 aircraft?

These are Airbus wide-body aircraft that compete directly with Boeing's 787 Dreamliner. The A330neo (new engine option) is an updated version of the popular A330, while the A350 is Airbus's newest long-range aircraft designed to compete with both the Boeing 787 and 777. Airlines looking to move away from Boeing 787s would likely consider these Airbus models as alternatives.

What is "Projected Profit" in the stock data?

Projected Profit refers to a company's estimated future earnings, typically based on analyst forecasts. This figure helps investors understand a company's potential profitability, which is especially relevant for aerospace suppliers who might see increased business from the industry shift following the Boeing crisis.

Why are companies like Rolls-Royce and Safran included in this stock group?

Rolls-Royce and Safran are major aircraft engine manufacturers that supply engines for Airbus wide-body aircraft. If airlines shift orders from Boeing to Airbus, these engine makers would directly benefit from increased production. Engine contracts are substantial long-term revenue generators, as they include not just the initial sale but ongoing maintenance and parts.

15 handpicked stocks

Fallout from Boeing 787 Crisis

This carefully selected group of stocks represents companies positioned to benefit from the market shift following the Boeing 787 incident. Our professional analysts have identified Airbus and key suppliers likely to gain as airlines reconsider their fleet plans and seek alternatives to Boeing aircraft.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 14