Boeing Wins Big

12/3/20

By Dhierin Bechai, SeekingAlpha

Boeing (BA) has finally caught some positive momentum after being in the doghouse for the past 20 months. I would not say that Boeing’s problem are over yet. On the contrary, recent positive developments do merely mark the start of what's going to be a long trajectory toward recovering the health of the company in more than just the financial aspect. Nevertheless, share prices do follow a path previously outlined on Seeking Alpha and investors who acted based on that saw return that scaled three times the return of the broader market. So, that’s a solid return for investors would could stomach the risk. Yesterday, we provided a report to subscribers of The Aerospace Forum outlining the Ryanair order before it was announced, and with the order announced, Boeing is now trading 5 times the market return since we discussed the prospects of a Ryanair (RYAAY) order online and in print. So, subscribers have been able to reap the rewards immediately.

For Boeing, a time to regain confidence from the flying public has started. That's a process that goes across several disks including regulator approval and airlines actually flying the Boeing 737 MAX. American Airlines (AAL) was the first to fly the MAX with passengers on board, not yet in revenue service, but it's a first step. A much heard sentence regarding the MAX is that people won’t fly it until executives fly it and put their beloved ones on the jet. That happened on Tuesday when executives including American Airlines Group CEO Doug Parker flew on board of the MAX together with his wife followed by a media flight a day later. Everybody will have their view on these flights, fact is that you show that the plane is safe by flying it and accumulate safe hours of which there also have been many and improve its safety record. You don’t achieve that by having it sit on the ground until the flying public has forgotten about the crashes.

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