Air France-KLM Orders $12 Billion in Aircraft from Boeing and Airbus

Strategic Insights -

Air France-KLM has signed a multi-billion dollar deal with Boeing and Airbus, securing 50 aircraft orders and 60 options for long-range models. The agreement includes 25 Boeing 787 Dreamliners and 25 Airbus A350s, making it one of the largest deals in the aviation industry. Meanwhile, General Dynamics received a $1.8 billion contract from the U.S. Navy to construct two Zumwalt-class destroyers, with delivery expected by 2015 and 2018.

Key Takeaways:

  • The deal between Air France-KLM and Boeing/Airbus totals $12 billion, with 50 firm orders and 60 options for long-range aircraft.
  • The agreement includes 25 Boeing 787 Dreamliners and 25 Airbus A350s, with the latter being a significant order for Airbus.
  • General Dynamics received a $1.8 billion contract from the U.S. Navy to build two Zumwalt-class destroyers.
  • The two destroyers, DDG 1001 and DDG 1002, will make up nearly 13% of the iShares Dow Jones U.S. Aerospace & Defense Index Fund (ITA).
  • Other top holdings in the ITA fund include United Technologies (UTX), Precision Castparts (PCP), and Lockheed Martin (LMT).
  • The deal highlights the growing demand for long-range aircraft and the increasing need for defense technology and infrastructure.
  • The agreement also underscores the significance of the aviation industry in the global economy, with companies like Boeing and Airbus playing a leading role.

Statistics:

  • $12 billion: Total value of the deal between Air France-KLM and Boeing/Airbus.
  • 50: Number of firm orders for long-range aircraft from Air France-KLM.
  • 60: Number of options for long-range aircraft from Air France-KLM.
  • $1.8 billion: Value of General Dynamics' contract to build two Zumwalt-class destroyers.
  • 13%: Share of the iShares Dow Jones U.S. Aerospace & Defense Index Fund (ITA) held by General Dynamics' contract for two Zumwalt-class destroyers.
  • 9/12/2011: Date of the Comtex SmarTrend Alert indicating a downtrend for Boeing (BA) stock.
  • 9/12/2011: Date of the Comtex SmarTrend Alert indicating uptrends for Lockheed Martin (LMT) and Precision Castparts (PCP) stock.

Sources:

  • MarketNewsVideo.com, 09/16/2011.
  • SmarTrend, 09/12/2011.
  • Comtex News Network, Inc., 2004-2011.