Buying Airbus Stock as Boeing's Rival
Couple of days ago, I flew from Kuala Lumpur to Istanbul with an Airbus A350 on my way home. It was a wide-body twin-engine jet in a complete set. While being on board during long hours of flight, I just came across an article about the recent Boeing 737 Max 9 incident with a ripped plug in an emergency door to leave an unbelievable refrigerator-sized hole in the aircraft. Surely, it was rather disturbing news for me. Involuntary, my first instinct was to look around the cabin and there to verify with my eyes that no panels or other fuselage details were lost or missing. Yet, the next move of my mind was to understand that Airbus is the world's major rival of Boeing. If so, then Airbus stocks would get at least some advantage after U.S. regulators finally ordered the temporary grounding of around 171 Boeing jets on the weekend. More safety inspections would follow. Keeping in mind that Boeing faced heavy scrutiny over two fatal crashes of its 737 MAX planes in 2018 and 2019, which had long lasting consequences for its business, including share price damage, Boeing stock lost more than 8% of its market value on Monday. Therefore, I bought some shares of Airbus Group at €142.50 per share today after an intraday retreat from fresh highs that led prices to more or less acceptable levels, which are only two percentage points higher compared to last week's close. My opening price is 1.5% lower than morning peaks. Airbus holds an uptrend after gaining more than 25% in 2023, and further growth may even be accelerated after Boeing's loss. However, Boeing purchases from some nearest local lows are also part of my plans, as I believe that this famous American aircraft manufacturer would find a solution like providing some extra price discount for carriers to keep ordering its planes after a short pause. Eventually, technical faults will be corrected, the credibility gap situation is resolved. Again, the vast majority of the Boeing fleet does not have these plugs at all. The Max 9 model is the only one supporting a configuration that allows for that unfortunate plugged door option, as bigger planes are not manufactured in such a way. Even the 737 MAX 9 planes don't use it when carriers opt to install the maximum number of seats. Small carriers replace an additional emergency exit door with a plug only in case of less passenger seats option.
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