A Pleasant Surprise

In this article the author describes the surprising market orders for aircraft in 2006, which were expected by both aerospace analysts as well as by the aircraft original equipment manufacturers (OEM) themselves to be significantly lower than those of 2005. Although one of the two major manufactures described was indeed down due to well-publicized problems with the production of their two major aircraft types among other issues, the other posted its first out-selling of the former since the year 2000. The weaker-performing OEM also lost one of its non-passenger aircraft clients, which further lowered its sales. Current market estimates put the two manufacturers about even for 2007, with similar estimates for the following year. The problems for the lower-performing OEM were augmented by an investigation of the company's former CEO for insider trading. Additional problems arose in the manufacturing of planes, with a plant in Germany experiencing a massive demonstration by employees, who were balking at the prospect of potential layoffs. This is in contrast to the relative stability of the other OEM.