Boeing (licensed in letters) – Get report The shares rose on Tuesday amid reports that US and European officials are poised to settle a 17-year trade dispute centered on subsidies linked to the aircraft maker and its Paris-based rival Airbus SE. (EADSY) – Get report.
The head of the European Commission, Ursula von der Leyen, who heads trade policy for the European Union in general, told reporters in Brussels on Tuesday that she was “very confident that today we will find an agreement on the Airbus-Boeing issue in a conversation with our American friends. ” with an expected announcement during a bilateral summit with President Joe Biden in the Belgian capital.
The two-decade-long dispute, which came to a head with a 2019 World Trade Organization ruling that gave the US the green light to apply tariffs on $ 7.5 billion worth of European-made products, focuses in alleged unfair subsidies for Brussels Airbus and tax breaks. from Washington to Boeing, each of which vies for the title of the world’s largest aircraft manufacturer in the now-recovering market.
Boeing shares rose 0.8% in pre-market trading on Tuesday to indicate an opening price of $ 247.00 each, a move that would set the stock’s annual profit at around 15.4%.
Any deal that removes Boeing from the front line of US trade policy should back the aircraft maker, which seeks to capitalize on the post-pandemic surge in demand for airliners and leave behind the legacy of two disasters. 737 MAX in 2018 and 2019. that.
Reports from last week indicated that United Airlines UAL is looking to renew its fleet with the largest-than-expected MAX order, which could go up to 150 aircraft, as carriers around the world prepare for a surge in business passengers. and pleasure. demand as the global economy shifts away from pandemic travel restrictions, while Southwest Airlines LUV said it would convert nearly three dozen options for the aircraft maker’s 737 MAX jet into firm orders as it boosted revenue forecasts. short-term operational amid improvements in summer travel bookings.
Reuters reported, however, that United May split its multi-million dollar order between Boeing and its European rival, Airbus, with the purchase of several dozen A321 neo narrow-body jets from the aircraft maker, highlighting the ongoing challenge Boeing will face with its largest. competitor. He also freed himself from accusations of unfair support.