EADSY - Boeing: Contrarian Bet Duopoly Is Hard To Break

2024-01-22 19:39:52 ET

Summary

• Boeing's production quality and engineering have been questionable, posing risks to investors and passengers.
• Despite Boeing's problems, the commercial aviation market is a duopoly, making it difficult for Airbus to absorb all customers away from Boeing.
• Boeing's backlog of orders and planned production increases in the duopoly market make it a potential buy, despite ongoing quality control challenges.

Introduction

Boeing ( BA ) has been seeing numerous issues with production quality for the past several years. Even after the tragedy in 2018 involving the 737 Max 8 , Boeing's 737 Max 9 planes were found with numerous quality problems in 2024. Certainly, the company's engineering, production, and quality could be questioned by some consumers and investors following these incidents, posing significant risks to not only the investors but also passengers. Boeing, as a company, is surely losing the confidence of the investors and the flying public as safety should be the utmost priority....

For further details see: