The Boeing Company (NYSE:BA) was incorporated in July of 1916, by William Boeing. The first airplane factory was due to Mr. Boeing purchasing a ship yard in 1910 on the Duwamish River. Since then, The Boeing Company is one of the leaders in its industry. The company designs creates and sell; airplanes, rotorcraft, rockets, and satellites to the entire world. This is why the elimination of their 747 was such a surprise.

The 747 series are 4 engine behemoths that were used for transcontinental and global travel. Boeing plane makers are done with the 747 for passenger flights, they will still make something similar version but now called the Dreamliner or 777x, which can hold an astonishing 400 passengers and travel from one end of the globe to the other. Boeing will still keep the 747 for freight and military purposes; i.e. the next Air Force One. The elimination of this line for passenger use is due to numerous results. First the sales for Boeing 747 and been a downward slope for some time now. Boeing has also develop newer and better technology allowing for a more efficient aircraft. This is where the change comes for new passengers. The A380 made by Airbus one of their competitors did not log a signal purchase for their A380 for the entire year of 2016.

Boeing is now using the term “midrange” aircraft, the 737. Instead of containing 4 engines the newer ones will only contain 2 engines now. The will still able to carry “220 to 270 travelers” while traveling an impressive “5,000 nautical miles.” This model was unveiled last Tuesday at an aircraft show in Paris, France. Since this show Boeing signed a commitment with United Airlines for 50 planes totally “$6.24 billion in revenue.” Since the news of this deal there stock prices slowly increase over the week from 188.33 to 198.33.

With all this new innovation and ingenuity coming from Boeing the investors and stock market seem to be eating this adventure up. This is not a surprise considering their new planes can fly farther and more efficiently than their top competitor Airbus. Not taking in account yet the commitment with United Airlines, will also excite everyone involve in the company.

Boeing has also done future financial forecasting on the possible revenue brought about from this new endeavor. In the next 20 years they expect to sell 4,000 to 5,000 of the new 797. When it comes to the bigger midsized version 737 Max 10, estimating by the year 2036 they will have produced 29,530 of this series valued at an astonishing $3.18 trillion dollars. The Max 10 will account for 25 to 35 percent of Boeing sales. A smaller version the 787 is expected to exceed purchases of 5,000, which represents 12% of Boeing’s forecasted sales. These new design are pushing Boeing further away from its competitors and solidifying their hold in the #1 spot.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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