investingfromtheright

I am retired and take educated guesses on all things financial.

September 19, 2007

September 20, 2007: Aero Defense and commercial aviation notes



Picture: Boeing flight simulator for the USAF


I have been tardy in reporting my regular news from this sector. Here is an update.

ITT beat LMT and RTN for the FAA ADS-B contract, worth $1.8B over ten years.

There is a problem with the LCS program and the LPD and T-AKEs programs, which were not approved by the Senate and House, respectively. This will need to be reconciled.

Arik Air ordered ten 737s, four 787s and one 777, worth $1.8b for Boeing.

Lufthansa is in a quandary: order the superior 787s from the United States or the the "buy one get one free" A350 Airbus. A decision will be made by December.

NOC and COGT settled the COGT 2005 AFIS lawsuit. NOC will pay COGT $25m and $15m to license AFIS for UK IDENTI. NOC will also pay $20m over five years for research and development support.

BA won a contract worth $1.1b over eight years from the Air Force for KC-135 depot maintenance. Boeing won the original 1998 contract.

My stock and sector recommendations remain the same as my last post on this subject. Fed rate cuts are not material to this sector in any significant degree.

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