Sep 20, 2022 (PressReach.com via COMTEX) -- AAL stock forecast as Tuesday trading at $14.18 As of 10:39 AM EDT.
The idea of resuming commercial supersonic flight by the end of the decade has generated a lot of excitement in recent years. Boom Supersonic, one of the most promising competitors, has signed a deal to sell 20 Overture aircraft to American Airlines /zigman2/quotes/209207041/composite AAL -5.44% , only a year after doing the same with United /zigman2/quotes/205037281/composite UAL -4.05% . In order to significantly reduce transatlantic and trans-pacific flight durations, the Overture is planned to transport 65 to 80 passengers and travel at speeds of up to Mach 1.7 (1,304 mph).
Finding a producer of engines is the issue. Following the conclusion of numerous engineering investigations, Rolls-Royce (otcpk:RYCEY) recently stated it would discontinue the project. As a result of the remarks, GE Aviation /zigman2/quotes/208495069/composite GE -0.33% , Honeywell /zigman2/quotes/205583690/composite HON +0.12% , and Safran Aircraft Engines (otcpk:SAFRY) all said that they had no interest in developing a supersonic engine for Boom. Another manufacturer of comparable engines, Pratt & Whitney, a division of Raytheon /zigman2/quotes/203237915/composite RTX +0.31% , referred to the plans as “tangential” to its core competencies.
Boom has declared that it aims to make its aircraft as ecologically friendly as possible, which is a commendable and vitally necessary goal, but building the airplane is already difficult and expensive, according to Henry Harteveldt, a travel analyst at Atmosphere Research Group. However, Boom may turn into a candidate for purchase for aerospace firms like Boeing /zigman2/quotes/208579720/composite BA -1.08% or Airbus if it were able to produce both an airplane and an engine effectively (otcpk:EADSY). The company might also make a tidy profit by selling its engine design, or it could take advantage of the “boom” and profit from the restart of commercial supersonic flights.
Fun fact: Although there have been numerous supersonic military aircraft, only the Concorde and the Tupolev Tu-144 was designed to transport civilians. In contrast to the Tu-144, which had limited service and was retired in 1999, the Concorde was grounded following a deadly disaster in 2000 and went out of service in 2003 as a result. When commercial supersonic travel began to take off in the 1960s, it was such a hot topic that Seattle called its NBA team the “SuperSonics” after Boeing’s (BA) later-canceled supersonic transport project.
The latest trading session saw a significant decline in the price of American Airlines (AALshares)’s as a result of a general market sell-off that affected all three major averages, extending a tough weekly loss. The outcomes from FedEx particularly worried traders.
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Author: Jowi Kwasu
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