Airbus Poised to Secure Major Deal with Former Boeing Loyalist

European aerospace leader Airbus is on the verge of a significant strategic victory at the Dubai Airshow, with industry sources indicating a potential breakthrough order from flydubai. This airline, historically an exclusive Boeing operator, is now in advanced negotiations to incorporate approximately 100 A321neo jets into its fleet. Such an agreement would see Airbus capturing market share directly from its primary competitor in a key region.

While sales prospects brighten, Airbus confronts critical supply chain challenges. The company is engaged in pivotal discussions with engine manufacturer Pratt & Whitney concerning delivery schedules for the next three years. The outcome of these talks is fundamental to Airbus's strategy of significantly ramping up production for its A320neo family of aircraft. The ability to meet this ambitious production target hinges on securing a reliable and timely supply of engines to match the robust market demand.

Middle East Market Demonstrates Strong Growth Potential

Supporting its aggressive expansion strategy, Airbus has released a compelling long-term forecast for the Middle Eastern aviation sector. The company projects that the region's aircraft fleet will more than double by the year 2044, reaching a total of 3,700 aircraft. This anticipated growth is underpinned by an estimated annual passenger traffic increase of 4.4 percent, highlighting the strategic importance of securing orders from carriers based in the region.

Should investors sell immediately? Or is it worth buying Airbus?

A Symbolic Coup in the Making

The potential agreement with flydubai represents more than just a substantial order; it is a symbolic triumph for Airbus. Successfully persuading a long-standing Boeing customer to switch allegiances would mark a notable achievement in the intense rivalry between the two aviation giants. An announcement is expected before the conclusion of the Dubai Airshow, which runs through November 21.

The central question for investors is whether Airbus can convert this potential symbolic victory into tangible results by simultaneously overcoming production bottlenecks. The company's ability to successfully navigate these parallel challenges is likely to be a key driver for its share price performance in the coming weeks.