One of the most exciting time to be with any company is the introduction of a new product, the others are when it sells better than expected and it is reported in the financials as outstanding for shareholders. In the commercial airlines there are really two companies that dominate the industry – Boeing and Airbus, if you have flown with more than one airline you likely have flown on one of the planes. Boeing is based out of Chicago but makes its planes near Seattle, Washington and Airbus is owned by a combination of European countries and makes its planes in Toulouse, France. Both companies have a wide variety of businesses but the general public knows them best for their commercial airplanes.

Similar to car makers, we all have our favorites and they make cars for different sizes. In airplanes – there are super jumbos, the mini jumbos, and the commuter aircraft and the Airline Companies want planes in all the categories to satisfy their customers or the general public. For a long time Boeing has a monopoly in the 350 seat planes and now Airbus has built a plane and it is final testing year of testing. Recently Reuters ran an article about the plane. Once a plane has passed its testing, then it can be delivered. Prior to testing the company went to the airlines and asked them what they wanted? and if Airbus produced would they preorder? and reorder? The airlines naturally said we love Boeing but its prices are a little high and we want all these options included less expensive to run, how about 25% less operating costs?. Airbus has come through and in a few years Boeing will offer the same options. In airlines, the developers talk years before something happens, so there is time for each to come up with different options and planes.

Linking to dividend paying stocks, politicians love airplanes because they represent all types of things – progress, engineering jobs, specialized services, well paying jobs so government money flows to aircraft companies, whether they need it or not (there is always a debate) The reality is there is a reason for the monopolies and as an investor you may like the government subsidies or not, but for the good of the country you accept it. Monopolies help keep the risk return ratio low and when investing there are a great thing to be involved with.

There are more questions than answers, till the next time – to raising questions.