AMR Likely to Split Massive Order Between Boeing, Airbus

Airbus SAS won an order from Indonesia’s PT Lion Mentari Airlines for 234 planes worth US$24-billion at list price, giving the European planemaker entry into a market that competitor Boeing Co. has long dominated. The order, announced at the French presidential palace in Paris, includes 60 current-generation A320s, 109 A320neos and 65 A321neos. Customers typically buy planes at discounts. We’ve always wanted to be a big player in Indonesia, a country of 17,000 islands and 240 million people

Brian Nelson submits: Shortly after we released our analysis of the fleets of the largest legacy carriers, The Wall Street Journal reported that AMR Corp.

Brian Nelson submits: Last week, in anticipation of the Paris Air Show--a huge event for the aviation industry--we outlined our forecasts for market share in the narrowbody aircraft segment, which showed Airbus' A320 gaining a clear lead during the next few decades.

Airbus pioneered the wide-body twin engine airliner with the A300 over 40 years ago. Initially ignoring the threat, Boeing responded with the still in production 767.

By Valuentum: Michael J. Mauboussin, when working at CSFB in 2002, published an excellent piece on the concept of an economic moat, the work of which we make available here. Warren Buffett is often given the credit of coining the term.

By Zacks.com: The second-largest U.S. airline, Delta Air Lines Inc. (DAL), is set to order 100 Boeing (BA) 737 planes in a bid to replace its older fleet with more advanced and fuel-efficient aircrafts. The order is estimated to be valued at approximately $8.6 billion.