AERO Analysts are betting on full seats and an aging fleet

Jul 01, 2007 | 06:50 AM |

A recovery in air travel has the commercial aerospace sector gaining lift, and this upcycle will gain even more thrust when Chicago-based Boeing Co. ramps up to full production on its new 787 Dreamliner.

"The aerospace sector is being driven by the continued increase in production at Boeing and to a lesser degree by when Airbus (SAS) steps up production of the A380," said Howard Rubel, managing director of aerospace equity research at Jeffries & Co. Inc., New York. "We've seen air traffic increase, and that increase has been international. As a result, it's created greater demand for wide-bodied jets compared with previous business cycles."

But as larger planes drive aircraft makers to lighten the load, what does this mean for the metals that typically make up the aircraft?

"Composites continue to take share away from aluminum in aerospace, but that won't fully take shape until Boeing ramps up to full production on the 787, which should happen sometime in 2008 or 2009," Rubel said.....





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