The deal between the companies was announced at the Farnborough Air Show in Britain, indicated commercial airlines and companies like Boeing’s fortunes are beginning to recover from the global recession that has had a tight grip on expansion for the industry.
“The airline industry has seen tremendous setbacks as a result of the recent global recession, and as other sectors begin to see positive signs, so does aviation” said Warwick Analyst Brent Lasskio. “Emirates bid for an estimated $7 billion in planes shows that the industry has most likely seen the worst and may now begin to expand after weathering heavy and sometimes crippling economic times.”
Another positive sign in aviation comes from Boeing’s European rival Airbus, which to date has sold 131 commercial planes in 2010 and looks to double that after the Farnborough Show.
As demand for new planes is showing to be more rapid in areas like the Middle East and China, Europe and the United States are expected to bounce back slowly from the recession and begin to see gains in the months ahead.
“Fears of a global double dip in the economy always linger in the minds of investors, analysts, and institutions, but the progress steps made by each and every industry give an abundance of confidence to these groups moving forward” said Lasskio.
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Warwick Ventures is a Venture Capital firm specializing in the creation and development of small and mid cap companies Our expertise lies in our ability to identify fututre winners before the market. Our strategy is to work with these and help them grow.