A long flight can be a great opportunity to rest or get some work done. But this also requires internet access, a point that can be in short supply when you are on a moving aircraft. However, aerospace stock Boeing (BA) and Virgin Atlantic may have a plan to address this with a new partnership effort. The move was oddly unwelcome for shareholders, though, who sent shares slipping fractionally in Thursday afternoon’s trading.
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Virgin Atlantic is turning to Boeing to renovate its 787 Dreamliner fleet, adding a new antenna fairing that will allow for the use of Electronically Steered Phased Array (ESA) antennas. The fairing—also called the Boeing Aerodynamic Shroud—offers multi-orbit and Low Earth Orbit connectivity, which makes it able to access Starlink service.
Virgin Atlantic’s Chief Customer and Operating Officer, Corneel Koster, noted, “Partnering with Boeing to bring Starlink’s next-generation connectivity to our 787 fleet is another important step in creating a ‘home away from home’ experience for every customer. Together, we’re transforming how our customers stay connected in the skies – with low latency, super high speed Wi-Fi, better than what most customers experience on the ground to make flying on Virgin Atlantic even more of a joy.”
St. Louis Strikers Fight Back
And, with the St. Louis strike in full swing, reports note that elements of the International Association of Machinists and Aerospace Workers District 837 filed an unfair labor practice complaint with the National Labor Relations Board. Recent remarks from Executive Vice President Steve Parker made it pretty clear that Boeing would, basically, not be negotiating any more. That in turn, the union asserted, makes it a violation of labor laws that require good faith negotiations.
This portion of a letter in particular is drawing the union’s attention: “No matter how long the strike lasts, the economics won’t change. The bottom line is firm. Each of the offers we’ve put forward would give you a better deal than anything comparable we’ve seen in our region and industry…” With the strike approaching its third month, it remains to be seen how much longer either side can last.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 14 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 37.79% rally in its share price over the past year, the average BA price target of $255.38 per share implies 20.9% upside potential.
