European Aeronautic, Defence & Space Co. and Rolls-Royce Holdings Plc (RR/) dropped after Qantas Airways Ltd. (QAN) canceled an order for Boeing Co. (BA) 787-9 airliners, raising concern that other carriers will also cut back.
EADS, the parent company of Airbus SAS, fell as much as 59 cents, or 1.9 percent, to 30.05 euros in Paris, the most in 10 days. Rolls-Royce, among the makers of engines for the 787 Dreamliner, declined as much as 6.6 pence, or 0.8 percent, to 833 pence in London.
“We are braced for more airlines to enter cash conservation mode over the next few months,” Sandy Morris, an analyst at Jefferies International said in an investor note. “Everything is up for grabs,” he said, with airlines having already scaled back expenditure on spare parts.
Qantas said today that it is canceling an order for 35 787-9s worth $8.5 billion at list price on “lower growth requirements.” The aircraft were to be powered by General Electric Co. (GE) GEnx engines. Qantas previously delayed deliveries of Rolls-Royce Trent 900-powered A380s made by Airbus.
The Qantas move “could have a negative impact on investor sentiment towards Boeing and its suppliers,” Robert Stallard a London-based analyst for RBC Capital Markets said. However, the Qantas move is not indicative of a global trend, he said.
To contact the editor responsible for this story: Benedikt Kammel at email@example.com