Back to top

Analyst Blog

Zacks Equity Research

Boeing, Korea Air in Pilot Training Project

NOC BA LMT HII

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

The Boeing Company (BA - Analyst Report) announced that it will expand its training business in South Korea and as testimony participated in a ceremony that marked the construction of the country’s largest aviation training facility in Incheon's Free Economic Zone ("IFEZ").

On completion, the new facility will accommodate 12 full-flight simulators for pilot training programs supporting Korean Air's flight training needs. Boeing will play a key role in boosting Korea’s aviation industry. The facility is scheduled to come online in 2015.

Boeing plans to extend its collaboration with Korean Air to develop cutting-edge aviation training programs from a new base in Incheon. The company will continue to offer all simulator training and pilot checking services as well as engage in Korean Air's program development, quality assurance and training operations scheduling.

The Boeing Pilot & Technician Outlook 2013 estimates the need for 192,300 new commercial airline pilots and 215,300 new technicians in the Asia Pacific region through 2032. Of this almost 9.6% of pilot and 11.9% of technician demand will emanate from Northeast Asia including Korea.

The liberalization of markets and easing of regulations are rapidly morphing the Asia-Pacific airline industry into attractive investment destinations. Over the next 20 years, Boeing predicts the order value to reach a whopping $1.9 trillion with the Asia-Pacific fleet tripling from 5,090 airplanes in 2012 to 14,750 airplanes in 2032.

The introduction of advanced low-cost carriers has proven to be a big hit and will continue to rule the market given the rise in inter-Asia travel. Domestic as well as international travel is also forecast to rise by 6.5% annually.

The future looks promising for Boeing as the booming airline market in the region will fetch attractive orders. Currently, Boeing carries a Zacks Rank #2 (Buy).

Other well-placed operators include Zacks Ranked #2 Lockheed Martin Corp. (LMT - Analyst Report), Huntington Ingalls Industries, Inc. (HII - Snapshot Report) and Northrop Grumman Corp. (NOC - Analyst Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%