Back to top

Analyst Blog

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.

According to a Reuters report, Myanma Airways, the state-owned national airline of Myanmar, is slated to lease about 12 of The Boeing Company’s (BA - Analyst Report) 737 jets to expand its domestic operations. The aircraft will be leased by diversified conglomerate General Electric Company’s (GE - Analyst Report) aviation leasing arm GECAS (GE Capital Aviation Services).

Although Boeing and Myanma Airways both refused to comment on the proceedings, the deal is likely to offer the airline company the flexibility and the requisite resource to operate internationally as Myanmar opens up to business and tourism sectors. In addition, Myanma Airways will also save on operating costs by taking the jets on lease and paying only a nominal monthly fee, against an outright purchase of $90 million for each of the 737 aircraft.

Air traffic is expected to increase significantly in Myanmar as new airlines start their ventures and foreign carriers open up shops. However, a dearth of adequate infrastructure facilities and poor safety record remain perennial concerns for the industry. Incidentally, Myanma Airways had to ground three Chinese-made Xian MA60s in 2012 after two aircraft suffered accidents while landing. This maybe a reason why the airline company is now banking on Boeing jets taken on lease to strengthen its position in the market.

GE Aviation is a leading supplier of commercial and military jet engines and components. It also provides avionics, electric power, and mechanical systems for aircraft along with an extensive global service network to support these products.

General Electric, the parent company, is one of the most diversified technologies and financial service corporations in the world. The company’s segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting, and GE Capital.

General Electric currently has a Zacks Rank #3 (Hold). Companies in the industry that warrant a look include 3M Company (MMM - Analyst Report) and Hutchison Whampoa Limited (HUWHY), both of which carry a Zacks Rank #2 (Buy).

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
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVESTMENT T ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%