Core Viewpoint - Airbus has appointed Troy Wang as the new Senior Vice President and Head of Commercial Aircraft Business in China, effective January 1, 2026, succeeding Liu Li who will retire at the end of 2025 [2] Group 1: Appointment Details - Troy Wang will report to Xu Gang, the CEO of Airbus China, and will also report to Benoît de Saint-Exupéry, the Executive Vice President of Sales for Airbus Commercial Aircraft [2] - Wang expressed his honor and excitement to join Airbus, highlighting China's significance as the largest single-country market for Airbus and one of the fastest-growing aviation markets globally [2] Group 2: Previous Experience - Before joining Airbus, Wang served as the President of Rolls-Royce Greater China, overseeing strategic planning, market positioning, government relations, corporate management, and sustainability for the group in the region [2] - He also held the position of Senior Vice President for Civil Aerospace at Rolls-Royce, responsible for customer business in the civil aviation engine sector in Greater China [2]

Core Viewpoint - The meeting between the State-owned Assets Supervision and Administration Commission (SASAC) and Airbus highlights the strengthening cooperation between Chinese state-owned enterprises and multinational companies, focusing on technology innovation, supply chain management, and green low-carbon initiatives [1] Group 1: Cooperation and Development - The SASAC Deputy Secretary-General Li Bing welcomed Airbus's delegation, emphasizing the high-level development of Sino-French relations and the continuous advancement of enterprise cooperation [1] - Li Bing expressed the intention of Chinese state-owned enterprises to enhance collaboration with renowned multinational companies like Airbus, leveraging their respective advantages [1] Group 2: Industry Potential - Airbus's Vice President for Corporate Information and Company Affairs, Julie, praised the achievements of central enterprises in China, noting the significant market advantages of China [1] - There is a substantial potential for collaboration between Airbus and Chinese central enterprises in the areas of green low-carbon initiatives and sustainable development within the aviation industry [1] - Both parties aim to deepen cooperation to promote high-quality development in the global aviation sector, striving for mutual benefits [1]

Group 1 - Kratos Defense & Security Solutions has established a factory to produce 24 XQ-58A Valkyrie combat drones, aiming to secure contracts with the U.S. Marine Corps and Airbus [1] - The U.S. has reclassified drones to fighter jet status, prompting Cathie Wood's ARK Invest to adjust their defense stock holdings [2] - The defense and aerospace sector is experiencing a surge, with notable increases in stock prices for companies like Kratos and Rocket Lab [4] Group 2 - Major indexes are reaching new highs, indicating a potential bullish phase in the market rally, with Tesla and Kratos among the stocks showing buy signals [4] - Increased defense spending targets by NATO and heightened military activities in the Middle East are contributing to the rise in defense stocks [4] - The market is witnessing a focus on drone technology, with expectations for significant advancements and investments in hypersonic capabilities [4]

Core Viewpoint - Delta Airlines is replacing engine units on over 300 Airbus aircraft to address toxic gas leak issues in the cabin air, which have been increasingly reported in recent years [1][3]. Group 1: Toxic Gas Leak Issues - There has been a rising frequency of toxic smoke incidents in commercial aircraft cabins, posing a hidden risk that has led to brain damage in some passengers and crew members [3]. - Since 2010, the Federal Aviation Administration (FAA) has recorded thousands of reports related to toxic gas leaks, with a significant increase in recent years, particularly concerning the Airbus A320 series aircraft [3].

Group 1 - The Aerospace Forum aims to identify investment opportunities in the aerospace, defense, and airline sectors, leveraging data analytics for informed decision-making [2] - The forum is led by an analyst with a background in aerospace engineering, providing insights into industry developments and their potential impact on investment strategies [2] - The service offers access to an in-house developed data analytics platform, evoX Data Analytics, enhancing the research capabilities for investors [1] Group 2 - The analyst emphasizes the importance of data-driven analysis in formulating investment ideas within the complex aerospace industry, which has significant growth prospects [2] - The forum provides direct access to data analytics monitors, allowing members to stay updated on market trends and investment opportunities [2]

Energy (KMI, LNG, TRGP) and Aerospace & Defense (BAESY, EADSY, SAFRY) sectors lead with numerous strong buy ratings on Friday. Retail also shows strength on Thursday with new strong buys for WMT, HD, and AZO. However, semiconductor giant Intel (INTC) was downgraded to strong sell on Friday, indicating potential headwinds. Target (TGT) also received a strong sell on Thursday, suggesting selective caution in retail. Disclaimer: This article is for informational purposes only and does not constitute financial ...

Core Insights - Hong Kong Aircraft Engineering Company (HAECO) has announced a new agreement with Airbus Services company Satair to expand the supply range of consumable parts, specifically providing Airbus standard parts for all operating companies under HAECO [1] Company Summary - HAECO is a provider of aircraft engineering and maintenance services [1] - The new agreement was signed at the MRO Asia-Pacific event, indicating HAECO's commitment to enhancing its service offerings in the region [1] Industry Summary - The agreement highlights a growing trend in the aviation maintenance, repair, and overhaul (MRO) industry towards collaboration between service providers and manufacturers to ensure the availability of standard parts [1]

Investment Rating - Industry rating: Outperforming the market [1] Core Insights - Aircraft manufacturers are slowly recovering capacity, but the number of grounded aircraft remains high. Supply chain and labor shortages continue to impact production, leading to delivery delays. From January to July 2025, Boeing and Airbus delivered only 701 aircraft, with a monthly average of about 100 aircraft, which is 74.6% of the peak monthly delivery of 134 aircraft in 2018. Meanwhile, aircraft order demand remains strong, with backlogged orders at historical highs [2][4][6]. - Global aviation market demand continues to grow, with the global passenger load factor reaching a new high for the year. The global air passenger volume is on the rise, with all regions showing growth in revenue passenger kilometers (RPK). The Latin America region leads with a 7.2% year-on-year increase, followed by Asia-Pacific and the Middle East with increases of 5.5% and 5.4%, respectively. International routes are performing strongly, particularly in the Asia-Pacific and Latin America regions [2][13][17]. - Overall, while aircraft manufacturers' capacity is recovering, it still struggles to meet the ongoing expansion in aircraft demand. Aircraft leasing companies are seeing high demand for orders, with limited available slots in the coming two years. The Asia-Pacific aviation market has significant growth potential, providing broader development space for Chinese aircraft leasing companies. Compared to global leasing leader AerCap, Chinese leasing companies are currently undervalued and have higher order elasticity, making them worthy of attention [2][6][38]. Summary by Sections 1. Aircraft Supply Continues to Tighten - Boeing's average monthly delivery has significantly improved compared to last year, while Airbus's monthly delivery is slightly below last year's level. As of the end of July 2025, Boeing delivered 328 aircraft and Airbus delivered 373 aircraft, with average monthly deliveries of approximately 47 and 53 aircraft, respectively [5]. - The backlog of aircraft orders remains at historical highs, with Boeing and Airbus accumulating new orders of 699 and 501 aircraft, respectively, this year. As of July 2025, the total backlog was 15,262 aircraft [6]. 2. Civil Aviation Passenger Demand Update - Global air passenger volume (RPK) increased by 4.0% year-on-year in July 2025, with global capacity (ASK) increasing by 4.4%. The global passenger load factor reached 85.5% [13][17]. - All regions experienced growth in air passenger volume, with the domestic market in China showing steady performance, with a year-on-year increase of 3.8% in passenger volume [23][24]. 3. Aircraft Leasing Company Dynamics - The average remaining lease term for China’s leasing companies is relatively long, with China Aircraft Leasing Company showing significant improvement in fleet age to 6.3 years. The average remaining lease term for China’s leasing companies is 7.9 years, ensuring long-term stability for their contracts [38][43]. - Aircraft rental prices are rising, leading to improved rental yield for leasing companies. China’s leasing companies maintain rental yields above 10%, with financing costs relatively low for China’s leasing companies at 4.5% [44].

Group 1 - European aerospace groups Leonardo, Thales, and Airbus are expected to sign an initial agreement to combine their satellite businesses as early as this year [1]

Group 1 - The 2025 Global Service Trade Entrepreneurs Summit was successfully held on September 11, attracting over 500 high-level representatives from government departments, embassies, international organizations, and leading enterprises [1] - This summit marks the fourth edition since the establishment of the Global Service Trade Alliance in 2022 [1] Group 2 - Airbus has delivered over 2,300 aircraft in China, with projections to exceed 3,000 by 2030, indicating that approximately 20% of global deliveries are to the Chinese market [3] - The rapid economic growth in China is driving the development of the aviation industry, prompting Airbus to focus on enhancing local services [3] - Airbus is advancing in areas such as aircraft connectivity, with plans to utilize high and low Earth orbit satellites for improved broadband communication [3] - The digital services provided by Airbus have evolved significantly, allowing for continuous data transmission from aircraft systems, which enhances fleet health management and reduces costs and failure rates [3]