Monday, July 1, 2013

Case In point: Ethiopian Airlines on the 787, What it will do.....

Todays News: Seven Months Later!

Ethiopian Air clinches record profit despite temporary grounding of new Boeing 787s: CEO


July 1, 2013: "The chief executive of Ethiopian Airlines says that his company has pocketed a record profit despite the temporary grounding of its Boeing 787 Dreamliner planes.
Tewolde Gebremariam told The Associated Press Monday that his company is expecting a record profit with 20 to 25 percent growth in revenue and number of passengers.
He said Ethiopian Air would have been even more profitable, if it had not been for the grounding of its four 787 planes for more than three months. In January the U.S. Federal Aviation Administration grounded the aircraft after incidents with smoldering batteries on two different planes."

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LiftnDrag: "December 11, 2012:  Blog Discussion Seven Months Earlier!

" Another look is for Ethiopian Airlines in what the 787 does for its bottom line.  They will be a good case study, since they own such a smaller number of aircraft and fly long routes. The 787 will have an immediate impact from its operations, where you will see how it drives the bottom line at the end of next fiscal year.  This is a manageable study of its business plan and bottom line. You may gain a distinct appreciation for the 787's financial impact on Ethiopian  Airlines."

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Did this blog have some kind sixth sense? No, it had confidence in the 787. The CEO's of many airlines are reading this report today. A small African Airlines lives the dream while the larger airlines stand on the side lines opining away its Airbus allegiance and loyalty with a smaller profit margin. The 787 is all about the margin!  Corporations can control efficiencies for a better margin. But a great airplane trumps corporate efficiencies with a great airplane. Go ahead and buy an Airbus copy. After all you are invested way too deep into this horse for winning the race.  However, some can see the future . Return on Investment comes back at a higher rate with the 787. How fast can you pay for your purchase even if it is grounded for four months?  Ethiopian says pretty darn fast in the big picture of operations. If one doesn't get in line now for the 787-10, you will be too late to take advantage of an early start on profits. The later start give an airline an "also ran status". 


Ethiopian Profits Soar