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Monday, September 2, 2013

Boeing's Deflection Of Airbus Over Japan


Airbus has for some time been eyeing the Japanese Market. Not just Japan but Singapore and Cathey Pacific to name a few. The jewel in Boeing's South East Asia's crown is both ANA and Japan  Airlines portfolio. That portfolio extends across to manufacturing in Japan as a significant partner with the 787 project. The following ties that bind the two are engineering and manufacturing caveats for Japan. Instead of a competitor keeping prices low for these two carriers, the long standing relationship  has been a good thing for Boeing and causes a preferred status between the many parties affecting Japanese trade and commerce. The old saying, "what has Boeing done for Japan lately  comes into play". The loyal factor is big for both Boeing and Japan as a country or airline. The ties are a collaborative effort where both have sunk billions into that partnership.  Additionally, respect comes to the play as Boeing represents its case before these Airlines. Boeing should or does respect Japan and ANA for its contributions as launch customers for its line of 787. Having Airbus come in with a low bottom line dollar amount, in hopes of taking away Boeing business is a bold move with the Japanese culture, respect and pride.

Airbus Struggles To Loosen Boeing's Grip On Fortress Japan

Boeing needs to guard it relationship with Japan with honor, respect, and its word, by making good its promises and rewarding loyalty by Japan, with competitive pricing for Japan, regardless of the competition. Both players, Japan and Boeing have too much at stake for some organization to come into Japan and low-ball a number, just to sell airplanes without regard for Japan's partnership with Boeing. It is most important for Boeing to continue its respect for Japan and the market by not making assumptions about Japan and others in the region. Boeing must be careful at this time in making sure these talking points do not go unnoticed  for both ANA and JAL as well as the 787 contributing makers found in Japan. Boeing cannot afford to let its strong relationship to stagnate with assumptions often found in friendships. They must honor that commitment to Japan with a re-enforcing proposal that respect the Airlines, in context of what has been offered by the European Conglomerate.

Here are my talking points:


  • Respect For The Relationship.
  • Honor That Has Been Established.
  • The Partnership of Japan, South East Asia's 787 Launch Customer
  • The value added to Japan's economy through its quality manufacturing achievements.
  • The value of Boeing's aircraft  remaining in the lead as a result of Japan's contributions.

These are non cash intangibles found in  the Airbus' problem, while it tries unraveling the Orient from Boeing. If Boeing does the right thing by sharing the future together as a partner, and as part of Japan, a trust will form stronger with Boeing's offering, will keep Airbus seeking out weaker relationships for its A-350. Boeing will continue to out preform, out price and out produce Airbus with Japan's help. Airbus doesn't have enough skin in the game with Japan, and Boeing will make sure of its respect for the Japanese through its offer.

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