Tuesday, January 13, 2015

Its Simple: Boeing is World's Largest

After all the gaw-fawing over the books Airbus, as it has tried so hard, to make a silk coin purse out of a less valuable order book, when competing with Boeing.

Aircraft                  Boeing                         Air Bus                  Advantage
Delivered                723                               629                      Boeing by 106 widgets
Ordered                1,432                            1,456                      Airbus  by   24 widgets
A/R  Booked    Net 115 Billion US     Net   79 Billion US     Boeing by   36 Billion US
Revenue Adj    Net   48 Billion US     Net   40 Billion US     Boeing by     8 Billion US

These are probable and closely estimated numbers by Avitas (financial evaluations firm) as a conservative evaluations of aircraft sales, it can only achieve an estimation from usual sales policy, where sales are not priced at stated book value at time of sale. (Valuation estimate denoted as Net)

All data referencing from the Seattle Times article by Dominic Gates *** January 13, 2015.

Airbus’ 2014 sales tally shows Boeing is still No. 1 (Headline title)

What is important to note: both companies are multiple-years away from eating a significant margin into its respective back-log. Customers also need a five year plan for financing, fleet expansion or renewal staging. The aircraft manufacturer who reaches the five year back-log buffer first can harvest more orders sooner rather than later. If Boeing goes to 52-737 a month in production and exceeds 12 a month for 787 production level, they will be well positioned for absorbing more orders by 2016. It becomes a Sooner rather than later appeal, as Airbus now must find a way through its own lengthy order book in a timely manner. Boeing has also positioned itself well for both a 777-300-ER by a "now order" delivering before 2019, coupling it with a 777X "next order" package, which would deliver after 2021. An Airline customer can craft its fleet with this type of transitional ordering over the next eight-fleet-planning-years. They can maintain a five year planning mode with this type of order bracketing.