Tuesday, February 10, 2015

The Ethiopian Gamesmanship

Ethiopian Airlines to order 20 wide-body aircrafts


Boeing will sweat this order because its not for the 20 dangling out in front of them but its for the relationship they have cultivated over the years as they have helped Ethiopian build its business with better equipment. Timing is a critical part of the deal. Who can deliver when Ethiopian will need the aircraft. They are looking potentially two suitors, the Boeing 777X and the A350-1000. Both models have not flown as of yet without Ethiopian getting overly excited by its own prospects during the near term. 

However, they have dangled a 20 unit wide body intent out in the air in hopes of snagging a competitive deal from either maker, so they say. One thing Boeing has to do is approach the sales junket to Ethiopian Air with an all out effort. They have the high ground with talking points. But what Ethiopian wants is some Boeing attention in the form of Boeing sugar, because most certainly Airbus is going after this one order as the obvious interloper.

A categorical talking point book from Boeing should grace an Ethiopian Exec coffee table. Including high glossy pictures and Gold leaf trim on the pages. Print at least 100 hundred for the whole board room, family and friends. Next send some Harvard Graduates straight from accounting over to Ethiopian for  helping them remember how the 787 changed the bottom line. All these 787 pilots can fly the 777X in a few days, how convenient. All your 787 mechanics can service the 777X is even more cost effective.

Now Boeing wants to talk about who has the better aircraft under all scenarios for Ethiopian. Rather than talk about the A-350 at all, Boeing should talk about the missing piece Ethiopian has going forward. If they only had a 777X, where will they be in five years from now? Leading the world?