Thursday, September 10, 2015

B of A analyst Says: A Gap Filler Is A Good Place For Boeing Replacing Its 757

Bank of America analyst have recommended Boeing build the consummate tweener. A 757 2.0 version. Boeing could in one sweep of the design board stop all the nonsense found in the A-320 Neo program. A new class of Boeing with the possibility of 1,000 of its type in sales could be coming.

Seeking Alpha has Reported:

Boeing has said it is considering a new jet that would fit a niche between its single-aisle 737 and long-range 787 Dreamliner, and the BofA analysts find "a strong case" for Boeing to go ahead, estimating a market for ~2,700 planes from airlines to replace older planes or swap in for inefficient, long-range jets that they are currently using for medium-range flights.

However, the analysts say Boeing's ability to recover its cost of capital on the program would depend on executing a more cost effective production method than the 787, which has struggled with high production costs building the mostly carbon-fiber composite jet.