Sunday, November 1, 2015

Boeing Rushing In Orders During Next Sixty Days from Somewhere

The Boeing fall rush has started and will culminate at the end of December. Even though Winging It, has mentioned some late 2015 orders over several Blog postings, it will continue mentioning the Boeing order book. The Dubai Airshow is up next. Several large orders elsewhere loom large. Nine more 787's where just announced by El Al from Israel, with another six 787's, must show up from a leasing company in El Al's behalf, yet to be announced somewhere.

"Somewhere", is the 2015 Order Book theme. The demonstration is an all-out Boeing scramble for 787 orders as well as a 737 Max push. Repeating a news item from earlier in October 2015 is the China conglomerate order, not yet disclosed for about 240 aircraft ordered. I believe this remains for late in December as the Keynote order placement for 2015. Boeing has pulled an Airbus move. Waiting for the last month to unload its order build-up from a year's worth of scrambling the global market.

The stockholder version is an entertaining presentation of a company not leaving any stone unturned for the order book. The production story is an exciting chapter suggesting take no prisoners on delivery of jets. Airbus got the memo finally and is responding with its own factory surge. It may be too late, as Boeing is not looking back over its production shoulder. If necessary, it will keep expanding production as a key to its always improving strategy.

Boeing knows production is the key to customer success. The current 787 order surge comes as a byproduct of production leveraging the customer forward with orders. The Airbus production flow of only about half dozen A350 delivered in almost a year is strangling its order book from customers. Boeing delivered about 40 in its first 12 months of a more complex aircraft. I will suggest Boeing did a much better job of getting product out faster than Airbus even though Boeing built a more complex and problematic aircraft at the onset.

Airbus will brag about how trouble free its A350 is considering it did not attempt to go all electric or risk an all new battery system as Boeing attempted. It buried its troubles in the shop and not on the flight line photo lineup. In sixty days Airbus will have a delivery number for the first twelve months with its less complicated and advanced airplane. I don't think Airbus will deliver another thirty A350's before January 2016, matching the Boeing feat in its first 12 months of 787 production and delivery.