Tuesday, March 22, 2016

Boeing Being Bean, "A Spent Force"

From the "Johnny English" movie fame comes a term from Mr. Bean "I'm a spent force", from his arrogant humility coming out from super-secret agent talk addressing his beautiful counterpart at the door. Is Boeing (being) "a Bean spent force"? They (Boeing) have deadlines for its tanker program with only a year to deliver 18 KC-46 Tankers. The tanker program just started flying its test beds with two more yet to fly for this purpose. It has unanswered solutions from tests fleet discoveries before installing remedies on the first production flow. 

Image result for johnny english a spent force

Boeing has just started first assembly of the 787-10 in Charleston, SC. Boeing has built and flown the first Max 737-800 test aircraft. It’s also nearing completion of the Everett wing building for the 777X program. How would a "Mr. Bean" handle all these daunting, make or break challenges? Go to the Orient? It remains a Yes and Yes answer to those questions. Having oriental sales and production capability would lift Boeing's wide spread programs moving forward. With a Boeing, Being, "Bean" approach, somehow Boeing’s great aviation convergence will meet by 2018. Boeing has a plan which contains the number eight prolifically throughout its insanely paced catch-up over its rival Airbus. 2018, 787 and Max 8.

In the sport of hockey there are line changes to put the freshest player on the ice gaining a way for superiority over the opposition. A goal is all that is required from any line change.  Boeing has flipped its leadership through a line change at a crucial point for all its programs during the last few months. One VP to Chicago one VP transferred in the Seattle rink. A new CEO here and a new VP there is the line change. However, the problems remain for Boeing. The KC-46 program is at a crucial crossroads for any hope of early profitability. If "being" a little late, it loses hundreds of millions for the Bean counters. There are many risks and unforeseen risks yet to be resolved after tests have begun. There are production woes of no space and no time to build the KC-46 on time.

The Boeing's big wing plant opens this summer at which time, that building starts contributing to the 777X program bottom line. It is a big cash out depository moving into the capital valuation category. Return on the building asset is years away. Who would buy a wing plant if it were for sale anyways? Who would even attempt to buy the World's Largest Building somewhere in the NW rainforests for that matter? Boeing is stuck in Everett and the new line of execs have entered the game taking over the hand that is dealt them. 

Boeing Being Bean In The Orient
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737 Max will reach first delivery as projected. The 787-10 will once again prove the 787-9 is not a one off experience. The 777X is coming months late for covering any of its own production Gap from the 300er to the 9X, but when it comes, it will change the market. 

The KC-46 project will reach completion a little late costing Boeing more millions (it's the military stupid) but Boeing big pay day comes later where the military says the 179 tankers are a down payment for its overall tanker fleet renewal. In fact the Military will need another 200 tankers for complete renewal over the next ten years. By then, Boeing will have the corner on the Tanker Market, and that is what they now will spend money towards perfecting.

All in all, Boeing Being Bean is a sound strategy, it has a new line of men and women inserted in the game with fresh legs.