Friday, January 6, 2017

Waiting on Airbus Before Commenting On Its Use of Whiteout

Boeing unleashed a barrage of numbers today. The key numbers are the order book value and the Delivery Book Values. Before mentioning those numbers it is important to note...

Winging It calculations*:
668 net orders (92B)
748 Deliveries (116B)

*List prices are used where actual prices for each purchase in not available at this time. Typically the actual price can be up to 50% of list prices and is used by both Boeing and Airbus. Using list prices for calculation makes it an apple to apple comparison.

The billions in deliveries concern stockholders today and the orders today concern stock holders of the future.

Winging It is working out those numbers with a grand chart of both categories using Airbus as a comparison.

The net delivery billions and units numbers will determine the world's largest manufacturer of aircraft and once again it seems to be Boeing all the way.

Not withstanding a generous application of white out Airbus can hope to breach the Boeing bragging rights.

Fox news tends to cipher a $98B billion delivery total.
Winging It came up with 116B using available List Prices".

The order in dollars totals are also a guesstimate and Winging IT will provide its usual list price "estimation". The main thing is that estimations are in play until final exclusive income statements are revealed by both giants. "White out" will follow soon after each will compare to one another. Numbers will change according to promotional information needs of each other. A whole staff meeting will occur making out how one loses and the other wins in the game of World's largest. Boeing has Airbus in the bragging jail house at this time as it cannot and will not come close to Boeing's delivery quantity of 748 units. 

Boeing delivered enough of its high priced wide bodies to bury Airbus in the 2016 round of value. Both had respectable and close single aisle numbers, but the wide body arena is where Airbus lags and will continue to lag for some time into the future.  Airbus will not breach fifty A-350's during 2016. Boeing exceeds with 137 units of its 787's during 2016.  That number gives Boeing an almost 22 billion dollar advantage over Airbus' paltry $10 billion delivery of its A350 during 2016. That extra 22 incremental billion Boeing has over Airbus will show up somewhere in the book-keeping department. The big question can Boeing keep this up for the next five years?

If orders continue to trickle forth from Boeing customers it will drain the Airbus back-log before the A350- delivers its first five hundred A-350's. Airbus has a dismal wide body order book in the last three years coming after the initial order surge when the A-350 was first announced.

The Boeing four corner offense from basketwork fame in the past century was dominate as the single aisle competition can only manage a tit for tat game going forward. The wide bodied market place is slowing and it will hurt future aspirations for both Airbus and Boeing has going forward. Boeing can and will milk the clock until fuel prices rise.