Saturday, April 7, 2018

Now What For The 787 After American's Airline Orders 47 - 787.

American Airlines has now triggered a firm order for Boeing's 787 programs. It ordered 22 787-8's and 25 787-9's for a total of about $12 billion at list prices. It was the big break Boeing has chased since the merger American Airlines conducted when it had absorbed and accepted the former US Air's order book for 22 A350 in the merger.

Boeing was the victor after years of sales work bore this American 787 deal fruit. Not forgetting the Emirates unconfirmed 787-10 order for 40 and the Hawaain order for 10 787-10, which when booked on Boeing's website will probably push the annual bookings above 100 787 units for 2018 and give Boeing a 1400 unit program count which gives the deferred cost balance something to think about.

The "now what" for Boeing is finding another 100 widebody sales for 2019.

Boeing being bold, set a new accounting block at 1,400 hundred units before it would retired program debt and it is also announced increasing monthly 787 deliveries to a 14 a month pace. No one could predict if Boeing could pull off its pronouncement of manufacturing capability. The orders weren't there back in 2017. Then came Emirates in November 2017 for 40 787-10's and now American for 22 787-8 and 25 787-9 totaling 87 paper units. Hawaiin closes the book near a hundred units for 2018.  The year has 8 1/2 more months and Farnborough is yet ahead on the calendar!

Boeing long knew it had a plan coming together last year when it announced production increase to 14 units a month. The year has yet to play out, but it now looks as if Boeing has and had gained control of the widebody market which Airbus depends on for busting Boeing's game up. It looks like it will be a long airplane war for which Boeing has gained the advantage. The market death blow and for subduing Airbus could come with a successful Boeing NMA offering, aka the 797.