Monday, February 1, 2016

The Cause and Effect In The Changing Boeing Market

Market Airplane manufacturing/economics, are played by supply and demand factors from changing fleet requirements.  The euro market is a good example. Ryanair, Norwegian Air and a few others have pushed forward successful operating models containing Boeing aircraft. Lufthansa-Germanwings partnership may be forced to unload a plethora of Airbus used equipment as it spirals downward, since last year's catastrophic hull loss of its A320 type aircraft. This airways pond ripple effect is not completed.  Today's comment is for the cause and effect of inventory change affecting the market.

As Ryanair and Norwegian Air aspirations arise with its Boeing configurations, the Lufthansa and Germanwings consortium contemplates dumping used single aisle Airbus into the market place. This will have effect as airlines may buy the used aircraft instead of buying new Airbus Single aisle models. The cause of all this could be tied to the horrific deaths of its customers from a mentally unstable pilot flying the Germanwings aircraft Last Year.

The video of this horrible event shows the delicacy of staying in Business and bumping along in the market. No humor is implied, but the cause and the effect of this event does relate to having a business model surviving 4 $billion in claims on an airline, as it may require dumping its inventory and begin a-new someplace else.

Marketplace inventory is the crux of this matter, as Ryanair and Norwegian fortunes rise in Europe and as passengers flee an unknown risk, just as Pan Am 747 had experienced during its catastrophe fall at Lockerbie Scotland. The market did change from that result, Pan Am died! Whether a deranged pilot or deranged terrorist, the result affects the marketplace in the long term. The Germanwings horrendous event highlights a change in the market. Boeing is falling into its vacuum coming out of Northern Europe with its customers such as Ryanair.

As a result Europeans will get to know Boeing aircraft and may gain reassurance that flying is a safe proposition. The market braced after the 777-300ER Malaysia flight #370 disappears, and then again after Germanwings flight #9525. The marketplace adjusts after each event. Now a possible Germanwings market surge for available used single aisle, looms up against its maker producing new aircraft.