Faced with a thirty billion 787
money pit. Dealing with a 1,300 787 unit block point for that little matter.
When all is said and done, Boeing needs to keep selling and booking about
100 787's a year going forward. Boeing has booked about 15 787-9's during 2016
with the Farnborough Air show coming up next. Hopefully they have come up some forty
orders from the event. Once the 787-10 gets rolling, errh flying, an impetus
may strike the market for ordering more 787-8's and 787-9's just because its
time to line-up on the Boeing Backlog.
Why order
a 787-8 at this time? It out flies the A330 NEO and it out performs every
legacy wide body found flying in the first decade of the 21st century. Some
have stuffed 334 passengers on its own fleet. Other have managed 291 seats
without any bodily harm. Boeing has less than 150 of its type on backlog
suggesting another reason an airline can order up the model. The 787-8 is
perfect for many an airline special operational needs. The question before us
today what is the 787-8 sweet spot. A spot that is defined by fuel load balance
by passenger capability and market need. The fuel price upward will motivate
fleet renewal in a hurry. This is coming sooner rather than later as the low
fuel price is coming to an end. All that old tin will reach the scrap heap when
fuel prices go up by another 50%. The Boeing backlog will be ready for a
special inter destination retirement of older aircraft where customers won't be
ordering the same of what they are replacing.
Why Order
a 787-9 at this time, while the backlog is tedious for impatient stock holders
of an Airline company? The reasons come from a Boeing production efficiency,
evolving since successfully converting 787-8 productivity into 787-9
productivity. There was a time when the common view of Boeing was steeped in
anxious anticipation when the 787-9 hit the production floor. Boeing seamlessly
introduced the 787-9 and promptly built over 106 of its type while building
another 188 787-8's during the 9's introduction. All expectations are now set
for the 787-10 program, as a do-over of the 787-9 exercise. Customers can
assuredly get its 787-9 faster than an Airbus A350-900 if ordering one of each
today. The compelling reason for buying the A350-900 has faded as Airbus enters
its own version of being late concerning its prime customer such as Qatar.
Why Order
the 787-10? Because it makes money in the heart of the Market. It will carry
over 330 comfortably seated passengers going 7,000 miles which happens to be
over 90% of the market span of travel. Once this aircraft assuredly flies like
the 787-9 more orders will follow as its utility maximizes passenger demand for
a customer’s profit line. Boeing is building an airplane for every customer's
purpose or business intent as its overarching business model.
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