Friday, September 22, 2017

Is Boeing On The Verge Of A 787 Gold Rush?

The question becomes obvious after Turkish Airlines announced its recent 787-9 order for $11 Billion in 787-9 Airplanes. With Japan announcing it was the owner of a prior unidentified order for four, Boeing appears its on the verge of some sort of airplane gold rush to order. The indicators have been sounding off as if it is a metal detector. The shovel ready production projects are nearing completion in Everett, Wa. for its 777X program and Charleston presses on with the 787-10. The whole Boeing landscape is a buzz with activity, if it were unloading supplies for the Klondike.

The first "Gold" exclamation came when Boeing announced it was going for producing 14 787 a month instead of its guided 12 a month pace it had announced in previous years. At that time a loud "Ka-ching" hit the factory floor as it were a cash register making a big sale. Boeing had hoped for even making 16 a month 787 in some kind of fiendish glee heard in a meeting room near a water cooler/vending machine set-up. That brief omission was for stock-holder confidence, but no one believed that was possible. However, stock-holder investment rose significantly as if a runaway bull in the exchange was named Boeing instead of Boo-Boo.

Reality falls somewhere in between gleeful manifestation and depression. In a bi-plane/bi-polar world somewhere in between lies the answer and today it is 14 a month 787's. The formula is simple, 16+12 / 2 = 14. Checking math was given to a fifth grader and it came back as 14 -787's a month from a lengthy Boeing word problem. The work paper was given to a Winging It University (WIU) professor for final correction. The fifth-grader was correct and the problem was added to the University's math curriculum.

The professor gave a lecture last week entitled "14 a Month is an Idea Not a Concept". The following crib notes were discovered in a dumpster nearby the lecture hall. "Boeing must know something about its order book; Thanksgiving is months away, A turkey is what's for dinner, "Dubai me a river" is rising in the charts, A movement in the market is a lonely number. Boeing's campaign for Job One is a stand-a-lone concept. In order to go to 14 a month is not a bravado move, but reflects In-Orders. Net numbers is the same as never-mind."

The remaining notes on crumbled paper were indiscernible. Winging It looked up "Indiscernible" on the laptop and found out you couldn't read the remaining notes. Investigative reporting is hard work. However, a conclusion is made which should enlighten your knowledge and save time on making a decision on whether Boeing is rapidly becoming the one or just lonely (only). Airbus is having a WTF convention this week. The topic is WTF and Boeing Orders.

Back to the tittle heading. A Gold rush is the same as a perfect storm. All the elements must line-up perfectly before it can occur. In Boeing's case, is its control of its 787 backlog which is less than the Airbus A-350 backlog. Producing more wide bodies than a competitor can, would or could. Having the industry standard is better than having a more expensive alternative. Gold and cash are shadow currency to one another. Boeing is entering into the Perfect Gold Rush!