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Tuesday, September 12, 2017

Malaysia MOU's Boeing For Eight 787-9.

Boeing just agreed with Malaysia's most recent deal making via MOU and has become a Trump PR moment as he gains traction with 100's of thousands aerospace voting workers throughout Boeing and the supplier's land. It won't be booked until... well we'll say by years end just to be coy with Airbus, as it usually does when it dramatically comes up with orders busting Boeing's order bubble at the last minute. Airbus has some work to go at its order book stands at 215 units where Boeing lists 426 net orders. 

The Malaysia MOU only bumps Boeing's book by eight 787-9's and eight 737 Max eights. This is just the sweetener. It is also reported a total of 25 Max were in the talks with another 25 Max flying in the background. The 8-787/50-737 order mix includes 737-Max 10's. 

Airbus was also in the works for this order, but Boeing appears to lodge its foot first in Malaysia's Air big hanger doors. Trump of course was right there with Malaysian Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak in talks at the White House today.

The MOU was all they could present for the cameras, but it is well known up to Ten Billion (US) in orders are in play.

Since John Leahy announced his impending retirement this fall, Boeing is on the order rampage. The 777-9X family recently doomed the A-350-1000 as a second chair offering within the aerospace marketplace.

The 777X is an actual Super Jumbo downsize fitting in at every major hub. The A-380 has reached its white elephant potential and Airbus scrambles on what to do! An A-350-1100 prospect has a thin market with the 777X already absorbing most of the potential sales. Euros are hard to come by when considering  any A-350-1100 do-over in light of its A-380's aging. The Airbus Top end is vulnerable.

Boeing once again got aggressive on the big chess board when it quickly moved forward with the 777X. It simply "Castled" with its 777X and took the Airbus queen's pawn in the process. The A350-1000 is now a lost leader in the market place. Airbus must do a moon shot at this time or gradually lose its place chasing Boeing.

Back to Malaysia Airline. It has aging A-330 and the 787-9 MOU explains the A-330's fate. The Max order is a key signal when having the single aisle turn of events going to Boeing and not Airbus. For every Max ordered is not a NEO ordered. The battle is in the trenches and Boeing has become aggressive in those proverbial trenches. The gap closes between the two mega makers of single aisle backlog. 

The first Max to hit the market place will now sell the majority of Boeing's future single aisle aircraft. Politics aside, as it can only go so far. President Trump cannot tip the balance for Southwest Airlines into buying more 737's nor can President Emmanuel Macron of France convince Indigo to buy more A320 NEO's. It's a business plan thing and politics is a four year cycle in the US.

Time is a sand shifting wind. Over time no one knows how any airline will play its hand for prosperity's sake. Indigo may collapse under its own weight or Southwest could merge with a bigger fish like United, causing some sort of change to occur. Currently, Boeing won a big one today with Malaysia's tip of its hat towards both the 787 and Max. The trend line is a dog fight between the two giant manufacturers as no outcome can be predicted. At this time Boeing has the high ground over Airbus in the 2017 dog-fight. 

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