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Thursday, May 24, 2018

The A-380 Looks Over Its Shoulder At The 747?

In real estate or business, timing is everything. The A-380 came to market out of pride and not from any common sense. It could seat 550 plus paying customers at a time as if it was a convention load of party goers. However, conventional wisdom says there are only so many conventions? The "we will build it when you come" airport authority is flummoxed over the concrete and asphalt costs imposed by contractors who need to fill the swampland the airport needs for an A-380. Boeing went with "If the shoe fits wear it" motto, hence the 777X folding wing appears with copyrights and all.

The A-380 arrived twenty years too early and the 777X is coming with its widebody market mop bucket. Airbus spent money and it shows. Nice airshow, Airbus, I really like watching tonnage fly over the hot dog stand at the show.

The metrics are in. Two 777X's can fly more profits than one A-380 could. The Boeing 777X can get off the ground from any existing airport configured for the current 777-300ER. It will go in two different directions at a 700 passenger clip, which is more than an A-380 can do in one desert landing and it will also use less fuel while selling way more revenue tickets. 

"Pride cometh before the fall", as Airbus begs for more A-380 sales, Emirates comes forward and buys 36 at a fire sale price. Airbus can now build 36 more A-380's since Emirates penned an order in early 2018. If Airbus drops production to 6 a year it can build 108 backlogged units over 18 years before shuttering its A-380 program.

Image result for A-380

In 18 Years the 777X will be cranking up its order book to 1000 units or more and will be delivering about 60 a year. A two for one airplane option for commercial airlines will entice the market with more orders once the last 777-300ER and first 777X is delivered in no particular order. This little nuance goes noticed by stockholders.


Airline Report Photo
Image result for 777X

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