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Friday, June 22, 2018

The Farnborough Airshow Headline "The 797"

I don't see Boeing waiting for Paris because the market window for the NMA is 2018. The 797 has its customers base and waiting for a few more customers to come onboard by the 2019 Airshow is a fool's errand.

The Farnborough Airshow is a slight to the Paris airshow home of Airbus pride. Boeing has been working on the 797 since 2010 or earlier depending industry intel you want to believe. Eight years of development in the paper world has an opus result. 

The result will show at Farnborough next month and not wait another 13 months until Paris. All those waiting for Paris should bring umbrellas because they will be standing in the rain watching the second traunch of 797 orders come into the Boeing fold.

A conservative estimate for a 797 launch announcement is 400 launch units and the follow-on year at Paris will bring another 200 orders. During the months between, 100 orders will be booked totaling 700 NMA's during the twelve months of the Boeing launch announcement. The potential is too much for Boeing just to sit on it until Paris of 2019. 

It has what it needs for next month's airshow and it will launch. Some think it's Paris from what Boeing exec's have hinted with being in the next year before it decides. That sentiment is for an Airbus fan and its leaders to muse about until the official memo is sent leading in with a "Holy Sh** Bateman". 

If I'm wrong with this comment then I think Boeing has a poor sense of timing keeping its customer strung out as 767's and 757's are parked in the desert and A320's and A-321's are the upcoming airshows' main talking points.

I smell a show stopper is coming to England as a direct tribute to our neighbors across the pond. Paris is a no go for a launch announcement because of Airbus and being late in the cycle giving Airbus a response with its own counter. Singapore in January 2019 is no go because a monumental announcement would underwhelm the aviation world unless China comes through with a massive 797 order book. I think China will wait until Paris before it gets on the 797 train. It will have time to play Boeing for a year to get its order price in place for its Chinese strategy.

The orders will come just the same as Boeing has the ingredients for a market "disrupter", which its competition has not an answer at this time. Since Airbus will only have A-320 window dressing and A-321 curb appeal. Cargo will be addressed and is not an Asian factor for sales numbers.

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