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Tuesday, September 18, 2018

797 Is Just Where Boeing Wants It To Be "Finding 797"


The devil is in the details and that is what Boeing is doing with its NMA 797 concept,. making details It's supposed to be:q


 "BOEING SEES `797′ HAVING 40% LOWER TRIP COSTS VS COMPETITION"

The gauntlet has been thrown down without a weapon in sight. Boeing has 40 engineers turned loose a Spirit and they aren't widdling 797 sticks for trade shows. It's been a while since Winging It has uttered an opinion about the 797 programs, so.  now is a good time to look at the 797 program prospects and other stuff. 

It dawned on me that Airbus hasn't closed on some big deals announced at Farnborough this last summer. I suppose as Airbus habit to flood end of December for a rush of orders thus frustrating Boeing once again at the end of the year as the 2nd place  for order numbers. However, Boeing is playing the game this year and it has the upper hand. The first indicator is Boeing has secured 581 net orders by the end of August where Airbus has only 219 net orders to show for its efforts. Boeing has been storing commitments like a squirrel's winter cache. Big bodied orders lay about awaiting some kind of year ending announcement. Emirates hasn't added its committed forty 787-10. Nor has Boeing indicated how many EVA air has up its sleeve for the same model. Even though Boeing has confirmed its Farnborough order foray into a market lead during 2018 it still remains that several hundred more orders are pending an end of year announcement or an Airshow splash. In one sort month from November 12-16, there is a Dubai Airshow, and perhaps Emirates is waiting for that week to make Boeing's day. It's also conceivable EVA air will roll out the execs for the show and compliment emirates on its taste for 787-10's. If sixty 787 units are announced it would complete Boeing's year.

If Boeing does manage a hundred or more orders next month at the show, it would push the 2018 order total to about 600 units for the year. I wouldn't expect Airbus will have a big show standing for its orders. They are still struggling since those heady days at Farnborough. Airbus would like Air AsiaX to deliver some A330NEO confirmations before year's end after saying it would buy up to a hundred A-330-900 NEO's at the show. The number is fishy and a firm count is hard to come by as different news organizations say different "things" about the deal. The one fact is Airbus own website says 219 net orders for 2018 and Air AsiaX is listed anywhere as of August 31, 2018.  Timing is everything and Boeing could firm up another 100 787's by year's end over what it has already net booked for 2018 (96) 787's.

Airbus needs several grand slams to catch Boeing by year's end. Now moving towards the 797 and its announcement. Boeing is expensing real money on the program at this time. It takes 40 engineers about $8 million in payroll to draw CAD pictures in St. Louis, MO not counting the office building in Seattle, Wa for the 797 program masthead. The total bill for the 797 programs could be $20 million a year at this time and this doesn't count travel expenses for all those trips to customers Boeing is making. Add another $10 million to the 797 tabs.

The 797 has started its money pit several years back and its growing every day. The R & D division is more than a placeholder for Idle dreams. It is a real deal for siphoning resources and impressing launch customers. The Paris Airshow looks to be where the 797 aviation concepts will land as the biggest sideshow for the event. Or it may be the main event for 2019. If Airbus books 600 orders by year's end it will be a satisfactory year. The annual backlog event will give Boeing a chance to gloat as it closes the backlog the Boeing-Airbus gap by several hundred units this year as Boeing cheers the results

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