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Wednesday, December 19, 2018

Boeing's Plain Order Book Could Go North of 1,000 in 2019

Boeing has booked a net of 690 airplane orders without the month of December counted until the first two weeks of 2019 reporting on its website. I would expect that number to come out by January 10, 2019. Therefore, 2019 could include a rapidly expanding order book if it announces the 797 at the Paris Airshow in a mid-summer dream. It could possibly book 400 797 orders alone thus making a 1,000 airplane order book a reasonable projection for Boeing's 2019 count.

The 737 Max program took a jolt when Lion Air crashed its eight-month-old 737-8 Max killing 189. The airline would like to blame Boeing for inadequate information provided on its aircraft having a new system without proper information. However, the jury is still out and it looks more like Lion Air had inadequate personnel from the ground up and it sent an unworthy aircraft to its doom with all people onboard dying. Lion Air has announced it will cancel its outstanding order for the Max program as a reaction to Boeing's position on the matter. No other carrier having the Max has experienced a similar catastrophe and it has not been reported to date that other airlines are having difficulty with its 737 Max aircraft to this extent. I expect more 737 Max orders if no conclusion is reached in the next few months concerning its crash. Lion Air is in trouble on this one and it may not be able to even order more aircraft without stiff financial help or confidence.

Embraer has now entered the Boeing family beyond the handshake level after signing papers and taking $4 billion from Boeing.  It can expand with a Boeing aspiration in 80/20 joint commercial airplane venture. Boeing has essentially bought a highly successful airplane building program for $4 billion and with it comes the engineers it needs to build the 797 sooner rather than later. the 7/80/7/7 venture gives Airbus a jab in the shorts regarding the small end of the airplane market. The Airbus Bombardier could end up being a boat anchor for Airbus as it absorbs the CS300 program. Its program health is sound for a quality Canadian product but very limited in the big scheme of aviation.
things.

Boeing is leasing 58 more/less acres at Paine field under the pretense of more airplane storage needed and a footnote where it could convert some of the space to manufacturing when needed. The lot lays just adjacent to the runway. A similar position found in Renton Washington at the 737 manufacturing plant. It's getting to feel a lot like Christmas for the 797 execs residing in an office building somewhere in Seattle, Wa.

Boeing is becoming a Juggernaut it always pretended to be growing up. 

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