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Friday, September 13, 2019

Who Blinks First Boeing Or China?

It is not certain who has the upper hand Boeing or China. Boeing needs China badly and China needs airplanes from the duopoly of Airbus and Boeing. However, Boeing builds the best heavies flying when considering the 777 line of aircraft. But the duo aisle segment can't save an manufacturer alone in its quest of being number 1 in the world it needs its Max sold to china and there is the log jam for Boeing. No Ma and no money in asia and China can pressure Boeing in a trade war so to speak. It becomes a blinking game of who will give in first. Boeing must gets its single-aisle airborne again before it can start its manufacturing engine up to full capacity and China must buy airframes to supply its ever expanding market place. Boeing must move its single-aisle backlog Max 737 when established to fly again.

Who blinks first in this deadlock? Both will blink at the same time benefiting both Boeing and China mutually during the year 2020. China will order 200 airplanes from single-aisle to WB at a fire sale price as Boeing seeks to regain some dominance in aviation's world marketplace. The later half of 2020 is the target area in time for blinking at each other. Everything until then will be posturing and gamenship. China needs airplanes and Boeing is making it difficult for them to get them with all the mishap and development problems Boeing has experienced. Out of this should come some pretty nifty product for the world and China would like to show case a leading edge approach which should cause them to order Boeing in late 2020. The 777 will have completed testing by then and the Max should have taken off by then.

The caveat is Airbus is lurking behind the Boeing mishap draft waiting to pounce on opportunity. A little publicized fact is Airbus has its problems too with its family of aircraft. It has been lucky so far as it hasn't crashed one or two of its products through Airbus faults. Airplanes have become way too complex to assume they will fly without hiccups. The Boeing lesson is profit over safety is not a good path in this new era of aviation. Safety is the gold standard to profits and will remain so for some time to come. In the meantime, who blinks first has the greatest need to win the aviation war.

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