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Friday, February 7, 2020

Boeing Strategic Review

The first point to make is: 


  • Commercial aviation product must match its strategic plan


Boeing has failed to complete its aviation product line when it had the opportunity from 2015 until 2020. The long road to catching-up has begun it may take 10 years to complete its product line.  The important items are beginning to matriculate out of its strategies like the 777X program and a relationship with GE jet engines through this 777X process. The prior strategic plan did not match where the industry is going while its main competitor strived to become a customer hound by building commercial jet with more room. Those roomier jets are not technologically better but are more popular for ticket-buying customers to ride somewhere.


  • The 737 concept must be eliminated:


Long ago, the runway standing of the 737 was too shallow making engine builders build around the low clearance on the runway, while making the engine move forward, and finally, the low airplane standing at take-off required an inadequate MCAS system that would fly the 737 MAX to its doom. Get rid of the 737 as its clearance on take-off is too limiting of the 737 engines and safety issue as the airplane is now out of balance with engines too far forward on the wing, and its poor center of gravity put the Max into flying peril as to what could be described as unsafe. The 737 should have been canceled before Airbus would build its first A300 series airplane. If it had changed the 737 to a baseline single-aisle by 1980. it would of not be in the situation today it now finds itself. The 737  is killing Boeing and collapsing stock-holder value. Its bold Max move did not solve the 737 problems at all. Now the strategic move must include huge risk and expenditure beyond investors want. It must strategically change aviation to win. It must build a smaller market airport plane using the 783-300 or even a 787-200  using smaller dimensions.


  • The Twin/Twin is a concept worth pursuing. 

Here's the premise for this gap plugger starting a step down from the 787-8. here are a few rules. Twin aisles/Twin engines or a better achieving twin/twin airplane. Keep building the 737 because you are stuck with that concept, but use what you have already paid for during the 787 programs. Start with the 787-300 design and then size it for 200-270 passengers. Go seven ago with a reasonable body width. Twin-aisle means fast-on and fast-off and big windows for everybody! Partner with Embraer having them bring forward a respectable single-aisle starting at 75 seats up to 175 seats according to a model both Boeing and Embraer can build. The strategic goal is for Boeing to make The NMA and Embraer make the single-aisle family of aircraft. It a big headache to do a sea change but so is it a bigger headache to crash airplanes and lose the market from greed. It's going to be a long time before Boeing recovers from its current greedy mistake shoved on the flawed 737 Max, but in order to regain the lead in the industry, it must rethink its family of aircraft from the top (777X) to Bottom  (E's 170- 200).

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