Boeing 777-X May Mark, The Lufthansa Spot On The Airline Map

The much anticipated wide body order on the European market awaits Boeing, Airbus and Lufthansa. Its a closely held secret on how this is played out by members of the Lufthansa's inner circle. The few snippets exposes a strong "consideration"  for being a launch customer for the 777-X family of aircraft for a 2019-2020 its entry into service.  Most people think an Arab State will have that honor in November. However, it maybe a deal maker maker for Lufthansa could be made as a "European Launch Customer", through the auspicious occasion of Lufthansa's Big Wide Body Order!

Article of Note:

Is Lufthansa Putting Boeing and Airbus on Equal Footing?

Deutsche Lufthansa AG (DLAKF.PK) has decided to split an order for 50 wide-body aircrafts between Airbus SAS and Boeing Co. (NYSE:BA) according to individuals close to the matter, Bloomberg reports. A person with knowledge of the deal also told the publication that the purchase has a potential list price of at least $14 billion.

If the purchase proceeds as reported, Lufthansa will become the first buyer of Boeing’s 777X, which are due to fly by the end of the decade. According to Bloomberg, the 777, which is the largest twin-engine airliner, will offer engines of the X variant along with the largest wings ever on a Boeing plane in order to improve performance."

The insider suggestions are running, well... insightful (wild) and vague. The only interpretation that can be drawn is Lufthansa is going to make a market impacting announcement for all concerned, adding impact to its own European competitors in the travel arena.. The headline suggest "equal footing". What could than mean? If you analyze the Lufthansa current inventory of aircraft. 

(Also, See Lftndrag Link below for Lufthansa Airbus Lopsided inventory) 

Big Order On The Lufthansa Front All Quiet For The Framers.

Lopsided inventory towards Airbus means equality in the inventory book, and could make for a big Boeing win of "the equal footing", fame. The 14 billion US dollar number also could allow room for the 777-X order of 10 777-8 or 9' each. Depending what happens in Doha either the orders will follow a -8 or -9 pattern, and Lufthansa may choose what model for an opening as it plies for launch customer status ,based on what the "others" are ordering. A sea change order is coming! Its A Sea Shifting Double Deal (SSDD) from Lufthansa.. I can`t predict the outcome only than its a market shaker and mover.. 

Once again with little information (low information voter), I will put on my Sherlock Holmes Hat and make a deduction from the clues at hand.. Equality means a big Boeing win on old Inventory. Equality for Airbus is a 50-50 split order as a  production hedge for its new A-350. Equality for Lufthansa is its 747-8I infusion of 787 commonality, and it likes what it sees with the 8I. Lufthansa would like commonality either with Airbus or Boeing inventory. They like what they have in the 747 and would like more of the same for all its wide body. The A330  needs renewal with the 787-8,9,or 10. The big 747 body from Boeing is working well, After all is was stated by the Lufthansa head CEO that teething problems is not a concern since many of those issues disappear on successful aircraft.. All airplanes, after-all, young and old,  continue to replace failing parts and systems on a daily basis. The 787 has superior management systems and have pats waiting before a model lands

However, the Boeing 787 program has the most redundant and sophisticated internal monitoring system in an airline. Its been flying for two years and is emerging as what it was promised to be in the first place.. Move over A-330. The 777-X family will exceed all expectations and make the A-350 family irrelevant for commonalities sake.

Now you know I'm all in for Boeing, one more time. I can't help it, its in my DNA.. But I'm trying to remain objective  just as the Lufthansa execs.. A change decision has been made, they had a sampler with the 747-8I, and they know Boeing's family of aircraft stand behind that pilot's front display. From the 737 Max through to the 8I, Boeing made the commonality change 10 years ago in a conference room, and its taken these ten years to bring the whole family of aircraft forward. Now Lufthansa is ready to start ordering Boeing in numbers as the best aircraft.

After all if Airbus has the order, John Leahy would be crowing, Boeing remains silent as they usually do until the customer announces. Airbus silence is really loud at this time.

Bombardier,787 -9's, Lufthansa: Are A Few Of My Favorite Things

Sound of Music had its mojo moments in the Alps with the singing of Julie Andrews. Opening this blog up with that bench mark song "A few of My Favorite Things"

• September 16, 2013 Bombardier C Series First Flight
• September 17, 2013 the 787-9 may take flight at Paine field.
• September 18, 2013 Lufthansa Takes Flight with a Big Order.

If you haven't figured out by now I like cheese served with this blog. With Alps in the background and German routes at stake you can't wonder at the Lufthansa business intent. If Boeing solves the 787-8's "teething problems" , then its solved the -9 and -10's teething problems. If Airbus has not delivered the A-350 yet what "teething problems awaits it customers already on the Airbus order book? The only Boeing Jet in question is the 777-X program. That answer comes later this fall at the Arab Airplane summit/Air Show. Lufthansa is about to make heads turn either way, with Boeing and Airbus on the 18th.

On Tuesday, the 17th, the 787-9 takes flight with all the teething problems gifted to the -8. It will fly when everything is ready, including the weather. Tuesday is the optimal date for program readiness, but we'll see  if everything cooperates for first flight.


Finally, a mention for Bombardier, I like its ATV,rode 'em wild and have flown on its regional jets without mishap. The C series is on for Monday  not to upstage Tuesday or Wednesday. I hope all goes well for the C-series. Bombardier is North America's answer to Brazilian Aviation interest.

Mike Sinnett, The Blackberry Maestro of the 787

Required reading for this feature:

787 Tests The Mettle of Boeing's Chief Engineer

Introduction for reading assignment:

Steve Creedy:  The Australian

September 13, 2013 12:00AM

FORMER Boeing 787 chief project engineer Mike Sinnett's Black Berry became the stuff of aviation legend after it was revealed it went off every time a Boeing 787 fault developed anywhere in the world.

Nor was it just faults. Any maintenance message that led to a flight-deck status advisory, caution or warning message, as well as take-off and landing data, flooded through the phone.

---------------------------------------------------------------------------------------------------

LiftnDrag follow-up:

Mike Sinnett keeps the 787 Orchestra playing while the audience shuffles in its seats. He does this with his Blackberry. Perfection, is the luxury found in the madness of going after the impossible, which accompanies the sound of success, and is validated from echos of prolonged ovation. The 787 concept has entered its last movement. A Virtuoso performance for those who stand by the Chief Engineer, those workers and customers alike really appreciating the ecstasy of flight found out as it emerges  from all that  agony . The article pretty much captures the behind the scenes stresses and toil from the top down of a driven man and a driven program. It isn't easy work, but its a life time reward of an aviator, engineers and dedicated human being doing what he loves. Making his Opus come alive, with the 787.  Bravo Mike!

ANA Answers Airbus In April 2014

Time is not a commodity in the Market place, but timing is everything. for ANA. That is one reason ANA is talking to Airbus. Boeing has an 80% market share in Japan and will depend  on that relationship for keeping its footprint firmly in the Japan market on track. Airbus sees a major defeat of Boeing. if it can woo ANA away from Boeing while picking this time, and this moment to step in on Boeing's turf. Airbus is making a strong effort while ANA using the "teething problems" (delays and glitches to send a strong message that Boeing harmed the relationship and damaged the ANA business reputation. Airbus steps up by making a strong attack on Boeing in regard  to Boeing's strongest weakness', 787 reliability and time. What does Airbus bring to the table:?

• Airbus gives ANA preferred status as a customer, relating to pricing and delivery
• Airbus gives ANA similar performance of high tech Aircraft that may compete
• Airbus has a commonality plans for ANA pilot training and ground crews.
• Airbus promise of no "teething" issues, (TBD) Lower tech approach is the bluff
• Airbus has removed wait time risk in delivery aircraft of lower tech aircraft is more reliable
• Airbus will "always", beat Boeing's offering and ANA becomes an Airbus  launcher
• Airbus has a buy 10 get one free coupon punch card for preferred customers
• Airbus has an XWB that iis wider than anything built... "well its just wider".
• Airbus is running out of talking points, and timely is mentioned, and no delays and cheaper  and...

After 10 months of eating Sushi in Japan, Boeing hasn't stopped power pointing its way into oblivion and beyond. Boeing knows its strong relationship  was damaged over delays, mishaps and "teething" issues. Boeing's commodity of time is lost (spent) making a two generation leap on the 787, where Airbus only took a one generation leap on the A-350 plastic paneled model. Barrel vs Panels is in a contested mode, as the one feature that Airbus smuggling refers to, when comparing aircraft. Since the Ethiopian Fire, Boeing has been  developing a modular repair protocol, forcing Boeing several years in advance of what it had anticipated for needing a solution. Even though several ideas were manufactured in its thinking a long time ago, Ethiopian fire was just a premature nightmare.

This is what concerns ANA, as Airbus would contest its panel solution is best suited for the rigors of its usage and repair work. Please note at this time, no Airbus is in use and had not had an actual repair drill on body repair. Comparing  that with Boeing's level of damage (unless Airbus has unpublished documents demonstrating a repair to the level of damage),  as exhibited by  Ethiopian Airline in London. The point is, ANA realizes the Boeing barrel design repair is a dynamic and fluid situation as in each case, is different. Barrel repair involves many different systems and structural points from case to case. Airbus would want to tell ANA, that is exactly our point we can fix anything, anywhere, and at "Any TIME". Even though they don't know the condition or extent of the damage. A bold claim if mentioned to ANA, but since its aircraft hasn't been delivered in the real world  yet, or put into service, it  is a reasonable sounding claim during a second helping of Sushi.

Now onto the Boeing's fight card of bullet points from the history files of 787:

• Boeing reminds ANA of its most important relationship because it is really, important!
• Boeing is has a more efficient and higher tech two generational leap in aircraft
• Boeing acknowledges the Time commodity, but strangely enough, time heals all
• Boeing reminds ANA that it has delivered on its promise; 20% fuel, 30% service(Delta)
• Boeing describes the A-350 as being one generation behind the 787
• Boeing has retired most of, or if at least, two generations of risks
• Boeing listens,, and will respond, to all questions and concerns,
• Boeing sees ANA as not a preferred customer but a valued partner
• Boeing demonstrate value is better than the lowest price, even if  ANA uses a sales punch card with Airbus.

The imagined talking points from Boeing doesn't stress technology and performance issues as better than Airbus, since ANA already has the facts from its own operations. Boeing needs to address ANA on eliminating the Time commodity of delay from its past delay over use, as ANA makes its money not from mishaps and delays, but from timeliness and reliability. If the 787 is more reliable than what Airbus  claims on its unproven aircraft, then Boeing gets a reprieve. It was a leap of faith that ANA took on, when it signed on as launch customer for Boeing. It was a trusted and valued partnership. Boeing's trust component is tested and in some cases the proof of concept failed with its batteries, since it did not take into considerations the touchy risks involved with the Lithium-Ion system during the onset. It was an oversight on redesign for electrical inputs, spiking and protection. ANA plans were disrupted  by delays, without a real price tag associated for those delays. You can quantify opportunity loss, ticket sales and fleet changes, but cannot quantify ANA's reputation and image as a most reliable airline. A great amount of intrinsic value was cast overboard during the shut-downs. ANA may think, Airbus is at our door and happy to assist Boeing over that same edge. As in any relationship the formative years can have a rocky moments, but a fabulous finish remains for ANA, and should not cut bait on this adventure but still fish with Boeing.

The deal is about restored trust, and proving promises other than the cash value, even though cash is the opening calling card. Airbus is out to prove its commercially untested reliability of its craft is "the selling point", for the A-350. Additionally, throwing its reputation forward, as a "more solid framer", onto the wood pile before any match is lite for the fire. Boeing must prove a partnership in the 787 venture existed as ANA too assumed great risk in advance as launch customer, and is a part of making this the greatest airplane ever made to date. Something ANA should consider is its own valued status in the process and should not be dumped for an Airbus offer, unless It is willing to walk away with an un-invested suitor, in place of its standing partnership with Boeing. The A-350 is a knock--off not reaching ANA's standard, which it had established by partnering with Boeing with the 787. The grass is not always greener with the next flirting suitor. April is a long time away for ANA's considerations, but it becomes an awkward moment for Boeing which will take some TIME! ANA must consider the ill affect of two timing its partner as a successful relationship. ANA is not like some other some cheap mixed fleet operators in the wide body market.

The real story behind this, is not about the 787, but the 787 story is used by Airbus is telling ANA, the old saying, "fool me once, shame on you, fool me twice shame on me"! ANA's 787 experience can't repeat itself when it comes to the 777-X. This is whole sequence is about stealing a 777X order from Boeing because Airbus is really fearful that the 777 and is spreading that fear to ANA shouting out the 787 problem's with glee reminding them don't get burned again with a new airplane, when Airbus has a new one that hasn't yet gone to market yet. You see, its simple, Buy Airbus and no more Boeing problems. Come on  ANA get real!

Boeing and September Is China Month

Marketing VP from Boeing, Randy Tinseth, has spent a critical period of time this month in China. It has been written about as a reporting time to the Chinese about the future growth of aviation over the next 30 years

Thursday, September 5, 2013

Boeing Increases Long Term Forecast for China's Commercial Aircraft Market

However, this visit wasn't about laser pointers and big screens in front of eager viewers want to hear about China's next 30 years. It was about sales to China and how Boeing could help fill the impending void of aircraft for China, once it realizes the calamity of no airplanes that will befall China. The next 30 years?, someone scribbles in good Mandarin or maybe some English. Randy goes on, "do you realize how fast thirty years can go by when waiting in-line for your 787's. China Southern, Xi amen, and Hainan to name a few, know. By next year Airbus will have a really long  line and Boeing's production will peak on the 787, opening up some near term production slots as the -9's start rolling out the doors. The backlog is a 50/50 split at this time between the 787-8's and the -9's. The -8 momentum tilts towards a shorter wait line for the next year as ten a month are produced and the -9 is barely coasting out the door. Boeing will see in 2014 it cant start putting sales speak to customers about the shrinking 787-8 Queue and strong productivity against an undelivered A-350.

Its not that demand will hit in 30 years, its now that demand is building and China has to be in the right place at the right time to capture an advantage. Any questions? Any orders? Yes, you in the middle row with hand up?"

A man from EVA posses an important thought.

EVA Air studying 787-10 and 777X, aiming to be launch customer for 777X in 2019

CAPA > Aviation News > EVA Air studying 787-10 and 777X, aiming to be launch customer for 777X in 2019

4-Sep-2013 4:05 PM

EVA Air chairman Chang Kuo-wei said the carrier is currently studying the Boeing 787-10 and 777X, adding it plans to become the the launch customer for the 777X in 2019. Mr Chang, as reported by CNyes.comi, also said the carrier is aiming to increase its 777-300ER fleet to 35 aircraft. EVA Air plans to acquire seven 777-300ERs between Jun-2013 and Jun-2016, increasing its fleet of the aircraft to 22. The carrier also plans to 777Fs to replace its 747-400Fs

.
Randy comes back with due respect and honor, "please see me after the symposium on 30 years growth plans for China, wait , I'll come see you".

So goes the imaginary dialog from China. There are other announcement in the works. It sounds like the the -10's and the -X twins are in play. Being a launch customer for a model is very important to China. This won't be the last clue thrown out of what's in play. The Arabian Gulf is strongly connected to Boeing's future as well. Could China usurp  the Arabian peninsula from QATAR as a launch customer on the 777's this fall? I don't think so.

However, Boeing will be the auctioneer during a robust auction with a crowded room. The orders will come bouncing of the walls when the bidding wars begin from China as they realize 30 years is right now.

China is getting ready to come out and play in the airplane wars and will want to get on board with a strong representation and fanfare, but the Gulf states have a big head start for that honor of launch customer. Its more in the order for a -10 customer launching for China, but the 777 order book is going to get interesting, as an ordering staple for Boeing's sales team, with the China market for the next 30 years. EVA certainly leads the way for China and the Twin  X's.

Max Effort Will Beat The Neo Flight

The 13 % percent fuel burn claim for the 737-800 Max over current models will beat a similarly appointed Neo from Airbus by 8%. With the CFM engine maker who is set with GE  going down the hallways of design, a certainty will achieve that result. All the early rush in the market going for Neo has formed a substantial waiting line with its 60% market partition lead over Boeing's 40% sales stable of newly ordered 737 Max's. This aircraft, the Max, came to the market one year later after Airbus rounds up a substantial number of Neo Flights during aviation's Paris and London market places. I readdress the Max and Neo contemplation one more time, and it won''t be the last time, until after first delivery of both aircraft.

Calgary based, West Jet is going to order 40 737-800  and another 25 737-700 Max from a signed letter of intent, and pricing the tentative order at 6.3 billion. There are plenty of mega orders for Boeing prior to this order as it has gathered more than 1300+ Max's to date. Even though Boeing still is behind on the A-320 Neo, in total order book account, because  its loyalty representation for Airbus in orders had one more year of sales work before Boeing's launch date. That sales order saturation is also mirrored by Boeing's plight of loyalty orders for the Max, which is the continuous fleet renewal onslaught found in the nifty single aisle market.  West Jet is a Boeing customer. What has not been discussed is the trench warfare sales campaign's going on from Hotel to Hotel and corporate offices around the world. That is where the value of both competing Airlines will make its point.

The question of who has the best airplane for the market will be answered during the 2014 campaign with the following prospective customer types.

• New emerging Airlines with no allegiance established
• Total Fleet renewal Needs
• Mixed Fleet Airlines consolidating inventory
• Age of senior pilots and personnel turn-over, retraining staff with better equipment.
• Front Office Plans towards creating new fiscal model for profitability

These points illustrate areas that both manufacturers are keen to wedge-in and take some orders from companies who are seeking to compete with the big dogs. That is where capitalization, pricing, or operational costs advantages can make up a lot of ground, when competing in the market. Boeing will like to tell first time Boeing buyers we have the technology, we have the price and we have aircraft capacity that will beat out your competitors for your size of market. The 787-800 Max has more seats and goes the distance on less fuel. Boeing will employ the "Edge" system on emerging marketers throughout the world.

Phase two, is always seeking to find a way for taking away loyalty customers from Airbus. That is where the new Max and CFM come into play. If you fly 3,000 miles with 12 more people on-board than your competitor, who will be offering a 8% less fuel economy (Airbus similar advanced  Neo model), its a no brain-er.  Especially if you have a mixed fleet of A-320's and 737 NG's. Then turn-over your aging A-320 fleet into the Max line. Companies can make a transition easily with training in-house and its existing NG maintenance crews. 

Over to the really dedicated Neo-flights, those companies that fly exclusively, Airbus. Boeing won't solve that sales dilemma, but the market-place will adjust by draining the Airbus swamp of its customers if the 737 Max lives up to its advance proclamations of 13% edge over current model flying, leaving the Neo back behind by 8%. It will be a slow process, but a doable one as the new "start up types" start to erode routes of the Airbus customers. The economical types like SWA in the US and Ryan Air out of Ireland are raising eyebrows as to how vulnerable Airbus fleets are to the 737. When the Max hits the fan blade, it may too late for Airbus' aspirations for the single aisle market. 

Boeing Has The China Syndrome II Covered

Many years ago a book and a movie by the same title entered the seen, The China Syndrome. So on this commemorative day, referring to Jane Fonda's epic movie part, I acknowledge the nuclear melt down to China never happened its fiction from the days of quipping that I'm digging a hole all the way to China meets movie goers seeing a nuclear calamity melting clear to China. The second movie in the making is on scene with its director and VP of Marketing for Boeing, Randy Tenseth.

The new, part II movie will follow a different plot line. In this epic rendition here are the the players; 1.3 billion people, Fastest growing economy, attitude for itself, untapped potential, and multiple suitors for role of aircraft provider. The story line follows an innocent plot of airline executive going to China to make a pitch at an aircraft symposium on the next 30 years. However, China would like to be its own champion in the picture of supplying the world with aircraft. Randy must convince the Chinese that Boeing has an insurmountable lead on China's aspirations and will continue to build upon its advancement in the next 30 years for China. China will only play an after market role for its own manufacturing role of a framer for modern jets. By the time China goes all plastic for an airplane that could compete on the world scene, it will still be behind Boeing in progress but can still capture its own niche market. China's aviation community nods a collective acknowledgement and smiles because it has a syndrome in hand. A process through acquiring gap shrinking technology at an alarming rate through all means possible. That is China Syndrome II in the reverse meltdown of  both Airbus and Boeing's technology lead.

How will that technology acquisition occur?  A simple plan is in process. The Syndrome is that China would like to become partners with both giants in building
proven parts for advanced aircraft assemblies. That will offer an extremely affordable environment  and ship a convenient flow of engineering and parts to its providers, Boeing and Airbus. The Syndrome will develop a capability that will compete with the giants in spit of all Boeing precautions. The China Syndrome is melting down all trade secrets and advancements with its appeal of a 1.3 billion person enticement for selling aircraft to 1/5th of world population under one flag. Any responsible leader of the aircraft world will go there to sell airplanes. Here is the syndrome's deal. We want to buy your airplanes by the bucket loads, tell us how we can sign-up and on what line.  How many Max's and Dream-Liners Randy Tinseth queries? China Syndrome people respond, "we want the same relationship that Japan has with Boeing.  You know, some manufacturing in China tied to  these commitments."

Randy smiles,"Okay, I see what you are talking about."

Randy also retorts, "Japan is our valued customer and launch customers." Now the China Syndrome  people must consider its options by laying down some carefully scripted responses; "Let us get back to you Randy, as we analyze our own potentials (Airbus) and needs you have presented for a realistic growth potential with China. We want to select the highest technological aircraft possible in the world. (wink-wink). So we may advance our customers needs with the highest quality in future flights (wink-wink). Randy most graciously inquires, "do you need some eye drops with that?" The China Syndrome Committee, almost melts in its chairs at that suggestion, but continues with the script. "Our desire is to partner with you, Randy, so that we may build a stronger relationship (our own aviation manufacturing) that can fly us around the world (in our own aircraft)."  Randy now senses the winking jargon towards Boeing and remains resolved to establish a dialogue for selling airplanes. His mission not disrupted, but he is more vowed to defeat the China Syndrome Committee of 7 from getting Boeing secrets with his own offer that they can't refuse.

The movie plot line does not have Jane Fonda or Michael Douglas in action, but does have the sage experience of seasoned veterans, providing company product without the secrets. Reverse engineering isn't all that, as what they make it up to be from urban legends fame. The fact finding plot line is moving behind the scenes with a meltdown of what's in Boeing's sauce for aviation. It's clear to Boeing what it is selling, but not clear to Boeing what China really wants to buy.

Boeing Selling Points Must Compete With Customer Capitalization

The little hidden agenda of a customer must compete with with Boeing's offering of new Technology. Understanding long term purchasing and money markets is a second tier motivation for buying prior generation aircraft over the latest generation.

The cost model content includes these components:

Aircraft Loan Service Cost and Principal outlays+Aircraft Operational Cost/per year= Monetary Depletion/year when choosing current generation vs. Future generation  models when conducting fleet renewal within a five year cycle.

Another way at looking at it, is breaking down how a $70-80 million advanced technology aircraft compares with 15% better performance than a prior generation optimize aircraft for $40-50 million. How far can you fly the $40 -50 million aircraft before the advanced technology advantages starts eating into the cost of capitalization for the lower cost purchase of a 737-800. Or in Delta's case they went for some cheaper A321's over some 737 NG's in the last single aisle battle, when Delta has a substantial fleet of Boeing. In this case it was a gamble using cash flows, interest rates, when borrowing and the operational cost offset.  Delta went for the Airbus offered price which beat the 737 efficiency offset with price, that affects the bottom line and for it to stay competitive. Plus Airbus had to make follow on concessions to Delta in the next go round with wide bodies twin aisle market. Delta could opt out and go Boeing later with twin aisle offers, if Boeing sweetens the deal. Delta has no stomach for being an experimental customer like the first year's customers were with the 787.

However, they will find themselves in the same bind by buying the A-350, if they go that route.  I believe the 787-10 is exactly suited for Delta's mission and will have a seamless launch to the first customers in waiting. Delta can step in easily with the 787-9 or 787-10 in the next year's ordering cycle. The A-350 has not teethed out yet, but should do so easily as it has not taken the difficult route that Boeing took with all new technology, and where Airbus walked the low road staying with what it knew except the Plastic part. They didn't even venture towards  more complex barrel approach, but went with a simplified panel approach, which is consistent with today's automotive use of plastic bodies. Boeing absorbed the over the top high tech curve going beyond the known result when it integrated so many different technologies on the 787. Airbus only went in half measures from the known world of making a new airplane.

Delta could option towards Boeing. If they don't then, Airbus has purchased an American Customer through pricing, because they can and needed to score marketing points for bragging rights. They, Airbus, are hand picking its fights with Boeing who needs to research its potential customers for its mission and operational soft spots, before defending the home castle. I'm sure they did their homework, but didn't or couldn't give them an offer it couldn't refuse. Airbus is sensitive to winning specific markets. One is the US and the other Japan. They want to break Boeing's marketing back both foreign and abroad,

Counter measure that are on the table:

• Refer to Ryan Air
• Refer to Norwegian Air
• Refer to Lion Air

These are all front line symposiums to stop the nonsense. Boeing must advance the quality and consistency of its product. It must continue to undercut competition even demonstrating how buying current generation aircraft is an advantage over cost and even makes up ground using lower capitalization margins and favorable financial markets that will cut back against the higher efficiency future aircraft for the next 5 years.

Delta is the signal that no customer is a certainty, when sales commitments are on the line. Once, again Boeing knows this, but they also need to carefully select its battles and make in-roads on the European front.  Delta's allegiance to Airbus is a case in point, much to Delta's delight. Boeing should determine who is Delta's chief competitor? They need to be knocking on its door and make an offer it can't refuse for new aircraft if Delta, Because it is playing one framer against the other. The market place will get it right eventually.

• Loyalty is rewarded
• Partnerships are important
• Commitment To Its Customer's Success Is Over Arching
• The Customer Vision is Boeing's Vision
• Boeing Mission Is Achieving That Vision

The message, its all about the customer, all the time, and Boeing is here to make that achievement of its vision realized through the product offering. Losing a sale is an indication of the customer's relationship.

Boeing's Deflection Of Airbus Over Japan

Airbus has for some time been eyeing the Japanese Market. Not just Japan but Singapore and Cathey Pacific to name a few. The jewel in Boeing's South East Asia's crown is both ANA and Japan  Airlines portfolio. That portfolio extends across to manufacturing in Japan as a significant partner with the 787 project. The following ties that bind the two are engineering and manufacturing caveats for Japan. Instead of a competitor keeping prices low for these two carriers, the long standing relationship  has been a good thing for Boeing and causes a preferred status between the many parties affecting Japanese trade and commerce. The old saying, "what has Boeing done for Japan lately  comes into play". The loyal factor is big for both Boeing and Japan as a country or airline. The ties are a collaborative effort where both have sunk billions into that partnership.  Additionally, respect comes to the play as Boeing represents its case before these Airlines. Boeing should or does respect Japan and ANA for its contributions as launch customers for its line of 787. Having Airbus come in with a low bottom line dollar amount, in hopes of taking away Boeing business is a bold move with the Japanese culture, respect and pride.

Airbus Struggles To Loosen Boeing's Grip On Fortress Japan

Boeing needs to guard it relationship with Japan with honor, respect, and its word, by making good its promises and rewarding loyalty by Japan, with competitive pricing for Japan, regardless of the competition. Both players, Japan and Boeing have too much at stake for some organization to come into Japan and low-ball a number, just to sell airplanes without regard for Japan's partnership with Boeing. It is most important for Boeing to continue its respect for Japan and the market by not making assumptions about Japan and others in the region. Boeing must be careful at this time in making sure these talking points do not go unnoticed  for both ANA and JAL as well as the 787 contributing makers found in Japan. Boeing cannot afford to let its strong relationship to stagnate with assumptions often found in friendships. They must honor that commitment to Japan with a re-enforcing proposal that respect the Airlines, in context of what has been offered by the European Conglomerate.

Here are my talking points:

• Respect For The Relationship.
• Honor That Has Been Established.
• The Partnership of Japan, South East Asia's 787 Launch Customer
• The value added to Japan's economy through its quality manufacturing achievements.
• The value of Boeing's aircraft  remaining in the lead as a result of Japan's contributions.

These are non cash intangibles found in  the Airbus' problem, while it tries unraveling the Orient from Boeing. If Boeing does the right thing by sharing the future together as a partner, and as part of Japan, a trust will form stronger with Boeing's offering, will keep Airbus seeking out weaker relationships for its A-350. Boeing will continue to out preform, out price and out produce Airbus with Japan's help. Airbus doesn't have enough skin in the game with Japan, and Boeing will make sure of its respect for the Japanese through its offer.

787-8 , Proof Of Concept

The 787-8 has completed its proof of concept during the dog days of summer. This Labor day is a good time of reflection for the 787-8 endeavor. Through toil and trouble it has caught on fire, smoked and failed with certain functional systems failures throughout its skin. All in all, no hull loses occurred as you would expect from the seriousness of the issues. The label Boeing chooses is "Teething Problems". The answer the press proposes, by its bent towards calamity, and fear; that the Boeing 787-8 is an incomprehensible disaster, where it reports every out of place part or misguided application, while ignoring the brilliant  redundancy, and technology that affords teething problems with a workman like progressions making it an almost perfect aircraft.

Its not the kind of aircraft that  repletes with, "damn the  omissions, full throttle ahead". Its more of a company and its people priding itself by making a quantum leap in technology with so many safety features protecting the teething problems. Its not the unsinkable Titanic, since it flies 40,000 feet above solid ground instead 10,000 feet off the ocean floor. Flying has always been  a dangerous business. That is what is driving the Boeing company forward, mitigating the danger inherent to flying. The FAA partners in that quest. As annoying as the FAA seems at the time, cobbling progressions of an aircraft manufacturer, it plays a most important and needed role as an independent governing body for compliance of known aviation. Boeing exceeded itself and the FAA with an all new airplane.

Who will stand up to the unknown? Locking arms together Boeing and governing bodies go forward together to answer the riddles born out of this technology.  You do not hear much coming from the A-350 project simply because they stayed within a certain technological base, not venturing to go where Boeing dared to go. Teething problems come to a close with Boeing having the sky high advancement of airspace, while its competitor continuously redesigns on the fly, even though Boeing seeks a continuous improvement of its own design it does not scrap the Dream to make it fly. Case in point: Boeing stayed with its own belief in the Lithium-Ion battery package after its battery fires. Airbus promptly dropped its need for Lithium-ion and had no stomach for battery advancement, because of its mad dash to catch Boeing with an all new plastic airplane.  The airbus solution is heavier and goes back a generation in electrical design. I do not suggest new technology automatically is better than old. But I do believe the lithium-Ion solution is possible, and better than the Airbus retreat, and defensive position it has taken, by moving back technology to a heavier and less robust Ni-cad battery solution and electrical redesign.

Redundancy of safety is Boeing's trump card that affords technological advancement and teething woes. Airbus is a fine company that does a good job, but stays back some and does not take on the innovation challenge as the robust Boeing effort. But Boeing understands its own capabilities through it people. Boeing must keep that human capability in sight at all times, for that's what makes the company really work well, and its what is keeping Boeing ahead of its competition. The people of Boeing is its secret, not a farmed out work-crew from somewhere not far from nowhere. The bottom line comes from the factory floor, the design room or own test centers. The big picture on labor day is the American values and Dream are found in its own endeavors. If Boeing takes on specialties from around the world in a collaboration of knowledge, skill and abilities, then it is good business. If Boeing can parley those company imports from abroad into development at home with the American workforce, then its a best result.

Plant layout and facilities development was a key schooling  I participated in during college years. It was important for efficient distances from one stage to another, merging supplies just-in-time, to the various work stations. This saved space and made the plant run leaner for a fattened bottom line. Now the plant has become a world-wide facility, inflating risks in a world wide stage, crossing Geo/political barriers of risks. Does it assume, there is no risk from change management conducted from a far off and stretched out map of the globe? Change is constant and disruptive. Even in the home plant change occurs, but that risk is mitigated with its shortened lines of work, with its own people and its collaborative  spirit.

An international disconnect occurs when new challenges arise when the piece of the puzzle is disrupted. Its best handled in your own back yard, if possible. The operative words is "possible".   That is a tough word for the execs to swallow as they mutter, "But we can do it cheaper elsewhere!" That is surrender, with unintended consequences.

Boeing should this labor day renew its efforts to build an American Dream and not an international fiasco. Look for ways of continuous improvement at home. Stay resolved to build the best and not step off its goals as other manufacturers have done with using a prior generation idea.  All electric architecture was not backed-off, nor the Lithium-ion battery. Its core technology is a great advancement as well as the barrel design in plastics. The list goes on with its great ideas handed to its great work-force.

Yeah, this Labor Day is a good day.