Boeing like a Rock Star moves out on tour being surrounded by city managers, realestate agents and people with money, all crowding in for a signature on its own community charter paperwork. Boeing like a Rock Star keeps on smiling as if on Ted's Most Excellent Adventure. Every community organizer in the nation is yelling like a teenage girl, "Pick me, Pick Me". I too, want Boeing to come to my community, Boise, ID. No chance of that, because our conservative no union base is thinking little tiny thoughts of getting the high school band just to march down to the Capitol building via 8th street with John Philip Sousa renditions of patriotic songs. Its almost shameless how these national communities are begging, screaming or plea for a signature on the community napkin found on the ground. Please build a Boeing plant just for the 777X within our..., even near our county parameter. "Boeing we want you even in our state, we're desperate bunch of love sick groupies who want you to put a show on/in our
school district ,
city,
state the North Western region.
Boeing, The Rock Star has an agent, doing the PR work. They know what they are already going to to do. The "Yellow Submarine Tour" is Boeing making a point with the Unions. Boeing is going to build in Charleston or Texas anyways. The magical mystery tour is just high level PR campaign that will enable Boeing to make a point by stating its many positions to many people with a fire for effect result on its main target. Today's talking points:
- Unions were worked with (over) and given an opportunity
- The Washington Politicians were worked with (fleeced) and given an ear.
- Boeing seriously wanted an inclusive nation (oh yeah) to participate on this tour.
- The screaming teenage girls (Think Tank) are driving this relocation campaign
- Boeing is a very important Industrial Rock Star, and did every town gets its swag bag?
- Boeing will sing "She loves Me Yeah , Yeah, Yeah" at the announcement party.
- "We all live in a yellow submarine" is a metaphor, you think!
- Abby Lane is not a Boeing address.
- Sargent Peppers Lonely Heart Club, was penned in Everett,Wa
- At the press conference Boeing stated, "I wanna hold your haaaand! In harmony
Now you know how this whole sordid business is being handled. Boeing is the Rock Star inebriated on its own wealth seeking an Alpha for its future X projects. This is not an anomaly with Boeing, the pimping out its industrial might for each project is the new norm. The next great Airplane will be coming to an Industrial Park near you (already decided). The type of business trekking is a new type of industrial progress. Much like a mountain adventurer who watches each step through the boulders and doesn't assume the trail is smooth. The next great airplane will have another full vetting for its location. Because billions will do that for you. The Rock Star can own 5 homes around the world. If tired of the color scheme, they just move to a newly built mansion and sell the old house with its provenance for millions of dollars to the next wanna be.
Human nature is replicated in life with the same theme at all financial levels of life. How long does a Rock Star put up with disgruntled help? Talk to Donald Trump about that. You know him as, Mr. You're Fired. Boeing has a comb over attitude for what it wants to do. Either you go with it, and make as much as you can out the association with Boeing, or get out of the way. Community organizers everywhere are excited about wealth, and Boeing. They are not getting out of the way. They are jumping right in the way of Boeing's plans. Hoping for enough bread crumbs to build new schools and libraries and for re elections.
Am I so jaded that I will speak out like this about Boeing? No I am not, because its not about Boeing, its about our country. Boeing is in "A Guy's gotta do, what a Guys gotta do", mode, and this nation is obliging the Boeing Sweep Stakes with shameless appeals for local recognition, and a consideration from Boeing. In order for Boeing's scheme to work there must be a demand from a raft of communities (customers) who would like Boeing's services.
Where will this magical mystery tour end? It will end where it started, in Charleston, SC. Boeing can then say, they did all they could do for everybody, and now the best decision for the corporation is on Charleston 400+ acre property. Those billion's already invested in Charleston will not go to waste. They are closer to its launch customer's in the Gulf region by building in Charleston, SC. The hand writing is on the sand near Myrtle Beach. Boeing knows what it will sing, even before it started singing as a group. If only the Chinese or Japan had bought 250 777X's they would have considered the left coast. Don't Forget The Boeing Motto engraved in stone in Chicago, Il. "A Guy's Gotta Do What A Guy's Gotta Do!
PS:Those yellow submarines are in Boeing's Defense Division in the archive department.
Go back to the mid-late 1990s, and Airbus and Boeing reached opposite decisions about whether it was worth putting several billions into developing a 747 successor. Boeing opted for a relatively cheap rewinging and upgrade to produce the 747-8 and Airbus went for the 380. Boeing reckoned on a market of around 700 aircraft by 2030, Airbus reckoned 1700+. By 2006, market estimates by independent experts were in the 400-800 range.
Developing the A380 cost about €11Bn. It's at 259 orders, some 8 1/2 years after it's first flight. It's never yet hit the production rates that were forecast when the programme was launched, and by next year, it looks like Airbus will be having to build "white-tail" aircraft - i.e. built in advance of orders.
The original breakeven point (i.e. recovering development and production costs) was supposed to be 270 aircraft, but as development was delayed and the dollar:euro exchange rate fell, that rose and when anyone last made an announcement it was north of 400 units - that was in 2006.
Things have got worse since then. Sales and production have both been slower, there have been fixes needed to things like wing cracks, and production costs have risen. It's also probable that there's been much heavier discounting of aircraft than originally anticipated, as Airbus needs to fill production slots. there have been claims of discounts as high as 40% against list price.
Airbus is now only saying that the aircraft will break even on a unit basis (i.e the sales price will be higher than the production cost) in about 2015 (based on comments in 2010). Every aircraft delivered until then will have made a loss for Airbus. Note that it's only AFTER unit breakeven that any contribution is made to recover development and finance costs.
There have been 61 net orders over the last five years - a rate of 12/year. The delivery rate is about 20-25/year (and was originally supposed to be 30+)
They've been utterly quiet on when programme breakeven will happen for several years now. On a reasonable commercial guess, allowing for Airbus carrying the €11bn development cost on the books, plus delivering over 100 aircraft at a loss, plus the fact that Emirates has them by the balls and will be driving a VERY hard bargain for the aircraft they're taking, that breakeven point will have now to be well above the 400 forecast in 2006 - doing some crude numbers, and assuming the white-tails at best break even, I suspect north of 600 units.
Oh, and of the aircraft currently on order, 30 are for an airline in receivership - "Kingfisher" of India.
Sooner or later, Airbus is going to have to take a huge write-down on the development cost of the A380. Which is going to mean that the French, German, UK and other governments will lose all of their launch-aid loans.
It's a hellish impressive pain - but it's looking like a commercial disaster." End Quote
Exactly my friend!