Boeing's Single Aisle Aficionado Michael O'Leary, Ryanair-Ancillary

Learn what ancillary means and understand the future of airline bottom lines. Typically an airline relies on the ticket prices. Passenger wonder how come they can fly to and from Europe to the US for under a "C-note" (€100)?  

Primary ancillary definition:

"providing necessary support to the primary activities or operation of an organization, institution, industry, or system."

Press Quote:

"Mr O'Leary has previously speculated that one day Ryanair passengers would be able to fly without having to pay for their tickets, with the airline generating all its revenue from ancillary services."

So how can airlines reduce ticket prices competing in the busy origin and destination air travel market? 

Answer: By ancillary revenue stream complimenting ticket prices and offsetting ticket price reduction.

Ancillary means services from the primary product. A hotel will often contain restaurants, barber and gift  shops supplanting room rates in a competitive market place. Disneyland Anaheim, California has "The California Experience" with its hotels, food establishments and gift shops. Not forgetting external revenue streams from movie making, special events and conventions. The Ryan Air executive sees a way to fly across the Atlantic on the back of ancillary projects. The ticket price could be supported by fees, service opportunity and terminal markets.

Photo Below: Dublin's Terminal 1 floor space awaiting O'Leary's idea for ancillary centers targeting passengers coming and going. 



Brain Storming Session Begins:

Ryan Air could lease-on to airport terminal space which would include its passenger market place on Ryan's Air's turf. It could make partnerships with hoteliers for room bookings. 

Dublin Terminal 1 a blur of passengers seeking to unload revenue.

Restaurants in or near an airport may be owned by an airline. Clothing shops would be on a Ryan Air ancillary wish list. Once having a mega web of Ryan Air ancillary market places which are designed for its passengers, then possibly ticket prices will fall further. The strategy is to get people on a seat so they will be exposed to other Ryan Air profit centers. 

A profit synergy exist and O'leary is shopping its potential. The key is free seats so Ryan Air passengers will spend  money on Ryan Air ancillary and convenience profit centers.

"People, just don't stand there, spend money you are flying free today!

Long Range ancillary goals:

• Resorts (destination)
• Lodging (origin and destination)
• Amusement ( destination)
• Business centers (destination)
• Convention halls (destination)

Short Term Ancillary Goals/Terminals (origin and destinations):

Ryan Air Tickets is an automatic discount for each profit center transaction.

Profit centers:

• Restaurants 
• Shops
• Kiosks
• Travel Services
• Car Rentals

These are just to name a few as O'Leary brain-storming continues. The long term goal is either as a franchisee participant or a direct ownership in selected markets. A ticket seat purchased for a nominal free such as (€50) covers the seat, luggage and on-board supplies. The seat is free (fee waived) when booking a Ryan Air hotel room or renting cars from its ground transportation division.

It can't be helped to think airlines have already explored the ancillary business model. If O'Leary is thinking this, then it has flagged that a business concept is in incubation. So far airlines sell a seat and fly. The money stream ends at arrival. Ryan Air must be looking at providing a seat as a access point for the beginning of collecting ancillary revenue. 

A further image emerges where you arrive at an airport serving Ryan Air where there are a Ryan Air concierge desks much looking like a boarding desk in the terminal. What the 'company" concierge will do is rent your car, find a room or arrange your dining at your destination's regional footprint. Of course, only with Ryan Air ancillary affiliates. Needing clothing and a haircut could be arranged within the terminal floor space, since traveling all day with just a carry-on and looking well past the 5:00 pm shadows. The whole concept is taking care of the passenger with a seamless experience allowing more time for the passenger to go do what the passenger needs to do. 

In fact if pre-package travel occurs then expect your luggage to be in your hotel room upon your hotel arrival.

The tipping can occur as ad hoc with each service rendered or it can be like a cruise ship business model where an amount can be bundled-up for all tips encountered during a trip on a company "travel card", which would be another ancillary service provided for a small fee. Its transaction card (credit card) is only good at airline affiliated point of sale centers (food or service tipping...). 

Welcome to a Ryan Air Visa card (another ancillary profit center).

Lost? no problem go to an airline terminal kiosk and summon a concierge or book a room directly (of course for airline ticket holders at a discount). The list becomes endless for what an airline like Ryan Air could build in its business portfolio. If a passenger flew free to a destination it would want to seek discounted ancillary services affiliated with the airline. Every transaction contributes to the airplane ticket price at the back-end. If a passenger goes rogue upon arrival it would experience higher costs associated with a trip on the destination street. The idea is to get the traveler/passenger onto the airline network which pays for the no cost seat as the passenger travels beyond the airport. 

Doing an European trip typically may cost €5,000 for the duration, but through the airline seat purchase it may only cost €3,500 in this example. The trip cost is incentivised with everything the airline has in its portfolio for that destination or its airports. The theme is why book with some airline other than the sponsoring airline for your travel.

Time to let your imagination take this story forward.


Bonus addendum:

A working model of what could be. Every ancillary revenue returns a 10% contribution from passengers travel expenditure to the hosting airline.

Based on seven days which contributes more money towards an airline seat cost using its ancillary services, a sliding scale for each day in travel status could be used. A per diem flight chart would charge 300 dollars for the round Trip if returning during first three day traveling, since since a passenger uses ancillary services less than three days a ticket charge is fixed amount which would not exceed €300 total round-trip ticket charge. A non participating passenger ticket would be full market fare for those not booking flight on the airline program. Traveling on day 4,5,and 6 would would slide the ticket cost downward, reducing the per diem ticket rate by €50 for each day beyond day 3. Therefore, returning on day 4 would cost €150, on day 5 €100 and day six €50. The seventh day travelling using airline ancillary services, is a return ticket with no charge return. This also assumes no charge on the first out bound leg.

Round Trip Ticket scale:

Over-night (day 1) trip ticket price using ancillary services is €300.
Night Two €250
Night Three €200
Night 4 €150
Night 5 €100
Night 6 €50
Flight day 7 No charge showing on airline credit card. the return ticket indicates airline ancillary services were used every day during a passenger's travel status, which covers the cost of an airline round trip fare. Credit account is settled during each monthly cycle with net fare showing on the passenger airline card.

A day without making an airline's ancillary service transaction (equaling a motel room or car rental), is not counted as a day in airline travel status for a trip.

Common sense drives this model. Use the airline ancillary services for reducing total ticket price to €0.00 if staying seven days while using the airline sponsored food, room, or car rental  each day during a passenger's travel status. Any break in the airline service use will add a premium charge of €50 to the ticket charges added to the airline credit card until airline services are used for up to seven days.

A net effect is in action. If staying in Europe a month a passenger needs only to stay on the airline ancillary system for seven days for a free ticket back home, otherwise anything less than seven days on the system would add a charge back of €50 for every day less than the seven days up to €300 when not booking a motel room or car through the service.

A passenger will earn credit by using the airline ancillary services rendered including food and other purchases at the airline discount. Points may be collected for from monetary values which will be applied to a ticket reduction up to €300.

Otherwise a round trip ticket to Europe costs €300 while each day using the airline's "primary" ancillary services credits back €50 per day until ticket price is covered during a passengers 7 day travel status.

Its Been Reported BOC buys 4-787-9's

The Chinese leasing company, BOC just filled an order for four 787-9 rated at list prices for $1.08 billion.

The bigger news is that Boeing has taken in about 112 787 firm orders booked year to-date counting PAS for 33 firm, Singapore Air (unidentified for 19 dash 10's) and the new BOC order for 4 787-9's. Adding up all the orders brings Boeing to a remarkable 787 order year with 112 orders for all its type of 787's. There is another six months to go and the Dubai airshow ahead which may enhance Boeing's 787 order book further. 

Winging It 787 numbers now stand at: 1,312 787 ordered for the program and 747 deliveries to make with 565 787's already delivered in five years.

Fig. 1 Winging It Score Card

Paris Air Show 2017 -Boeing-Checking It Twice Report

Below is a "checking it twice list" from the Paris Airshow 2017 with paper transactions and associated list price totals for each transaction type.

By the numbers:

• There were 147 direct agreements for the 737-Max 10
• There were 214 737-Max 10's converted from prior purchases/agreements, typically from previous Max 8's transactions. 
• There are 361 units of Max-10's identified at the show with paper agreements
• 56 wide bodies were purchased or agreed upon.

How was it checked? A lot of searching was done from airshow press reports where Winging It listed each report. Then it double checked with multiple sources what happened at the Paris Airshow this year without an exclusive confirmation from Boeing. Winging  It will wait for Boeing's monthly updates on its Orders and Deliveries website found at Boeing.com. Flight Global was the final choice for comparing numbers. Winging It numbers came very close to those number and it adjusted its total according to further verification from press reports to Flight Global reporting.

Below is the "Checking It Twice List" from a confusing show. So much happened and so little time during the show. This record is for future research and use for keeping track of the orders, commitments and the conversions mess encountered by Boeing during the show. There may be other sources conflicting with these totals through interpretation of what is meant by all the show notations. 

However, a new category occured called, "Identified". During some transaction coming from the past, even before the show occured, a deal was struck but the customer remained unidentified on the Boeing order book. Now a big show comes along and said unidentified customer wants exposure at the Paris Airshow 2017. They identified an already made purchases (firmed) by coming out and publicly expressing its purchase made before the show.  This action gives exposure among members of the Aviation Industry and public, thus the label "Identified"(at the show) where a classification emerges from a prior "undisclosed customer" list from Boeing's order books.

Figures are checked against Flight Global "Who Bought What" (Free subscription required) recapping PAS 2017

Fig 2. 737-10 roll call added booked units

Fig. 3 Total Units/value by model

Boeing's Website Says

Boeing just posted numbers today on its website. Link Here for what was listed. Some came from the airshow and some came from hanging orders not yet booked. A key item is the unidentified 20 777X and the 19 737-10's boosting the Boeing wide body count for 2017, and this was not part of the Paris Airshow. Singapore Air is the 800 pound gorilla in the room no one notices. The Unidentified wide body 787/777's happens to be exactly what Singapore Air ordered weeks before when it didn't show in Boeing's order books. This is a post-show boost for Boeing. Fifteen other 737's were added and presumed to be not part of the Paris show. Below is the list of Boeing.com additions from its books today.

Figure 1. Monday, June 26, 2017 Book Additions!

Boeing will now have booked 75 787's this year before the Dubai Airshow. Boeing.com has added 76 wide body aircraft to its books today.

Say It Ain't So, The queen of the sky dies?

The 747-8 days are numbered and is found wanting, for a place in the airshow line. The Airbus A-380 has become a stubborn step-child to the 747-8. It wants so bad to even have a hundred more sales as its backlog dips near 100 units before it will too have to move on. Emirates wants a do-over A-380 for its business case. Boeing is selling twin engine behemoths as Airbus dithers with its A-380 make-over. The 747 program has lost its premier standing with Boeing and it goes to the desert in southwestern US for its retirement.

Boeing is resting its case for the four engine Jumbo Jet. The 777-9X will have to do with seating over 400 passengers. The Airbus A350-1000 can't compete with the  9X's measurables. Airbus may sit on its A-380 laurels too long. Boeing is anxious to move on as it announces it will shift towards the twin engines exclusively. John Leahy from Airbus retires this fall as a job well done for its payroll. 

Airbus, John Leahy and the A-380

Photo credit Leeham News

Now who will take the sarcasm from Winging It? I do admire his biased ad nauseum for Airbus products. He could turn a good argument his way messing with data. His presence will be missed as Boeing's antagonist. 

The world market place will have choices to make when buying aircraft. Boeing has been working during the last 20 years for making a family case. Like any good mentor it has sloughed off a 757, reached for the moon with the 787, and reinvented the 777. No one path was chosen for  its Renaissance. The 737 remake and 777X merging with 787 sensibility only lacks a New Medium Aircraft (NMA 797). 

Boeing is working on that family member with something new, something old, something borrowed and something blue. The enigma for a NMA makes blogging enjoyable. An oval profile is built with the passenger in mind and will it not be a Swiss Army Knife concept that will carry 500 people and 500 tons of freight at the same. It is being built for passenger space, range and efficiency and bulky freight can take a hike via other Boeing aircraft. A gamble indeed as aircraft have been ruling with multi functionality for the last decades. The 797 has one job to make copious amounts of money for Boeing and its customers. Its a family thing.

Paris Airshow, The Calm After The Storm (Updated show numbers**)

The show's business is completed and the CEO's are back on the manufacturing farm. Winging It is taking a stab at making a snapshot list of what just happened with Boeing at the show. A prior article was written using the same charts but some updates were made and a net Book value based on list prices is added.

Direct purchases and MOU's are added in the net column at the stated show value. The "Purchase-Conversion" transactions are netted out as those numbers replace a prior booked value from prior purchases over the course of multiple periods. Even though a working number for the show has been reported between 78 and 73 billion, Winging It has taken a different tack since all deals will be completed in the up-coming months. 

Figure 1. is a recount of what Winging It thinks just happened to the Boeing order book from the Paris Airshow.

Fig. 1 Updated 6-14-2017 with 125 undisclosed Max 8's for $14.1 Billion from the error of 1.4 Billion reported earlier. This updated gross booked total to $104 Billion and the net total $81 Billion. Thanks for your patience for any errors made during the airshow and after.

Fig 2. (click inside a chart for an expanded view.)

The above chart is an example of the "Purchase-Conversion" part of the show. There were 214 of the 737-10 ordered in this manner. Winging It assumes all prior purchases were for the 737-MAX 8 and were converted into the 737-MAX-10's in this case. There were reported about 147 direct 737-10 purchases and those were added to the book at list value for 124 million each, thus making it part of the gross billion number. 

The netted number is factored when Winging It assumes a List price of 112.8 million per 737-Max 8 as already booked before the show, and is now turned into a 124 million per Max-10 booked at the show. The net incremental change uses 214 units, increasing the book by $2.44 billion. 

The total for the gross purchase-conversions of transactions represents about $25.6 Billion dollars for the Max-10, increasing the book by only a net $2.44 billion.

If Boeing did write-up (purchase/MOU) about 150 units directly for the 737-10, then those would add about $18 billion is sales for this type at the show. All-in-all, Boeing netted about $20.5 billion to its books from the 737-Max 10.

Boeing wrote paper for a gross of about $104 Billion with a net book value of about $81 billion. It could be that there were some missed announcements and deals during the show, since it was even crazy for the plane framers to keep track. At the end of it all, waiting for final numbers will come during the first ten days of July from both Airbus and Boeing. Having stated that, Airbus knows it lost and Boeing has a lot of momentum going forward. 

There are several large and hanging Boeing transactions not announced at the show and those deals may be announced at Dubai this fall. Keep on keeping on and the next Airshow should settle the year.

Wondering why Winging It is in variance with press reports is a concern since many report Boeing had 571 units in sales for $79 billion booked. I had reported the list of Airshow transactions as reported and entered it into a chart using list prices and came up with an abundance of dollar value.

After looking at the data the Purchase-conversions were not included in the chart, thus showing 613 units for the charts. The unit number is 42 units higher than the reported show number of 571 units, however the Value total is in line with reported show totals of $79 billion. Refer to Figure 3 below for the adjusted Winging It chart and a closer reported result.

Fig. 3

Is the 42 difference due to 42 CDB units as a mislabeled transaction (help would be nice for correcting the charts)? Somewhere the data is reported differently at the end of the show than what was reported by various sources during the show. We all will have to wait when Boeing issues its reports next month. 

Additionally, the chart records 10 more 737-10's as a direct purchase with 157 when final show numbers report 147. 

Day 4 Paris, Is it a Order Wrap?

On day 4 of the Paris Airshow, the reporting has diluted the purchase classifications concerning purchases, MOU's and Commitments. The Winging It order listing may not even consider the Purchase-conversions of the 737-10 model. But Winging It has been following the airshow news as it occurs and is reported on the day, therefore later analysis shows a disparity from these charts to what others are now reporting.

Below is a day 4 recap for happened to Boeing at the show. It was considered a slow day but at any other airshow day, 125 Max 8's purchased would dominate the headlines. Over-all day 4 produce another 30 737-10's as on-paper orders.

Fig.1 Day 4 Boeing Transactions:

The below Figure 2. depicts a robust expected down year for Boeing's paper order book. A paper order is any firmed purchase, MOU (commitment) or conversion (from one model turning into another). Winging It listed a 97.3 billion paper shuffle for 836 units. 

Not all these units will turn to a firm purchase in the upcoming year(s). It is probable Winging It missed some sales classification where it missed 214 737-10 purchase conversions during the show.  Those 214 purchase-conversions were not always clearly reported and Winging It came up with only 50 737-10 purchase conversions. 

The press finally reported 147 direct 737-10 purchases, thus totaling about 358 737-10's in play for Boeing. That in itself is a good launch and will turn into further net orders going forward.  

Fig 2. Airshow summary to date:

Below in Figure 3, is the firm purchases for the 737-Max 10 as reported during the show. It is inaccurate since there are far more purchase-conversion than stated during the show. It has been reported that there are  214 purchase conversions for the Max 10 from prior Max orders already booked. 

Winging It shows only 50 of those types of transaction. Winging It must of missed 164 of those purchase-conversions and list them as a net purchase for that type. Apologies are offered if confused. Another item in Figure 2 shows 22 commitments for the Max family without assigning the type. This condition assumes a Max 8 when in fact there could be some Max 9 & 10's in that number, thus skewing the Winging it count. However, all-in-all, the 737-10 paper booked about 358-361 units.   

Reports now have been submitted revealing there were 147 firm 737-10 orders. Winging It shows 163 firmed purchases. Somewhere Winging It must of over reported this number by 16 units. This is due to reporting an order earlier when it may have been clarified as a MOU or commitment.

Fig.3 Purchase record as reported at the end of each day. Subject to reclassifying the document class

Figure 4 The Purchase Winging It Purchase-Conversion list for the 737 Max 10

The Boeing 797 Strategic Concept

Boeing has for many a year, in the last decade considered a middle of the market aircraft replacing its long beloved 757-767 aircraft line. The day it stopped building the 757 is the day "strategic planning" arose from Boeing's nomenclature. The strategic airplane would be built as an untouchable from its competitor. Long has the A321 become an Airbus sweet spot for orders. Boeing was too late to the market with a competitive product. Boeing has the 787 X's 3 to build and the 737 Max X's 4, coupled with the 777X X's 2 models in the game plan.

Strategic Points:

• Boeing needed a family of Aircraft First
• Boeing needed a technological quantum leap Second
• Finally, Boeing needed Airbus chasing its program rainbow 

The only thing in the way of Boeing starting its New Medium Aircraft (NMA) is program completion for an unleashing of its combined resources on a NMA program. The 777X is stopping an NMA try for Boeing. Resources have shifted to its 737-10, 777-8X and 777-9X programs. There is residual work to be done  on the Max 8 and Max 9 starting with production capability and its testing regimen. The 777X program starts in earnest next year. All this conflagration at Boeing R&D leaves the NMA program playing a guessing game with its Airbus competitor and Boeing's customers. 

Boeing must contend with strategic inputs for the NMA program such as telling its customers they will build a 220-270 seat aircraft going 5,200 miles. If Boeing's customers are given detailed information then Airbus will get the same detailed Boeing information. It takes five years from forming launch customers, on a clean sheet design, to first delivery. Airbus is certainly talking to prospective Boeing NMA launch customers for any details.

If Boeing lets the cat out of the bag too soon then it will be another 787-A350 dogfight. Boeing can shorten the time to market by developing a NMA on the "QT" for three years before launching/announcing at a "Show". 

NMA strategic plan:

• It needs to line up die hard Boeing customers using sketchy information.
• It needs to develop NMA technology and design from proven accomplishment from prior programs.
• It needs to complete the 737-10, 787-10 and 777X programs before launching the NMA.

Boeing can build a new medium airplane before launching while Airbus watches and looses ground against the clock on a shrewd Boeing move. This is the strategic importance coming from lessons learned both current and prior programs. Announcing early makes expectations wait far too long giving customers angst and the competition time for a rebuttal. 

Boeing needs to go secret with its aspirations while working with customers somewhat like Lockheed's "Skunk-Works". The 787 was announced clear back in 2003 with full details of what it would be made of and then Airbus complained it couldn't be done while forming its own composite A350 aircraft. Boeing came to Market in 2011 and Airbus answered in late 2015. The going-to-market time gap could of decreased with less Boeing fanfare from  2003 to 2011, if Boeing had announced the 787 in the year 2007 after it had completed a successful prototype. Doing so would have put Boeing ahead of Airbus by almost ten years. 

Instead Boeing announced often from 2003, the 787, for drumming up sales for what it proposed down the road thus causing customer angst from waiting and allowing its competitor a response during the interim period of time of announcement to its first delivery, after which Boeing fumbled through new technology and production issues.

The NMA approach seems to take some of those timing issues as Boeing is dodging detection of what it really is going to build while it begins a NMA program currently. 

• It will want a first delivery of its NMA within three years of announcing a launch. 
• The program will be already mature at the announcement time.
• All risks are retired before first assembly is completed except the flying testing.

The whole strategy is to lengthen any competitor response time to what Boeing has already shown to its die hard customers on paper. 

In order to do that, it will have to rely on what it has made before an NMA concept is approved. An all plastic body and wings become a quick solution on the production process. The design is an all new body fitting customers comfort first. The engine selection is based on reliable engine builders. The technology is off the Boeing shelf going forward. No new moon shots. Management plays for time allowing all this going on at the Boeing Skunk Works. Area 797 is activated for testing in Montana for secrecy. 

Just having fun by seeing how much falls into place from this idea and why Boeing stalls on the 797. 

Paris Day Three On The Fly

A settled in day for the Airshow. When all numbers are added and changes made, there will be a comparison with the Airbus order Tally. All numbers in charts are reported as posted by news organisations. 

However, some revision to order count and status will be updated when Boeing and Airbus reports at the beginning of next July month. Day 3 had 9.89 billion paper documents for Boeing aircraft under a purchasing intent. The "various" intents were lumped together on the Max 7 column. This will change once everything sorts out. However, 82 paper documented airplanes were tallied for Boeing's Day 3 count, which is significantly more than the Airbus Tally. 

The paper MOU or intents may turn into real orders by year's end. Airbus posted mostly orders and not many intent aircraft, but it still showed a decline in orders from the last Paris Airshow in 2015. The big item is the 737 Max 10 which will include many order book revisions when changing from a Max 8 order (example) posted earlier and turning it into a Max 10 order at the show. There is a significant revenue increase when a conversion is made going to the Max 10 from a prior ordered 737. 

The units may not change in these cases but dollar value does change significantly so the ultimate net unit book during the airshow will take until the end of month before numbers for Boeing are accurately counted.
  
Fig. 1 Day 3 Subtotal

Fig. 2 Show Total

Yikes, Boeing won the show on paper when it signed for over 624 single aisle in various stages of a deals. The list value is used for the calculation making $90.91 Billion for its paper sales. Look at the 737 Max -10 column for 326 units noting its an airplane not even built or tested. Impressive indeed, as most of the MOU units will turn into booked orders. What further analysis will bear out is how many 737 Max 10's feed from the prior order bookings of early Max units purchase from prior periods before the show. A surprising count is the number of Max -8 airshow orders committed.  The drain from conversions from Max pool going to the 737-Max -10 column is offset by new orders, MOU's and commitments from 297 units collected from the "other" Max columns not called 737Max-10, is a testament for the Boeing Single aisle program, obtaining a significant boost when chasing the Airbus order book. It will not catch the Airbus single aisle backlog at this time, but Boeing has closed a significant gap with Airbus' single aisle order book.

Airshow To date,  Boeing snagged 681 airplane units for all types. Whether all will make it to the Boeing book remains to be seen. It is an impression this is a strong marker to come for future orders in the single aisle area. The 328 737-10's asked for, could double in number by completion of year 3 from its launch at the Paris show, thus making the Boeing gamble a winning bet.

Paris Airshow, By Some Numbers Snapshot

A snapshot is a point in time frozen by some happening. The ever evolving changes at the Paris airshow makes it a moving target. The Winging It aim is often wild. Below is a composed picture of what was known at some time since this morning. A negative number suggests a transfer from a prior period order into a new Airshow order going from one model to another in a purchase announcement. 

Not all data is verified nor could it be accurate since so much is going on throughout the event. Various news sources often report in error as well and researching those articles becomes a difficult task. Exampled by unclear reports of 50 aircraft for 1.25 billion the editor misses the continuity of 50 aircraft going for 1.25 billion. There are errors in the news reporting often leading to confusing data.

Winging It doesn't know who is right and who is wrong with Airshow numbers, so it must wait until the show is done and follow company reports for orders books. Below is such a snapshot without airplane verification which will come later. Anyways, its an attempt to see Boeing's order footprint at the show where the numbers are mostly correct. What is missing are airplane order conversion numbers as prior orders for one model converted to another such as in the Max 737-8 going to a Max 737-10 order. 

This is where the primary problem of reporting accurate numbers for this show. The other problem is a definition of MOU vs Commitment and what does it really mean when considering who is buying what and when.

A "commitment" is probably a letter saying, "if we buy an airplane it will be a Boeing 737-Max-10 sometime. See SpiceJet and Lion Air commitments below for further analysis. They are Boeing customers but are not yet ready to put ink to paper until further notice until Boeing negotiations are complete. A commitment in this case is strong as a MOU. Some commitments could be pie in the sky notoriety at the show. 

An "MOU" is a memorandum which is a legally binding promise stating, "we will buy #nth 737-Max-10 during 2017 at the time final purchase contracts are signed". It's all grey water flowing through the show and bragging about what is going on is just bragging about the muddy drinking water.

A "purchase" is golden and in the books only to be backed out of through exchange of compensation along with the appropriate ensuing lawsuit. See the Qatar purchase as it is the end of a long commitment process after much consideration for its fleet composition, routes and airline purposes in a changing market. The 20 Max 8 started its order completion journey long ago from a commitment status.


I would expect all MOU's to turn into a purchase by year's end and the commitment will dangle until eternity or until the airline makes enough money to buy what it wants or needs. The purchase conclusion is gold in the bank. See the CDB MOU order below. it is a case of many moving parts considering converting from model to another, pricing and opportunity within a limited time frame. CDB MOU has set goals and objectives for completing the "deal" yet to be worked out but it is a go baring a financial meltdown. 

Below is the convoluted and inaccurate chart of the Boeing show from many unreliable news sources for which all claim reliability?

Boeing Aircraft numbers start of day 2

The negative number above represent a conversion from SpiceJet on the Max 8 column coming from converting 20 of the Max 8's into Max 10's. There are other conversions of this nature but not validated at this time. The values from converting have not been factored as of yet.

After all the disclaimers and apologies, Boeing has to date about 377 Boeing frames in purchase play for about 52.21 billion at list prices for which the remainder of the year will whittle down a majority of these MOU's and Commitments in to a purchase. 

Boeing should meet its guidance this year having already netted 208 frames for all types before the show. It has six more months and Dubai to meets its order guidance. A net number would include cancellations and conversions from the announced total announced during the Airshow.