His "heart is still beating and the employee keeps cowering", sarcasm is the sign of a war weary General. It was like a slap in the face from General Patton during WWII in Sicily, Italy, where a service man received one when breaking down under a grueling ordeal of battle while recovering the medical ward. McNerney's slip was not meant to be funny nor encouraging. It was an exhale from a long battle from the Airline war with Airbus. Patton, in this example continued on, and lead his troops to victory over many battles after this action on that solder. The General ended his war unceremoniously in a Jeep accident.
McNerney, with all his accomplishment in decision making and leading, let it slip out he is ready to retire. Losing professionalism in a moment like his 65st Birthday contemplation, demonstrates its time to step back and not slap the soldiers. The workforce too says things on a daily basis while on the work floor, as they continue to grind out aircraft. Its part of the job and makes those paychecks tolerable. However, coming from McNerney it becomes a symbol of the corporate mentality from those who writes the checks. Now this apologetic leader affirms corporate cynicism in one statement. It fell flat, as it should.
How expensive is that McNerney exhale? That remains to be seen when labor negotiations comes up next. By then McNerney may sit on a board in an advising role. The workers are only as good as instructed by the chain of command. They don't cower and McNerney has a tired heart by making a tongue in cheek comment. At my former work it was always known that a humorous statement was the conveyance of true thought. A form of communication is joking your message allowing a speaker flexibility for falling back into a position of "just joking". McNerney's just joking apology slips out from a tired heart. His sentiment is both a recognition of corporate hang-over and his own cowering struggles with the giant airline framer.
A lot can made from this slip of tongue, if reviewing his own company history and tieing it to his cowering statement. Boeing needs fresh legs in the game for both its employees, and for its vigor towards advancements. The corporate attitude will always infect decision making, like the common cold. Labor restlessness will always be an inflammation of its corporate muscles where it will need an analgesic application of benefits. Boeing will need a new found energy from its leadership that has the courage, strength and understanding. This combination of attributes is needed to continue its progression steps forward, and for a validation of the journey it just traveled.
McNerney's most recent exclamation is a career sigh and exhale guised within the frame work of sarcasm. There is a lot of corporate truth found within that McNerney sigh.
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What The Boeing Company's Historic Order Win Means for Aviation Stalwarts
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Boeing (NYSE: BA ) recorded its biggest 777X order win of 150 jets from Emirates after the latter finalized the $56 billion deal last week. Emirates' firm commitment to the American aerospace major comes as another big blow to Airbus (NASDAQOTH: EADSY ) . The Gulf airline cancelled an Airbus order for 70 A350s worth $21 billion at list price in June. Does this signal a deeper relationship between Boeing and Emirates, and a heightened rivalry between the American jet maker and the European major?
Boeing-Emirates relationship deepensThe Dubai-based carrier placed the order at the Dubai Airshow last November where the 777X program was unveiled, making it one of the best-ever launches in aviation history. The confirmation came in July. In addition to the 150 jets, Emirates has reserved purchase rights to order for 50 more. After cancelling its A350 order, chances are strong that Emirates will exercise the option.
The airline would be purchasing both the 777X variants -- 115 of 777-9Xs and 35 of 777-8Xs. The 777-9X, which can haul 400 passengers, is the costlier version with a list price of $377.2 million, while the 350-seater 777-8X would cost $349.8 million at list price. The deal's value will increase to $75 billion if Emirates exercises its purchase right. However, plane valuation firmAvitas says that as there are massive discounts for big orders, the true price of the 150-jet deal should be around $31 billion.
The order makes Emirates one of the first airlines to be flying the GE-powered twin-aisle jet capable of carrying the same load as a jumbo. Emirates president Tim Clark said that with the 150 777X order, Boeing now has total orders for 208 777s that are yet to be delivered to the airline operator. Presently, the Gulf operator flies 138 777s.
The 777 edgeThe 777 family, dubbed as the mini-jumbo, has been Boeing's best-selling wide-body aircraft. With the next-generation 777X, the plane maker expects to usher in a new wave of growth.
Boeing will start production of the 777X in 2017 and begin delivering the aircraft in 2020. This version is being developed on the tried and tested technology of the 777 and 787 Dreamliner that will not only help to integrate cutting-edge technology in the jet, but will also minimize development cost. Boeing claims that the 777-9X's engine is 12% more efficient than competing jets in this segment, while 777-8X offers 5% higher efficiency over contending aircraft.
The Boeing-Airbus contest continuesDubai is an important air link, connecting Europe and Asia. This makes Emirates demand larger jets. It's the largest international airline operator by traffic and the biggest operator of Airbus' A380 and Boeing's 777. As Emirates operates in some of the busiest long-haul routes, it finds the ultra-long haul 777-8 and the 777-9 aircraft -- larger than A350-900 and the A350-1000, respectively -- to be better fits.
Emirates wants Airbus to overhaul the 500-seater A380s with the new Rolls Royce fuel-efficient engines by 2020, but the aero major has not committed so far. With Boeing's 400-seater 777-9X gaining traction with the airline, Airbus could be feeling the heat.
However, Airbus can take heart from the fact that Emirates' move is part of the airliner's strategy of structuring its fleet. An analyst at Edison Investment Research says that Emirates is trying to organize its fleet, placing the A380 as its mainstay jumbo jet, followed by the 777X, and finally the 787 that will cater to routes that have less passenger traffic. The airliner is aggressively expanding to cater to increasing traffic, meaning that there is a huge avenue of growth for both Boeing and Airbus.
The order cancellation has definitely spoiled Airbus' mood, but it isn't something new in the aviation industry. We've seen the 787 Dreamliner experience cancellations of 200 units. The fact that the A380 is central to Emirates' fleet strategy also ensures order flows in the future.
Foolish takeawayThe competition between Boeing and Airbus to win higher wide-body orders is in full swing. Since most of the demand for these planes is coming from the Persian Gulf, carriers like Emirates, Etihad, and Qatar Airways are going to play a key role in the duo's wide-body backlog. Though Airbus saw Emirates withdrawing orders, it's not the be all and end all of the European plane maker's business. For Boeing, the huge order win is an unbelievable opportunity.
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