Miloch
January 30th 19, 06:35 AM
....for those of you affected, guess you'll be taking the day(s) off.
In the meantime:
Boeing faces $15 billion decision of the decade: Is it time to build the 797?
more at
http://www.chicagotribune.com/business/ct-biz-boeing-797-jetliner-decision-20190129-story.html
It's only January, but Boeing Co. executives are already closing in on one of
their most important determinations of the year: whether to plow an estimated
$15 billion into a new jetliner family.
The aircraft nicknamed the 797 would feature Boeing's first all-new design since
the 787 Dreamliner's unveiling in 2004, while shoring up its product line
against recent Airbus advances. The European plane-maker's incoming boss,
Guillaume Faury, says he's waiting for Boeing to tip its hand before revealing
countermoves. That sets up a likely showdown at the Paris Air Show in June.
Designed for economical flying on midrange routes — think Chicago to Berlin, or
New York to Los Angeles — the Boeing jet would have the potential to transform
air travel by spawning a new breed of longer-distance budget carriers. But the
decision on whether to move forward hasn't been easy. A misfire would
cannibalize sales of the 787 Dreamliner and endanger the cash bounty that has
made Boeing a darling of Wall Street.
"Every single other Boeing jet has been pretty much a guaranteed home run, even
if it wasn't clear at the time," said aerospace analyst Richard Aboulafia. "This
is different. They've got to be careful with this."
Boeing's board is expected to review the case for the new program by the end of
March, according to people briefed on the matter. For now, the team spearheading
the concept, led by former 787 program head Mark Jenks, has been meeting monthly
with Chief Executive Officer Dennis Muilenburg and Chief Financial Officer Greg
Smith.
The sales force has been fine-tuning the design with airlines for at least five
years, creating a "will it or won't it?" drama around the decision on whether to
make the plane, known internally at Boeing as the NMA, for new, middle-of-market
airplane.
"With some planes, the technology is the 'moonshot'; with this, it's the
business case," Aboulafia said. The word "moonshot" is the term Boeing uses for
quixotic gambles that it has vowed to avoid after loading the 787 Dreamliner
with groundbreaking technology and an unproven production system — then losing
money on the first 500 or so planes after extensive delays.
For Boeing and Airbus, committing to an all-new aircraft is a once-in-a-decade
event. Costs are prohibitive, delays are the norm and payoff can take years to
materialize. Boeing could easily spend more than $15 billion on the NMA,
according to Ken Herbert, analyst with Canaccord Genuity, and Airbus may be
forced into a clean-sheet design if sales take off.
more at
http://www.chicagotribune.com/business/ct-biz-boeing-797-jetliner-decision-20190129-story.html
*
In the meantime:
Boeing faces $15 billion decision of the decade: Is it time to build the 797?
more at
http://www.chicagotribune.com/business/ct-biz-boeing-797-jetliner-decision-20190129-story.html
It's only January, but Boeing Co. executives are already closing in on one of
their most important determinations of the year: whether to plow an estimated
$15 billion into a new jetliner family.
The aircraft nicknamed the 797 would feature Boeing's first all-new design since
the 787 Dreamliner's unveiling in 2004, while shoring up its product line
against recent Airbus advances. The European plane-maker's incoming boss,
Guillaume Faury, says he's waiting for Boeing to tip its hand before revealing
countermoves. That sets up a likely showdown at the Paris Air Show in June.
Designed for economical flying on midrange routes — think Chicago to Berlin, or
New York to Los Angeles — the Boeing jet would have the potential to transform
air travel by spawning a new breed of longer-distance budget carriers. But the
decision on whether to move forward hasn't been easy. A misfire would
cannibalize sales of the 787 Dreamliner and endanger the cash bounty that has
made Boeing a darling of Wall Street.
"Every single other Boeing jet has been pretty much a guaranteed home run, even
if it wasn't clear at the time," said aerospace analyst Richard Aboulafia. "This
is different. They've got to be careful with this."
Boeing's board is expected to review the case for the new program by the end of
March, according to people briefed on the matter. For now, the team spearheading
the concept, led by former 787 program head Mark Jenks, has been meeting monthly
with Chief Executive Officer Dennis Muilenburg and Chief Financial Officer Greg
Smith.
The sales force has been fine-tuning the design with airlines for at least five
years, creating a "will it or won't it?" drama around the decision on whether to
make the plane, known internally at Boeing as the NMA, for new, middle-of-market
airplane.
"With some planes, the technology is the 'moonshot'; with this, it's the
business case," Aboulafia said. The word "moonshot" is the term Boeing uses for
quixotic gambles that it has vowed to avoid after loading the 787 Dreamliner
with groundbreaking technology and an unproven production system — then losing
money on the first 500 or so planes after extensive delays.
For Boeing and Airbus, committing to an all-new aircraft is a once-in-a-decade
event. Costs are prohibitive, delays are the norm and payoff can take years to
materialize. Boeing could easily spend more than $15 billion on the NMA,
according to Ken Herbert, analyst with Canaccord Genuity, and Airbus may be
forced into a clean-sheet design if sales take off.
more at
http://www.chicagotribune.com/business/ct-biz-boeing-797-jetliner-decision-20190129-story.html
*