extract:
Associated Press
Boeing Has Talks to Sell Jets to Airlines
Wednesday June 16, 5:31 pm ET
Boeing Holds Detailed Talks to Sell New Fuel-Efficient Jets to More Than 30 AirlinesLONDON (AP) — The head of Boeing Co.’s 7E7 program Wednesday said the airplane manufacturer is in detailed talks to sell its new fuel-efficient passenger jet to more than 30 airlines.
Mike Bair, senior vice president of the 7E7 program for Boeing Commercial Airplanes, said the talks could amount to more than 600 orders.
Well, its a hard goal to meet. But not impossible. The 737NG had 700 orders before it left the ground for the first time.
Think about all the airlines currently operating B757/767 fleets. I half of them order, the 500 mark could easily be met and perhaps even passed.
Still, I’m not one who can see into the future. I like everyone else will have to wait and see. 😎
By: Bmused55 - 18th June 2004 at 07:40
UK defence group Smiths has won a new multi-million pound deal to supply technology for Boeing’s Dreamliner jet.
The London-based group said its aerospace division had won a deal worth more than £873m ($1.6bn) to supply landing gear systems for the aircraft.The contract comes on top of an agreement in February to supply the 7E7 jet’s “backbone” or Common Core System.
Total revenues on the deals are expected to near £1.64bn ($3bn) during the aircraft’s lifetime, Smiths added.
“This news reflects Smiths’ long-term commitment to investment in research and development and reconfirms our tier-one supplier status with Boeing,” Smiths Chief executive Keith Butler Wheelhouse said.
The news helped propel Smiths shares to seven month highs of 725.5p during the day. They later closed 14p up at 714p.
And that should shut all those critics up who disagree with boeing because they don’t use european companies for components.
Also, A french firm (oh the irony) is involved with the landing gear too I think.
By: Pablo - 18th June 2004 at 01:54
Smiths wins new £873m Boeing deal
UK defence group Smiths has won a new multi-million pound deal to supply technology for Boeing’s Dreamliner jet.
The London-based group said its aerospace division had won a deal worth more than £873m ($1.6bn) to supply landing gear systems for the aircraft.
The contract comes on top of an agreement in February to supply the 7E7 jet’s “backbone” or Common Core System.
Total revenues on the deals are expected to near £1.64bn ($3bn) during the aircraft’s lifetime, Smiths added.
“This news reflects Smiths’ long-term commitment to investment in research and development and reconfirms our tier-one supplier status with Boeing,” Smiths Chief executive Keith Butler Wheelhouse said.
The news helped propel Smiths shares to seven month highs of 725.5p during the day. They later closed 14p up at 714p.
By: Whiskey Delta - 17th June 2004 at 17:06
a) A lot can change in 4 years which is the projected time for the 7E7 development to first flight.
That’s a good point. An airline would only have to show a small sign of success to secure a loan for a new aircraft order. They’ll have 4 years to turn things around and a lot can change in 4 years. The situations with UAL and US will surely be finalized before then which will stabilize the industry.
b) A lot of carriers have joint 757 and 767 fleets. Replacing both aircraft with a single type would benefit tight puirse strings and streamline fleets.
CAL has to have one of the youngest 757/767 fleets out there (at least in the US) which would mean any 7E7 order would be growth. That growth won’t be discussed until the said UAL and US situations have ended.
By: adamdowley - 17th June 2004 at 16:47
500? a bit optimistic?
maybe that number looks good, but how many of those 500 are actually going to be firm orders? i think the majority will be options for aircraft, and only a few actual firm orders.
By: MapleLeaf_330 - 17th June 2004 at 15:51
Some of the US fleets of 757/767 are starting to get a bit weathered. The program dates back rougly twenty years now. Plus charters love these aircraft, they could find markets to ditch them to in favour of new fuel efficient models.
By: Bmused55 - 17th June 2004 at 11:20
how the thing looks in their Livery isn’t of much concern when airlines purchase aircraft.
The 7E7 will still have a largely metal fuselage.
By: Bhoy - 17th June 2004 at 11:18
but how will AA get the polished effect out of carbon fibre?
By: KabirT - 17th June 2004 at 10:36
I can see AA can do with a big fleet of 7E7s.
By: Bmused55 - 17th June 2004 at 08:45
I really don’t think any of the American Majors are:
a) In the financial position to purchase new aircraft. Whilst there may be cost savings involved in their purchase in the long term, as shown with BA in its 777 order, crippling debt is generally experienced in the short to medium term, something none of these carriers need
b) They don’t really need them, all the US majors have modern fleets of 767s and 777s that do not justify replacing.However having said all that since when has economics been the primary factor in aircraft purchasing, I’m sure a lot of behind the scenes politcking is taking place, as ever.
to retort:
a) A lot can change in 4 years which is the projected time for the 7E7 development to first flight.
b) A lot of carriers have joint 757 and 767 fleets. Replacing both aircraft with a single type would benefit tight puirse strings and streamline fleets.
Your are probably right about the behind the scenes politics 😉
By: Mark L - 17th June 2004 at 08:38
I really don’t think any of the American Majors are:
a) In the financial position to purchase new aircraft. Whilst there may be cost savings involved in their purchase in the long term, as shown with BA in its 777 order, crippling debt is generally experienced in the short to medium term, something none of these carriers need
b) They don’t really need them, all the US majors have modern fleets of 767s and 777s that do not justify replacing.
However having said all that since when has economics been the primary factor in aircraft purchasing, I’m sure a lot of behind the scenes politcking is taking place, as ever.
By: Bmused55 - 17th June 2004 at 07:36
I think Boeing can meet this goal or at least come close. Over a four year period alot can happen in the industry and the world economy. All of it hopefully good.
And regarding a minimum investment in aircraft in terms of number, one case to look at is Air NZ’s order for 2 7E7s. Of course this comes with many options.
Ah, someone with faith. Well done sir.
Same to you WD. My thoughts exactly
By: Silver Snapper - 17th June 2004 at 06:50
[QUOTE=Bmused55]Read this article
[Another extract]
All Nippon Airways Co. Ltd. and Air New Zealand Ltd. have already signed agreements to buy 7E7s. Bair said U.S. airlines — many of which are struggling financially — aren’t actively considering buying 7E7s
News out this morning suggest American and Continental
are interested. 😀
By: Whiskey Delta - 17th June 2004 at 04:48
http://biz.yahoo.com/rc/040616/airlines_jet_1.html
American and Continental are kicking around the 7E7 idea? We can only hope.
By: ACA345 - 17th June 2004 at 04:00
I think Boeing can meet this goal or at least come close. Over a four year period alot can happen in the industry and the world economy. All of it hopefully good.
And regarding a minimum investment in aircraft in terms of number, one case to look at is Air NZ’s order for 2 7E7s. Of course this comes with many options.
By: Whiskey Delta - 17th June 2004 at 03:49
What’s the smallest order an airline could have to justify the purchase? 10? 15? 20? 30? Figuring annual operational cost of training and maintenance there has to be a minimum number were buying a new airplane become feasible. An airline can’t justify keeping a parts supply for one type or bother training a whole crew of mechanics and pilots to handle 1 or 2 airplanes.
So it might be that any order for the 7E7 will be at least 10 or 15 which puts them pretty close to the required average order size to meet their goal. Not bad. A few large orders might just put them over that number.
By: Bhoy - 17th June 2004 at 03:27
they’re talking to over 30 airlines, and hope to sell over 600? Do they really think they can find 30 airlines who can afford to buy 20 planes each (on average) in the current economic climate?
By: KabirT - 17th June 2004 at 01:22
nice marketing by Boeing. 😀
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June 16, 2004 at 11:04 pm