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Boeing Puts Another Behemoth in the Sky

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Guest fountainhall

Airbus bet on moving a lot of passengers from hub to hub cheaply in giant airplanes. Boeing thought the future lies in moving fewer people point-to-point in super-efficient aircraft. And while the A380, which seats as many as 525 people, allowed Airbus to boast it makes the world’s biggest airliner, bragging rights only go so far. It’s the bottom line that matters.

I'm really not sure what that means, unless it's a Boeing puff-piece!

 

The fact is that the A380 has proved to be a big commercial success. Airlines, like AIr France and Emirates, have put the aircraft on short routes in between long haul sectors - like Paris/London and Bangkok/Hong Kong. Both airlines say they are able to increase price because of the airliner's popularity. And, because of the A380 competition between Bangkok and Hong Kong, both Cathay Pacific and THAI have been forced to reduce their premium fares! The price does not quite match Emirates and it's valid for one month instead of Emirates' one year, but it's pretty close. (Although I never really liked Emirates in the past, the daily A380 is now my flight of choice on that route.)

 

So what does "bragging rights only go so far" mean, the more so when Being acknowledges the 747-800 will never be a big seller? Curious! I add that I love the B747-400 - but its interiors on many airlines are getting very tired now - e.g. Qantas and BA. When I flew LHR/Buenos Aires, the upper deck wall panels of the BA aircraft were literally flapping loose!

 

Winning strategy? Let's not forget: Boeing is 3 years behind schedule getting the 787 into service. Surely it should be concentrating all its efforts in satisfying those customers instead of rolling out another version of the 747 that won't make money?

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If I read the piece correctly, this new Boeing drinks 16% less fuel and lowers overall per seat operating costs by 13%.

 

Airlines simply cannot stay in business if they buy uncompetitive aircraft.

The aircraft makers then have to keep updating their aircraft, or risk getting driven out of the segment altogether.

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Guest fountainhall

If I read the piece correctly, this new Boeing drinks 16% less fuel and lowers overall per seat operating costs by 13%. Airlines simply cannot stay in business if they buy uncompetitive aircraft.

The aircraft makers then have to keep updating their aircraft, or risk getting driven out of the segment altogether.

Most of the world's airlines have no choice but to keep modernising and updating their fleets. So how come they don't seem to like such savings, or are not convinced by them? Only orders for 33 of the passenger version and 74 of the cargo version so far? Perhaps it's because the savings on the 747-800 are set against the current model of the 744-400, not those offered by the 787 and the upcoming A350, both of which also have major fuel savings over current aircraft.

 

I'm glad I'm not a Boeing stockholder. The 747-800 was supposed to be a 'cheap' upgrade costing around US$2 billion. The article quotes estimates now of $5 billion! Spread that over a smallish number of orders and the plane becomes very expensive indeed.

 

Re-reading that article more carefully second time around, I realise it is very far from a Boeing "puff piece". It's a pretty strong criticism of Boeing for rolling out a plane no-one seems to want.

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