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Boeing Paying Midwest To Fly 717's  
User currently offlineClickhappy From United States of America, joined Sep 2001, 9603 posts, RR: 69
Posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2705 times:
AIRLINERS.NET CREW
PHOTO SCREENER

quite a read.

Airline got sweet deal in financing 25 Boeing jets

http://seattletimes.nwsource.com/html/businesstechnology/134679776_boeingloans210.html

13 replies: All unread, jump to last
 
User currently offlineN766UA From United States of America, joined Jul 1999, 8193 posts, RR: 24
Reply 1, posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2664 times:

Nice Caption on that photo. Can you find the error?

Boeing worker Doug Maxwell, originally from Wisconsin, shows his pride for his home state as Milwaukee-based Midway Airlines takes delivery of a new 717-200 airliner in Long Beach, Calif., on Feb. 28.



This Website Censors Me
User currently offlineM717 From United States of America, joined Dec 2002, 608 posts, RR: 4
Reply 2, posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2649 times:

That would be MidWEST Airlines, right? (Caps for emphasis.)

User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 3, posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2636 times:

Just ANOTHER reason to close this line!

User currently offlineOuboy79 From United States of America, joined Nov 2001, 4567 posts, RR: 23
Reply 4, posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2626 times:

The struggling 767 line is also getting important assistance from Boeing Capital. Employment on the line is on its way down to 400 workers from 1,400 a year ago as production falls to just one plane every six weeks, versus three-and-a-half per month before Sept. 11, 2001.

Again, the picture would look even worse without Boeing Capital. The finance unit has pledged $575 million to help American Airlines take delivery of nine 767s this year — or nearly half of all the planes due to come off the line in Everett.


I guess they should shut down the 767 line as well, eh 777236ER?  Insane


User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 5, posted (11 years 3 months 1 week 1 day 9 hours ago) and read 2618 times:

Yes they should. Roll on the 7E7.

Don't roll your eyes at me. The 717 has not, and will not, make money for Boeing.


User currently offlineJr From United States of America, joined May 1999, 968 posts, RR: 6
Reply 6, posted (11 years 3 months 1 week 1 day 7 hours ago) and read 2483 times:

They should shut the 736 line down, and market the 717 in its place.

... ok i'll quit rambling.



I've flown on 9V-SPK.
User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 7, posted (11 years 3 months 1 week 1 day 5 hours ago) and read 2374 times:

Seen as though there's no market for each, they should shut both down.

Is the 737-600 even a line? Isn't it just a common 737 line?


User currently offlineBA From United States of America, joined May 2000, 11153 posts, RR: 59
Reply 8, posted (11 years 3 months 1 week 1 day 5 hours ago) and read 2362 times:

They should shut the 736 line down, and market the 717 in its place.

All 737s are built on the exact same lines and exact same facilities. You shut down the 736 line, you shut down the entire 737 line.

Regards



"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
User currently offlineKUGN From United States of America, joined Jul 2000, 615 posts, RR: 6
Reply 9, posted (11 years 3 months 1 week 1 day 5 hours ago) and read 2309 times:

Has anyone been buying 736s recently?

And how soon can Boeing start 737 line (or any other) in Long Beach, legally speaking?


User currently offlineLMP737 From , joined Dec 1969, posts, RR:
Reply 10, posted (11 years 3 months 1 week 1 day 4 hours ago) and read 2271 times:

KUGN:

Boeing was planning to build 737's in Long Beach in the late 90's. The idea was to build 737QC and military derivatives on the unused portion of the MD-11 line. Boeing put in some jigs and built a huge gantry to support production. Then Boeing changed it's mind and ended cutting up $36 million dollars worth of tooling.


User currently offlineDouglas DC-9 From United States of America, joined Sep 2001, 303 posts, RR: 2
Reply 11, posted (11 years 3 months 1 week 1 day 4 hours ago) and read 2266 times:

I don't buy it. I need more resources. Something I can trust, Netscape, Google, CBS New, Paul Harvey...something else

User currently offlineRj777 From United States of America, joined Dec 2000, 1785 posts, RR: 2
Reply 12, posted (11 years 3 months 1 week 1 day 3 hours ago) and read 2206 times:

"A gang of proud Boeing workers riding Harley Davidsons escorted the new jet down a runway near the 717's Long Beach, Calif., plant with Midwest Chief Executive Timothy Hoeksema looking on."

Man, that had to be a sight. Did anybody get any pics of THAT?



User currently offlineCloudy From , joined Dec 1969, posts, RR:
Reply 13, posted (11 years 3 months 1 week ago) and read 1990 times:

Yes they should. Roll on the 7E7.

Don't roll your eyes at me. The 717 has not, and will not, make money for Boeing
--------

Yes. The 7E7, in addition to opening new markets, will also serve as a more-or-less direct replacement for the 767. It is hard to imagine that this program will sell a significant number planes to non-government operators after the 7E7 is available. Even in good times, there is a reluctance to order a plane when its replacement is already in development.

Boeing is in a race with time to come up with attractive yet doable performance guarantees for the 7E7 so it can launch the program. Once the program is launched, they will be under tremendous pressure to stick to the schedule. Once you kill the market for an old bird by announcing a new one, you have to get the new one out as fast as you can or you will lose a lot of orders in the transition. This makes the process of replacing an old plane with a new one pretty tricky from a marketing standpoint.

As for the 717 not ever making money - this could be true yet it might still make sense to continue the program. There are two ways this could happen -

1. It could be profitable to sell each plane but even so the plane would not ever make back its development cost. Since the development cost has already been paid, in this case it makes sense to keep the program because money is still being made and it would cost to much to redirect the capital invested to more profitable activities.

2. Boeing could be losing money with each plane built and it might still make sense to continue the program. Why? because, as others mentioned, it costs money to close a production line. Contractual penalties must be paid. Equipment must be moved, and hazerdous waste disposed of. Union workers have to be layed off, and this causes both financial and labor relations problems. These costs could easily add up to more than what you are losing by continuing to make the plane.



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