Karan69 From India, joined Oct 2004, 2893 posts, RR: 18
Reply 1, posted (9 years 11 months 2 weeks 2 days 5 hours ago) and read 3211 times:
Good for them, they have so many pending 737NG and other orders which need to be delivered as soon as possible.
After loosing to Airbus twice in a row, its time for them to bite back atleast in some way
AirBuffalo From United States of America, joined Jan 2004, 138 posts, RR: 0
Reply 4, posted (9 years 11 months 2 weeks 1 day 14 hours ago) and read 3031 times:
"Another way Boeing is biting back is by offering the B737 to budget airlines at deep discounts"
I think Boeing has played this game perfectly ... with the one BIG assumption that the squabble with the WTO will result in fewer Airbus subsidies in the coming (5-10 years):
1) boeing refused to slash the price of planes just to rack up orders in the late 90's up to the present day. Airbus did this and has sacrificed profitability for good PR and quick sales
2) boeing can now take advantage of the weak dollar and churn out planes at a nice margin while Airbus will struggle to make a profit with the 320 line and won't be able to make it up in more subsidies.
The next 18 months will be interesting. The boeing/airbus WTO issue is going to balloon into a huge US vs. EU thing.
PlaneSmart From New Zealand, joined Dec 2004, 1077 posts, RR: 0
Reply 5, posted (9 years 11 months 2 weeks 1 day 13 hours ago) and read 2981 times:
B are taking a leaf out of A's books. Make 737's on spec so you can offer fast delivery. Start production without a firm order, and, chances are by the time it rolls out, there is a buyer.
The way start-ups are funded these days, they want and can aquire an instant fleet. B will now be in a position to provide the same service.
AirBuffalo, you are right about exchange rates, but remember, not all customers choose to purchase in USD. Often it's a mix of currencies. USD weakness is definitely a selling edge for B. US citizens indirectly paying the price in terms of higher import costs.
Launch finance is model specific, and has been fully repaid, plus dividends to shareholders on A32 line.