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Airbus & Boeing Marginalizes Their Products  
User currently offlineOyKIE From Norway, joined Jan 2006, 2717 posts, RR: 4
Posted (8 years 4 months 1 week 2 days ago) and read 3229 times:

Morgan Stanley had a recent review of Airbus and Boeing and notes that both manufacturers face product marginalization.

In Airbus case it is the A318 that is not attracting interest and the prognosis for the A340 family is grim, with high fuel prices the business case for a 4 engines looks anachronistic and uneconomic. The A380 has been battling weight problems, and now they have to strengthen the wing. Airbus strives to keep the deadline in delivering the first 2 A380 to Singapore before year end, but Foregaard acknowledges it will be difficult to keep the schedule.

Boeing on the other hand sees a dark shadow for the 777. Especially certain members of the family. The 777-200ER will be eclipsed by the 787-9 and eventually the 787-10. Customer demand for the 777-200LR is still unclear.

Also the 737-900ER lacks the combination of range and passenger capacity that the airliners want. And the 737-600 is seen as a mere niche that has fallen out of favor.

Taken from Aviation Week March 13.

After reading this it makes me wonder how Boeing and Airbus will do to keep their product range competitive? Any suggestions?

1: In the A320/737NG product range I would think that offering two fuselage width and two or three wing options would be a good solution. The smaller one with 75-150 seats at 5 abreast and the larger one with 7 abreast and 150 to 250 seats. That way Airbus and Boeing can stay competitive with the E-jets and the RRJ. To think that one single plane can be stretched from 90 to more than 200 seats seems odd to me. If Boeing and Airbus choose to have one airplane replacing the narrow-body they will lack competitiveness in the lower and upper end in the narrow-body segment.

2: The A340 need to get something done, or it will be gone. Maybe Airbus would be better off developing the A350 further and wait for the Genx and Trent engines to develop to a higher thrust?

3: Would Boeing upgrade the 777-200ER and other members to keep it going, or would they just let the 787 grow into the lower end of that market family?


Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
3 replies: All unread, jump to last
 
User currently offlineIkramerica From United States of America, joined May 2005, 21474 posts, RR: 60
Reply 1, posted (8 years 4 months 1 week 1 day 21 hours ago) and read 3144 times:

This is news why?

We know the 318/736 are not good selling products, but they don't cost anything extra to offer.

The 739ER is again a minor modification of a frame paid for many times over, and will act as a niche/stopgap aircraft until the 797. They offered the 73GER for the same reason.

We know (those who aren't blind) that the 340 is on the way out. Airbus needs to realize this, but it's not news, and their 350+789/10 basically cancels out the 343 demand altogether. It's an old airframe with 4 engines.

We know that the 772ER is being replaced by the 789/10 and A350. It's a 15 year old airframe by that point. Though only two engined, technology has moved on just like with the 342/3.

We know the 772LR is a limited market aircraft, and so does Boeing, which is why they leveraged it with the 777F program, and why it shares so much with the 773ER. In other words, neither the 772ER or 772LR costs Boeing much to offer as long as 773ER and 777F sales are solid.

Would these analysts rather that companies not move forward? Or that they not leverage their products into niches as long as that niche offering isn't expensive?



Of all the things to worry about... the Wookie has no pants.
User currently offlineOyKIE From Norway, joined Jan 2006, 2717 posts, RR: 4
Reply 2, posted (8 years 4 months 1 week 1 day 19 hours ago) and read 3039 times:

Quoting Ikramerica (Reply 1):
Would these analysts rather that companies not move forward? Or that they not leverage their products into niches as long as that niche offering isn't expensive?

Thanks for interesting feedback. My understanding of this analyses was that poor sales in the 737-600 and A318 could have been much greater had the plane been optimized for that size. Same goes for the 739ER. The 752 did the job great and still does. How can they just make derivatives rather than develop planes specifically for that market?

Same goes for the Enhanced A340. The talked about A350-900HGW will hopefully kill of the A340.



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineN328KF From United States of America, joined May 2004, 6483 posts, RR: 3
Reply 3, posted (8 years 4 months 1 week 1 day 19 hours ago) and read 3024 times:

Quoting Ikramerica (Reply 1):
We know the 318/736 are not good selling products, but they don't cost anything extra to offer.

If AvWeek is to be believed (which it likely should), the A318 was a pretty big change from the A319. More than merely removing three fuselage frames, it was a weight reduction program as well.



When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
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