Ciro
Topic Author
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Lowering The Prices Of The 747?

Thu Feb 20, 2003 1:07 am

Instead of launching stretched versions, would Boeing low its 747's price in order to compete with the A380?
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
N79969
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Joined: Tue Jan 29, 2002 1:43 am

RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 1:58 am

I have read this is something that Boeing would consider. Boeing has enjoyed close to monopoly pricing on the 747 during its existence. Lowering the price of the 747 would undermine the economics of the A380 to some extent. I think Boeing is waiting for the A380 to enter service and will make improvements to the 747 based on the 380s shortcoming. They may also reduce the price simultaneously.
 
hkg82
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 2:28 am

The entry of the A380 into the market will lower the value of the 747, and Boeing will have to lower the price of the aircraft. I think this is a very likely scenario. This will make it cheaper for airlines (particularly small-scale freight companies & charter airlines) to buy the aircraft for routes that don’t require such a large capacity that the A380 provides.

Hkg82.
 
AvObserver
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 9:55 am

I read that Boeing was going to implement a moving production line and other lean manufacturing techniques in 747 assembly to cut down time and lower costs. The price MUST come down if the AC is to remain viable. Once A380 prices stabilize at close to catalog, Boeing has an opportunity to undermine A380 sales by selling an about 80% capacity (of the A380) aircraft at less than 80% of the price. However, to remain truly saleable, the 747 must also cost little, if any more, than the A340-600. The dilemna for Boeing is that this could also undermine sales of the the 777-300ER, already their highest priced airplane.
 
gigneil
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 11:06 am

I think Boeing would be thrilled if no customers ever ordered another 747, and just ordered 777-300ERs.

Cept freighters.

N
 
cloudy
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 5:44 pm

My guess is that the 777-300ER and/or even larger future versions of the 777 are going to be Boeings largest truly competitive passenger entry for a while. Passenger 747s will be built at a very slow rate and mainly for airlines that already have them. 747's will be mainly sold as cargo planes. For the most part, this is already happening. For this reason, I believe major new passenger versions of the 747 to be unlikely. Something like the XQLR may be built, primarily because it enhances the airframe's value as a cargo hauler as well. But there won't be any stretches.

When Boeing builds a cargo version of the 777, it will be a sign that the 747's days are numbered. But that may not be for a long time yet. The 747 has many advantages over the A380 as a cargo plane (as does the A380 over the 747). Since each is suited for different kinds of cargo operations and freight types, I would not be surprised to see them operated side by side.

 
gigneil
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 5:57 pm

EK will operate them side by side, at least for a bit.

There is also much talk of EK and the likes of LH pushing for a 777 freighter.

The 777-200LR will make an outstanding freighter platform, and will fill a HUGE gap - the 90t freighter market - caused by the exit of the MD-11F.

That being said, the A340-500 and the A340-600 would also make good freighters.

The 744's niche will be for long cargo that must be loaded via the nose.

N
 
Andreas
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 7:40 pm

Why would LH want a 777 freighter? It seems to be about the same size as the MD 11F, and LH did get a few very good deals on those (60 or 70% of LH cargo fleet is now MD 11F) and if they need more, there are certainly quite a few MD 11 around that their current owners would just love to sell to LH, who is perfectly able to convert these into freighters.

Regards

Andreas
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gigneil
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RE: Lowering The Prices Of The 747?

Thu Feb 20, 2003 8:30 pm

Apparently it was discussed. I'm not saying LH is interested in the present, but that they have indicated a 777 based freighter would agree with their plans.

Concordeboy will no doubt have more details.

N
 
ConcordeBoy
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RE: Lowering The Prices Of The 747?

Fri Feb 21, 2003 8:10 am

Why would LH want a 777 freighter?

Gigniel is right. Both EK and LH Cargo have been in talks with Boeing about a 772LRF.... if you want "verification", see Aero International, February 2003; which quotes them as saying they'd be "particularly interested" in such an aircraft.

Kinda shocking to me really; considering that LH, like CX and AA, is something of a willing slave to RR engines.
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boeing767-300
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RE: Lowering The Prices Of The 747?

Sat Feb 22, 2003 4:31 am

Kinda shocking to me really; considering that LH, like CX and AA, is something of a willing slave to RR engines.
ConcordeBOy I thought LH were big GE users, don't all of their 744 fleet have CF6s


 
N79969
Posts: 6605
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RE: Lowering The Prices Of The 747?

Sat Feb 22, 2003 4:33 am

LH is a longtime GE customer and only recently started buying RR engines.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: Lowering The Prices Of The 747?

Sat Feb 22, 2003 6:49 am

Yeah they did used to love GE.

But subsequently they've ordered lots of RR. A321s, 330s, 340s, and 380s.

Who knows why.

N
 
Klaus
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Joined: Wed Jul 11, 2001 7:41 am

RE: Lowering The Prices Of The 747?

Sun Feb 23, 2003 4:48 am

LH are a major maintenance service provider and are thus interested in broadening their expertise on different engine makes.

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