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clickhappy
Posts: 9042
Joined: Thu Sep 13, 2001 12:10 pm

Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:20 am

quite a read.

Airline got sweet deal in financing 25 Boeing jets

http://seattletimes.nwsource.com/html/businesstechnology/134679776_boeingloans210.html
 
N766UA
Posts: 7843
Joined: Thu Jul 29, 1999 3:50 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:27 am

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
 
m717
Posts: 540
Joined: Tue Dec 31, 2002 1:01 pm

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:29 am

That would be MidWEST Airlines, right? (Caps for emphasis.)
 
777236ER
Posts: 12213
Joined: Sat Aug 18, 2001 7:10 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:31 am

Just ANOTHER reason to close this line!
Your bone's got a little machine
 
ouboy79
Posts: 4110
Joined: Sun Nov 18, 2001 1:48 pm

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:34 am

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
 
777236ER
Posts: 12213
Joined: Sat Aug 18, 2001 7:10 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 5:36 am

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.
Your bone's got a little machine
 
jr
Posts: 1043
Joined: Tue May 18, 1999 1:15 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 7:01 am

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.
 
777236ER
Posts: 12213
Joined: Sat Aug 18, 2001 7:10 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 8:49 am

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?
Your bone's got a little machine
 
BA
Posts: 10133
Joined: Fri May 19, 2000 11:06 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 8:53 am

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
 
KUGN
Posts: 606
Joined: Mon Jul 17, 2000 4:36 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 9:32 am

Has anyone been buying 736s recently?

And how soon can Boeing start 737 line (or any other) in Long Beach, legally speaking?
 
LMP737
Posts: 4800
Joined: Wed May 08, 2002 4:06 pm

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 10:06 am

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.
Never take financial advice from co-workers.
 
Douglas DC-9
Posts: 291
Joined: Mon Oct 01, 2001 2:39 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 10:08 am

I don't buy it. I need more resources. Something I can trust, Netscape, Google, CBS New, Paul Harvey...something else
 
rj777
Posts: 1548
Joined: Sat Dec 02, 2000 1:47 am

RE: Boeing Paying Midwest To Fly 717's

Tue Apr 22, 2003 11:10 am

"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?

 
cloudy
Posts: 1613
Joined: Sat Apr 06, 2002 3:23 pm

RE: Boeing Paying Midwest To Fly 717's

Wed Apr 23, 2003 2:05 pm

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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