mrcomet
Posts: 575
Joined: Mon Mar 28, 2005 5:53 am

Building Planes Slowly

Sat Apr 01, 2006 1:43 am

Last year Boeing built only 10 747s yet they have a backlog of about 30 craft. This year they have three done. Doesn't it make sense to build them quickly and get them out the door? Why do manufacturers drag each plane out. If I'm an airline, I wouldn't want to wait three years for an airplane that is already getting obsolete.

And if the market for used planes is so tight, why doesn't Boeing just build a couple extra 767-300s sans engines. They probably won't lose money on them and if they are sitting around waiting to be used someone would probably buy them.
The dude abides
 
superhub
Posts: 398
Joined: Sat Jan 21, 2006 4:17 pm

RE: Building Planes Slowly

Sat Apr 01, 2006 1:49 am

Quoting MrComet (Thread starter):
If I'm an airline, I wouldn't want to wait three years for an airplane that is already getting obsolete.

I would imagine that if an airline is so desperate for planes, they would lease planes first.

Quoting MrComet (Thread starter):
And if the market for used planes is so tight, why doesn't Boeing just build a couple extra 767-300s sans engines. They probably won't lose money on them and if they are sitting around waiting to be used someone would probably buy them.

Is it really that tight? I see plenty of NW planes in the desert. There are also plenty from Independence Air too.
 
User avatar
breiz
Posts: 1426
Joined: Tue Mar 29, 2005 9:12 pm

RE: Building Planes Slowly

Sat Apr 01, 2006 1:51 am

Very basic.
You slow down you production out-put to maintain the production up and running, hoping for additional orders.
If you close your line down, and get new orders, it will be too costly to re-start it (providing that you find the right guys to work on it).
If you need 100 guys to built something in one month, you may use only 20 to built the same thing in 3 months, for ex., and keep your facilities open.

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