JAM747
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Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 4:29 am

Which planes have been the most profitable to Boeing and Airbus? I would think that the ones in production the longest would be the ones most likely or am I wrong? Does anyone know?
 
PanAm747
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 6:08 am

Much like automobiles, bigger = more profits.

I have heard that the 747 is a cash cow for Boeing, especially freighter versions. That doesn't mean that other airplanes are unprofitable, just that the profit margin is higher.
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futurecaptain
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 6:23 am

I'm willing to bet the 737 has definately repaid its development costs and todays sales are icing on a 30 year old cake.
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scouseflyer
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 6:30 am

Quoting Futurecaptain (Reply 2):
I'm willing to bet the 737 has definately repaid its development costs and todays sales are icing on a 30 year old cake.

Except that the NG was effectively a brand new plane in the mid 90's - probably the oldest 744 and A300
 
UAL747
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 6:33 am

737's and A320 series aircraft hands down.

UAL
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SkyexRamper
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 9:34 am

Boeing 737 series and 727. The best selling airliners, in their class, of all time!

Airbus 320.
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roseflyer
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 9:43 am

For a single model, for Boeing it would be the 747-400. That plane sold immensely well and had the highest yield as in mark up of any plane during the 90s when it was being sold in mass quantities very quickly. It was also the most expensive plane at the time.
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KELPkid
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 9:54 am

Quoting RoseFlyer (Reply 6):
For a single model, for Boeing it would be the 747-400. That plane sold immensely well and had the highest yield as in mark up of any plane during the 90s when it was being sold in mass quantities very quickly. It was also the most expensive plane at the time.

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A friend of mine, who's a civil engineer by profession, took a graduate course (by remote interactive TV connection) which was taught by someone at Boeing. The class ended with an actual tour of Boeing's big facility at PAE (this was in the late 1990's). The tour guide said "Suppose you are a Boeing salesman. Which model would you want to sell?" The answer? Any 747-series aircraft, because, as stated before in this thread, the R&D money had been spent decades ago, and at that point in the program, any sale was pure profit for Boeing (coupled with a high list price due to the 747's lack of competitors at that point in time).
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STT757
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 9:54 am

For Boeing I would say right now the 777 is the big money maker, the 777 will pass the torch to the 787 sometime after 2011/2012.

For Airbus I would say the A330 family is the biggest money maker.

I determine a money maker by two factors, how old the aircraft is and how well it's still selling.

If an aircraft is 10 years old (both A330, and 777 are 10+) and still selling well they have long paid off development and production costs and are in the pure profit zone.
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airfrnt
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RE: Planes Most Profitable To Boeing And Airbus?

Thu Sep 14, 2006 10:30 am

Quoting JAM747 (Thread starter):
Which planes have been the most profitable to Boeing and Airbus? I would think that the ones in production the longest would be the ones most likely or am I wrong? Does anyone know?

There are two seperate ways to make a lot of money
Lots of Orders x Little Margin x Multiple iterations = $$$$
Few Orders x Big Margin = $$$$
Medium Orders x Middle Margin = $$$$

With all due respect to Airbus, they have not been a top bracket competitor for long enough to have multiple iterations of the 320. We will see what happens with the 320NG.

In which case the clear winners For the small market is:
DC-9, 737

For the larger market the 747 was the cash cow, but it started to dry up after the 744 and the route fragmentation over the Atlantic. Even the 777, 767 and 757 can't compete with the longevity of the 747.

Quoting PanAm747 (Reply 1):
I have heard that the 747 is a cash cow for Boeing, especially freighter versions. That doesn't mean that other airplanes are unprofitable, just that the profit margin is higher.

It pretty much started to dry up after the 744 and really stopped being their cash cow as soon as the 777 was introduced.

Quoting Futurecaptain (Reply 2):
I'm willing to bet the 737 has definitely repaid its development costs and todays sales are icing on a 30 year old cake.

Remember that there have been three iterations of the 737 so far, so it's not all gravy, but it's pretty profitable. The same goes for the DC-9, which had 3 or more iterations. The 727 didn't have the same longevity.

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