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Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 8:48 am

I think ending MD-11 production was a great strategic move for Boeing. My hypothesis is the following:

Now the MD-11 is becoming very popular as a freighter, its second hand price will be high. So it will make sense for many airliners to sell them off. And since McDonnell-Douglas became Boeing, they will be doing business with Boeing. Boeing can make a great package deal with airliners buying the B777 as it trades and modifies MD-11 aircraft. This makes Boeing very powerful, as competition with the A330/340 is very fierce. In terms of performance between Airbus products and Boeing products there are almost no differences. So winning an order will be all about making the best deal. Airbus will not be interested in MD-11, so with most deals replacing MD-11’s Boeing will be making the best deal, consequently replacing the MD-11 with B777’s. That means big money for Boeing and that is what it is al about!!!!
Smart thinking of the Boeing people when they decided to end the MD-11 production.

Any ideas????
 
CPDC10-30
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RE: Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 8:59 am

Sadly, it is very true. A very intelligent post.
 
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Heavierthanair
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RE: Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 8:59 am

Lufthansa for sure didn't like Boeing to stop production of the MD11 freighter. They were sort of blackmailed by Boeing, though they had/have no real alternative. They now shop for some used elevens.

The minute there is an alternative, guess what they will do.

we'll see
Peter
"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe." (Albert Einstein, 1879 - 1955)
 
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RayChuang
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RE: Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 9:04 am

The question is will LH want to buy the A3XX freighter version?? That could be a big issue bcause the A3XX freighter may require new cargo handling equipment, which costs major amounts of money to implement.

I think LH is better off buying more 747-400F freighters and whatever MD-11 freighter conversions it can get its hands on.
 
Gregg
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RE: Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 1:56 pm

Brommerkoplamp,

Very interesting idea. I am sure that this had something to do with Boeing's decision, BUT, I think MD would have stopped production soon if the merger didn't happen. Passenger versions of the MD-11 have not been selling well (since 1995 or so). I think it is going to be hard to sell enough freighter versions with many used DC-10s and L-1011s coming on the market very cheap. Also, some relatively new MD-11s coming on the used market.

To a lesser extent, but even more important, the MD-11s are getting perceived to have allot of crashes. Even if this is not true, does Boeing want to be producing this aircraft?

Also, with the even longer range 777s coming, (and the new A340), won't these make much better cargo aircrafts for those desiring a new cargo aircraft?

 
Adam84
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RE: Ending MD-11 Production, A Great Strategic Move!

Sat Nov 25, 2000 2:38 pm

I thought boeing opened the MD-11 production line for Lufthansa Cargo? Kind of like what they did for Continental and the 767-200.

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