Flyglobal wrote:seahawk wrote:The A330NEO is dead. Boeing is able to sell the 787 for less. This killed the business case.
This might be true: The strategy was obviously to crash the A330 NEO.
But what happens to the next contracts? Whoever from larger Airlines will want to buy the 787 above the 88 Mio mentioned? The one who signs something in the 100m may be kicked out at home.
To move 25.000.000.000 Dollars out of the books at 8.000.000 margin it Needs another > 3.000 787s to sell.
So accounting block moves 4.000 + ?
Anyhow if those prices continue, the mission to erase the A330 will probably be accomplished, however I do not believe that prices can go up again later.
And what effect will this price strategy have on the sales of the 777x. Better buy 2-3 789s instead of a 777x.
And how does the MOM Need to be priced.?
For us Fans it is interesting. For Airbus it is probably bad, but is it good for Boeing overall?
I believe overall Boeing plans to shift to a strategy of lower margins on aircraft deliveries to drive more service revenue at higher margins and reduce how cyclical their business can be.
I also would point out that the $25 billion to be eaten up won’t all happen at the rate you describe. Most of the existing backlog is on the books for significantly higher dollar amounts. There seems to have been a pricing model change in the last 6 months or so.