|Quoting Someone83 (Reply 158):|
Please explain how program accounting affect cash flow?
Cash flow has nothing to do when the company recognize the profit (or loss), but when the bills and wages are actually paid and when the customer pays.
You are not going to get a good answer to your question from the fervent Airbus supporters. Program accounting does not markedly affect cash flow unless you think that excess profits were reported and Boeing wasted all its cash paying its owners dividends and stock buybacks or unless big write downs are imminent. They also all seem to ignore that once the 787 gets cash positive on each delivery, it will be bringing in cash that can be used to fund more development work even if the accounting puts that money towards deferred cost. You can't debate with these guys since they are set in their opinions.
|Quoting Revelation (Reply 114):|
Now can we turn off accounting.com and turn back on airliners.net?
I would love to do that. I miss the days of discussing technical aspects of airplanes and what markets and airlines would be interested. It's rather disappointing that this thread has devolved into bashing Boeing over program accounting and promoting the A320 since it is more modern or discounting derivatives of the 737 since it is grandfathered, etc.
Let's discuss the middle of the market segment. I'll start right now. Who would be interested in this segment? Ideally the transatlantic 757s are where there is opportunity. 4000nm range with 200 seats would be a great market to help United at EWR
etc. There is potential for more transatlantic routes linking the core US hubs to Europe. There also is opportunity to provide routes with decent O/D out of New York nonstop flights and make money. Such a plane would also be useful to South America. I believe that Brazil would benefit from some right sized airplanes to offer service to cities other than GRU
. Bolivia, Ecuador, Peru, Paraguay, etc all could be served by such a plane from MIA
. I think UA
would all be interested in such a plane. Middle of the Market would also be perfect for many routes to Hawaii. A320s and 737s can fly from the west coast, but other than Alaska who focuses on serving Hawaii from smaller mainland cities, UA
would benefit from a larger plane. 4-6 737s or A320s a day from LAX
is a waste, yet flying expensive large widebodies may not make sense either.
Europe would be interesting. It think such a middle of the market plane would be perfect for European flights into Central Asia and Africa. Air France, Swiss, Brussels, KLM, etc all have flights into Africa that are a bit beyond the range and seating comfort of their short haul A320/737 fleets. While some use specially configured A320s or 737s for long range flights, a Middle of the Market plane could do well since it would have enough range to carry cargo and have decent load factors with daily flights. A330s & 777s are too big for flights into much of Africa. Central Asia is also interesting. Russia, Turkey, Egypt, Israel, Iran, Dubai, Qatar, etc are all long enough flights where a larger plane with an appropriate seating configuration may maximize revenue. Larger widebodies may be too big. They also could penetrate smaller cities in the United States. I could see some European airlines ordering the airplane, although not necessarily in large quantities like US airlines.
Asia would be interesting. I don't know how well the range and payload would work in Asia. Such a plane would do great flying from Japan and Korea to Southeast Asia and South Asia. Japan to India is underserved. Japan and Korea to cities in Southeast Asia could work well. Lots of Koreans vacation in warm beach locations like Phuket and Bali yet an A330 may be too big. Korean has some long 737 flights to places like Cambodia.
A middle of the market plane would do well for Qatar and Etihad in my mind. Those airlines probably have some cities in Europe where the A320 is too small or doesn't have enough range to get to. Cities like Dublin, Lisbon, Hamburg etc could fit into the networks at Qatar or Etihad but the 787 and A330 are too big. There are also cities in China that the airlines could better penetrate.
What do others think? Airbus is trying to market the A321neoLR. It's got potential, but I see opportunity for something bigger with more range yet keeping costs low.[Edited 2016-03-16 06:31:37]
[Edited 2016-03-16 07:17:01]
If you have never designed an airplane part before, let the real designers do the work!