Re: Boeing cancels 747-500X/600X?

Date:         18 Mar 97 03:14:52 
From:         Jean-Francois Mezei <"[nospam]jfmezei">
Organization: SPC
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Terry Schell wrote:
> The central claim that you need to focues on *new* orders when you
> work out the viability of a new product is unchanged.  I contend that
> the bulk of the customers who have expressed interest in the 3XX are
> currently 330/340 customers; the orders of 3XX's will be reducing the
> orders of 330/340

And the orders for a Boeing super-jumbo would also be replacing orders
for existing models of 747s.

Where Airbus "wins" compared to Boeing in introducing such a plane is
that it fills a market where Airbus currently has no presence whereas
Boeing does with its 747-400 to some extent. Differently: The gap
between the A340 and A3XX is much greater than the gap between the
747-400 and 747-500/600X.

By introducing the A3XX, Airbus can hope to capture some sales that
would otherwise have gone to Boeing's 747s. By introducing a
747-500/600, Boeing will not steal any sales except from its own

Airbus can *hope* to steal some 747 sales with a properly sized A3XX as
well as capture that small market for the super jumbo. Boeing won't
really be stealing any market since it already has 100% of the jumbo
market so its 747-500/600x must be justified solely on that small market
for a super-jumbo.