Re: 1998 1st half order update

Date:         06 Aug 98 23:22:38 
From:         Marc Schaeffer <marcmsc*@cmdnet.lu>
Organization: Unorganized
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JF Mezei wrote:

> Boeing got a lot of bad press because it was unable to keep to its
> delivery schedule promises which were perhaps too agressive considering
> it was a much more "brand new" product than just another 737.

The main problem remains that the suppliers could not adjust to the asked
output rates. In addition the hire and fire philosophy is not applied in
Europe, resulting in lower occupation in bad times, but with the actual high
output AI has more qualified workers available, whereas Boeing needs to
invest time and money in training new workers. The above mentioned delivery
problems speak in favor of AI.

> Airbus meanwhile has had its models for some time now (that A320 for
> almost 10 years), has had the time to work out the production (and
> product) defects, has a good grip on how many and how fast it can build
> them.

a good point ;)

> I'd speculate that Boeing's orders are fairly new, whereas Airbus' are
> perhaps older.

No. The 737 outsold the 320 until '96 included. The 320 has outsold the 737
since then, but a big percentage of the 320 orders are for delivery after
'00.

> There hasn't been much time for Boeing customers to
> cancel orders for whatever reasons,

why should they cancel orders ?? they get a financial compensation because
Boeing couldn't keep the delivery dates. And if they were smart enough (at
the time the contract was signed) they can even lease a replacement a/c and
Boeing has to pay for it ;)

> whereas, I'd say that some Airbus
> customers have cancelled/delayed orders, and that gives Airbus room to
> play with its delivery schedules.

 The only 320 order which has recently been cancelled was PAL for 4 A320 (msn
861, 863, 868 and 870)

my .02
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