Re: end of the line for the MD-11

Date:         08 Jun 98 02:57:59 
From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
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>Looking at this Boeing decision, Airbus should have axed for a long time
>it's A310 and A300 lines !

It's pretty amazing that Airbus has kept those lines going.  However,
there's significant commonality between them and the A330/A340 so it
may not be as expensive as it seems.  In the case of the MD-11, there
might be a little bit of cockpit commonality with the C-17 (I think I
heard that they share the same windshield) but that's about it.

>To the best of my knowledge total orders are 191.

So 9 options/reserves?

> It is a pretty safe bet to say that some of the customers will cancel
> their remaining orders, since the value of the MD11 will take a deep
> drop.

I see no reason to expect that MD-11 values will plummet.  With nearly
200 of them built, and substantial commonality with the DC-10, it's not
like they're rare orphans.  The MD-80 didn't drop in value once Boeing
announced termination of that program, and for that matter 727 values
still aren't that bad considering how long they've been out of
production.

The MD-11's proven value as freighters will no doubt support prices,
too.

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Karl Swartz	|Home	kls@chicago.com
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"The average dog is a nicer person than the average person." - Andrew A. Rooney