Re: and the winner is.....

Date:         22 Jul 99 23:30:26 
Organization: - Share what you know. Learn what you don't.
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JF Mezei <> wrote:
> I find it interesting that for the 777 family, it was seen as an
> advantage to have multiple engine suppliers. Why would Boeing now go
> for a single exclusive engine supplier for a derivative of the 777 ?
> Is such an annoucement more of a
> "so far, GE has committed to produce the engine for this derivative"
> or
> "GE will be the only supplier of engines for this derivative and
> has an exclusivity contract with none of the other 777 engine
> manufacturers allowed to compete for this 777 derivative".

The latter. GE basically said they wouldn't do an engine for the 777X
unless they had exclusivity. While the Boeing press release doesn't
technically give then exclusivity (probably to avoid alienating the
other engines makers), in practice that's what it boils down to.

> How does this change the purchase of an aircraft ?

Well, it needn't. The 737 has done pretty well selling with only one
engine. On the other hand, it might become an issue if a 777 operator
with engines other than GE is looking at the 777X. Having to consider
bringing in a whole new engine type might open the door for them to
look at other options as well, since the benefits of commonality would
be that much lower (remember -- we were told earlier that one reason
Boeing is producing the 737-900 is precisely to dissuade current 737
operators who don't already have 757s from looking at the competition
when they're looking for a larger aircraft). Then again, BA already HAS
switched engine suppliers for 777s (from GE to RR) even without being
forced to.

Stefano Pagiola
All opinions are my own.
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