Deciphering Boeing Commercial Aviation's strategy.
A. Sporty bet: Boeing is betting its future on a major change
in the airline industry- worldwide deregulation that will allow more P2P flights
- death of some old players and birth of start-ups
with rationalized cost structure (airline renewal)
This change is yet to happen. Open sky negotiation between
EU and US is on going.
B. Long-haul: One range - One speed strategy- eight thousand nautical miles at mach 85
with capacity step at around 200 passengers
747Adv - 773ER - 772ER - 7E9 - 7E8
- Ultra-long range niche market (9000nm+): 772LR and 7E8LR
C. Short-medium-haul: Brand new short-haul family- revamp of the short-med-haul family in 2009/2010:
7E3 plus a new single aisle family that will be
built using the same manufacturing process as 7E7.
D. Manufacturing: Lower unit production cost and seek
new sources of income- 7E7 composite manufacturing techniques for 7E7 and single aisle. 777 and 747 fuselage is too big to be built in composite.
- reduce manufacturing facilities and sell or lease asset
- zero storage
E. Suppliers: Global supplier network - dilution of risk- build parts where the cost is lowest
- offset financial risk to suppliers
- BCA is "only" system integrator
F. Creative financing: Use Boeing Capital and all sort of leasing techniques more often
In other words, they are looking to offer a simpler and
more affordable family of products.
BCA's financial risk exposure for a new aircraft programme
will be reduced to a minimum because much of the financial
burden will be distributed to its industrial partners.