Smart Move
These finance people are not that bright. Most of the time they gamble. By 2017 quite few of the B737NGs well be pensioned off because of reasons discussed elesewhere on this forum. This is a very wise move on the part of Boeing.
Now as far as manufacturing capacity goes, can they make them? Yes they can, easily. Already some parts are made in Japan and other could easily be sourced in new facilities built in China, India or Brazil. Brazil is a particular place because of NAFTA.
Competition from Airbus.
The European manufacturer does not have the depth of expertise as has Boeing. EADS is a composite of several manufacturers spread over Europe. They still have issues, for example: electrical connectors..stuff made in one place does not match up with the rest.
Finance. Airbus is underwritten by the EUR tax payer. The EUR finances pivot around the German economy. Inherently EADS depends upon political goodwill. The German politicos will not bail out EADS if it hits a sticky patch because they have plenty of other income apart from Aerospace.
The finance people will fall over themselves to finance the new B787 but they will not be too happy financing the older stock that the 787 will replace. Mark Lapidus has missed this aspect completely. The problem with these finance people is that they try to mold the future to their own pecuniary advantage. Lapidus is not without an agenda and they know how to use the media.
We have a similar situation at Rolls Royce with board members also having current or former interests in THE ECONOMIST. Don't let these folks lead you by the nose.
The B787 as it leaves the factory could be sold for an immediate profit above the contract price, such is the demand. Lapidus could well be financing Airbus products hence the somewhat biased statement he made.
Last edited by DERG; 22nd Feb 2011 at 11:16.
Reason: additiona