Page 8 - AAA MAY - JUNE 2018 Online Magazine

payload it offers when we reach higher max units. “Boeing will want a flashy announcement with firm orders
take-off gross weight, I think people will real- from launch customers with coverage of the unique features
ize what a good solution it is,” he said. and passenger comforts. The stock will increase as investors
Still on widebodies Bernstein says that view it as a sign of stronger growth,” says Ambrose.
despite the recent Emirates A380 order, it
is negative on the A380’s future. “We are “The announcement could come at the Farnborough airshow
skeptical that this program can be revived. in July but more likely at the Singapore show in February.” He
It looks very difficult without a new engine, says that the 797 would lead to a 737 replacement in 2030 using
as the current A380 engines are two gener- the enhanced technology in a different configuration. Talking
ations behind the 777X GE9x engine.” Teal’s with Asian Airlines and Aerospace at the IATA AGM, Boeing’s
Aboulafia, a long-time critic of the A380, Marketing VP Randy Tinseth said that the 797 “will not push
says Boeing didn’t realize “how right it was” boundaries” the way the 787 did but instead will harness all the
on its smaller is better point to point strat- experience from that airplane plus the 777X work.
egy. “Everyone wants a A350 or 787,” says But the dilemma is will passengers pay for comfort? Airlines
Aboulafia. And adding to the woes the first have been reluctant to buy a plane that offers passengers some-
two A380s delivered to Singapore Airlines thing more comfortable in that market segment than a single
just 10 years ago are being broken up for aisle because of the additional cost. What Boeing needs for the
parts by their owner. 797 is an old style 1960s buy with large orders from American,
Looming over all the order talk is the state Delta, United, British Airways, Emirates and ANA to force the
of Etihad Airways which has just posted market into something better. With airline’s typically making
another huge loss of $US1.52 billion in 2017 better profits the cash is there for such an investment and air-
which follows its 2016 loss of $US1.87 mil- lines are now seeing the yield benefits of premium economy,
lion. Rumors abound that its will cancel or which more and more passengers are becoming wed to.
defer a large number of widebodies ordered Another issue is whether Boeing is gun shy on an all-new airplane
during the tenure of former President James program despite the great success of the 777X development
Hogan. Etihad has 52 787s (22-9s and 30 and the 737MAX EIS. Aboulafia thinks so. “Yes, I think there is
-10s), 62 A350s (40 -9s and 22-10s) and 25 still some reluctance after the 787 problems.” However, last year
777Xs (8 – 8s and 17 -9s) on order. Only the Muilenburg told Asian Airlines and Aerospace at a round table
787s would appear safe as the airline has that this is not the case and Boeing had not lost the “right stuff.”
20 -9s in service and performing well. The Hopefully there will be plenty of the “right stuff” at Farnborough
remainder of its wide-body fleet is made up 2018.
of 24 A330s, 19 777-300ERs and 10 A380s.

Awaited Entry
n the hottest topic of all, Boeing’s
New Midsized Airplane or 797,
some still suggest a significant
OFarnborough announcement.
Writing for Seeking Alpha Edward Ambrose
suggests that a Boeing commitment to the
797 will lift its stock price. He says Boeing
CEO Denis Muilenburg expects the Boeing
797 will be announced by early 2019 and he
adds the market is between 4000 and 5000

8 | May/June 2018 www.GBP.com.sg/AAA