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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
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