Reminiscing

Earlier today in London, I presented our new 20-year forecast for the aviation market—better known as the CMO (Current Market Outlook). Before I share the highlights of that forecast, allow me to reminisce about how far we’ve come in air travel.

Back in 1977, I took my very first flight on board a Frontier Airlines 737. I was headed from my home in Kalispell, Montana to college in Ithaca, New York. That journey included a total of five legs—the last one being only 32 miles from Elmira to Ithaca.

Today, point to point air travel is more of the rule than the exception. It’s a part of everyday life that links us to family, friends, fun and business. And looking out over the next two decades as emerging markets continue to grow, more and more people around the world will be connected by affordable airline service.

image/photo

I sat down with the BBC after presenting the CMO in London.

Our 2012 CMO projects a $4.5 trillion market for 34,000 new commercial airplanes over the next 20 years. The single-aisle market, served by our Next-Generation 737 and the future 737 MAX, is forecasted to continue its robust growth. Widebodies, such as the 747-8, 777 and 787 Dreamliner, account for almost $2.5 trillion dollars worth of new airplane deliveries in the forecast.

The market for new airplanes is set to become more geographically balanced in the next two decades. Asia-Pacific, including China, will continue to lead the way in total airplane deliveries.

image/photo

Without question my favorite part of the CMO rollout is the Q&A session with the media. We addressed everything from the global economy, to the cargo market, to our product strategy.

Being in Europe, of course I was asked about Airbus’ decision to build a new factory in Alabama. Based on my experience with US customers, success is all about the value of your products, your people and your relationship with customers—not about the address on your business card.

While air travel has certainly changed over the years, the reasons we do the CMO every year haven’t. I recently came across a Boeing CMO presentation from the early 1960s that showed the four reasons we do the CMO - for product and market planning, for sales planning and forecasting, for business planning, and to support our customers and suppliers. Those always have been the driving factors for doing this forecast—and probably always will be.

I invite you to take a look at the short video below that I filmed inside our Everett factory. It lays out some of the main points from the CMO, while giving you a look at our 787 and 777 lines. Enjoy!

Comments (2)

Andrew Boydston (Boise, ID USA):

Thank You Randy for your briefing. I too remember my first flight in 1969 from Missoula, MT to Billings, MT on an old DC-3 for a football game. It was a team charter. I remember the sparks coming off the engine cowling as we crossed the Continental Divide. What an adventure for a 17 year old. I have been blessed to live in an age of tremendous advances in aviation. Your journal keeps me in as a vicarious participant for all things Boeing in such a personal way. On this Fourth Of July, I celebrate the freedom that Boeing gives through its excellent offering for travel. Not only do we have the freedom to travel but do so with grace and comfort. I look forward to your next Journal entry as well as the prospectus for the future. So far its been a great ride. Boeing is where dreams can come true. Thank you for a great year.

Norman (Long Beach,CA):

Though I don't exactly remember my first flight I ever had the earliest that I for the most part remember was in the winter of 1987 when me and my family flew on an Eastern A300 or L-1011 from LAX to ATL then of from ATL to Orlando MCO on either a DC-9 or 727 for our trip to Walt Disney World and a cruise via Primer Cruise Lines on the Starship Oceanic to Bahamas.

Congrats on Virgin Australia's order of 23 Boeing 737-8 Max. The market looks solid especially in the coming years particularly in Asia and the Middle East, with these numbers it makes sense to continue the 737 line and pursuit further developments of the 747, 777 and the 787.

Post a comment

We welcome your comments. However all comments are moderated and may not post immediately. Offensive or off-topic comments will not be posted. We will not treat any comments you submit as confidential information. Please do not submit comments that contain any confidential information belonging to anyone else.

By submitting a comment to Randy's Journal, you agree to our site terms and privacy policy, and to having your name displayed with your comment. All or part of your comment may be posted or cited in the blog. Your name and personal information will not be used for any other purpose, and we will not publish your e-mail address.

 

More posts