We just disagree

It’s always fun to share the stage with John Leahy from Airbus. While we didn’t actually take the stage together today, we gave back to back presentations during the ISTAT conference in Orlando, Florida. I lost count, but John said my name at least a dozen times during his talk. We must be doing something right if the competition talks more about you than its own products— just like the recent Airbus ads.

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On stage at ISTAT Americas 2013 in Orlando.

One of things John and I do agree on is the strong demand for airplanes. During ISTAT, I’ve been asked a lot about the so called production “bubble.” At Boeing, all of the data suggests the market is strong and will remain strong. Combine that with our healthy backlog, and you can see why we continue to increase our production rates.

We’re also sharing a new report about the economic life of airplanes. Despite some of the anecdotes we’ve heard, our exhaustive analysis of the data shows that airplanes are long-lived assets and continue to be good investments.

Obviously, the 787 was on everyone’s minds at ISTAT. Our number one priority is getting the fleet back in the air. We’re confident our permanent fix with three layers of protection will do that and we look forward to testing it as soon as we get the green light from the FAA.

Finally, there’s a lot of buzz about the 777X. Obviously, a lot of our customers are talking about it and they’re happy with the design. Every day, we’re closer to bringing it to the market as we aggressively move forward.

ISTAT, the International Society of Transport Aircraft Trading, is really booming and becoming an important industry gathering. Think of it as an air show without the airplanes. It’s where people in commercial aviation who are looking for money connect with the people who have it. I’ll leave you with a shot of me showing off the Advanced Technology Winglet for the 737 MAX. I expect 2013 to be another big year for the MAX.

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Comments (4)

V V (Montréal, Québec):

You said, "One of things John and I do agree on is the strong demand for airplanes."

There is one thing that intrigues me much about the "strong demand" for airplanes because there have been recent accusations of "price war" between Boeing and Airbus.

Isn't it paradoxical to have a price war in an environment where there is a strong demand for airplanes?

The backlog of the 737 and A320 is swelling. It looks like both Airbus and Boeing can't satisfy the demand. So, what happens to "Supply and Demand" law?

Can you please enlighten me as why there is this brouhaha about "price war" in a quasi duopoly?

vin (FL, Miami):

Why not ask FAA to proceed with the battery test as Boeing envisages so that Boeing has a head start on it ...if FAA wants to add something more to it then Boeing can look at it .. rather than waiting for FAA going thru motions of debate/hearing etc .. Boeing cud be testing the battery at the same time with what Boeing thinks is the long term fix. The results then can be provided to FAA as they move with their debate/hearing. FAA should help Boeing to accelrate the testing of fix.

Jon Grams (Colorado Springs):

Despite recent comments to the contrary,I'm really hoping Boeing decides to offer the Rolls Royce RB3025 engine along with the GE9X. By all indications, its going to be a phenomenal engine that will really force GE to up its game- and that can only be a good thing for such an important aircraft program.

Blake Keithley (Salt Lake City Utah.):

You have to watch Airbus and there figures closely. For example their drift down weights usef to be based on descending below mea and then climbing back to mea as fuel burns off. All of our terrain clearence weights on the AB300 at Continental had to be recalculated by our engineering department. I had to do an impromptu one for a charter company for the 320 and it was no where near what Airbus published. That was 1996 however. When they tried to pitch the 340 to us they used a restricted RAAF base as an alternate for Sidney. This drastically affected their payload projections. Figure in the standard alternate and the 340 was somewhat of a pig. The culture at Airbus has always been a bit suspect.


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