Friday, December 30, 2016

Tough talk about Iran is nothing more than tough talk.

December 29, 2016
By Trefis Team

Sold: Fifteen 777-300ER, fifteen 777X-wide body which is under development, but, the main workhorse in the Iranian commercial airline is fifty 737MAX-single aisle jet.
Boeing ( BA ) and its main rival Airbus (click here) have been plagued by a slowing commercial airplane market. The weak economy has forced air carriers and governments to delay or cancel orders for new aircraft in recent quarters. Furthermore, airliners built more than 20 to 30 years ago are still flying regular routes after being refurbished multiple times. This has increased pressure on both companies to lower prices on their jetliners to win deals. At present, Boeing has only been able sell 558 planes this year, that's a whopping 36% drop in sales year over year.

Earlier in the month, Boeing had announced that the company had finalised a deal with Iran Air to sell it 80 planes at a market value of close to $17 billion. That said, one must remember that aircraft sales are almost never made at list prices. In this respect, the Iranian leadership has mentioned that due to the nature of the particular order and the choice possibilities, the deal is actually worth only half the of the book value . This has helped calm tensions in Iran at a time when hardliners have heavily criticized President Hassan Rouhani over the costs of the purchases....

The 777MAX is actually in competition with the Dreamliner, except, for the number of passengers which is about half the capacity of the Dreamliner. The Dreamliner is a unique class of jets composed with New Age materials to provide fuel economy while being uncompromising with larger passenger capacity.

When comparing the Dreamliner fuel per passenger may be better than the 737MAX.

October 18, 2014
By Mark Huber

Dramatically better fuel economy and range (click here) coupled with attractive pricing and faster and less expensive completion options could rekindle Boeing’s (Booth 1598) sluggish single-aisle BBJ programs, if customers can step into the middle of a flood of airline orders and pry aircraft off the assembly line.

Driven by the airlines’ desire to cut costs and increase fuel efficiency, Boeing announced the 737 Max program in 2011 after contemplating–and ultimately rejecting–a completely clean-sheet design replacement for its 737 twinjet. Even before Boeing could finish the details of the Max’s design, the airlines, eager to boost earnings, began placing massive orders. Although Boeing won’t deliver the Max until late 2017, as of August it already has more than 2,200 orders for the airplane. The first BBJ Max is expected to be delivered without an interior in 2018 to California’s AvJet on behalf of a private client who currently owns a BBJ....