The Success of Airline Manufacturers is Questionable, Let Me Explain
Indeed, I don't know about you, but I was totally blown away by Airbus's success at the Paris air show.
One of the representatives from Boeing said that there was a chance that Airbus could actually sell 1000 airplanes at the Paris air show in 2011.
In fact they almost did, and within a month later, including the number of aircraft sold or the orders taken at the Paris air show they did reach the thousand airplane mark.
Of course this poses a huge problem, and that is this; there is a huge backlog of orders for aircraft.
Not only an Airbus now, but also at Boeing.
It doesn't matter if an airline has massive numbers of orders A320 NEOs, or 737s the reality is there is a huge waiting list for either of those aircraft models.
There was an interesting article in Flight Global recently on July 7, 2011 titled; "Airbus Lifts Backlog to Record Levels" by David Kaminski-Morrow, which stated; "Airbus's latest orders have taken the airframer to a record backlog approaching 4,000 aircraft, amounting to more than seven years' production.
The manufacturer secured orders for 601 jets in June - notably during the Paris air show - and its latest order data, for the first half of 2011, shows its backlog has risen to 3,934.
Airbus said this represents "nearly eight years of production at current output rates".
Meanwhile on the same day there was an article in Forbes noting that Boeing Analysts have determined that India alone would require "1300 airliners in the next couple of decades.
" Thus, there seems to be no end in sight of the number of airliners the world will need in the future.
Both Boeing and Airbus are hiring as many new factory workers as possible, and building new manufacturing facilities.
But they can't build the buildings fast enough, or produce the aircraft fast enough to satisfy the industry.
Not just for passenger planes but also for cargo aircraft.
Meanwhile China's Comac doesn't come out with their new C919 until 2016, and it is an unproven aircraft, as it hasn't been built yet, and will still need to go through tests.
Also Bombardier and Embaer are also maxed out in their manufacturing facilities.
Meanwhile their airplanes can't seem to compete with Boeing or Airbus due to size yet.
The industry needs a solution.
It's great to see Airbus and Boeing with backlogs eight years long, but if you're backlog is almost a decade, then any orders you take today are merely wishful thinking, and you can't count on them for tomorrow.
I question strategic planning based on aircraft unfulfilled orders, along with the accounting and press releases which go along with them.
Indeed I hope you understand this dilemma, and will think on it.
One of the representatives from Boeing said that there was a chance that Airbus could actually sell 1000 airplanes at the Paris air show in 2011.
In fact they almost did, and within a month later, including the number of aircraft sold or the orders taken at the Paris air show they did reach the thousand airplane mark.
Of course this poses a huge problem, and that is this; there is a huge backlog of orders for aircraft.
Not only an Airbus now, but also at Boeing.
It doesn't matter if an airline has massive numbers of orders A320 NEOs, or 737s the reality is there is a huge waiting list for either of those aircraft models.
There was an interesting article in Flight Global recently on July 7, 2011 titled; "Airbus Lifts Backlog to Record Levels" by David Kaminski-Morrow, which stated; "Airbus's latest orders have taken the airframer to a record backlog approaching 4,000 aircraft, amounting to more than seven years' production.
The manufacturer secured orders for 601 jets in June - notably during the Paris air show - and its latest order data, for the first half of 2011, shows its backlog has risen to 3,934.
Airbus said this represents "nearly eight years of production at current output rates".
Meanwhile on the same day there was an article in Forbes noting that Boeing Analysts have determined that India alone would require "1300 airliners in the next couple of decades.
" Thus, there seems to be no end in sight of the number of airliners the world will need in the future.
Both Boeing and Airbus are hiring as many new factory workers as possible, and building new manufacturing facilities.
But they can't build the buildings fast enough, or produce the aircraft fast enough to satisfy the industry.
Not just for passenger planes but also for cargo aircraft.
Meanwhile China's Comac doesn't come out with their new C919 until 2016, and it is an unproven aircraft, as it hasn't been built yet, and will still need to go through tests.
Also Bombardier and Embaer are also maxed out in their manufacturing facilities.
Meanwhile their airplanes can't seem to compete with Boeing or Airbus due to size yet.
The industry needs a solution.
It's great to see Airbus and Boeing with backlogs eight years long, but if you're backlog is almost a decade, then any orders you take today are merely wishful thinking, and you can't count on them for tomorrow.
I question strategic planning based on aircraft unfulfilled orders, along with the accounting and press releases which go along with them.
Indeed I hope you understand this dilemma, and will think on it.
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