The AirInsight team does a review of the merger news today and comes away underwhelmed. How does this deal make sense?
Wall Street gets to cash out - but who else wins? The labor buy in is uncertain. There does not seem to be any serious cost cutting; there is talk of keeping all the hubs, but this may be posturing.
The AirInsight Team discussed today's conference call with Flightblogger Jon Ostrower. Overall our assessment is that the call went well and that Boeing seems better placed in terms of knowing where the problems lie and how to overcome them.
Today we had a discussion about the news that the 787 seems to have run into a design issue with the wing box. As part of this discussion, we managed to speak with Jon Ostrower who discovered some detailed information (yet to be confirmed by Boeing) that provides some background to what might be happening.
It appears Boeing is facing more difficulties with its novel airplane. With so much complexity in its supply chain and design, Boeing's engineers must be burning the midnight oil.
Scott Hamilton and Addison Schonland discuss the news of the tanker selection after the selection. Boeing has filed its protest. NG/EADS have now vastly increased the number of jobs their program will create. There are allegations of McCain lobbyists helping EADS. So who knew what and when?
The whole process is becoming messy and the original need - helping those in harm's way do a better job with new tools is all but forgotten.
Scott Hamilton and Addison Schonland discuss the news about Southwest Airlines. Does this news indicate deeper issues within the airline? The two of us hold different views of this highly influential and market leading airline.
Scott Hamilton and Addison Schonland review the aftermath of Friday's stunning award of the tanker contract to the Northrop Grumman/EADS team.
Scott Hamilton and Addison Schonland discuss this possible merger with an "unknown" analyst who needs to stay unnamed for professional reasons. The combining of the fleets at these two airlines is going to be a tough job.
Among the widebodies we see the A330 doing well, but the 787, 777 is an open question. The 744's likely become freighters - and does this give the A380 an edge over a the 747-8?
Among narrowbodies - what happens to the A320 and 737s? They are both large sub-fleets - which one replaces the MD80s? Does Bombardier rejoice as this airline could offer a huge launch order for the CSeries? For that matter is Embraer out of the picture?
This fleet planner nightmare will also be keeping up the sales teams at the OEMs for weeks once a merger is announced. If a merger gets announced.
After the 787 delay announcement we (AirInsight and guest Jon Ostrower) listened into the conference call. Here is our take on this call - overall Boeing's handling of the call was better than the previous call is our view.
We were particularly impressed with Pat Shanahan's detailed tracking of the pieces and parts for each of the next critical steps. This was a highlight of the call for us. Overall Boeing seems to be taking a much more deliberate approach now and is very aware of the A380 delay history. We think this call went better than expected.
We do a quick review of the news just released (http://biz.yahoo.com/prnews/080116/aqw079.html?.v=33) about the 787 delay. More to follow after the conference call. Our guest is Flightblogger Jon Ostrower.
The WSJ is reporting another delay in the 787 program (http://online.wsj.com/article/SB120042551223592017.html?mod=hps_us_whats_news). This is not good news for Boeing. Apparently Boeing will announce the news tomorrow. Over the weekend customers were notified - so the news started to leak. The news has already impacted Boeing's stock price.
Without any good news, Boeing's share price is likely to fall again. Ouch.