Skip to comments.The price of Boeing's 787 sales success
Posted on 12/21/2010 4:48:46 PM PST by wolf78
Inside: - How the 787 backlog was built - Predicable costs at 787's foundation - Scott Carson's ascent - Can the 787-9 undo the damage? - Looking at 17 787's per month - The revival of the 787-10 - Redrawing the supply chain lines
Data obtained by FlightBlogger show Boeing's historic order backlog for the 787 was based partly on steep discounts driven by now-discarded design and manufacturing assumptions. Cost overruns, penalty payments and supply chain changes adopted in the last two years will force Boeing to achieve unprecedented cost-savings for the widebody to turn a profit even after delivering the current 846-aircraft backlog.
With first delivery nearly three years behind schedule, the cost to build each 787 has skyrocketed from its original foundations built upon dramatically lower and more predictable production costs, say company insiders.
In the race to sign up customers between 2004 and 2006, airframe prices averaged just below $76 million, a price that does not include the the $20 to $30 million GENx or Rolls-Royce engines, Boeing furnished equipment (BFE) and in-flight entertainment (IFE), according to pricing data.
(Excerpt) Read more at flightglobal.com ...
Ah, Boeing’s plastic airplane. It’s lighter! It’s cheaper! It’s easier to produce! It’s, er, none of these things.
Do you really want to fly to Las Vegas with 1,000 of your closest friends?