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The price of Boeing's 787 sales success
FlightBlogger / Flightglobal ^ | December 21, 2010 | Jon Ostrower

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 ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; US: Washington
KEYWORDS: 787; aerospace; boeing; dreamliner

1 posted on 12/21/2010 4:48:48 PM PST by wolf78
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To: sukhoi-30mki; ErnstStavroBlofeld

Ping


2 posted on 12/21/2010 4:50:00 PM PST by wolf78 (Inflation is a form of taxation, too. Cranky Libertarian - equal opportunity offender.)
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To: wolf78
How much for a Boeing 797?

FAKE

3 posted on 12/21/2010 5:13:30 PM PST by ASA Vet (Natural-born citizens, are those born in the country, of parents who are citizens. De Vattel)
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To: wolf78

Ah, Boeing’s plastic airplane. It’s lighter! It’s cheaper! It’s easier to produce! It’s, er, none of these things.


4 posted on 12/21/2010 5:33:54 PM PST by DesScorp
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To: ASA Vet

Do you really want to fly to Las Vegas with 1,000 of your closest friends?


5 posted on 12/21/2010 7:11:17 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
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To: DesScorp
.

Ah Yes ...

Just like the old Lockheed-Martin "Faster-Cheaper-Better" management mantra ...

I can't imagine how many "old school" engineers were forced to supress their laughter (and dismay) when the "Golden Boy-Girl" management types trotted-out the "Plastic Airplane" concept ...


.
6 posted on 12/22/2010 3:10:07 PM PST by Patton@Bastogne
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