Posted on 08/08/2005 12:16:22 PM PDT by F14 Pilot
Beijing, Aug 8 (DPA) Four Chinese airlines have placed an order with US air plane manufacturer Boeing for 42 new generation 787 Dreamliners in a deal worth $5.04 billion. The contract was signed here Monday, Boeing said in a statement.
In January, Boeing signed an initial agreement to sell 60 of the aircraft worth $7.2 billion to Chinese airlines and is still working on the sale of the remaining 18 planes.
"We remain confident a deal will be completed in the near future," the company said.
Boeing's new model is in competition with Europe's Airbus in the rapidly growing Chinese air traffic market, with Boeing currently dominating with a 60 percent share.
The aircraft are to be delivered by 2008, before the start of the Olympic Games.
Air China and China Eastern are to acquire 15 aircraft each, Shanghai Airlines will buy nine and Xiamen Airlines will get three of the new generation of planes.
China Southern and Hainan Airlines are also considered potential buyers.
-PJ
They've gotta do something with all those dollars they got by selling us cameras and VCRs.
The Boeing 787 is a long range fuel efficient passenger plane. It reduces the cost per seat for long haul flights, but in the bigger picture of a military aircraft, not by enough to make it any better than the 767/777/A340 series of aircraft for strategic uses.
The only thing "interesting" about the 787 is the all composite fuselage, however you don't learn how to make one by buying one and tearing it apart. The secret is in the equipment used to lay down the carbon fiber tape in the first place.
At the exchange rate of Nike's @ 150.00 each and a dreamliner at 120,000,000. I think I'll take airplanes from America vs. Tennis shoes. By the way in order to equal one dreamliner China neads to ship 1.6 million shoes that retail at $150 (keystone $75.00. Besides the Chinesse who are making shoes are now tourists flying on 737 and dreamliners - works for me.
I thought Stainman already transitioned this technology to the Chinese before he left orifice.
They have stolent so much Tech from us in the last 10-15 years, about time they started to pay for it.
I don't know if that is true or not, but in any case buying a bunch of 787s won't reveal any sensitive technology about how it's done.
That technology was originally developed for the B-2 and is now being used on the 787.
Where's the obligatory complaint from the Frogs?
Are you serious? The manufacturer no way gets half the cost of retail, more like 10-20%. You'd be amazed at how much retail mark up there is on shoes and clothing (for good reasons I might note). My guess is that shoes retailing for $150, are bought from the Chinese for about $20.
It would probably take 4-5 times that many shoes to make up the cost of the airplane.
A lucky wholeseller/buyer can buy cheap shoes there.
Very cheap! :~)
Will they become troop carriers or bombers?
My wife was a K-Mart employee years back and very commonly saw retail markups of 200 percent for soft goods. That meant they were charging triple the wholesale price. The wholesaler markup would leave less than one third available to the manufacturer. The 10 to 20 percent figure seems likely to me also. Anybody in the wholesale business out there?
India is designing bombays for them and Iran is going to install them.
Some thoughts -
Nike is an American company. They get designer and label profit - not sure of their numbers but be surprised if they didn't get 35 - 50% margin. Retailer is US - they should get between 30 and 50% on a $150 pair of shoes. Not sure how shhoes are distributed, but count some other middle men somewhere.
The Chinese are a factory, competing with other factories, at the low end of the value added scale. I'd bet they get less than $10 - $15 at 20% max margin for subject shoes.
The real key here how much China contnet Boeing has in the aircraft. Boeing and McD Douglas have been working with China for >20 years having them build subaseemblies for planes - MD 95 for instance. My guess is there are lots of local content deals behind this one.
Diva's Husband
What is the international travel into and out of China? I admit that I do not know, but is it projected to be so much that it will take 42 787's to satisfy it?
-PJ
The 787 doesn't have any more range than the other list aircraft I mentioned earlier. For a military application, you can stick a bunch of fuel bladders instead of suitcases in the cargo hold of any commerical airliner and triple the 787's endurance.
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