Future Of 747 In Doubt

[Flying Titan]

As Boeing Hunts Orders, Future of Famed 747 in Doubt

By Sara Kehaulani Goo
Washington Post Staff Writer
Thursday, February 10, 2005; Page E05

Boeing Co. is assessing whether to prolong the life of the 747 -- in a modified, enlarged version -- to compete with Airbus SAS's new super-jumbo A380, a company executive said yesterday.

If the company fails to find one or two well-established customers for the new version by summer, it will begin plans to cease production of the signature aircraft.

See article



Very surprising to me. It would be sad to see Boeing make this move. I also think it would be a big mistake from a business standpoint. This is Boeing's signature product - a symbol of its long-standing dominance. It is also a very high margin aircraft. Dropping the 747 from its product line would leave the entire jumbo market to Airbus. Presently, I have doubts that the A380 can be a successful product for Airbus since it can be used at so few airports, but if Boeing simply walks away from this segment of the market, it will hand a major victory to its competition.

 

[BoeingBoy]

Flying Titan,

Here's a couple of more stories about the subject....

"As it continues its drive toward making just three families of commercial airplanes, Boeing will decide by midyear whether to drop its flagging 767 or build the stretch 747-400 as a niche competitor to the Airbus A380."

AW&ST Story

"Boeing is reviving its campaign to potentially launch the 747 Advanced and is targeting a 2009 launch date to ensure the engine technology for the 787 is fully developed to transition to the larger aircraft."

Aviation Daily Story

Jim

 

[SilentWarrior]

As Boeing Hunts Orders, Future of Famed 747 in Doubt
....
See article
Very surprising to me. It would be sad to see Boeing make this move. I also think it would be a big mistake from a business standpoint. This is Boeing's signature product - a symbol of its long-standing dominance. It is also a very high margin aircraft. Dropping the 747 from its product line would leave the entire jumbo market to Airbus. Presently, I have doubts that the A380 can be a successful product for Airbus since it can be used at so few airports, but if Boeing simply walks away from this segment of the market, it will hand a major victory to its competition.

[post="246986"][/post]​

I have to agree. I can not see Boeing just handing this market to Airbus. IMHO they (Boeing) need to take a serious look at upgrading their current product (as the article stated) and not worry about matching Airbus seat for seat. Boeing's 787 would go head-to-head with Airbus's 320/330. The 747 (Advanced) can directly challenge the 340, and give a viable cost effective option versus the 380. It's going to cost Boeing bundles to upgrade their current product, but giving up the market share would cost them more.

 

[SilentWarrior]

Flying Titan,

Here's a couple of more stories about the subject....

.....
AW&ST Story

.......

Aviation Daily Story

Jim

[post="247006"][/post]​

Good post Jim.

 

[Flying Titan]

Thanks Jim. Good reading. I hadn't seen these. These articles seem a bit more optimistic than the one in the Post.

 

[mweiss]

One of the issues is a decrease in the number of orders for the 747. If there aren't enough orders to support the line, you've got to shut it down. Unless you can get customers convinced to put orders in for a new version, you still have to shut it down.

It's sad, but I don't see what other choice they have.

 

[Flying Titan]

One of the issues is a decrease in the number of orders for the 747. If there aren't enough orders to support the line, you've got to shut it down. Unless you can get customers convinced to put orders in for a new version, you still have to shut it down.

It's sad, but I don't see what other choice they have.

[post="247043"][/post]​

True, but if this is a cyclical downturn and the market for larger aircraft might return in 5-10 years then Boeing could be in worse shape in trying to revive its jumbo program. Look at the expense and effort that Airbus has undertaken to enter this section of the market. It seems to me that Airbus still has a lot of work to do before it will recoup that investment. Meantime, the 747 still seems to have the upper hand as costs to improve it will largely be absorbed by the 787 program...and each copy of this aircraft that's produced is still very profitable for Boeing. Seems like it would be a waste to give away this advantage.