Is a new Boeing aircraft in the near future? Unlikely

Boeing 787 Dreamliner (Photo: Boeing)

The Economist posted an interesting article last week considering whether Boeing should design a new aircraft to fill a gap in their product line currently occupied by the discontinued Boeing 757. The conclusion was that, due to the delays and cost overruns of the 787 Dreamliner program, developing a new aircraft would be risky for the company.

I found interesting the significance of wide-body airliners to Boeing's bottom line. The company earns 80% of its revenue from wide-bodies, though two-thirds of its production volume is comprised of narrow-body aircraft. The article makes clear the difficulties the 787's problems have caused Boeing.

“With engineers, designers and other resources diverted into getting the Dreamliner aloft, plans for the rest of its fleet were delayed. That gave Airbus an opportunity to take a lead in narrow-bodied jets.
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The delays and cost overruns of the Dreamliner programme mean that, although it is selling well, it is not profitable and a write-down is likely. There have been knock-on effects: a new variant of Boeing’s 777, the 777X, is not due until 2020, giving Airbus’s A350 time to win orders.”

— "The eye of the storm," The Economist

I have never flown any Airbus equipment other than the A320 family, but I liked the aircraft. But, to be fair, unless you are in an international premium cabin, I am not sure there is a vast difference between domestic economy on a single-aisle aircraft. I am booked on an Airbus A340 for my trip to Europe later this year and I am looking forward to experiencing a new Airbus product

If you are an aviation geek or just like business analysis, take a few minutes and check out the piece from The Economist.