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Sunday, August 11, 2013

Why buy Boeing is an older Boeing 747

Car dealers are already ready, an old clunker a potential buyer hands to take in order to complete a sale by a shiny new model. Aircraft manufacturers are now to follow their example. Boeing (BA) takes over the previous versions of the 747 from airlines, the appointment of its new, hard-to-sell-747-8. By 19 older 747s, which changed hands this year, Boeing has bought seven, according to data from Ascend online fleets. That makes it the biggest buyer of used jets in 2013.

While the purchases put Boeing on the hook for the search for new operators, it helps, demand for the new 747-8 fuel thirsty maintaining - a class four-engined aircraft, the airlines these days frown. New sales are crucial for the 747 assembly lines sum because Boeing slows stored output 13 percent to 1.75 aircraft per month and some unsold 747-8-s in desert storage. "It is Boeing's problem [airlines], discharges," says Douglas Kelly, senior Vice President for asset valuation at Aviation consultant Avitas. "It is just like trading in products for your car."

While Boeing fell to certain customers or aircraft sale comment Ascend data show that this year, sellers of 747-400 of the world largest Planemaker are all buyers of the 747-8 family, the passenger and all-cargo versions contains. The buyers are Korean air lines (003490: KS) and Cathay Pacific Airways (CPCAY), as well as the Cathay Dragonair unit and its cargo joint venture with Air China (AIRYY).

The 747-400 production ended in 2009. What's new on the 747-8 are improved engines and a stretched version of the hull hump, giving the aircraft its distinctive profile. It after Boeing engineers on the delayed 787 Dreamliner detoured in 2011, two years too late, entered commercial service.

Potential buyers for the 747-8 are dwindling as more and more freight by rail, or in the bellies of passenger versions prefers big twin-engine jets such as the Boeing 777, for its fuel economy and low maintenance costs, cargo ship, says Richard Aboulafia, an aviation consultant.

Older Boeing 747 buying "a very smart move on the part of Boeing,", says aviation consultant Michel Merluzeau. Latest Zampano, which retails for about $350 million, just five orders drawn this year. But there were also five cancellations according to Boeing's website. "I think it's a year at a time for this program," Merluzeau said.

Boeing repurchases help, the 747-8 customers recording losses on older aircraft that they would otherwise struggle to avoid, for sale, in the midst of a global glut of used Jumbo Avitass Kelly says. With weak consumer demand have to air freighter conversions of passenger Boeing 747 cargo carry dried up, he says one of the usual options for airlines crop value extraction of aging aircraft. About 75 747-400 parked in deserts around the world according to Ascend, and ratings have dropped. A 1992-vintage-747-400, which was assessed at $41.6 million in January 2008 is now estimated at $16.7 million, says Kelly.

Korean Air, the six 747-400s since 2010 at Boeing has sold, agreed in June to buy five 747 - 8s as part of a planned $3.6 billion purchase aircraft. The freight forwarder is the second largest global operator of the 747-400 and one of the largest buyers of the newest version of the 747-8, according to ascend.

Cathay Pacific, the 13 the 747s fitted only cargo carry arranged, sold a 747-400, Boeing this year as Air China cargo, namely 49 percent owned by Cathay. Dragon Air Boeing sold three jets.

Lately, Planemakers are especially eager to on four-engined models employ. Last year Boeing, Airbus A340s bought five of his rivals - a four-engined widebody aircraft no longer in production - from China the 20 of the Boeing 777 in a $6 billion took Eastern Airlines (CEA),-deal based on full list prices (often for early discounted be or multiple purchases).

Airbus has sold three of the nine A340s back 10 jets this year after purchase in the year 2012 gained. "In some exceptional cases Airbus bought back to support A340s to new business" Andreas Hermann, Vice President and head of the A340 second marketing at Airbus, said in an E-mail. "Regardless of the negative perception of some continue to the A340-500/600 efficient elevator for the long haul." Boeing officials remain optimistic that will be freight market, workhorse brings back new orders for the latest version of a jumbo jet, the hauling of cargo since the 1970s.

In a way the 747-8, a victim of Boeing is engineering success: the 777 extended version has a maximum distance of 7.725 nautical miles (14.305 kilometers), the airlines the possibility, a twin-engine aircraft on routes to use once accessible only by four-engine jumbos. A 747-8 equipped passengers has a listed range of 8,000 nautical miles.

Boeing has enough work to keep the 747-8 production line busy until the end of 2015, numbers George Ferguson, air and senior analyst for Bloomberg industry 747-8 orders unfilled with 53. "they see a mission for these aircraft," he says. "The market is not exactly tell us."

Bottom line: Boeing takes old Boeing 747 in the trade to promote sales of its newer $350,000747 million jumbo jet.

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Three big Indians, to revive a centuries-old motorcycle brand

And they're gone! Polaris of industries (PII) Chief Executive Officer Scott Wine visited to reveal three Indian motorcycles Bloomberg, which go in the sale this month on Monday. The company had spoken to classic, just the Indian Chief, starting with $18.999. has now begun it, the Indian sale Chief vintage, a $20.999 bicycle with soft-sided leather case and a quick release windshield, the wine shows. in determining that he ordered this model for themselves. (Red leather, for those who care.) The largest is Indian Chief a $22.999, modelled on a locomotive with hard bags, windshield and Bluetooth enabled audio 1930s.

Together the wine are they the first testing a "$ 100 million bet" reviving America's oldest bike brandis called.

Whether the trio will promote enough fans to Harley (HOG) delle dominance remains to be seen, but the vintage-style bikes have drawn a small crowd outside the building in Manhattan Bloomberg. I am now with someone who has seen many a brand that come and go: Jan-Benedict Steenkamp, marketing to promote Professor at the University of North Carolina in the city to his new book, brand breakout. The professor asked the Polaris CEO like this line of Steenkamps 22-year-old son, tempt could, the men, the the midlife crises Associates heavyweight cruisers. The wine's answer: "Start with the fact that it is not Harley Davidson." Also, the Polaris Chief claimed that its sold better company's 15-year-old victory motorcycle line already Harley under military personnel as and he that Indian-style argued, management, and engineering will pull in new buyers.

Nevertheless, wine took pain stress that the Indians and victory tokens remain separate animals in relation to technology and design. to avoid brand confusion, the company has divided all aspects of production, since it bought 2011 Indian held. His nightmare scenario? He said gloomily "Ford Jaguar". Jaguar lost its luster after Ford (F) bought it in 1989, in part, because the US car makers reduce cost with parts from other brands. This changed when Tata Motors (TTM) 2008 took over the year and Jaguar was a self-contained unit. A result: the Jaguar F-type, 2013 started with a line won World car design of the year awards from the Wall Street Journal Dan Neil, known as "the best way to spend $100,000 on a sports car."

This is the kind of success dreams with Indian wine. Uphill ride against Harley could take years, while the new line rave New York Times critic Jerry Garrett has and even Professor Steenkamp, the long impressed. With Polaris, making most of its $3.2 billion last year by all-terrain vehicles and snowmobiles wine seems not to care the waiting time. When the company this year sells three or four thousand Indian bikes, doubled in the next year, he said, that it will be on the way.

Wine also suggested that a marketing push and the prestige of the Indian brand victory also increased capacity. Wine plans have one born relaunch a motorcycle brand, born in 1901, now 1998 give some Polish. "I love our children," he said. "I think it's time to get a bit more attention to victory."

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Aykroyd: Let Me Explain the End of `Trading Places'

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Tweet Facebook LinkedIn Google Plus Email Aykroyd: Let Me Explain the End of `Trading Places' Play August 6 (Bloomberg) -- Bloomberg Businessweek corners legendary actor, comedian and entrepreneur Dan Aykroyd to find out why "Trading Places" is the greatest business movie of all time. (Source: Bloomberg)

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Why Is Jeff Bezos Buying the <em>Washington Post</em>?

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Einen Tag nach der Graham-Familie atemberaubende Ankündigung, dass es der Washington Post, Jeff Bezos zu verkaufen, ist die große Frage bleibt: Warum ist Amazons (AMZN) Gründer Wetten auf alten Medien? Hier ist eine Antwort: Jeff Bezos liebt Inhalt, und er hat immer.

Dies ist nicht immer offensichtlich. Amazons sichtbarsten Bauwerken gehören massive Erfüllung Streckennetz, also geschickt im effizient bewegen Lagerhäuser an Haustür; seine Herrschaft des Universums eBooks aus dem Kindle in die Welt der Inhalt für sie geschaffen; und die Verwaltung großer Mengen von Kundendaten um kalt Amazon-Website für jeden 200 Millionen Kunden personalisieren.

Dennoch liebte Bezos hat immer eine gute Geschichte — die Art, engrosses Kunden und ermutigt sie, Zeit zu verbringen, mit elektronischen Geräten und Bücher, Musik und Filme (das Konto für ein gutes Stück von Amazons Geschäft immer noch) zu erwerben. In den 1990er Jahren, als sein Ehrgeiz war die größte Buchhandlung im Web erstellen, gebaut Bezos eine große Redaktion Beschäftigung Sicherheitspersonal Amazon in das Äquivalent einer massiven Buch-Kette mit der vertrauenswürdigen Note ein Indie-Buchhandlung zu verwandeln. Jetzt scheint es fast malerischen, aber Bezos hatte große Träume für die Gruppe; Er versuchte, die geschätzte Journalisten wie damals-Time Editor Walter Isaacson zu mieten. Wie ich in meinem demnächst erscheinenden Buch The Store sind alleserzählen, verblasst die Redaktion schließlich während der Büste inmitten eine direkte, bitter, internen Wettbewerb mit den Algorithmen, die effizienter die Website personalisieren könnte.

Bezos nicht seinen Traum vom Besitz und Bereitstellung von einzigartigen Inhalten aufgeben. Mit dem Aufstieg des Kindle in 2009 begann er eine breite Palette von veröffentlichen Abdrucke zu erstellen, die Autoren zu experimentieren und verkaufen ihre waren direkt an Leser ermutigt. Dies wird oft als wettbewerbsfähige Angriff auf traditionelle DTP umrahmt –einschließlich von uns— aber Programme wie Singles Kindle und Kindle Schriftenreihen Autoren neue ein Publikum zu erreichen gewichen zu sein. Abteilungen wie Amazon Studios, die Unterstützung TV-Shows, sind jenseits des großen TV-Händler geben Schöpfer Freiheit und Flexibilität .

Es gibt starke persönliche Gründe für Bezos im Inhalt zu investieren. Seine Frau, MacKenzie Bezos, ist ein Schriftsteller. Er ist auch ein leidenschaftlicher Leser: Bezos hat Bücher informieren viele seiner wichtigsten Business-Entscheidungen, von der Erstellung des Kindle und Amazon Web Services auf seine bewusste Anbau einer sparsam, aktionsorientierten Kultur bei Amazon gutgeschrieben.

Bei der Arbeit in Bezoss Anschaffung der Post gibt es eine andere offensichtliche Faktor. Warren Buffett, deren Anlagephilosophie Bezoss langfristigen Schwerpunkt bei Amazon deutlich inspiriert hat, hat vor kurzem auf die Wiederbelebung der Lokaljournalismus grosses wetten. Zu Buffett, Lokalzeitungen sind eine große Investition: sie haben starke Bindungen mit ihrer Gemeinschaft, ein Minimum an etablierten Wettbewerb und Mitarbeiter voller ehrgeizig, vielseitig-Journalisten. "Überall dort, wo eine durchdringende Gefühl von Gemeinschaft, ein Papier, das die besondere Information dient der braucht, dass Gemeinschaft unerlässlich, um einen Großteil der Bewohner bleibt", schrieb Buffett. "Charlie [Munger] und ich glaube, dass Papiere liefert umfassende und verlässliche Informationen zu eng gebundene Communities und haben eine vernünftige Internetstrategie für eine lange Zeit lebensfähig bleiben werden."

Mit Programmen wie Amazon Web Services und Kindle Publishing hat Bezos Entwickler und Autoren gegeben Plattformen auf dem Experimentieren und überdimensionierte Belohnungen ernten. Beide Programme haben überdimensionierte Erfolg genossen. Bezos können jetzt Journalisten solche Möglichkeiten erweitern, durch den Kauf der Washington Post.

Bezos sagt, dass er die Post unabhängig von Amazon betrieben wird. Doch als Henry Blodget beobachtet, gibt es viele Möglichkeiten die Zeitung passt in Amazons digital Ökosystems. So betrachten die Post ein weiteres Stück in Bezos eigenen aufstrebenden Erzählung: wie lange unterschätzt Man Montage ist eines der größten Netzwerke von Geräten, Anwendungen und Inhalte, die die Technologiewelt je, Stück für Stück gesehen hat direkt vor unseren Augen.

Stein ist ein leitender Autor für Bloomberg Businessweek in San Francisco. Folgen Sie ihm auf Twitter @BradStone.

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BP oil spill settlement is in was sunk.

Look under rocks, and're likely to find worms. Dig in a multibillion-dollar legislation, and discover probably financial shenanigans. This proves the BP claims chaos in the Gulf of Mexico.

Quick review: as I cover storyreported in a current Bloomberg BusinessWeek-, process the deals 2010 spill Gulf after BP (BP) dough led demands to some pretty far-fetched to oil company. BP, more than 25 billion $ in compensation claims and cleanup costs already paid has, the presiding Federal Judge Carl Barbier of New Orleans asked to intervene. He refused, but appointed in early July by former FBI Director Louis Freeh, to investigate. The next day I predicted , based on my brief encounter with the court documents, Freeh had his big day.

BP now has a renewed request that Barber temporarily from the process due to fresh allegations of fraud. First the company points out, that two private lawyers for the claims facility - worked assessment cases controversial, while their own firms trying represent money BP plaintiffs. If true, that sounds pretty obvious conflict of interest, indicating lax management over the claims.

Secondly, BP says in its new dishes, submission, that two other employees in a claims Office in mobile, Alabama, due to allegations has been exposed that one half of them related and other people to excessive receive payments in return for kickbacks. This revelation follows the earlier suspension of two senior lawyers who work for the operation of claims in New Orleans to Kickback allegations. This bottle clear Red increasingly apparently without effort by Freeh. Sure it's got the advantage of BP lawyer alarming evidence turns just by cross indexing partnerships and by operating a fraud tip line.

The striking of this situation is it is as unnecessary. BP has acknowledged misconduct in connection with the oil spill and opened a company in the course of an industrial disaster the spigot of money, that is, what are we to do. Plaintiff lawyers stand hundreds of millions of dollars for their trouble making, but that was apparently not enough. Coat Don overreaching gave BP the chance of the victim. This additional years of litigation and lengthy distraction from what ever ecological and economic consequences in the Gulf region deserves attention.

And now, a former FBI Director over rocks, who knows is what he will find, wiggle?

Barrett, an Assistant Managing Editor and senior writer at Bloomberg BusinessWeek, is working on a book about the Chevron oil pollution case in Ecuador, which is scheduled for publication by Crown in 2014. His latest book is called GLOCK: the rise of America's gun.

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Saturday, August 10, 2013

Motorola Cheaps out with Moto x $500 million advertising budget

Motorola (GOOG) new phone, Moto-X, has as good a chance as any other on the market to succeed (or not). After having some time with the phone, I tell you, when a product has all that is necessary and no objections.

But building a very good device is not how you win in the Smartphone wars. For this, you need marketing and advertising. That is why Motorola as much as $500 million to the word on his latest phone is reportedly ready to spend . Now $500 million is a lot of money, but let us, in perspective.

In the year 2012, Apple (AAPL) for advertising spent $1 billion .

In the same year, Samsung (005930: KS) for advertising issued $4 billion .

According to Asymcos Horace Dediu, Samsung spent even $5.3 billion on "Promotion," which is French for commissions and in-store displays, training and other expenses. Roll together all Samsung is marketing, advertising and promotion costs and you're on a budget of $11 billion.

Advertising gets much attention, but are arguably more important marketing, sales and advertising. In most cases, the decision is carried out, a certain phone to buy in a shop. And this decision is based on the quality of the display, which know condition showroom mobile phones, and it and the enthusiasm for the sales staff recommendations. It's not like splashy Super Bowl Ad, but it is what makes mobile phones.

Not every dollar (euros or won) in Samsung's marketing budget devoted to smartphones, but many of them are. A: the Samsung display at every wireless retailer show. You will see that all the telephones are switched on, all of them work and have any demo mode to show what they can do. That is far away from some of the other devices you there - don't - those who have turned off or function at all, and that is no coincidence. Samsung spends money to ensure that its equipment in retail stores look chic.

Earlier this year, Samsung mobile marketing chief said DJ Lee me, that the company takes very seriously in-store sales. "We have teams monitoring branches in various countries", he said. "The best way for us to sell our equipment is in storage."

Motorola knows that it must pay the same attention to detail. Last week CEO Dennis Woodside explained how Moto-X would be prominently displayed at points of sale. Based on Samsungs Lee, he said that Motorola "has teams in-store employee on the phone functions, to train especially the new non-contact control functions." AT & T (T) stores appear the full range of colours and options so people can see how much you can customize your cell phone online. To personalize, for those who like to get their account number in a business up but still go home and their equipment also "X cards" containing a code with which a customer to add the account that you set up in the memory on the phone, the online build it, can have AT & T.

If Motorola ready, $500 million for advertising spend, then harass for them. The company itself got better prepare on an amount equal to large (or larger) on the harder work, that Verizon Wireless employees to drop the Moto-X instead of a Galaxy S4.

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The CBS Standoff and the Enduring Beauty of Bundled TV

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The dispute between CBS (CBS) and Time Warner Cable (TWC) is now being waged as an exchange of letters between CEOs, both of whom want to appear hurt—deeply—by the other.

CBS Chief Executive Officer Les Moonves wrote today to Glenn Britt, his counterpart at Time Warner:

“I was surprised to get your letter yesterday, particularly since I hadn’t spoken to you in more than a week. Come to think of it, you haven’t reached out to me personally, as I have to you on more than one occasion, even once during this entire matter, so your communication was both unexpected and welcome. The fact that you released it simultaneously to the media, however, dampened my enthusiasm somewhat.”

The cable company stopped carrying CBS channels on Friday in several major markets, including New York, Dallas, and Los Angeles, in a spat focused largely on two areas: the price Time Warner Cable should pay to include CBS, and whether cable subscribers will be allowed to watch CBS programming on their mobile gadgets. There’s little enthusiasm from either side for more negotiations. Britt, who retires at year’s end and is seen as a pioneer in the industry, may well be considering his legacy in battling the rising flood of programmers’ fees that bedevil cable operators. For its part, CBS—the highest-rated broadcast network, with such shows as 60 Minutes, NCIS, and Under the Dome—is seeking to boost its carriage revenue to $1 billion by 2017.

In his letter to Moonves on Monday, Britt proposed that both sides stop their squabbling and make CBS an “a la carte” choice for subscribers at a price set by the network, “with 100 percent of that price remitted to CBS. This way, rather than our debating the point, we would allow customers to decide for themselves how much value they ascribe to CBS programming.” He also decried as “beyond the pale” CBS’s decision to block its online content from Time Warner Cable’s Internet customers.

Moonves’s response:

“Anyone familiar with the entertainment business knows that this is an empty gesture. The economics and structure of the cable industry have created a certain way that content is distributed and compensated. We both know that a true a la carte universe is not one that Time Warner Cable welcomes. In fact, if you thought it was a good idea, why aren’t you offering your new, multibillion-dollar Lakers and Dodgers channels to your subscribers in Los Angeles on an a la carte basis? Instead, your subscribers in Los Angeles are already being charged in the neighborhood of $4.00 for the Lakers and likely more than that for the Dodgers—both of which you have pulled off broadcast television entirely.

The “certain way” Moonves referenced—program bundles from entertainment companies such as CBS, 21st Century Fox (FOXA), and Walt Disney (DIS)—led Cablevision (CVC) to sue Viacom (VIA) in February on antitrust grounds. The Long Island-based cable operator argues that it’s been forced to carry Viacom offerings its subscribers don’t want to fund—VH1 Classic, Palladia, and CMT among the dregs—so that it could obtain “commercially critical networks” such as Comedy Central, MTV, and Nickelodeon. (Viacom has six MTV and four VH1 permutations, according to the lawsuit.)

Rich Greenfield, a veteran media analyst with BTIG Research, says there’s “zero chance” content producers like CBS will abandon the bundled-channel model that has proved so lucrative for so many years. “You start picking and choosing, and all of a sudden your reach” with advertisers diminishes, he says, as the size of cable viewing audiences declines.

The bigger question, according to Greenfield, is whether federal regulators will get involved. That could “force CBS to cave,” he says, otherwise the standoff could “drag until late September when Time Warner is forced to cave, when the programming becomes too valuable.” A spokeswoman for the Federal Communications Commission says the agency would become involved in the dispute if one side files a complaint about the other not negotiating “in good faith.”

Paul Sweeney, a media and Internet analyst with Bloomberg Industries, predicts no traction for an a la carte pricing model until cable subscribers—who typically pay $75 to $90 per month for video and broadband Internet—revolt over the rising costs. “It does not appear that we are there yet,” he wrote in an

If nothing else, the start of the NFL season next month could alter the balance of the money fight and make Time Warner Cable shut up and pay. No company gets between a football fan and the game. Even then, however, there’s that ancient method of watching even digital TV broadcasts from networks like CBS: a $5 rabbit-ear antenna.

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