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.

View the original article here

Angry airline says Boeing 787-payout

While the 787 Dreamliner fly suffer can dominate headlines, are payments Boeing (BA) is to reassure disgruntled buyers of new aircraft generally much quieter way treated. But the first European customer for the 787, LOT Polish Airlines, makes their demand for compensation public.

The problem was then an earnings conference call last week in the Boeing Chief Executive Officer W. James McNerney declared all customers payment requests from 787's three month grounding of the set. "There have been some cases where we had commitments to customers and those were all fulfilled," McNerney told investors and journalists during the July call. "And you see by quarterly figures, there was no significant impact on our business, we work with our customers to help. He added: "We think they are all behind us now."

The Polish airline begs to differ. "Maybe this didn't not affect profit the Boeing, but in fact we were not satisfied at all financially" many spokesman Robert Moren says in a telephone interview on Monday. "[Cost] are not likely huge money for Boeing, but for us - while we are in the process of restructuring – it's quite substantial."

MUCH to get his fifth 787 in Warsaw on Tuesday. Airline officials met with Boeing executives earlier this month to claims from the January, grounding, to transmit the rendered useless fires two new Boeing 787, which already by the airline, while Boeing redesigned the lithium-ion battery system that has been suggested on board in a January a Japan Airlines 787 parked in Boston.

Boeing spokesman John Dern said the company remains in "Close contact" with its customers, "but the details of these discussions are private."

MUCH has resumed flights with its Boeing 787 and plans to deploy the aircraft on all four of its long-haul markets - Beijing, Chicago, New York and Toronto - by Aug. 10 Moren said that the plane travellers has proven popular and sales are higher than other models, while the 787 is still having problems with the reliability, the slowly resolved. "We take this as a childhood-old disease, it goes away quickly," he said. "The Dreamliner will become a profitable aircraft for many."

Payments made by aircraft manufacturers for such new airplane questions include always a certain legalistic bargaining, drifting into the public domain only if it perhaps serves the interest of a financially-pressed airline. In March 2012, for example, Boeing reacted quickly to deny a statement by the Indian Government, which the company had agreed to pay $500 million over 787 delivery delays on Air India. "We not comment on offers, we have done, but I can tell you that we write a check for $500 million, not someone", Jim Allbaugh, President of Boeing said the commercial airplanes unit.

Sometimes, the 'prevention' can be cash payment - Reuters reported , that all Nippon Airways (9202: JP), the first 787 customer some of Boeing in this spring sought - but it could be also in the form of a discount on a future purchase or a break in the credit offer, but Boeing capital, the Chicago-based company the financing unit. Typically, United Airlines (UAL), who also tried only U.S. 787 operator, payments from Boeing late aircraft but has avoided to discuss the matter publicly.

However, it is difficult to deny the significance of the 787 for many who received for the first time in November 2012, and composed a dramatic press release on the occasion. "Our dream come true," said the carrier. "The day of 15 November 2012 will be printed in the history of our company as a moment-the landmark of our long-term work and striving for change." Eight months later, it is also a quest for money.

View the original article here