Seeking Alpha

Quatar Airlines says that the Boeing (BA) 787-10 has the best seat-mile costs in the business,...

Quatar Airlines says that the Boeing (BA) 787-10 has the best seat-mile costs in the business, making it the obvious choice for its fleet. With many of the kinks in the 787 production line rectified, the larger version of the Dreamliner is set to get board approval and begin selling in the near future, When it does, the Middle Eastern carrier is looking to be its first customer.
Comments (6)
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    Is it Quater or Qater?
    13 Nov 2012, 06:50 PM Reply Like
  • Zheeeem
    , contributor
    Comments (259) | Send Message
     
    Qatar
    13 Nov 2012, 07:48 PM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
     
    Boeing Loses Qantas Order for 35 Dreamliners After Delays
    By David Fickling and Susanna Ray - Aug 23, 2012 7:36 PM CT
    Boeing Co. lost an order for 35 Dreamliners with a list price of $8.5 billion in the biggest 787 cancellation yet as Qantas Airways Ltd. scrapped a contract after delivery delays and losses on international routes.
    Qantas’s pullback on the 787-9 reduced Chicago-based Boeing’s backlog for the larger derivative of the composite- plastic plane by about 10 percent. It also underscores a travel slowdown that has caused carriers including Cathay Pacific Airways Ltd. and Singapore Airlines Ltd. to cut growth plans.
    Boeing Loses $8.5 Billion 787 Order as Qantas Cuts Costs Andrew Harrer/Bloomberg
    A Boeing Co. 787 Dreamliner sits on display during its global Dream Tour at Reagan National Airport in Washington, D.C., U.S..
    A Boeing Co. 787 Dreamliner sits on display during its global Dream Tour at Reagan National Airport in Washington, D.C., U.S.. Photographer: Andrew Harrer/Bloomberg
    Qantas Airways Ltd. canceled an order for 35 Boeing Co. 787-9s after posting its first annual loss in at least 17 years because of higher fuel costs, labor disputes and rising competition on international routes.
    Aug. 23 (Bloomberg) -- John Strickland, director of JLS Consulting, talks about Qantas Airways Ltd.'s decision to cancel an order for 35 Boeing Co. 787-9s after posting its first annual loss in at least 17 years. He speaks with Guy Johnson on Bloomberg Television's "The Pulse." (Source: Bloomberg)
    Qantas Airways Ltd. canceled an order for 35 Boeing Co. 787-9s after posting its first annual loss in at least 17 years because of higher fuel costs, labor disputes and rising competition on international routes.
    Qantas CEO Alan Joyce Brendon Thorne/Bloomberg
    Alan Joyce, chief executive officer of Qantas Airways Ltd.
    Alan Joyce, chief executive officer of Qantas Airways Ltd. Photographer: Brendon Thorne/Bloomberg
    Enlarge image
    Qantas Cancels Plane Order After Posting First Annual Net Loss Sergio Dionisio/Bloomberg
    Qantas Airways canceled an order for 35 Boeing Co. 787-9s after posting its first annual loss in at least 17 years.
    Qantas Airways canceled an order for 35 Boeing Co. 787-9s after posting its first annual loss in at least 17 years. Photographer: Sergio Dionisio/Bloomberg
    “It’s going to bother people more because of what it says about growth in air travel than because of anything it says about the 787,” said Howard Rubel, an analyst with Jefferies & Co. in New York. “You could have seen for some time that there have been some financial challenges in the market.”
    Europe’s economic weakness has blunted air-travel strength in other regions, and there are signs that demand for premium seats on international flights, which fetch the highest fares, may diminish further in coming months, according to a report last week from the International Air Transport Association.
    Qantas will get $433 million from Boeing, including more than $300 million compensation for 787 delays and a refund of deposits for the canceled order, Chief Financial Official Gareth Evans said today at a press briefing in Sydney.
    The airline’s budget arm Jetstar will still receive 15 of the smaller 787-8s starting next year. A Boeing spokesman, Marc Birtel, declined to comment on the finances.
    ‘Negative Impact’
    “Although we see this cancellation having no impact on our 787 delivery forecasts out to 2015, this news could have a negative impact on investor sentiment towards Boeing and its suppliers,” Rob Stallard, an analyst at RBC Capital Markets in London, wrote in a note. He rates Boeing shares outperform.
    Boeing fell 3.4 percent to $70.36 at the close in New York, the stock’s fourth straight daily drop. Qantas, Australia’s largest airline, rose 2.6 percent, the most in almost a month, to A$1.20 in Sydney as the cancellation and payout eased funding concerns.
    Boeing had lost orders for 25 Dreamliners this year before today, including a lot of 24 scrapped by China Eastern in March. The 787 backlog still totals more than 800 planes, according to Boeing’s website. The jet’s first delivery came in 2011, ending more than three years of delays as Boeing struggled to develop the world’s first airliner built of composites and used new production techniques that relied more on suppliers.
    Qantas canceled the order after reporting an annual loss of A$245 million ($258 million), the first in its 17-year history as a listed company. The Sydney-based carrier is struggling to pare losses on international routes because of competition from Middle East airlines led by Dubai-based Emirates.
    ‘Prudent Decision’
    “Circumstances have changed significantly since our order several years ago,” Qantas Chief Executive Officer Alan Joyce said in a statement. “In the context of returning Qantas International to profit, this is a prudent decision.”
    Joyce has also delayed Airbus SAS A380s, cut overseas routes, and begun talks on working with Emirates on a partnership to revive international operations.
    Qantas was due to receive 17 787-9s in the two years ending June 2016 and 18 after that, according to a company presentation. The airline had chosen General Electric Co.’s GEnx engine to power them. Delivery delays meant the orders became options, which allowed Qantas to cancel them, CFO Evans said.
    The carrier is retaining 50 other options for 787-9s. These have also been brought forward by two years so that deliveries will begin in 2016 if they are exercised.
    ‘Fixed Place’
    The options give Qantas “a fixed place in the queue and a fixed manufacturing date and a fixed price,” Evans said. The 787-9 seats as many as 290 passengers, compared with the 250 maximum on the 787-8, according to Boeing’s website.
    The cancellation may let Boeing deliver 787s ordered by other customers at an earlier date, which will help it reduce other penalties for late payments.
    Boeing “has shown its ability to anticipate order deferrals and cancellations with a global fleet planning algorithm and overbook delivery slots in sufficient numbers as to be able to continue a smooth pattern,” Stephen Levenson, an analyst at Stifel Nicolaus in New York who recommends buying the company’s shares, wrote in a note to clients. “As a result, we don’t expect suppliers to be impacted in any way either.”
    Boeing is seeking to boost production to 10 Dreamliners a month, a record for wide-body jets, by the end of next year. It currently assembles 3.5 a month at its main wide-body jet factory outside Seattle and at a new 787 plant in South Carolina.
    The largest 787 cancellation previously was for a 25-plane order by an unidentified customer in 2009, Boeing’s Birtel said.
    To contact the reporters on this story: David Fickling in Sydney at dfickling@bloomberg.net; Susanna Ray in Seattle at sray7@bloomberg.net
    To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net; Neil Denslow at ndenslow@bloomberg.net
    13 Nov 2012, 07:03 PM Reply Like
  • thomas85225
    , contributor
    Comments (563) | Send Message
     
    Another Humilation for Boeing
    Posted: October 31, 2012 at 6:18 am
    The humiliation of ongoing delays in the delivery of the Boeing Co. (NYSE: BA) 787 continues to dog the huge manufacturer. It has decided to adopt a marketing campaign that might turn investor and public eyes away from its troubles, like the setback it announced for a delivery to United Continental Holdings Inc. (NYSE: UAL). But the trick will not work.
    Ads by Google
    According to Reuters:
    The delay, while short, is another missed date for the 787 program which was delayed for nearly 3-1/2 years to address quality problems with the jet that uses substantial amounts of lightweight composite materials to replace aluminum in the fuselage and wings.
    At the heart of Boeing’s new marketing campaign is a list of advantages of its 787, the same plane that as suffered a seemingly infinite number of delays.
    The 787 Dreamliner will use 20% less fuel on comparable missions than other airlines in its class.
    Boeing’s marketing staff has avoided the mention of other 787 troubles, which is why the call it a marketing campaign. It puts Boeing in the best light possible while avoiding its flaws. Boeing hopes that as it trumpets its track record of innovation, that the 787 delays will melt away, at least as far as customers and investors are concerned.
    United Airlines is not the only one that has had to wait for the new plane. The list includes Air India, China Southern Airlines, Japan Airlines and Qantas, at least. Bloomberg reported that:
    Qantas will get $433 million from Boeing, including more than $300 million compensation for 787 delays and a refund of deposits for the canceled order, Chief Financial Official Gareth Evans said today at a press briefing.
    So, shareholders have suffered as well. It is part of a pattern that has many of those who hold Boeing shares underwater. Over the past five years, Boeing’s stock is off about 25% while the S&P has dipped less than 5%.
    The 787 Dreamliner saga will be remembered as one of the greatest debacles in the history of modern manufacturing. But the jet gets more miles per gallon that much of its competition, and the people who built it are smart, according to Boeing. Except when on-time arrival is at stake.
    Douglas A. McIntyre

     

    http://bit.ly/ZF5xuQ
    13 Nov 2012, 07:06 PM Reply Like
  • combie
    , contributor
    Comments (86) | Send Message
     
    Pretty hard sell, 7 years behind schedule, broken supply chain, still huge production problems in the factory and no real production yet. Can't belive the press is still buying the Boeing BS.
    14 Nov 2012, 12:05 AM Reply Like
  • combie
    , contributor
    Comments (86) | Send Message
     
    More propaganda, Boeing still cannot build them at any rate, still hase major production problems, major supply chain problems. They are not moving forward fast enough to make any real difference. 2 years from now they will still be selling the BS to the press.
    14 Nov 2012, 03:59 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|