How Many Dreamliners Does It Take To Turn A Profit? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.29.24

Airborne-Unlimited-04.23.24

Airborne-Unlimited-04.24.24 Airborne-FltTraining-04.25.24

Airborne-Unlimited-04.26.24

Wed, Aug 24, 2011

How Many Dreamliners Does It Take To Turn A Profit?

Analyst Says About 1000

While Boeing still hopes to finally deliver the first Dreamliner to a customer next month, analysts are saying the company won't make a profit on the airplane until 1,000 of them are flying for customers.

That assessment comes from Bernstein Research in New York, which cites the company's three years of issues and delays in a report released August 16. Analyst Douglas Harned and his team also say compensation to less-than-satisfied buyers will add to the delay in turning a profit on the airplane. The St. Louis Business Journal reports that Harned says that will drag on Boeing's bottom line "for years to come," and could negatively affect margins on production of the planemaker's popular 737 and 777 lines.

Add to that the fact that Boeing made some sweetheart deals with buyers in the early days of the program, which made for a great-looking order book but now means lower prices are locked in for those buyers. Some have fixed-price options for upgrades to the 787-9, making those larger aircraft undervalued.

At the end of the day, the report says, Boeing can expect to see a profit on the Dreamliner not later than 2016, and perhaps before then. But, the report says, the company has to "execute well" for that to happen.

FMI: www.boeing.com

Advertisement

More News

ANN's Daily Aero-Term (04.28.24): Airport Marking Aids

Airport Marking Aids Markings used on runway and taxiway surfaces to identify a specific runway, a runway threshold, a centerline, a hold line, etc. A runway should be marked in ac>[...]

Aero-News: Quote of the Day (04.28.24)

"It is extremely difficult, if not impossible, for manned aircraft to see a drone while conducting crop-enhancing and other aerial applications at low altitudes and high speeds. We>[...]

ANN's Daily Aero-Linx (04.28.24)

Aero Linx: The Skyhawk Association The Skyhawk Association is a non-profit organization founded by former Skyhawk Pilots which is open to anyone with an affinity for the A-4 Skyhaw>[...]

Aero-News: Quote of the Day (04.29.24)

“The T-54A benefits from an active Beechcraft King Air assembly line in Wichita, Kansas, where all required METS avionics and interior modifications are installed on the line>[...]

ANN's Daily Aero-Linx (04.29.24)

Aero Linx: Aerostar Owners Association The Association offers the Aerostar Owner a unique opportunity to tap an invaluable source of information concerning the care and feeding of >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC