Boeing’s blown it over the last decade by failing to adequately assess Airbus strategy and pursuing diversification instead of focusing on its core business. So says former Boeing salesman Rudy Hillinga, in a commentary http://www.leeham.net/filelib/Rudy.pdf published at Scott Hamilton’s Leeham Co. Website.
Hillinga says Boeing clearly misgauged Airbus’ ability to mount a credible response to the 787, and says the recent move to reconsider stretched and heavier versions of the plane is proof of that. The good news for Boeing, he says, is that it’s still early in the game, so Boeing CAN adopt new versions before Airbus can capture key sales.
Key Quote: “Boeing recently said it may forget about the 767 tanker and come up with a ‘better’ (Blended Wing Body?) solution. Boeing totally miscalculated the cost of the strike. And most significantly, ‘Boeing is already offering improved versions of the 787.’ … The news only confirms that Airbus produced a viable competitor to the 787, contrary to Boeing conclusions … that Airbus could not and would not be able to develop a competitor to the 787 early enough to prevent the 787 from dominating this market. Now the A350 on the drawing board is apparently giving Boeing enough worries to force them to consider offering several new versions of the airplane in a great hurry to prevent Airbus from signing up major customers for the A350 like Singapore and Qantas Boeing had counted on for the 787.”
Interesting. I don’t know Hillinga — he left Boeing before I started writing about the company — so I don’t know whether he’s got any particular axes to grind. And we should note that he’s working on a book about Boeing, the theme of which, he says, is the “continuing failure by Boeing management to anticipate and realistically face up to Airbus’ strategies.”
Still, it isn’t every day that an aerospace industry insider takes his former bosses to task. I’m interested in hearing what you guys think.
Speaking of Scott Hamilton — and tankers — I meant to post a link to this last week http://www.leeham.net/filelib/ScottsColumn092005.pdf but got sidetracked by that whole labor thing.
Hamilton argues that Boeing should just scrap the 767 tanker, in favor of a tanker derived from a newer jet.
Key Quote: “Boeing, the Air Force and the US taxpayers would be better off going with a tanker version of the 777 now that the freighter has been launched.”
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