Scott Hamilton’s latest essay for Commercial Aviation Reports struck me as interesting — particularly in light of the ongoing contract talks between Boeing and the Machinists union.
Hamilton argues that the reason why Boeing will regain the lead in the aviation market — and the reason why Airbus won’t be able to keep its current No. 1 position — is not that Boeing is out-selling Airbus, but rather that Boeing can out-produce Airbus.
Key Quote: “Airbus is currently producing between 25 and 30 aircraft of all types. … We estimate that the active lines — 737, 747, 767, 777 and the projected 787 line — give Boeing current capacity to produce about 55 aircraft a month. … Airbus … simply does not have the capacity to maintain its lead.”
Take that argument one step further, and it would seem that the key to Boeing regaining 60-percent market share is its ability to build more jets, and to build jets, you need workers. And you’ve just got to figure that Mark Blondin and the IAM negotiating team are pointing that out to Boeing HR VP Jerry Calhoun.
Here’s the link:
http://www.leeham.net/filelib/ExcessBaggage.pdf
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