Originally Posted by
buzzpat
As the last, absolute last, bastion of aircraft development, I hope and pray that Boeing survives. Domestic industry does count.
Absolutely, but what's that got to do with the IM-Bank?
The EU would surely like to be rid of their IM-EXBank Facility also. Seems like we could make a deal to put ours away if they'll put away theirs. (then there's still the Brazilians and
Canadians ... who Delta does do business with).
Don't understand why T-Square thinks Boeing's pricing is unreasonable. If you look at acquisition costs, since the Douglas people took over Boeing not only are the airplanes becoming Douglas products (failures from an engineering standpoint ... due to penny pinching on design...then getting killed on the back end) they are priced like Douglas products.
Boeing's not going out of business, but their Board needs to clean house over there
Over the past few quarters, Boeing has substantially improved its cash costs for the 787s, which averaged about $200 million, but that remains worlds away from the breakeven values which the company expects to achieve by 2015. Cash burn has improved by about $1 billion per year through 2015, according to UBS’ estimates, which now expects Boeing to go through $4 to $5 billion this year and next, and between $2 and $3 billion in 2015; this year, 787 cash drag will approximate $5 billion, as a $7 billion inventory build offsets a $2 billion advance draw.
Estimates indicate Boeing’s 787s will sell for an average $116 million per unit, a 48% discount to the average list price of $225 million. With 787-9 deliveries not expected until 2014, Boeing’s 787 physical inventory is expected to reach $900 million, with physical inventory then flattening out in 2014 as deliveries match production, while UBS expects a $900 million reversal in 2015 as deliveries move higher.
Boeing Bleeding Cash As 787 Dreamliners Cost $200M But Sell For $116M, But Productivity Is Improving - Forbes
Have to admit, that's a very Douglas like performance ... (MD90, MD11, MD95 ...)
I should short BA.