Tag Archives: 737

Boeing 737 vs Airbus A320 family deliveries, 1967 – 2018

In the previous post I shared a graphic with the Boeing 737 deliveries per year per model since 1967 till 2018. In this post, I want to share a few graphics comparing the evolution of deliveries of the Boeing 737 family with the Airbus A320 family of aircraft.

737_vs_a320_family_deliveries_per_model_1967-2018

In the graphic you can see the tremendous growth in the past years. From the valley in 1995 (with 145 combined deliveries) till 2018 (with 1,206 combined deliveries) there has been a remarkable compound annual growth rate (CAGR) of 9.6%. The greatest sellers: the 737-800 with 4,959 aircraft delivered through end of 2018 and the A320 with 4,700.

The first time that the combined deliveries surpassed the 200 airplanes was in 1989 (204 aircraft). In 1998, the combined figure surpassed the 400 (450 aircraft). In 2012 they reached more than 800 (870). In 2016, more than 1,000 combined deliveries (1,035), reaching 1,206 in 2018.

737_vs_a320_family_deliveries_1967-2018

The A320 family surpassed the 737 family in yearly deliveries for the first time in the year 2002, when 236 aircraft of the family were delivered (85 A319, 116 A320 and 35 A321) compared to 223 737s. Since then Airbus has taken the lead in the relative market share between both families, with the exception of 2015 (49.8% – 50.2% for Boeing; with 4 aircraft making the difference – 491 vs 495).

737_vs_a320_family_relative_share_1988-2018

The 737 was introduced in 1967, the A320 in 1988, 21 years later. The 737 led the market for another 14 years, increasing the gap in aircraft deliveries. Since then Airbus has been narrowing it: at the end of 2018 the gap was of 1,839 aircraft with 10,444 cumulative 737s delivered compared to 8,605 A320s.

737_vs_a320_family_cumulative_deliveries_1967-2018

 

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737 deliveries per year, 1967-2018

Two weeks ago, both Airbus and Boeing have released the figures of aircraft deliveries for the complete 2018: 800 and 806 airplanes, respectively, in what is a new industry record. This is just a quick post to share the graphic below with the evolution of 737 family deliveries per model since 1967 (year of its introduction) till 2018.

737 deliveries per year, 1967-2018

Through December 2018, up to 10,444 Boeing 737s have been delivered, making it the most successful commercial jet aircraft throughout history. In the graphic you can see the different generations: -100/-200 till the mid-80s, the -300/-400/-500 till the end of the 90s, the Next Gen in the 2000s and 2010s, until the introduction of the MAX a couple of years ago. With the steep ramp up in the recent years, it reached 580 deliveries in 2018.

However, it is worth noting that since 2002 Airbus A320 have delivered more aircraft in every single year with the exception of 2015. The 626 A320 deliveries in 2018 have meant a new industry record for commercial jet aircraft.

infographic-airbus-commercial-aircraft-orders-and-deliveries-2018

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Paper planes

Last Christmas I received a funny gift: a fold-a-paper-plane-a-day calendar for 2016. That is a collection of papers with instructions and colored paper to fold a paper plane each day of the year. Doesn’t it sound great? This is just a short post to share a bit of info about it.

The creators of the collection are Kyong Lee and David Mitchell, apparently two experts in the field of origami with plenty of different models designed between the two. The collection in itself hasn’t got 366 different models. In fact, there are 40 models that after mid February repeat themselves once and again with different colors to complete the whole year. As I got some questions about it, I share here a link where the collection can be found.

After this short introduction let’s go to the best part of it, the airplanes themselves. Even if not all models are based on real airplanes (some models are not even inspired on airplanes but based on animals – birds, etc) some are, and when colored they provide a very good look of the original. Below I share some pictures with a general and some weekly overviews of the different planes and some comparison of the most beautiful and real-model-based ones.

Global

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Main models:

Rockwell B-1 Lancer  supersonic variable-sweep wing strategic bomber. Conceived to retire the B-52 (not quite yet) it entered operations in the late 80s and has played a major role in support of operations ever since.

B-1

Boeing 737. Derived from the 707, it first flew in 1967 and still today its newer versions are in production (nearly 9,000 have been delivered to date) and development.

737

Aérospatiale/BAC Concorde  supersonic passenger jet. Supersonic commercial flight was a dream come true from the late 70s to the early 2000s thanks to the Concorde. Only 20 units were built, each one now treasured in museums across the world, since difficult economics and a crash in 2000 ended it its retirement.

Concorde

Eurofighter Typhoon multi-role fighter. Built by a consortium made by  Alenia Aermacchi, Airbus Group and BAE Systems, after its first flew in 1994 it was introduced in operation in 2004, being now the fighter aircraft of the main European air forces.

Eurofighter

McDonnell Douglas F-4 Phantom II. Introduced in the 1960s, with more than 5,000 units built, it played a major role in Vietnam.

F-4

McDonnell Douglas F-15 Eagle. Since its introduction in the late 1970s, with more than 1,000 units built, it plays the air superiority role for the US air force and several others.

F-15

General Dynamics F-16 Falcon. Multi-role fighter introduced in the 1970s, with more than 4,000 built, still in production, now by Lockheed Martin, for export.

F-16

Lockheed P-138 Lightning. Introduced in 1941, with more than 10,000 units built, it was the primary US fighter in WWII until the introduction of the P-51 Mustang.

P-38

Space Shuttle. Introduced in 1981 and retired in 2011. In those 30 years of services it completed 133 successful launches and landings.

Shuttle

Lockheed SR-71 Blackbird. Long range  strategic reconnaissance aircraft that, despite its introduction in the 1960s (now retired) still today keeps several speed and high altitude records.

SR-71

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Boeing list prices increases vs. discounts increases (update for 2014)

In a previous post I updated the estimate of what is the average discount Boeing applies when selling its commercial airplanes using 2014 data of list prices, deliveries and reported revenues. The figure I came up with was a 47% discount. I included the following graphic showing the discount evolution:

Boeing Average Discount Evolution, through 2014.

Boeing Average Discount Evolution, through 2014.

Last year, seeing the increasing trend of average discount together with knowing the fact that Boeing regularly increases list prices triggered the following question: Have Boeing airplane discounted prices increased, decreased or stayed constant in the recent years? I set out to answer this question using the estimated average discount of each year (1) from the graphic above.

The Boeing list prices (LP) (2) can be found here. I have been recording those prices for years and thus have a table with the evolution of list prices for each model year by year. The following step is to apply the average discount estimated for each year to then-year list prices, to get the estimated discounted prices (EDP) (2) per model. Thus, a table can be built for the last 6 years.

You can find below the result for the best-selling aircraft during previous years: 737-800, 737-900ER, 777-300ER and 787-8. Together these 4 models amounted to over 640 deliveries in 2014 or 89% of the total 723 airplanes Boeing delivered in 2014.

Boeing List and discount Prices evolution table, 2008-2014.

Boeing List and discount Prices evolution table, 2008-2014.

In the table above I included in black figures what have been Boeing list prices of these models in the past years (as reported in their website) while I marked in blue the figures which are estimated, using as a departure point the calculated averages discounts per year (also included in blue in the table). I included as well the list prices year-on-year change as a % of the previous year list prices, per model.

The average list price increase included at the bottom line is computed with the information of all Boeing models (19 in 2008 and 20 in 2014, though different ones (e.g. last year addition of 777-8X and 777-9X), a total of 26 different models along this period), not only the 4 included in this table.

You may see in the table above that after not increasing prices in 2009, Boeing has steadily increased them in 2010 (6.3%), 2011 (4.7%), 2012 (6.7%), 2013 (1.9%) and 2014 (3.1%). However, if you take a look at the blue figures in the same table you will notice that prices of 2014 are between 2010 and 2011 price levels for all 4 models! That is, the widely announced yearly list prices increase has been yearly offset by a discreet (not-announced) increase in the discounts applied to the sales of airplanes. Thus, the pricing power of Boeing has remained barely constant during the last 5 years. You may see it better in the graphic below:

Boeing List & discount Prices evolution graphic vs. inflation in USA (through 2014).

Boeing List & discount Prices evolution graphic vs. inflation in USA (through 2014).

The graphic shows the price evolution for each of the 4 airplane models selected, taking as a reference their list and estimated discounted prices in 2008 (indicated as 100%) and also the evolution of inflation in the USA (3) in purple, to reflect the evolution of real prices (i.e. accounting for inflation). List prices are shown with straight lines, versus dashed lines used for estimated prices. Each pair of prices for each aircraft is presented in the same color for easier identification. Some comments to the graphic:

  • Through continuous increases, 2014 list prices were between 21% (737 and 777) and 31% (for the 787) higher than in 2008.
  • However, due to increasing discounts from 38% in 2008 to 47% in 2014, the increase in list prices is almost entirely offset (especially for 737 and 777, just 4% above 2008 levels).
  • 2014 discounted prices are below 2011 discounted prices for all models except 787.
  • If compare the evolution of prices vs. the US inflation (general prices in 2014 being 10% higher than in 2008), we see that:
    • Boeing actually lost pricing power in both the 737 and 777, which are cheaper in real (inflation-adjusted) discounted terms in 2014 than they were in 2008 (about 6% cheaper).
    • Only the 787 has been able to keep up the pace of discount escalation and inflation.

(1) There is no way to know the real price and discount that Boeing applies in each sale, as it will depend from customer to customer (American Airlines -AMR- or Fedex) and from model to model (737-800 or 787-8). There where competition is tougher, discounts will be higher. However, the estimates I have made are an average of all Boeing aircraft sold in a given year.

(2) Both list prices (LP) and estimated discounted prices (EDP) are expressed in then-year dollars.

(3) US inflation series since 2008: -0.4% (2009), 1.6% (2010), 3.2% (2011), 2.1% (2012), 1.5% (2013) and 1.6% (2014).

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Aircraft market forecasts accuracy (update 2014)

About two years ago I wrote a post in which I analyzed the accuracy of commercial aircraft market forecasts. In particular, Boeing’s series of yearly Current Market Outlook (CMO). In that comparison, between the CMOs from 1997 and 2012, we could compare the predicted and the actual world fleets at 2011 year-end. Except for the twin-aisle segment and especially the large aircraft sector, the accuracy was remarkable, as the estimated global fleet only exceeded the actuals in 1%.

In this post, I just wanted to provide an update with the figures from the latest CMO (2014), released a few weeks ago, in comparison with 1999’s CMO. In that CMO from 1999 [PDF, 1.5MB], we find the following chart showing Boeing’s forecasted fleet size and distribution for 2003, 2008, 2013 and 2018 year-ends.

1999 Boeing CMO year-end fleet forecasts for 2003, 2008, 2013 & 2018.

1999 Boeing CMO year-end fleet forecasts for 2003, 2008, 2013 & 2018.

In 2014 CMO, Boeing offered figures of 2013 year-end fleet (1).

Fleet at year end 2013 - Boeing 2014 CMO.

Fleet at year-end 2013 – Boeing 2014 CMO.

And now, the comparison is immediate:

Comparison of aircraft fleet at year-end 2013: 1999 forecast vs. actual (sources: Boeing CMO 1999 and 2014).

Comparison of aircraft fleet at year-end 2013: 1999 forecast vs. actual (sources: Boeing CMO 1999 and 2014).

Some reflections:

  • The forecasts for all segment except for single-aisle (737-800) predicted higher numbers of aircraft in the fleet than the actuals have shown 15 years later (2).
  • The total fleet figure was missed by 11%, a larger deviation than the 1% from two years ago.
  • The 737 has been the model outselling the forecasts, offsetting partially the lower demand in all other segments. In particular, even if deviations per segment have been higher, the global forecasted figure for passenger aircraft has been missed by only 3%.
  • The forecast is especially off mark the twin-aisle, where there are over 1,700 less aircraft in the current fleet than forecasted (3).

For the next such comparison we will need to wait some years, as from the year 2000 Boeing provided CMOs in a different fashion, offering a view of the forecasted fleet only 20 years from the date in question, instead of a view every 5 years. Therefore, we will have to wait until 2017, when we will be able to compare the 20-year forecast from 1997 CMO with the actuals of 2016 to be provided in 2017 CMO.

(1) In order to see the detailed split per segment differentiated between passenger and freighter aircraft, until the released of the full CMO, it is needed to use the exploring data tool offered in Boeing’s site.

(2) The differences in accuracy between the lower and higher end of the small-aisle segment should not be taken into account, as they are influenced by the different consideration of the cut off number of seats between a CMO and the other.

(3) Possibly a reason why Boeing plays down on the 747-8I and A380 segment.

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Boeing real prices (accounting for inflation) after discount

In a previous post I compared for some Boeing airplanes (737-800, 737-900ER, 777-300ER and 787-8) what had been the evolution from 2008 to 2013 of the published list prices against the estimated discounted prices. In that post, I arrived to the following conclusions:

[…] the pricing power of Boeing had remained barely constant during the last 5 years.

  • Through continuous increases, 2013 list prices were between 18% (737 and 777) and 27% (for the 787) higher than in 2008.
  • However, due to increasing discounts from 38% in 2008 to 47% in 2013, the increase in list prices is almost entirely offset.
  • 2013 discounted prices are below 2010 discounted prices for all models.
  • 2013 discounted prices are almost back at 2008 levels for the 737 and 777, only the 787 seems to have stayed at 2010 levels.

I, then, received one interesting comment from a reader, ikkeman, pointing at the fact that if the estimated discounted prices are expressed in then-year dollars (1), if real prices had not increased since 2010, that meant that they had indeed decreased.

See below the graphic I included in the a previous post updated adding the data of US inflation after 2008. [The series is: -0.4% (2009), 1.6% (2010), 3.2% (2011), 2.1% (2012) and 1.5% (2013)]

Boeing List & discount Prices evolution graphic vs. inflation in USA,

Boeing List & discount Prices evolution graphic vs. inflation in USA.

With the information of the inflation (purple line) the following 2 conclusions apply:

  • 787 real price (accounting for inflation) after discount has simply kept up with inflation rate since 2008.
  • 737 and 777 real prices after discounts, however, have lost ground with respect to inflation since 2008. On average they have lost about 8.5% in total or about 1.6% per year.

(1) That is the case as estimated discounted prices have been estimated year by year from the financial reports and list prices of the year, thus, using then-year US dollars.

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Boeing list prices increases vs. discounts increases…

In a previous post I updated the estimate of what is the average discount Boeing applies when selling its commercial airplanes using 2013 data of list prices, deliveries and reported revenues. The figure I came up with was a 47% discount. I included the following graphic showing the discount evolution:

Boeing Average Discount Evolution, 2013.

Boeing Average Discount Evolution, 2013.

Seeing the increasing trend of average discount together with knowing the fact that Boeing regularly increases list prices triggered the following question: Have Boeing airplane real prices increased, decreased or stayed constant in the recent years? I set out to answer this question using the estimated average discount of each year (1) from the graphic above.

The Boeing list prices (LP) can be found here. I have been recording those prices for years and thus have a table with the evolution of list prices for each model year by year. The following step is to apply the average discount estimated for each year to then-year list prices, to get the estimated discounted prices (EDP) per model. Thus, a table can be built for the last 5 years.

You can find below the result for the best-selling aircraft during previous years: 737-800, 737-900ER, 777-300ER and 787-8. Together these 4 models amounted 560 deliveries in 2013 or over 86% of the total 648 airplanes Boeing delivered in 2013.

Boeing List and discount Prices evolution table, 2008-2013.

Boeing List and discount Prices evolution table, 2008-2013.

In the table above I included in black figures what have been Boeing list prices of these models in the past years (as reported in their website) while I marked in blue the figures which are estimated, using as a departure point the calculated averages discounts per year (also included in blue in the table). I included as well the list prices year-on-year change as a % of the previous year list prices, per model.

The average list price increase included at the bottom line is computed with the information of all Boeing models (19 in 2008 and 18 in 2013, though different ones, a total of 24 different models along this period), not only the 4 included in this table.

You may see in the table above that after not increasing prices in 2009, Boeing has steadily increased them in 2010 (6.3%), 2011 (4.7%), 2012 (6.7%) and 2013 (1.9%). However, if you take a look at the blue figures in the same table you will notice that prices of 2013 are between 2008 and 2010 price levels for all 4 models! That is, the widely announced yearly list prices increase has been yearly offset by a discreet (not-announced) increase in the discounts applied to sales of airplanes. Thus, the pricing power of Boeing has remained barely constant during the last 5 years. You may see it better in the graphic below:

Boeing List and discount Prices evolution graphic, 2008-2013.

Boeing List and discount Prices evolution graphic, 2008-2013.

The graphic shows the price evolution for each of the 4 airplane models selected, taking as a reference their list and estimated discounted prices in 2008 (indicated as 100%) . List prices are shown with straight lines, versus dashed lines used for estimated prices. Each pair of prices for each aircraft is presented in the same color for easier identification. Some comments to the graphic:

  • Through continuous increases, 2013 list prices were between 18% (737 and 777) and 27% (for the 787) higher than in 2008.
  • However, due to increasing discounts from 38% in 2008 to 47% in 2013, the increase in list prices is almost entirely offset.
  • 2013 discounted prices are below 2010 discounted prices for all models.
  • 2013 discounted prices are almost back at 2008 levels for the 737 and 777, only the 787 seems to have stayed at 2010 levels.

(1) There is no way to know the real price and discount that Boeing applies in each sale, as it will depend from customer to customer (American Airlines -AMR- or Fedex) and from model to model (737-800 or 787-8). There where competition is tougher, discounts will be higher. However, the estimates I have made are an average of all Boeing aircraft sold in a given year.

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The Museum of Flight (Seattle)

The Museum of Flight, in Seattle, is yet another great aerospace museum. It reminded me very much to the National Air and Space Museum in DC both because of the wealth of aircraft and artifacts in display and the variety of explanations provided (videos, sounds, readings, gadgets to play with…).

The museum is divided in the following areas:

  • Boeing Model 1.

    Boeing Model 1.

    T. A. Wilson Great Gallery (named after Boeing CEO from 1969-1986): this is the first gallery you face when you enter the museum. It hosts:

    • a replica of Boeing Model 1 (first Boeing airplane),
    • a Lockheed SR-71 Blackbird plus a cockpit for visitors to enter in it,
    • a 737 converted into a theater with movies being played inside,
    • an exhibition of the bush pilots of Alaska and the development of air mail,
    • some flight simulators,
    • a DC-3, a Bell “Huey” UH-1H Iroquois, etc.
  • Bill & Moya Lear Gallery (Space Exhibit, named after the founder of Lear Jet Corporation): located at the side of the Great Gallery it has a diorama of the Apollo 17 landing site, with rover included, a replica of the International Space Station Destiny Research Laboratory, etc.
  • The Tower: with direct view over the runway.
  • William E. Boeing Red Barn (named after Boeing founder): in my point of view this is “the” highlight of the museum (allow yourself over an hour for this part alone). It explains both:
    • the birth of aviation: with models and panels explaining the contributions of many of the aviation pioneers (see this blog post in which I went through some of them), and,
    • the history of Boeing: from the moment in which the timber businessman, Bill Boeing founds the company, the first Boeing Model 1 (see replica in the picture above), the tools, materials and processes used at the time, how did the factory look, the great aircraft programmes which meant different breakthroughs for the company and the great engineers behind them…
  • Charles Simonyi Space Gallery (named after the Microsoft executive who became in 2007 the 5th space tourist and who in 2009 travelled to the International Space Station): which highlight is the Space Shuttle Trainer used to train Space Shuttle astronauts at Johnson Space Center in Houston.
  • Airpark: with the Boeing 747 “City of Everett” (first ever 747, first ever wide-body aircraft), a Boeing 707 Air Force One, a Concorde, a Lockheed Constellation…
  • J. Elroy McCaw WWI and WWII galleries (named after a broadcasting magnate): unfortunately I did not have time to properly visit these galleries before the closing of the museum… a reason to come back again.

See some of the pictures I took at the museum:

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I definitely recommend to visit this museum if you happen to be in Seattle. It is located in the South of Seattle at Boeing Field / King County airport. I would suggest to take no less than 5 hours to visit the museum and to arrive before noon, otherwise there will be some parts that you will not be able to visit properly (as it happened to me with the WWI and WWII galleries).

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Boeing forecast for A380

The last two issues of Boeing’s Current Market Outlook, included a slide in which Boeing wanted to prove that their forecasts have been more accurate in the last 10 years. They compare actual aircraft demand versus both Airbus and Boeing forecasts in the year 2000.

Boeing Current Market Outlook, different views.

I find it interesting that all segments are described as such, segments: “Single-aisle”, “Twin-aisle”, “Large”… except for Airbus forecast in which Boeing introduces the model “A380”. As if wanting to point that Airbus was wrong in its A380 forecast… as if wanting to steer demand.

Let’s see the numbers:

  • Actual demand (2000-09): ~300 aircraft.
  • Boeing forecast (2000-19): ~700 aircraft, assuming equal split (among the 2 decades): ~350 a/c in 2000-09.
  • Airbus forecast (2000-19): ~1,300 aircraft, assuming equal split: ~650 a/c in 2000-09 (although A380 first flight took place only in April 2005).

As of today, Airbus has sold 234 A380s, including the latest 32 from Emirates. The prospects for the aircraft seem brighter as operators started operating it, on the other hand Boeing 747-8 orders have stalled since 2007.

A bit of history.

Yesterday, I was digging into back materials and I found two interesting pieces. Both from Boeing’s website in the year 1996 (using the way back machine). The first one is from a webpage about delivering value it could be read:

“In an industry defined by continual change, customers expect Boeing to help them prepare for the challenges ahead. That’s why we work closely with customers to understand their long-term requirements.

Customers have expressed interest in many potential airplanes, including:

  • An airplane smaller than the 737-600, seating 80 to 100 passengers.
  • An airplane larger than today’s 747-400.
  • A capable and cost-effective supersonic jetliner.
  • Derivatives of current models.”

Of those potential airplanes: we have seen the Embraer 190, the Airbus A380, derivatives and the only one that never came true was the supersonic jetliner

Artist image of Boeing Sonic Cruiser.

The other piece is from a news release on the occasion of the Farnborough air show of 1996 (2010 edition is taking place right now). There, Boeing stated:

Most major aerospace companies agree that airlines will require 500 to 700 airplanes capable of carrying more than 500 passengers. Boeing forecasts 500 airplanes will be needed by the year 2015.

Much of the demand for these very large airplanes will be generated by steady growth in air travel to and from Asia, and by capacity constraints at some of the world’s largest airports.

The 747-600X, with its ability to carry 548 passengers on routes up to 7,750 nautical miles (8,900 statute miles or 14,350 km), is designed to fill this market need. It will allow airlines to accommodate traffic growth without increasing the number of departures scheduled for busy airports.

During the next 20 years, airlines also will need approximately 600 airplanes capable of carrying between 400 and 500 passengers.

The Boeing 747-400 and 747-500X are designed to fill this market need.”

At this point it is useful to remember that in 1993 Boeing together with Airbus consortium companies started the feasibility study for the Very Large Commercial Transport (VLCT). Boeing left the joint study two years later. Nevertheless, still in 1996 it stated in its website that demand of aircraft carrying above 400 seats (747 and A380 of today) in the following 20 years would be between 1,100-1,300 planes, very close to Airbus forecast of the year 2000. The reasons behind that demand were the same Airbus argues nowadays: growth in Asia, constrains in largest hubs…

Later on, Boeing changed its forecast down to 700 aircraft.

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Aircraft discounts and new entrants

Boeing has recently unveiled its latest Current Market Outlook (CMO): a commercial aviation market forecast for the next 20 years. It calls for 30,900 new aircraft deliveries worth 3.6 trillion dollars. Today, I wanted to write about aircraft discounts and the possibility of having new entrants.

Boeing Current Market Outlook.

Both Boeing and Airbus give their market forecast and backlog figures in what they call as list prices. If you take figures from CMO, you will reach average list prices for regional jets (31M$), single-aisle (79M$), twin-aisle (230M$) and large aircraft (306M$). These figures are in accordance to the prices published in their website (dating from 2008).

However, if you take their published numbers of deliveries each year and use the same prices, you would come to much higher revenues figures than the ones they publish in the year-end results: this is because aircraft makers actually sell the planes at a much lower price. How much lower?

Discounts

I took the figures of revenues, orders and deliveries of the last three years and tried to reach what would be the corresponding discount Boeing’s customers manage to get on average.

I assumed that new orders come with a 3% down payment in the year of the booking, while the remaining cost I assumed that was paid on the year of delivery (for simplicity I didn’t consider more intermediate payments, the 3% figure was taken from the AIAA paper “A Hierarchical Aircraft Life Cycle Cost Analysis Model” by William J. Marx et al.). I also used estimated figures for Boeing Commercial Aviation Services ranging from 2.2bn$ to 3.3bn$.

With these assumptions, I concluded that the average discount that would best replicate revenues figures for Boeing Commercial Airplanes with a minimum error was: 38%! (being the errors in revenues of: 0.05% for 2009, 3.2% for 2008 and 0.5% for 2007).

Thus, when figuring out the value of those 30,900 aircraft we could rather estimate it at 2.2 trillion dollars (instead of 3.6 trn$).

New entrants?

Randy Tinseth, BCA’s VP Marketing, was quoted in Flight Global saying that he expected at least one more competitor in the single-aisle segment. If there are more competitors, competition is going to be tight.

Today Boeing Commercial Airplanes and Airbus Commercial yearly revenues together approximately account for 70bn$. If their revenues are to grow with Boeing’s forecasted world airplane fleet growth of 3.3%, along the next 20 years the revenues of both companies combined would amount to 1.94 trillion dollars.

Considering that the whole market, factoring in discounted prices, was going to be 2.2 trn$, this leaves the rest of competitors a share of the pie of about 250bn$ for the next 20 years (excluding regional jets), this is just 11.4% of the market.

If we look at it on a per year basis: 12.5bn$ a year for all new entrants (CSeries, Embraer, MS-21, SSJ, C919, Koreans, Japanese…) would mean about 250 aircraft a year (compared to the ~380-400 single-aisle that each Boeing and Airbus are delivering per year).

There is room for one commercial success comparable to the 737 or A320 family, but there is not room for two… maybe this is why Randy says “one or two of those guys into the mix” (despite of the many more new possible players).

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