Wednesday, May 18, 2016

Wide Body Report - May 17, 2016

May 17, 2016


Having overcome many of its early teething problems, Boeing's 787 Dreamliner appears to be running into a new problem: slowing sales.  Despite a backlog of over 1,100 aircraft, industry-wide, sales for wide body jets have fallen by 51 percent since 2013, making it more difficult for Boeing to recoup their $30 billion investment in developing the new airplane.
http://www.businessinsider.com/boeing-787-dreamliner-sales-slow-2016-5


In parallel with slower wide-body sales, the leasing industry has also reported a temporary glut in 787s for lease on the market - with leasing rates falling below $900,000 per month.  Market analysts estimate that a new 787 needs to take in $1.15 million per month to recover its initial purchase price.
http://247wallst.com/aerospace-defense/2016/05/16/a-new-dilemma-for-boeing-slow-787-sales/


Air New Zealand has introduced the 787 Dreamliner on its routes to Honolulu, and Buenos Aires.
http://www.prnewswire.com/news-releases/air-new-zealand-introduces-boeing-787-9-dreamliner-on-honolulu-auckland-route-300265447.html
http://www.stuff.co.nz/travel/news/79858762/air-new-zealand-to-introduce-7879-dreamliner-on-buenos-aires-route


China Airlines, one of Taiwan's leading carriers, has taken delivery of the first "co-branded" Boeing 777 - which features logos for both the carrier and Boeing.
http://focustaiwan.tw/news/aeco/201605170010.aspx


Emirates has introduced the 777 on its Malta service route.
http://www.maltatoday.com.mt/business/business_news/65357/emirates_boosts_capacity_on_malta_service_with_boeing_777


Boeing has confirmed plans to reduce output for the 777 airliner from the current 8.3 per month, to 7 per month in 2017, while they prepare for the introduction of the revamped 777X.  Some industry analysts, however, are predicting that Boeing will need to cut production further - to 5 per month in 2018 and 4 per month in 2019 - as market demand continues to erode.
http://www.fool.com/investing/general/2016/05/15/boeing-reveals-how-far-777-output-is-poised-fall.aspx
http://www.bizjournals.com/chicago/news/2016/05/10/goldman-sachs-thinks-boeing-will-have-to-further.html


Qatar Airways has delayed the introduction of its planned service route to Aukland flying the Airbus A350 - in what would have been the longest non-stop commercial route in the world - due to delays in A350 deliveries.
http://www.stuff.co.nz/travel/news/79892674/Qatar-Airways-delays-new-Auckland-service-the-longest-nonstop-flight-in-the-world
http://www.financialexpress.com/article/companies/qatar-airways-postpones-worlds-longest-non-stop-flight-due-to-a350-delay/252657/


Cathay Pacific is expected to take delivery of its first Airbus A350-900 at the end of May.
https://www.flightglobal.com/news/articles/cathay-to-take-first-a350-on-27-may-425394/

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