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.

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.

Air New Zealand has introduced the 787 Dreamliner on its routes to Honolulu, and Buenos Aires.

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.

Emirates has introduced the 777 on its Malta service route.

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.

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.

Cathay Pacific is expected to take delivery of its first Airbus A350-900 at the end of May.

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