What’s next at Boeing?

If the IAM didn’t have enough reason before to be concerned about out-sourcing, here’s another: Mitsubishi just announced it’s entered a deal with Boeing for its support in building the MRJ regional jet.

The so-called Japanese Heavy is an industrial partner with Boeing on the 787 program, building the composite wings. The 70-90 seat MRJ regional jet will have composite wings. Boeing is shying away from planes with less than 150 seats in the future. If the MRJ is a success, we think it likely Mitsubishi will grow the airplane up to 150 seats, particularly since Kawasaki Industries, another 787 partner, has announced plans to create a 100-150 seat jet.

From there it’s only another step to grow into 200 seat jets and a full family. It took Airbus 14 years to create a family and 34 years to have a full product line.

This is not good for American industry. And in our view, Boeing is creating its own future competitor.

4 Comments on “What’s next at Boeing?

  1. “This is not good for American industry.”

    I agree wholeheartedly. It is myopic and just plain dumb. Almost as short-sighted and stupid as outsourcing the production of tanker airframes to Europe.

  2. A very shortsighted decision, but not as bad as when they gave the wing technology away on the 787 to Japan.

    Boeing does not have in-house technology now to build a composite wing for an airliner. Ouch!

  3. The statement that “Boeing is shying away from planes with less than 150 seats in the future” is wrong. Boeing will never give that up because this is what its customers are asking.

    What Boeing and Airbus will give up is the 737-600 and A318 markets.

    What the author should be excited about is that currently there are 2 (A&B) manufacturers of 120-200 single isle planes and 4 (B&E&M&S)manufacturers of 90-120 single isle planes, where in ten years there will be 6 or more manufacturers of 100-150 single isle planes, driving down prices and driving up innovation.

    There is no excuse that the 737 platfrom is 40 y.o. and the A320 is 20 y.o.

    Sad prospects though for US jobs at Boeing.

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