CSeries effect on Airbus, Boeing product strategies

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Introduction

Nov. 6, 2017, © Leeham Co.: Boeing took a pass on assuming ownership of the Bombardier CSeries, according to a report in the Toronto Globe and Mail—the same deal rival Airbus took.

In doing so, Boeing passed on acquiring a new airplane program at pretty much zero risk, no cash investment and no research-and-development cost. The market demand ranges from 4,000 to 6,000, depending on whose study you believe.

Rival Airbus wouldn’t have a response and, given its current turmoil, would have been unlikely to pursue a response.

Instead, Boeing may embark on a risky, high-cost development of the New Midrange Aircraft for which market demand remains a controversy, suppliers are reluctant to take risk-sharing positions and which will almost certainly provoke a response from Airbus.

Artist concept of Boeing 797-7. Source: fs2000.org.

Summary
  • Boeing says it’s not worried about Airbus stake in CSeries program; it remains satisfied with its product strategy.
  • But 100-160 seat sector won’t be covered by a 737 replacement. Airbus has this covered with CSeries.
  • New Midmarket Airplane figures into CSeries impact.

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