Leeham News and Analysis
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Analyzing the Top Customers for Airbus and Boeing
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Introduction
Jan. 4, 2017, © Leeham Co.: The top 25 Airbus customers that are identified account for 63% for the current backlog, an analysis of the company’s order list shows.
For Boeing, its Top 25 customers account for 69% of its identified backlog.
Both companies have hundreds of Unidentified orders for which no customer is disclosed.
Summary
- “China Inc.” is Boeing’s #1 identified customer and #3 for Airbus.
- Two low cost carriers are the first and second top customer for Airbus.
- Three low cost carriers follow “China Inc.” as Boeing’s Top Customers.
- Boeing’s Top 3 wide-body customers are in the Middle East, where financial and traffic results are beginning to soften.
- Three of Airbus’ Top 5 customers are also from the Middle East. The other two are from Asia.
- Boeing has 54% of the market share among the Top wide-body customers. Airbus has a 54% market share in the narrow-body sector.
Pontifications: Embraer, contrary to others, looks to momentum in 2017
By Scott Hamilton
Jan. 3, 2017, © Leeham Co.: Airbus, Boeing and Bombardier look toward 2017 as a bit of a punk year, as detailed in our Look Ahead for subscribers only. Not so by Embraer.
In an exclusive interview, John Slattery, the president of Embraer Commercial, said EMB will gain “momentum” this year. This is at a time where sales at the other three of the Big Four OEMs are expected to slow off an already slow 2016.
Airbus, Boeing Top Customers mix of stable, risk and reward
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Introduction
Dec. 22, 2016, © Leeham Co.: When it comes to comparing backlogs of Airbus and Boeing, the latter likes to point to what it calls a better quality of customers.
The fact is, both companies have large orders with airlines that may be characterized as less than top quality, or which appear to have over-ordered.
Summary
- Airbus is more risk-reward oriented than Boeing.
- Airbus appears more aggressive in emerging markets.
- Airbus and Boeing share risky and quality customers.
- Many of the shared top customers are roughly balanced between Airbus and Boeing.
Boeing announces 2017 job cuts
Dec. 20, 2016: Boeing yesterday announced a new round of job cuts, hoping that these will come from retirements voluntary buyouts–but it did not rule out involuntary layoffs.
No number was given by Boeing for the workforce reduction.
Just a week ago, LNC predicted more job cuts would be coming at Boeing–and at Airbus.
Boeing’s message to employees is below.
Pontifications: Leeham News’ approach to the news
- Leeham News and Comment will be on holiday Dec. 24, 2016, through Jan. 2, 2017, barring major breaking news. Merry Christmas and Happy New Year.
By Scott Hamilton
Dec. 19, 2016, © Leeham Co. Two thousand sixteen is almost over. This will be my last Pontifications of the year.
We approach our job with a little different perspective than the daily newspapers and aviation trades. They have greater resources than we do and have a greater ability to report the news. So LNC tries to bring news with perspective that those outlets don’t.
Analysis, economics, forecasts
We provide analysis of events and of aircraft economics and performance. Not even the trades do the latter. We also make our own forecasts of trends and production rates. Sometimes it takes a few years to be proved right or wrong. So far, we have a good track record of being right.
We’re also not afraid to take on controversy—and be controversial. And we don’t hesitate to call bullshit when we see it.
This gets often us into hot water with the subjects of the controversy.
This is what sets LNC apart.
US appeals WTO ruling over prohibited subsidies
Dec. 16, 2016: The US filed a notice of appeal today of the WTO ruling that Washington State tax breaks granted to entice Boeing to locate a wing plant for the 777X and assemble the airplane at Everett ((WA) was a prohibited subsidy.
The move was expected.
At issue were $8.7bn in tax breaks.
Boeing faces prospect of China’s political wrath thanks to Trump
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Introduction
Dec. 12, 2016, © Leeham Co.: “China Inc.,” the combined group of airlines and lessors directed or controlled by the government, is Boeing’s largest customer, an
China is Boeing largest single customer. Campaign rhetoric of Donald Trump could prompt the Chinese government to retaliate against Boeing, favoring Airbus for orders instead. Rendering via Google images.
analysis of the company’s’ backlog at Dec. 5 shows.
Boeing’s website lists “China” with 292 orders in backlog. Fifty of these appear to by Unidentified orders. LNC arrived at this figure by viewing the Chinese customers in Boeing’s identified list, which amounts to 242 orders. Some believe the number of Unidentifieds attributable to China may be higher.
The data shows just how much Boeing has at risk with the so-far unpredictable foreign trade policy espoused by President-Elect Donald J. Trump.
Summary
- Boeing’s long history of supplying airliners to China began with President Nixon’s historic trip.
- China was a reliable customer through global economic downturns.
- But China doesn’t hesitate to use Boeing (or Airbus) as a pawn in geopolitical politics.
- Airbus now at parity in China airplane sales.
- Can Jim McNerney educate Trump?
Market, other factors emerging, creating Boeing 787 concern
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Introduction
Jan. 4, 2017, © Leeham Co.: Despite a rosy picture painted by Boeing about the future of the 787 and the ability to recover more than $29bn in deferred production
Boeing photo.
and tooling costs, there are signs that cause concerns over the next 3-5 years.
Summary
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Posted on January 4, 2017 by Scott Hamilton
Airbus, Airlines, Boeing, Etihad Airways, ExIm Bank, Leasing, Leeham News and Comment, Lessors, Premium
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