Table of Contents The Boeing 787 Adrenaline . Introduction Table 1 . Milestone for the 8787 A. Table 2. Orders for Boeing and Airbus B. Organization Chart for Boeing Company Officers C. . Marketing and Financing Strategies The weak U. S Dollar Table 3. Serving from weak Dollar Hedging the Strong Dollar The 8787 Global supply Champ Ill. Figure 1. Bringing the parts together in Everett Table 4 Major Parts Suppliers The Boeing 787 Adrenaline has become the fastest-selling, wide body Jet liner is aviation history with a total of 850 orders valued at $ 127 billion placed by 56 customers as of September 2010.
Boeing began to take orders of the 8787 Adrenaline after it surveyed its customers in 2001 after the 9/1 1 terrorist attacks on the World Trade Center, which led to the collapse of commercial air travel. Aviation fuel prices also began to rise due to the increased globalization of business world trade and international business travel especially in the BRICK emerging markets of Brazil, Russia, India, and China. Boeing began to take orders for the 8787 after at surveyed its customers and it decided to make the 8787 20% more Fuel-efficient than its other Jet liners.
Table 1 Dowel sin Table 1. April 26, Sows ten growth In orders Doglegging Witt Its program launch In Milestones for the 8787 2004 Program Launch with record orders the 50 planes from ANA of Japan. Orders growth to 237 in first year of its sales. July 8, 2007 Roll out of the 8787 prototype in its Premier Showing Orders reach 677. December 15, 2009 First Flight or Madman Voyage f the 8787 October 16, 2011 Entry into Commercial Service by Launch Customers ANA.
Orders including cancellations climb to 820 In addition to the consumer survey, Boeing decided not to pursue a fuel-guzzling bubble-Decker development like Airbus had done with its AWAY plane. Orders for the AWAY were showing of the rising aviation fuel prices and the terrorist attack on the World Trade Center. In addition overall orders for Boeing Jetliners had fallen behind Airbus’ orders and top management realized that to recapture Boeing’s leadership position, it would have to come out with game-changing, new Jet liner, which became the Adrenaline.
Table 2 shows the competition between the two manufacturers from 1996 to 2006 Table 2. Comparisons of orders for Airbus and Boeing. Year 1995 1996 1997 Airbus 106 326 Boeing 441 08 1998 1999 2000 556 601 476 520 355 Year Airbus 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 375 300 284 370 1055 790 1341 779 291 465 Boeing 318 251 239 272 1002 1044 1431 662 142 480 Throughout the late sass’s Boeing orders were ahead of Airbus’ but fell behind in 1999 and from 2001 to 2005.
This reversed in 2006 as orders for the Adrenaline started to come in, vindicating Boeing’s decisions to make the plane more fuel- efficient. The three ways that Boeing used to make it more fuel-efficient are: вЂў Use of light-weight, carbon-fiber composite plastic material in the wings, body, tail, SSE of the Adrenaline. The carbon composite plastic will be supplied by Torah of Japan. вЂў More fuel-efficient engines supplied by GE. And Rolls Royce вЂў Development of more efficient fuel systems using advanced technology.
The top company officers responsible for this decision are shown on the organization chart of Boeing company officers for 2011 II toner Marketing an A. The weak U. S dollar a Hannibal strategies The weak U. S dollar and strong foreign currency of the buyers greatly reduced the cost of buying the plane. The savings for are Air Canada purchase of one 8787 costing U. S $MM is calculated as follows. The plane is ordered when the exchange rates is U. S$ 1. 00 = C$ 1. 59. The cost in Canadian dollars is C$ 238. M. Six years when delivery and payment for the plane occurs, the exchange rate is U. S. $ 1. 00 = C$ 0. 9623. The cost in Canadian dollars has fallen by C$ 94. MM, which Air Canada saves. The % savings is calculate to be 39. 5% and is shown in Table 3 along with savings for Santa of Australia, LANA of Chile, ANA of Japan. Table 3. Savings from weak dollar. Airline Savings %Savings Air Canada C$94. MM. 5% A$MM 38. 7% Santa Lana (Chile) Chi 30,784. 29. 2% ANA yen 1,024. 5 5. 6% B. Hedging the strong U.
S dollar In the even that the US dollar strengthened against the foreign currency, foreign exchange bankers recommend that the foreign buyer negotiates a long term hedge like the credit or money market hedge good for six years with the buyer’s bank. Ill. The 87878 Global supply Champ The 8787 will be assembled from sub assembly models made in the United States and abroad and this process follows the modularization assembly techniques of the auto industry. The suppliers help to reduce the cost of the 8787 because they pay for he R& D for making their parts according to specifications supplied by Boeing.
The suppliers will also be used to help sell the plane to airline in their countries. Table 4 lists the major suppliers like the three “Heavy Industries” of Japan (Amateurish, Sukiyaki, Fuji), which were instrumental in getting ANA of Japan to place its second order of 50 planes making it the launch customer for 8787. Table 4. Major Parts suppliers Parts Suppliers # Of Engineers Comments Elena of Italy 770 Makes mid fuselage & horizontal stabilizers of wings; Italy has NO AIRBUS manufacturing plant Spirit Arrestees of Wichita Kansas 670 Makes SSE section, engine pylons and wing edges.