Yesterday we were invited to hear Airbus’ John Leahy deliver their North America GMF. The ~45 minute presentation included numerous funny quips about his “competitor in Seattle”. We recommend you listen here (leahy 12.1.2011) while watching the slides to get a near live experience. Here’s how to do it – first click the sound file and let it start playing. Then click on the GMF link to get that running. Then simply follow Mr Leahy along slide by slide.
The key points from his talk were the continued growth in aviation (doubles every 15 years no mater what), the transfer of aviation’s critical mass to emerging markets and then finally the need for North American carriers to buy bigger planes because they won’t get more space at airports. Mr Leahy is adamant that his firm’s decision to build the A380 was correct because, in the end, if growth continues as it has “since the start of the jet age”, then the only efficient way forward is larger planes. As you go through the presentation you will see these themes repeated and cogently argued.
After the event, Mr Leahy spent three minutes speaking with us on camera.
That was very interesting! Thank you AI for posting this for us.
The only problem I have is that I don’t know what to make of the NEO vs MAX figures. Who is telling the truth here? The numbers are so different between Airbus and Boeing. I would imagine that Airbus is a little closer to reality because they are at a more advance stage of development. Still, I can’t believe the discrepancies. If Boeing was unable to close the projected gap displayed by JL, they would be in real trouble. Especially when we consider the mounting competition outside this duopoly. The 50/50 market could switch quickly to 60/40. And with the new competition, to 60/30/10 for example. The coming years will be challenging for Boeing. What they do with the 777 will have a strong impact on their future, for the better or the worst.