Randy Tinseth is vice president, Marketing, for Boeing Commercial Airplanes and kindly agreed to podcast with us looking forward to next year. We discuss the following topics; Program views (737,747,767,777, 787) for 2012; the biggest program challenges for 2012; Cargo traffic is dropping in double-digits in some parts of the world and cargo traffic usually is a leading indicator of passenger traffic. How does Boeing view the drop and its potential effect on passenger traffic?; How many MAX commitments does Boeing expect to be converted to firm orders in 2012?; How much of a problem is getting a delivery slot now? (when is the earliest available?); How does Boeing see oil prices acting in 2012?
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Addison, maybe I missed it, but I did not hear a detailed description of the status of the 787 program. Specifically :- What if anything are they doing to accelerate the mods needed for the first 50 or so planes sitting on the tarmac? I have heard that it will take a full 2 years (!) to get all those delivered.
Also, what is the real quality of the parts of the plane they are receiving from their suppliers? Has the traveled work really declined to an acceptable level? Just the other day, an FAA random check of the line revealed wiring defects in one of ANA’s planes which has resulted in the umpteenth delivery delay. B has passed this off as minor, but it can’t be minor if it results in any significant delay, and the fact the FAA found the defect and B apparently did not is should be very worrisome.
Also, what are their production location plans for the 789/10? Once all three variants are in production, what will the total production/mo be and how will it be divided between each model?
To me solving the 787 production mess is B’s top priority. In it’s world, nothing else really matters. If they can’t produce glitch-free 788s and don’t get the 9/10 out the door on time, they will be in even more trouble than they are today, difficult as that is to imagine.
That said, thx for all the good work you and your colleagues do.
Thanks Chris. On the Boeing questions – we requested feedback on your questions.