Premium #195 – Wide-Body Production and Demand – Is there a Bubble, or Just a Temporary Gap?
by admin | Nov 10, 2015 | Airbus, Boeing, premium |
Delta Air Lines sent analysts into a tizzy a couple of weeks ago when they stated that there would be overcapacity in the wide-body marketplace. Are they correct, or is this a temporary condition that will right itself before 2020?
The answer is it depends on which aircraft models you are looking at. The order books for the new technology 787 and A350 are quite solid, with delivery positions sold out for quite while. But for other programs, such as A380 and 747-8, an order would be met with a much faster delivery from the OEMs, as these airplanes are not selling well at all. But the key to the supply-demand balance for wide-bodies centers on two of the most popular models, the Airbus A330 and the Boeing 777, which are currently produced at 9 and 8.3 aircraft per month, respectively.