DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
May 20, 2024
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How is the 787 doing in the market?  The 787 program is key to Boeing’s financial success, and needs additional sales to enable recovery of the $29 billion in development costs over the life of the program.

Boeing has a huge amount of its capital tied up in this program.   A leading analyst estimates that Boeing must recover $36 million per 787 yet to be delivered to offset the $29bn development costs, never mind production costs and profit. That number is no small hurdle.  Consider the 2016 current market value, per Collateral Verifications,  for a 787-8 at $117 million and the 787-9 at $143 million. Take the $36 million off those values (787-8 at under $81 million and 787-9 under $107 million) and Boeing must build a 787 for less than the balance to earn a profit.

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Addison Schonland
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.