News out today from Bloomberg suggests the Indian carrier may have selected the 787 over the A330neo. This is potentially the third win in a row for Boeing.
What may be going on behind the scenes that allowed Boeing to succeed?
Here’s a suggestion: The American and Hawaiian orders came with GE engines. We are highly confident any Vistara order will come with GE engines, too.
The challenge, we understand, is that Rolls-Royce has been not been nearly as aggressive as the deals needed them to be. This is probably especially annoying to Airbus’ new sales lead, Eric Schulz. He is formerly from Rolls-Royce and therefore can be expected to know what is happening on the engine side. Mr. Schultz is putting forward a confident air. But he must be rather frustrated.
Rolls-Royce must compete with the power of GE Aviation and GECAS. That combination has proven itself to be formidable. If the engines are equal, and they are likely to be very close in economic terms, the more aggressive financing package will win. Boeing has the stronger partner here and it’s helping.
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.
It is true that those two GE arms have a significant advantage over rival jet engine makers. But. The General Electric of today is not the General Electric of the past. It still is a massive company involved in a very wide array of industries, where it is a key player, but it is a financially wounded giant who’s historic place on the Dow Jones Industrial Averages index is now in question.
A wounded giant is very dangerous. It will lash out to persevere.