Boeing 7e7 Case Study

The Boeing Company designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. It operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements; and provides related support services to the commercial airline industry. This segment also offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, and technical advice to commercial and government customers. The Boeing Military Aircraft segment researches, develops, produces, and modifies manned and unmanned military aircraft, and weapons systems for global strike, vertical lift, and autonomous systems, as well as mobility, surveillance, and engagement. The Network & Space Systems segment researches, develops, produces, and modifies strategic defense and intelligence systems, satellite systems, and space exploration products.

$185 million. Developing the first passenger model and the freighter version of the super jumbo is expected to cost $13 billion.

Boeing adopts a very thorough, well planned out process to manage the project. The stages are defined clearly and tasks involved in each stage are carried out sequentially. The first stage of their approach is the project definition phase during which Boeing identified holes in the market not met by existing planes, assessed future airline needs, considered alternative plane configurations, explored feasibility of possible technologies and performed preliminary estimation of costs. During the market assessment, analysts gathered information regarding future needs of airlines by speaking directly to

Market Share Airbus will launch their new large, long distance plane A380 in 2006. This plane can be a dreadful competitive product to Boeing. If Boeing falls behind regarding innovations, fuel efficiency and other attributes of a long haul airliner, it will soon lose its market share. In order for Boeing to compete in the aviation industry, it is crucial to take on some risk and develop this new 7E7 project. This helps the company to fight against its competitors and recover from the slump in the industry.

It is suggested that the travel industry and the aerospace and defense industry as a whole will continue to grow on the basis of the strong demand emanating from domestic demand as well as globalization. This may give a major boost to the demand for 7E7s as the airlines are already concerned about high fuel costs intensifying out of increased demands from emerging economies like India and China and reduced production. Better design modifications is going to be a major strength for the 7E7 as Boeing is betting on the future of small-mid size airplanes which can fly short as well as long distances with its fuel efficient engines. From an investment perspective, with interest rates at it's lowest in decades, with 911 behind us, and barring a major pandemic such as SARS, the timing seems right for Boeing to pursue this endeavor.

Many airlines have adapted the Boeing plane as their torchbearer, their ultimate carrier, or the alpha plane. With all the efforts put in to come-up with such impressive results, the establishment of Boeing on its pedestal is truly worthy whichever way one looks at it.

The Boeing 737 is the best-selling jet airliner in the history of aviation. The following report will look in depth at the company Boeing itself and its roots, the planning and production of the 737 series of aircraft, the progression of the aircraft and its upgrades, the aviation human factors and airport planning factors considered during production, the next generation upgrades the aircraft has seen, and an overall evaluation of the aircraft systems involved when referring to the Boeing 737 aircraft. The airframe, power plant, hydraulic, pneumatic, anti-icing systems, communications, flight controls, winglets, flight instruments, seating possibilities, specifications, load capacity, efficiency, reliability, range, production and sales, and the future of the 737 will all be discussed and analyzed to show why and how the Boeing 737 became the world’s most popular jet airliner to date.

Boeing’s management plan shows determination to improve through creation of new more members of their airplane family (commercial airplanes). This would also be achieved through integration of military platforms, systems for defense and the war fighter by use of network-centric activities. Boeing plan is also inclusive of creation of improved technology to solve problems across all business units. Boeing plans to e-enable airplanes where automation is the key to this development. Finally, Boeing is determined to arrange for financing solutions to its customers. Through this it will be able to attract more potential customers. Moreover, it can also be able to establish a better relationship with its customers through provision of incentives and sales promotion.

The main customers of aircraft companies are airlines, which have a highly competitive industry that is both capital and labor intensive. The recent emergence of low cost budget carriers (EasyJEt, Northwest etc.) have put high pressure on traditional long haul carriers, who are the biggest customers for large capacity aircrafts, manufactured mainly by Boeing and Airbus. Therefore cost has become the main concern of airlines. Therefore, most possibly airlines would buy the A3XX for its operating advantages and passenger appeal.In addition, Airbus felt confident in its analysis that capacity increases would eventually prevail. Due to the huge growth of air traffic over the years, the congestion problem along many routes and especially at major hubs will worsen indirectly supporting the need for the A3XX. While the customers of the A3XX airplane are the major airlines, the actual consumers are airline travelers. In this respect Airbus provides options to segment the consumers into 2 or 3 classes based on services and different comfort

1a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case, the 74 over T-bonds. Which beta, risk-free rate, and risk premium did you use? Why? Financing Components Debt Equity Market Values Weight Cost of Capital (After Tax) $ 6,823,736,197 0.85 3.72% $ 1,176,263,803 0.15 28.18% Total: $ 8,000,000,000 1.00 WACC WACC Inputs: Beta: Risk-Free Rate: Market Risk Premium: Pre-tax Cost of Debt: Income Tax Rate:

This paper analyzes the goals and actions of Boeing by analyzing its critical success factors as well as its strategic roadmap.

5. Boeing VS Airbus 5faster cross-country flight service. During this period, Boeing launched Boeing 707 whileDouglas manufactured its DC models, DC-8 being the latest model in that decade .11Insubsequent years, Boeing and Douglas competed profoundly to vend their planes byproposing conventional deviations of a basic design that would serve airlines’ particularneeds such as big wings for long variety. These

Air travel has drastically changed the way of life for many individuals that depend on air travel to take care of business. One of the top leaders in the air travel industry, The Boeing Company realizes in order to stay competitive in their chosen industry, an effective strategic plan should be implemented. There are several approaches that can be utilized, such as focusing on the external and internal objectives that could beneficial. Boeing strives to be the best aerospace-based manufacture in the world.

The A380, representing an investment of € 10.7 billion, is one of those projects that could make or break a manufacturer. It was in the late 80s, with forecasts of strong growth in air traffic, the need to design a very large aircraft of over 500 seats was necessary at Airbus in addition to and the need to complement its range of aircraft. While working on its own project, the European manufacturer started a conversation with Boeing in 1994 about considering a partnership on the concept of VLCT (Very Large Capacity Transport, plane at very high capacity). However, the Americans eventually withdrew and abandoned the idea persuaded that neither aircraft manufacturer was strong enough to embark alone on such an adventure. According to our research, our team believes that Boeing’s real

Airbus’ competitor Boeing netted 40 new sales of their 747 model, worth $6.5 billion (USD) in 1994.3 This had portrayed Airbus’ inability to compete at this high value end of the market. With the mounting sense of urgency, Airbus need to intensify the design and development of a UHCA to fill the top end of its product line and stop the dominance of Boeing in large aircraft market with 747 for over two decades. Hence, in June 1994, Airbus announced its project goal to build a high-capacity, high-efficiency aircraft with up to 569 seat capacity and a maximum range of 8,520 nautical miles; the project was designated A3XX.4 Many airlines faced a dilemma whether to opt for earlier option of the new Boeing 747X, or the all new A3XX. During a meeting with 13 major airliners in Carcassonne, Airbus had then assured them with a scope to work toward preliminary and final design freezes scheduled on the end of 1997 and