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Re: Delta CEO / Upcoming NB order comments...

Wed Aug 23, 2017 4:37 am

Sancho99504 wrote:
A few points from when Ed met with employees in Seattle, he talked about a lot of things. Particularly, the A350, CS500 and NEO vs Max.

On the A350, they got an offer from Boeing on 789, an offer from Airbus on A359. Ed went back to Boeing and told them what Airbus was offering. Boeing basically told him that there was no way in hell that they could get anywhere close and if that's truly what they're offering, take it. A359 on property now.

As for BBD and CS500:
If they offered it tomorrow, we would order it yesterday. They're talking to BBD about the airplane.

As far as A vs B, B is getting first crack, whatever they get from A, they'll take it to B for a counter.
It's basically going to probably end up a split order. A321NEO and 737-8.

Said the thing with Gulf carriers needs to be solved or fixed before ordering.


Solved or fixed in what way before ordering what??
 
Sancho99504
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Re: Delta CEO / Upcoming NB order comments...

Wed Aug 23, 2017 5:15 am

Varsity1 wrote:
Sancho99504 wrote:
A few points from when Ed met with employees in Seattle, he talked about a lot of things. Particularly, the A350, CS500 and NEO vs Max.

On the A350, they got an offer from Boeing on 789, an offer from Airbus on A359. Ed went back to Boeing and told them what Airbus was offering. Boeing basically told him that there was no way in hell that they could get anywhere close and if that's truly what they're offering, take it. A359 on property now.

As for BBD and CS500:
If they offered it tomorrow, we would order it yesterday. They're talking to BBD about the airplane.

As far as A vs B, B is getting first crack, whatever they get from A, they'll take it to B for a counter.
It's basically going to probably end up a split order. A321NEO and 737-8.

Said the thing with Gulf carriers needs to be solved or fixed before ordering.


Solved or fixed in what way before ordering what??


That's the million dollar question. The video released not too long ago about the ME3 details what Delta wants. And the next wide body order is the ordering what.
 
n7371f
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Re: Delta CEO / Upcoming NB order comments...

Thu Aug 24, 2017 4:21 am

Delta's fight against the ME3 will be dead in the water if they go Airbus again...and ATL knows it. Trump will be all over the widget.
 
klakzky123
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Re: Delta CEO / Upcoming NB order comments...

Thu Aug 24, 2017 4:28 am

n7371f wrote:
Delta's fight against the ME3 will be dead in the water if they go Airbus again...and ATL knows it. Trump will be all over the widget.


I think a lot of companies like Delta made very calculated gambles to take advantage of a president that seemed to be invested in protectionism as a new basis of policy. But its turned out that the administration probably isn't disciplined enough to actually execute on any of that so I suspect the DL's whole campaign against the ME3 will amount to nothing in the long term. In general, the time and money invested in these sorts of PR campaigns hasn't really paid off as far as regulatory reforms and new trade policy. Granted its still early in this administration's term but the early results have been telling.

If the recent talks on NAFTA have been any indication, its clear the administration hasn't taken that one seriously at all which makes me think that renegotiating the open skies policy with the UAE definitely won't be on anyone's priority list.
 
MSPNWA
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Re: Delta CEO / Upcoming NB order comments...

Thu Aug 24, 2017 5:57 am

CFM565A1 wrote:
Still NO MATH in this... it's mostly opinion. Economies are not supported solely on return they're also supported by a supply chain for a product as it is manufactured. Are you honestly thinking that the money that the 737 makes for example is reinvested into the US Economy? I would argue it's invested in fancy foreign cars, trips to Bali and memberships for the Chicago Highlands Golf Club... the problem with what you're implying is it's too "simplistic" and not really correct.

LAX772LR wrote:
What we understand, is that you cannot numerically substantiate the opinion that you're (poorly) attempting to pass off as fact. As has been demonstrated.


It's not a math-based problem. I presented it as a theoretical argument. From what is publicly known about the two companies (headquarters, location/number of plants/jobs, country of incorporation, etc.) , there is no question about which one is more beneficial to the U.S. economy. It's not even close. You clearly do not understand how an economy works. CFM565A1, you argue that not all 737 profit is reinvested in the U.S. economy. That's true. Not all will be. But do you honestly believe that MORE of the profit for a foreign-based aircraft will be reinvested in the U.S. economy over a Boeing product? That's some wild thinking right there.

The onus for evidence is on those that somehow argue that buying Airbus is more beneficial for U.S. jobs, not for those arguing that Boeing is more beneficial. When an argument clearly fails the theory test, as your arguments do, there had better be some real convincing evidence backing it up to even consider the notion as correct. So good luck on finding that evidence, especially when SevenNineSeven already showed overwhelming empirical evidence that supports my theory.

atl100million wrote:
except, as has been shown above, the A320 is heavily built with US built components and there is a final assembly plant for the A320 family in the USA.

The argument actually works against Boeing in Europe but not Airbus in the USA.

Further, aviation is a global industry. that is the whole point. Delta is an international airline - one of the largest in the world. There are very few international airlines that do not buy from multiple manufacturers.

I certainly believe in buy from the home team where possible but the aviation manufacturing industry is by nature global as are many of the airlines that fly their products.

Delta will buy the products that give them the best product at the best price - just as every other airline has done. Given DL's diverse fleet, they will have aircraft in similar sizes that have been made by different manufacturers.

So? We know that every single Boeing aircraft is final-assembled in the U.S. That's like saying getting a slice of the pie is somehow more than the whole pie. It defies all logic. Willful ignorance is a good term for it.

There wouldn't be a big issue with DL buying Airbus or Bombardier if they didn't make it an issue with their propaganda campaign. They only have themselves to blame for being hypocritical.

767333ER wrote:
Airbus somewhat does offer a unique product to the 737, one that has a certain engine they have been very interested in and have basically endorsed with the help of the CS100 order, an engine they believe will have it issues sorted out and then in turn surpass the engine on the 737. I'm not saying they won't order the 737 though, I just think the A320 has the advantage based on what they have said.


That's not the uniqueness I'm talking about. A unique product would be a size or capability that isn't matched by anyone else. The only way DL could escape their political conundrum is if Airbus or Bombardier a offered a type of aircraft that Boeing doesn't offer (i.e. the A380). We know that's not the case here. All three are in the running because they offer comparable products, and DL proves this by operating/ordering all three families.

767333ER wrote:
Thinking of the economics in a simplistic way doesn't work because it's not a simple matter. Tracing where the money goes in a case like this is never simple. You mention people such as factory cleaners at Boeing, but not at Airbus, so does that mean the Mobile FAL doesn't have anyone cleaning it or doing anything there or do you think they brought the, all in from Europe? As for parts, many of them are American including the extremely expensive engines that take a lot of labor to build. If these parts are going to Europe, someone has to ship them. If they are going to Alabama, someone has to ship them. When a plane rolls out of the factory in Alabama, someone has to test it.


Of course it doesn't mean there are no cleaners in Mobile. By mentioning the plant in Mobile, that's implied. However, are you honestly trying to equate one Airbus plant in Mobile with Boeing's plant in Renton, let alone their entire lineup of U.S, plants? I hope not.

767333ER wrote:
The tricky part is that when an airline orders aircraft, where does profit the airframer makes go? For Boeing that would be the guys in Chicago and while their making of money would possibly have a small effect on the economy, I'm not sure how the rich getting richer would really help the average person regardless of where it is. You don't know what those people do with their money, do they buy property in Europe, do they buy a exotic make of car, do they spend money here, or do they spend it there? In terms of raw money when looking at it in a simplistic way, it probably would measure higher in terms of American economic benefit to order from Boeing, but simplistic is far from realistic. By your logic, the 787 should be useless for the American economy.


Two problems with this. The first is that you believe "rich people" get all the profit and don't use that to boost the economy. That's not true on both counts. When a company is profitable, it means that entire business gets a piece of it. Profit means that Boeing can pay for maintenance and development for the purpose of sustaining and advancing their business. That's potentially everybody. A healthy company is an economically beneficial company. Also, someone with more money doesn't just bury in the ground. The vast majority is used for spending and investment that supports jobs. Both are essential pieces for a healthy economy. The second problem is that although it's true we don't know where exactly the money goes, do you honestly think the entities of a company based in Europe will be spending and investing more of its money in America than a company based in America? That's quite the wild theory. Why would I believe that? There's a reason simple is used first in economics.

767333ER wrote:
Your argument for the ME3 is out of place here as not only is it a completely different subject, but it really is a weak case anyway. Regardless of business practice, in order for an airline to be an airline they have to have planes to fly, now where would they get those? Boeing or Airbus. Why would it be the case that if the ME3 changes their business practice they'll magically not operate or order Boeing aircraft anymore.

If you think that airlines should always order their homeland product, Airbus would have killed Boeing by now.


It's not at all a different subject. DL is producing propaganda that says that tens of thousands of U.S. jobs are being lost to "unfair" international competition in an attempt to receive economic sympathy and a political advantage. Meanwhile they've shunned and publicly attempted to financially harm the airplane producer that overwhelmingly supports more U.S. jobs than the producers DL has sided with. If they put money where their mouth is and put U.S. jobs first, Boeing should easily win this order.

The argument is not that all airlines should order the hometown plane. Since I'm biased for my country in a competitive environment, I like to see U.S. (and worldwide) airlines lean Boeing. But I'm not going to slam an airline for buying elsewhere when they haven't made a hypocritical political stand. It's still a free country, and they can do what they please.
 
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767333ER
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Re: Delta CEO / Upcoming NB order comments...

Fri Aug 25, 2017 5:03 am

MSPNWA wrote:
That's not the uniqueness I'm talking about. A unique product would be a size or capability that isn't matched by anyone else. The only way DL could escape their political conundrum is if Airbus or Bombardier a offered a type of aircraft that Boeing doesn't offer (i.e. the A380). We know that's not the case here. All three are in the running because they offer comparable products, and DL proves this by operating/ordering all three families.

The CS300 is quite unique and has little serious competition other than the nearly irrelevant A319N and 737-7 yet they couldn't escape Boeing's temper tantrum there. In this case it depends on what they are looking at. On Airbus's side, they are considering only the A320, other than the engines there isn't much unique there at all and the 737 can easily and directly compete, but if they are also looking at A321s, the 737 still can't match its size and capability so it is somewhat unique in that right, but only if they do look at the A321.
MSPNWA wrote:
It's not at all a different subject. DL is producing propaganda that says that tens of thousands of U.S. jobs are being lost to "unfair" international competition in an attempt to receive economic sympathy and a political advantage. Meanwhile they've shunned and publicly attempted to financially harm the airplane producer that overwhelmingly supports more U.S. jobs than the producers DL has sided with. If they put money where their mouth is and put U.S. jobs first, Boeing should easily win this order.

I cannot agree there at all. It is a very different case. The difference is that there is little to nothing to suggest that Airbus has an unfair advantage over Boeing. Yes there is proof that they receive "illegal" subsidies, but the same goes for Boeing and other manufactures. Delta is not a subsidized airline like the gulf carriers are thought to be and it appears those carriers are using the advantage to steal customers with routes and/or a product that they argue would otherwise lose money and go bankrupt, you may or may not believe that, but it is the case largely believed in much of the US aviation industry except in places where believing such a thing would be bad for business. The case here would be more similar to Delta complaining about losing business to an airline like British Airways or Air Canada who seemingly play the game the same way they do.

Delta's relationship with Boeing has seemingly soured in recent times, but Boeing has primarily thrown the first punch. They have deliberately attempted it cost Delta more money by trying to impose tariffs on the CSeries, a product they don't compete with. The pretty much lied when they claimed that Delta signed on to an unfair deal with the CSeries rather than buying their aircraft which were not 737s, but used E90s that they actually did buy and then proceeded to sell. Boeing has attempted financially harm Delta either directly or more likely just as collateral damage from trying to take the CSeries down, but I don't see where Delta has tried to harm Boeing other than say they were spreading misinformation about what they offered when Delta ordered the CSeries. It is clear that their ultimate wish would be to kill off the CSeries, a program Delta expects to make great profit off of and has fully endorsed. If I were Delta, I would be mad at Boeing to say the least. Of course that doesn't necessarily mean that they won't order 737s.
 
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kitplane01
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Re: Delta CEO / Upcoming NB order comments...

Fri Aug 25, 2017 6:42 am

atl100million wrote:
Boeing has got to realize that its campaign against DL and Bombardier has got to be hurting its chances for a much more lucrative order for 737MAXs


I would be very surprised if Delta did not order the plane best suited economically as told by their accountants working with data from maintenance and so on. It seems unlikely that Delta would order a less economically suited plane for political reasons. Can anyone think of a for-profit non-government-owned airline from a capitalist country having done so? The closest I can think of was British Airways order pattern for RR engines.
 
atl100million
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Re: Delta CEO / Upcoming NB order comments...

Fri Aug 25, 2017 11:15 am

kitplane01 wrote:
atl100million wrote:
Boeing has got to realize that its campaign against DL and Bombardier has got to be hurting its chances for a much more lucrative order for 737MAXs


I would be very surprised if Delta did not order the plane best suited economically as told by their accountants working with data from maintenance and so on. It seems unlikely that Delta would order a less economically suited plane for political reasons. Can anyone think of a for-profit non-government-owned airline from a capitalist country having done so? The closest I can think of was British Airways order pattern for RR engines.


I don't think anyone rationally believes that DL is going to make a bad economic decision in order to make a political statement but their CEO's comments that are quoted in this thread seem to say that simply cutting the price of the 737MAX is not going to win the order. DL clearly is looking at performance, technology, and potential engine maintenance contracts, as has been noted.
 
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keesje
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Re: Delta CEO / Upcoming NB order comments...

Fri Aug 25, 2017 2:29 pm

kitplane01 wrote:
atl100million wrote:
Boeing has got to realize that its campaign against DL and Bombardier has got to be hurting its chances for a much more lucrative order for 737MAXs


I would be very surprised if Delta did not order the plane best suited economically as told by their accountants working with data from maintenance and so on. It seems unlikely that Delta would order a less economically suited plane for political reasons. Can anyone think of a for-profit non-government-owned airline from a capitalist country having done so? The closest I can think of was British Airways order pattern for RR engines.


Of course, the airlines are free market supporters as long as it suits them. Then we have tax cuts, environmental goals, oil dollars, subsidies, landing & overfly rights, Bank of America, R&D boosting, jobs & infrastructural considerations where free market aspirations meet Public Interest.

Image

Airbus & Boeing can't stay at the sideline. Aviation is much more political than other industries.
 
n7371f
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Re: Delta CEO / Upcoming NB order comments...

Sat Aug 26, 2017 4:10 am

atl100million wrote:
kitplane01 wrote:
atl100million wrote:
Boeing has got to realize that its campaign against DL and Bombardier has got to be hurting its chances for a much more lucrative order for 737MAXs


I would be very surprised if Delta did not order the plane best suited economically as told by their accountants working with data from maintenance and so on. It seems unlikely that Delta would order a less economically suited plane for political reasons. Can anyone think of a for-profit non-government-owned airline from a capitalist country having done so? The closest I can think of was British Airways order pattern for RR engines.


I don't think anyone rationally believes that DL is going to make a bad economic decision in order to make a political statement but their CEO's comments that are quoted in this thread seem to say that simply cutting the price of the 737MAX is not going to win the order. DL clearly is looking at performance, technology, and potential engine maintenance contracts, as has been noted.


Agreed. And based on the highlighted portion, if we're talking strictly the MAX 8 vs 320 NEO, the MAX 8 wins on all metrics - except for price.
 
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kitplane01
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Re: Delta CEO / Upcoming NB order comments...

Sat Aug 26, 2017 5:58 am

atl100million wrote:
kitplane01 wrote:
atl100million wrote:
Boeing has got to realize that its campaign against DL and Bombardier has got to be hurting its chances for a much more lucrative order for 737MAXs


I would be very surprised if Delta did not order the plane best suited economically as told by their accountants working with data from maintenance and so on. It seems unlikely that Delta would order a less economically suited plane for political reasons. Can anyone think of a for-profit non-government-owned airline from a capitalist country having done so? The closest I can think of was British Airways order pattern for RR engines.


I don't think anyone rationally believes that DL is going to make a bad economic decision in order to make a political statement but their CEO's comments that are quoted in this thread seem to say that simply cutting the price of the 737MAX is not going to win the order. DL clearly is looking at performance, technology, and potential engine maintenance contracts, as has been noted.


I rather thought YOU believed that Delta was going to make a political decision.

Read the first quote by you above. In what way is Boeing's campaign hurting it's chances for a Delta order? Because if Delta is making a purely economic/mathematical decision, then nothing Boeing says to the media changes their chance of winning the order.
 
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767333ER
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Re: Delta CEO / Upcoming NB order comments...

Sat Aug 26, 2017 6:21 am

n7371f wrote:
Agreed. And based on the highlighted portion, if we're talking strictly the MAX 8 vs 320 NEO, the MAX 8 wins on all metrics - except for price.

It depends how one wants to use it. The 737-8 is realtively the same weight as an A320neo yet it has more capacity being the longer tube. The 737-8 has the more advanced winglet technology as well. This is its economical advantage. The A320neo has the more efficient powerplants with higher BPR and if P&W can get the PW1100G working right, which DL seems confident they can, that further increases its powerplant efficiency. The A320neo has some places where the aerodynamics may be better in its own right such as the positioning of the engine which is quite suboptimal in terms of aerodynamics on the 737-8. The 737-8 doesn't blatantly win on all metrics nor does the A320neo. And list price is meaningless; even if the 737 is listed as more expensive, it realistically ends up being basically the same price.

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