Analyst praises 777X but takes Boeing to task over tough tactics
http://www.thenewstribune.com/2014/02/06/3031124/analyst-praises-777x-but-takes.html
Analyst praises 777X but takes Boeing to task over tough tactics
By DOMINIC GATES
The Seattle Times
February 6, 2014
Top aviation industry analyst Richard Aboulafia said Wednesday that Boeings 777X program could give the jetmaker a significant lead over rival Airbus in the decade ahead.
But he also warned of the high risks Boeing management is running with a penny-wise and pound-foolish strategy of squeezing its labor unions and suppliers.
He said the 777X is a winning concept in a size and performance category where Airbus doesnt yet have a competitive candidate. Airbus faces a real challenge to respond to 777X. They are going to have to find $12 billion or so to do something, he said. Failing to do so could result in a permanent Boeing advantage in the market.
Aboulafia projected an overall market share of 55 percent for Boeing, versus 45 percent for Airbus, in the decade ahead. It would be an even larger gap, he said, if not for an Airbus lead in the narrow-body jet sector, where the Airbus A320neo has outsold the 737 MAX.