Richard Aboulafia
Richard Aboulafia
attack businesses corporate familiar jets less market regional risk trying
Reinforcing their traditional businesses -- regional jets and corporate jets -- makes a lot of sense. It's familiar turf, they know the customers, and there's much less risk than trying to attack a market that's got two entrenched competitors.
jets light market players several trying wants
We have no idea how the market for very light jets will look in 25 years from now. There are several players trying to get into this market, but we really don't know what the market wants yet.
add money operating simpler smart systems
I think the smart money is on smaller, simpler drones and the operating systems that make them effective. That's where Lockheed is well positioned to add value.
analysis concept endorse
The analysis of alternatives did nothing more than endorse the very concept of the obvious.
explain people
You can explain this. But people see what they want to see.
bit cave couple hollow increased might result run strike victory weeks
While a strike of a couple of weeks might be doable, some kind of accommodation would have to be reached. If Boeing does cave and give them something like what they want, it will be a bit of a hollow victory because in the long run it will probably result in increased outsourcing.
regional
It has a big feel in a regional jet.
both claim sides victory
Not to say, 'Hurray, we all win!' but both sides can claim victory.
best clearly interest
Nevertheless, ... it was financially clearly in Boeing's best interest to settle.
costs higher pass tough
It's very tough to pass on higher costs to the nation's airlines.
implies
That implies that they want to keep this going as long as possible.
blue chip orders
Boeing has all the blue chip orders. Airbus only has 100 orders for the A350.
beyond certainly consistent domestic looks next solid strength until valid year
The upturn looks pretty solid and consistent for the next year or two. Beyond that, there are certainly valid questions, certainly about the strength of the domestic market. Until then, it looks solid.
alone costs develop effort military programs relatively shared
The up-front costs to develop the BBJ were relatively light, and some were shared with important military programs, most notably the E-737 AWACS and MMA P-8. Those military programs alone make the effort worthwhile.