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Randy Tinseth

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A Solid First Half

RANDY'S JOURNAL: A BOEING BLOG

An airplane sales campaign can stretch out over months, if not years. So it can be tough to judge our sales success based on the results of a quarter or even a half.

But as we updated Boeing’s Orders and Deliveries website this morning with the results from June, we‎ get a picture of a pretty solid first half of the year.

We saw a cross section of airlines and operators buying a diverse mix of airplanes. From 737 MAXs to 787 Dreamliners to 777s to freighters, lots of freighters, our Boeing team has won a total of 460 net orders through the end of June. That’s more than double our competition’s 206 net orders.

I think the most impressive stat is in the widebody segment where we have won 141 orders, nearly three times our competition. The 73 percent market share in widebodies is driven in large part by our unmatched family of freighters which captured more than 50 orders through the first half of 2018.

And compared to 2017, our net order count is 20 percent higher than the same period a year ago.  While a multitude of factors influence the timing of orders, I think this comparison reflects continued strength in the aviation market, especially as we see a pretty balanced demand for airplanes for growth and replacement.

Some reporters have asked us why we have been having so much success in the marketplace. I will let some of our customers explain…

  • “This firm order adds the 787 Dreamliner, one of the world’s most state-of-the-art airplanes, to our ever-expanding fleet,” said M. İlker Aycı, Turkish Airlines Chairman of the Board and the Executive Committee, when the airline finalized an order for 25 787-9 Dreamliners in March. “The 787 will significantly raise our passengers’ satisfaction and play an important role in our plans for our new hub…”
  • “The new freighters will allow us to continue upsizing aircraft on routes and will create a cascading effect that will boost capacity on regional routes around the world,” said UPS Airlines President Brendan Canavan when the carrier ordered 14 747-8 Freighters and four 767 Freighters in February.
  • “This additional order reemphasizes our trust and confidence in Boeing and also reaffirms our commitment to operate extremely modern, reliable and fuel efficient aircraft as part of our fleet,” said Jet Airways CEO Vinay Dube when the airline ordered 75 more 737 MAXs in April.

At the end of the day, it’s about providing the best value to the customer. Our Sales & Marketing team is fortunate because our Boeing colleagues design and build the most efficient and most capable airplanes. We have been focused on sharing the unrivaled performance and inspired design of our jets, which are complemented by the integrated service solutions offered by Boeing Global Services.

We are happy with where we are but we know our competition is very aggressive. If history is any guide, I’m sure they have a lot of order announcements in store for the Farnborough Airshow.

We look forward to the show next week. It will be great to see our customers and many industry colleagues, and perhaps make a few announcements of our own. But, it is just one week out of the year. There are many opportunities in the second half of 2018. For now, it’s not a bad place to be at half-time.

3 comment on “A Solid First Half

  • Andrew Boydston
    July 10, 2018 | 6:37 pm

    The first half of the year orders only tells a part of the Boeing story. There are many MOU's for 787's such as Emirates 787-10 and Bamboo's 20 787-9's to name a few. What will be exciting is just for the customers as they finalize these commitments.

  • Antonio Carlos
    July 16, 2018 | 4:13 pm

    Very good Boeing! Congratulations

  • John
    August 4, 2018 | 8:07 pm

    I like the way Boeing uses program accounting. At any time I can look at what is happening with deferred costs etc. In contrast trying to figure out what is the 350 financial position is much more difficult. Also appreciate the published figures when unit accounting is used also.

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