...BOEING 777 – Frank Shrontz OBJETIVO - Lanzar modelo 777 para Mejorar rentabilidad promedio actual que está en 12% y subir ganancias aun cuando sus competidores no ganan plata. HECHOS - En octubre de 1990 anuncian el lanzamiento para 350.390 pasajeros hasta 14.000 kms. - Primeros se enviarían a united airlines en mayo de 1995 que ya había puesto pedidos en firme. Eran los únicos que habían pedido. - Pesimistas veian lanzamiento pues: habían gastado mas del doble en I+D que los dos modelos anteriores y MD y Airbus ya tenían aviones en este nicho con pedidos en firme. Tampoco había condiciones políticas y económicas. Fracaso afectaría mucho las finanzas. - Optimistas: ganarían el 54% del mercado. Mucha expectativa de crecimiento de viajes - Acción cayendo. Invasión de irak a kuwair afectó precio del petróleo. También podía haber caído por la lectura del mercado a lo que se anticipaba con su modelo 777. EMPRESA - Tenía el 53% del mercado mundial seguido de Airbus (18%) y MD (19%). - Ventas por 27.000mm en 1990. Tenía pedidos por 97.000mm (producción por 3 años más) - MD le competiría al 777 con el MD11 y Airbus con los A330 y A340. - Dos segmentos: aviones comerciales (737, 747, 757 y 767) y de defensa. - Buena situación financiera. Deuda contable solo 4% del capital total. El 777: Según boeing sería el jet de doble cuerpo más largo y grande, flexible, eficaz y de menor costo. Sus alas serian plegables en la punta para almacenar más fácil en hangares....
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...CNN) -- A Boeing 777, one of the world's most reliable types of airliners, is missing, and no one knows why. Was it a bomb? Mechanical failure? A hijacking gone awry? Pilots and others in the aviation community are deeply disturbed by the mystery surrounding Malaysia Airlines Flight 370. It disappeared Saturday en route from Kuala Lumpur to Beijing over the Gulf of Thailand, somewhere between Malaysia and Vietnam. It's hard to believe that such huge questions remain four days after the Boeing 777-200ER went missing, carrying 227 passengers and 12 crew members. A revelation Tuesday set off a fresh wave of speculation. Radar tracking detected the plane hundreds of miles off course, traveling in the opposite direction from its original destination, a senior Malaysian Air Force official told CNN. The aircraft had stopped sending identifying transponder codes before it disappeared, the official said. The new details marked a dramatic twist in the investigation. But some reports have quoted other Malaysian authorities offering conflicting information, with some denying the military official's claim. What can cause an airplane to disappear? Search underway for missing Flight 370 Authorities 'puzzled' by missing flight Search area for missing plane widens The situation is so unprecedented that experts have been careful in speculating about possible explanations. Here are four scenarios they're talking about, and the related facts: 1. Scenario: Mechanical failure? Fact: The...
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...Case The Boeing 777: A Financial Analysis of New Product Launch [pic] Eduardo Lioy Keya Williams Ritwik Malvi Jonas Angeles Alexis Heideck 1. Introduction/ Case Summary: The Boeing Company is an Industrial Aircraft Design and Manufacturing Firm, diversified in its offering of products for both the Defense Industry and the Commercial Airline Industry. In October 1990, CEO Frank Shrontz has announced the launch of a new product, the Boeing 777. A medium-to-large passenger aircraft, the 777 would enable the flexibility to carry passenger loads ranging from 350-390 passengers, over distances up to 7600 nautical miles. Already, Boeing has received orders from United Airlines, with delivery expected in May 1995 (p. 198). Aside from the technological advances represented in the 777, the launch of this new product promises some potential distinct strategic advantages. The launch of the 777 would provide a medium-to-large aircraft, filling a gap in Boeing’s total passenger aircraft product line. Boeing would now have a complete suite of aircrafts capable of addressing passenger loads ranging from 100-500. The 777 is specifically targeted to service routes in a high growth segment of the market, influenced heavily specifically by the high growth rate of the Asian market. The following is a financial analysis of the anticipated launch of the 777 product line. The analysis includes a comprehensive quantitative financial analysis of the projects profitability...
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...Boeing 777 Project Group Report Winter 2013 Group Number: 3 Participating Group Members: Chris Cardillo Jingshu Dang Shanlin Li Xun Yin Yigong Zhu Boeing 777 In October 1990, the Boeing Company announced that it was launching a new aircraft model, the 777. The company praised the superior technology of the product and the fact that it filled a gap in Boeing’s product line. Moreover, it was targeted to service routes in a critical high growth market segment. The chief objective of the analysis is to evaluate the 777 against a financial standard. The case gives internal rates of return (IRRs) for the 777 project base case and alternative forecasts. The principal analytical problem of the case is an estimation of a weighted average cost of capital (WACC) for Boeing’s commercial aircraft division in order to evaluate these IRRs. The analysis should also identify ‘key value drivers’ and distinguish, on a qualitative basis, the key gambles Boeing is making. Capital budgeting projects should promote the primary goal of the firm; therefore, the primary goal directs decision making. Frank Shrontz, Boeing’s CEO, says his mission is raising Boeing’s return on equity from the recent average of about 12 percent. Is the primary goal of Boeing improving return on equity? 1. Frank Shrontz says he wants to improve Boeing’s return on equity. How might the 777 project serve that mission? Is improving return on equity the same as maximizing shareholders’...
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...Development of the 777 Daniel W. Sobel Embry-Riddle Aeronautical University Abstract This paper of Philip Condit and the Development of the 777; describes the management, and technological changes that Philip Condit made to the development style of the Boeing Company. Before Philip Condit took over the 777 program, Boeing had been making airplanes in the same fashion as it had been doing for 70 years prior. Mr. Condit saw the chance to bring Boeing into the 21st century not only with the new technology of computer aided drafting, but with modern management techniques as well. The 777 program proved to be the perfect testing ground for a companywide change in the way Boeing did its business. Philip Condit and the Development of the 777 In 1988; Boeing was looking to compete with the new jetliners that Airbus had released. The current CEO, Frank Shrontz, was planning on modifying the 767 to accommodate a longer range, an increase of passengers, and a payload to match what airbus was producing. To find out what United Airlines was looking for; Frank Shrontz sent Philip Condit (who at that time was the Executive Vice President of Boeing’s commercial airlines group) to talk with the Vice President of United Airlines; Frank Guyette. The meeting ended with the message that United Airlines did not want a modified aircraft. They wanted what the other airlines were asking for; a new and technologically advanced aircraft. Frank Shrontz agreed; and in 1989 announced the 777 project with...
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...Case #16 The Boeing 7E7 Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other hand, the current market for commercial airplanes was depressed because of terrorism risks, war, and SARS, a contagious illness that resulted in global travel warnings. Boeing’s board of directors would need to weigh those considerations before granting final approval to proceed with the project. The task is to evaluate the 7E7 project against a financial standard, the investors’ required returns. The case gives internal rates of return (IRR) for the 7E7 project under base-case and alternative forecasts. We must estimate a weighted-average cost of capital (WACC) for Boeing’s commercial-aircraft business segment in order to evaluate the IRRs. As a result of that analysis, we will identify the key value drivers and distinguish, on a qualitative basis, the key gambles that Boeing is making. The need to estimate a segment WACC draws out our abilities to critique different estimates of beta and to manipulate the levered-beta formulas. Boeing competes in both the commercial aircraft and the defense...
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...What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions). 2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding that it takes longer to develop than the airplane. Boeing sought to obtain a minimum number of firm...
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...non-unionized employees? •  How to capitalize on trends in trade globalization and make it cost-efficient? MODERATE LOW Power of Suppliers •  Fuel vs. Alternatives •  Power of Laborers •  Maintenance & TCO •  Global Network •  Supply Chain Solutions •  Reliability & Experience Power of Buyers •  Long Term Contracts •  Small Subsidize Large •  Few Global Integrators •  Capital Intensity •  International Regulation •  Brand Name Credibility Intensity of Competitive Rivalry MODERATE Threat of Substitutes LOW Threat of New Entrants LOW Porter’s Five Forces Analysis }ï½â€¯ Four business segments ◦  Ground, Express, Freight, Services }ï½â€¯ }ï½â€¯ }ï½â€¯ }ï½â€¯ }ï½â€¯ Boeing 777 Aircraft ◦  Fastest international Integrated Express & Ground Delivery assets IT Infrastructure ◦  COMPASS & UPSNet Inventory Express ◦  Just-in-time }ï½â€¯ Partnership with USPS ◦  High domestic market share }ï½â€¯ Few unionized employees Mostly unionized employees Type of Competitive Advantage COST BROAD TARGET UNIQUENESS Broad Cost Leadership Broad Differentiation Competitive Scope NARROW TARGET Integrated Cost Leadership/ Differentiation Narrow Cost Leadership Narrow...
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...Boeing 777-232ER Incident Abstract The Boeing 777-232ER aircraft, Delta Airlines flight 55, was scheduled to take-off from Hartsfield-Jackson Atlanta International Airport (ATL), Atlanta, Georgia to Narita International Airport, Tokyo, Japan. While performing a take-off roll the aircraft encountered a failure on the no.2 engine. Prior to the failure, pilots reported of experiencing the aircraft shudder and noticed the no.2 engine’s exhaust gas temperature (EGT) had reached the limit. The pilot immediately aborted the take-off, taxied the aircraft off the runway and shutdown the no.2 engine. Except for the no.2 engine, there was no damage to the other parts of the aircraft and no one on-board the aircraft was injured due to the incident. On-side investigation of the no.2 engine revealed that one fan blade had disintegrated which caused the engine failure. The damaged fan blade was removed and sent to the relevant authorities for further analysis to determine the failure causal factor. Keywords: no.2 engine failure, fan blade disintegrated, fan blade analysis Boeing 777-232ER Incident On January 2, 2009, about 1028 Eastern Standard Time, a Boeing 777-232ER airplane, N864DA, operating under Delta Air Lines flight 55, was scheduled for a flight from Hartsfield-Jackson Atlanta International Airport (ATL), Atlanta, Georgia to Narita International Airport, Tokyo, Japan (NTSB, 2012). While performing a take-off roll, the flight experienced a failure in the no.2 engine (right)...
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...1) Section 41 – FWD Bulkhead Section 48 – AFT Bulkhead 2) E5 – Aft the FWD Cargo Dorr E6 – Aft of the AFT Cargo Door E7 – Aft part of the cabin Area 3) Card file P84 – RHS Card file P85 – LHS 4) 640 AB 6 – RHS Wing A – Inboard B – Bottom 542 AT 5 – LHS Wing T – Top 5) Towing airplane – From Nose or Main landing gear 6) Plump port – RHS Lever 7) ESDS – Electrostatic discharge sensitive, Electricity change box, must wear a wrist strap, Special conductive covers, pullout car 8) Service interphone - 3 groups 9) Cockpit to Ground – P40 Maintenance Documents 10) AIMS - Airplane information management system P1 301-to-309 = Servicing 401-to-499 = Removal & Installation 11) ATA – Servicing chapters (12) 12) DDG – Dispatch Deviations Guide i) Section 2 – MMEL ii) Section 3 – CDL 13) Failure Fault Code = 8 Digits Maintenance Message = 7 Digits 14) Wing to Body Fairing with composite panels are with honeycomb structure. 15) ELMS = 7 Panels P100, P200 = LH, RH Power Panel Controller Respectively *P200 Heavy Loads P320 = Ground Handling TR Unit 16) How are batteries (Main APU) charged? – Charged from Ground Sevice Bus 17) E-10 Rack = APU battery & Charger 18) IDG (integrated drive generator) to LRUS (Line replaceable units) = i) two filters ii) Remote Oil Sensors 19) IDG Servicing when i) Service Indication ii) Underfill/Overfill ...
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...* To build an international network-oriented airline with core competitiveness and sustainable profitability. * Core value of "customer first * striving for excellence * continuous innovation and contributing to the society", and the vision and mission of "becoming the most favorite airlines for both customers and employees 2. What is its current strategy? Currently, China Southern operates more than 460 passenger and cargo transport aircraft, including Boeing 777, 747, 757 & 737 and Airbus A380, 330, 321, 320, 319. The airline fleet is ranked among the world’s top six airlines (in terms of fleet size) and with Guangzhou and Beijing as its central hubs, the carrier boasts a substantial route network spanning more than 150 destinations in China and more than 40 destinations in Asia with service to Europe, America, Australia and Africa.. * Substantial Flight Capabilities China Southern continues to be a leader in the Chinese aviation industry, introducing the Boeing 737, 757, 777 and Airbus A330 to the Chinese marketplace. China Southern boasts extraordinary flight capabilities with more than 5,260 experienced pilots and is the only Chinese carrier that has the independent capability of training its own pilots through its dedicated flight training centre * Customer First China Southern is committed to putting...
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...Philip Condit and the Boeing 777: from Design and Development to Production and Sales 1. What steps did Condit take to make the 777 a successful project? In order to be successful, Condit needed to create an airplane that was preferred by the airlines at a price that was competitive. Philip campaigned aggressively to get customers to buy-into the project early and cut production costs by steadily improve worker skill over time which cuts labor cost. He also updated the manufacturing strategies and outmoded Boeing’s engineering production system. To do this, he introduced several innovations in technology (new FBW system), managerial approach (open forum, candor discussion between VPs), and employee empowerment (workers appeal to management decisions). 2. With a $15 Billion investment cost, how was the risk managed? Boeing utilized subcontracting as a risk-sharing strategy which comes about from high and increasing cost product development. The subcontractors would share a substantial part of the airplane’s development cost which ensured that detailed design work be performed and major subsections of the new plane would be assembled while airframe integrator designed and combined systems and equipment into the airplane. Also, the jet engines came from a completely different company since the venture to design and build one is very risky and costs a vast amount of resources are poured into research and development. Also, the engine itself is highly complex and demanding that...
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...The Largest Airline in the World 1st. American Airlines, USA 2nd. Delta Airlines, USA 3rd. Emirates Airlines, UEA Module 1- Lesson 1 General Airline Knowledge Professional Diploma in Aviation & Hospitality Program Instructor: Mary TOH 11/22/2013 1 11/22/2013 2 Cathay Pacific Airways (CX) Founded: World War 2 Pilots: Aircraft: Headquarters: Subsidiaries: About Cathay Pacific http://www.youtube.com/watch?v=D4rIpBrCreA 11/22/2013 24 September 1946 Royal Farrell (American) & Sydney de Kantzow (Australian) DC3 – Betsy and Niki Hong Kong. Dragonair & Air Hong Kong (Cathay Pacific & DHL joint venture partners) 4 3 11/22/2013 Parent Company: Swire Pacific Alliance: Frequent flyer program: Fleet Size: Destinations: Oneworld The Marco Polo Club 133 including cargo 112 including cargo Airport Lounge 1. The Arrival 2. The Pier 3. The Wing 4. The Cabin 5. G16 Lounge 11/22/2013 5 11/22/2013 6 M1 _ Lesson 1 1 The Marco Polo Club The Marco Polo Club is an exclusive loyalty program that offers a range of privileges to their most frequent flyers. There are 4 tiers:1. Diamond 2. Gold 3. Silver 4. Green 11/22/2013 CX Slogan People They Make an Airline http://www.youtube.co m/watch?v=lz1RfUTC 7mI 7 11/22/2013 8 Members of oneworld Alliance: 1. 2. 3. 4. 5. Cathay Pacific, HKG American Airlines, USA British Airways, UK Finnair, Finland Iberia, Spain 9. Qantas, Australia 10. Royal Jordanian Airlines, Jordan ...
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...ANNUAL REPORT 2013 1. HigHligHts Fourth Quarter Full Year $ Change 55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0 The financial and operating highlights for Air Canada for the periods indicated are as follows. (Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan amendments...
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...competitive market. the Boeing Company Business Model and Competitive Strategies the Boeing Company Business Model and Competitive Strategies Alexandra Accardi CS 782 IT Strategy and Management Alexandra Accardi CS 782 IT Strategy and Management Contents Introduction 2 Business Model 2 Boeing Commercial Airplanes (BCA) BCA is the division that deals with manufacturing commercial jetliners for more than 40 years. More than 10,000 Boeing planes are currently in service around the world which is 48% of the world fleet (boeing.com). There are a few different families in the commercial space: The 737, 747, 767, 777, and the 787 family. 2 Boeing Defense, Space & Security (BDS) 2 Boeing Capital Corporation (BCC) 2 Engineering, Operations & Technology (EO&T) \ 2 Shared Services Group (SSG) 3 Employee and Revenue Data 3 Market-Oriented Model 3 Financial-Oriented Model 4 Competitive Forces and Challenges 5 The Rivalry of Competitors 5 The Threat of New Entrants 5 The Bargaining Power of Buyers and Suppliers 6 Competitive Strategies 6 Business Model Evolution 6 Best IT-Supported Proposal 7 References 8 Introduction Boeing is a manufacturing company that produces products and services such as commercial and military aircraft, satellites, weapons, electronic defense systems, advanced information and communication systems, and performance-based logistics and training. According to the company’s website (boeing.com) “Boeing is the world’s largest...
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