Monday, October 7, 2013

Japan abandons Boeing for Airbus....Thanks to Dreamliner fiasco

Japanese Airlines have always bought Boeing planes exclusively going back to World War II. They have been one of Boeings most loyal customers. 

That is until today. 

Japan has had such a putrid experience with the outsourced (completely unreliable) Dreamliner that (for the first time ever) they are now buying Airbus.

9.5 BILLION DOLLAR deal is now on its way to Europe. Congrats!!!!

The executives at Boeing must be so proud of themselves. They must be patting themselves on the back. Yay…… we outsourced and saved a $1.00 on the front end. What a great deal….. Of course we are now losing $20.00 on the back end. Lets hope nobody is paying attention to that though. Of course nobody is paying attention….Nobody except me. I noticed.....

The proponents of outsourcing (and there are many) love to talk about how great it is. How much you save by doing it. They always seem to forget to fill in the back half of the story though. Luckily I am here to fill in the missing part. In this case it is 9.5 Billion going bye bye. That is just one infuriated client. The Dreamliner is creating lots of unhappy customers everywhere. The blow back from this debacle is going to last many years. I will be sure to keep everyone informed as the clients continue to flee.

http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html?_r=0

“The longstanding ties between the Japanese carriers and Boeing have also been subject to new tensions over problems with the 787, one of Boeing’s newest planes. Both All Nippon and JAL have bought 787s.

“But the introduction of the 787 was delayed several times, with the first delivery, to All Nippon, coming in 2011. Then, earlier this year, the plane was grounded for months by problems with batteries, causing scheduling and logistical difficulties for the Japanese carriers and other 787 customers.”

“I think it played a significant role in this decision,” said Geoffrey Tudor, an analyst at Japan Aviation Management Research in Tokyo, and a former JAL executive, referring to the grounding of the 787. “

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