December 2006, Volume 1, Issue 6

This issue of Point-to-Point focuses on Boeing’s 2006 Current Market Outlook and how global economic growth and liberalization drive airplane demand. As a result of growing demand, airplanes are a good investment. Boeing’s market-based product strategy increases asset value and reduces investment risk, as validated by Lufthansa’s recent order of the 747-8 – the right airplane for the large airplane market. Other recent airplane order announcements further attest to Boeing’s successful product strategy. We also recap some Noteworthy Developments, including an update of key airplane program milestones. As always, we welcome your feedback and suggestions for future Point-to-Point articles.

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Global Economic Growth, Liberalization Drive Airplane Demand

Global Economic Growth, Liberalization Drive Airplane Demand

Over the next 20 years, global demand for commercial airplanes will create $2.6 trillion worth of airplane investment opportunities. Competition among airlines will continue to focus on nonstop flights and frequent departures, sustaining the value of airplanes that are efficient and economical to operate in multiple markets. Rapid development of markets outside North America and Europe will enhance asset liquidity and reduce investment risk.
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Airplanes are a Good Investment
Walt Skowronski, President
Boeing Capital Corp.

Airplanes are a Good Investment

Boeing focuses on building airplanes that succeed as investments as well as commercial revenue earners. That means airplanes with the range, speed and economic performance for varied markets; airplanes that are simple to reconfigure and transition to new owners, missions and regions of service; and airplanes that fit a wide variety of airline business plans.
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747-8 – The Right Airplane for the Large Airplane Market

747-8 – The Right Airplane for the Large Airplane Market

While liberalization will hold average airplane size steady, there will be a market for about 990 large airplanes. The new 747-8 Intercontinental passenger jetliner and 747-8 Freighter are excellently positioned to capture the major part of this large airplane market over the next 20 years—offering more range, greater revenue payload, and improved environmental performance, while reducing operating costs.
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Recent Airplane Order Announcements and Tally

Recent Airplane Order Announcements and Tally

Boeing’s recent announced airplane order success in the commercial airplane market validates its successful product strategy.
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