Why Is Boeing Contemplating the Launch of the 7e7 Project? Is This a Good Time to Do So?

1. Why is Boeing contemplating the launch of the 7E7 project? Is this a good time to do so?

Year 2003 witnessed certain breaking events which generally shaped global situations. The United States launched a war against Iraq, and fatal SARS virus arouse panic and depression among nations worldwide. Going forward, global economic situation also drove the things towards worse directions.

From industry dimension, several significant factors positively affected Boeing’s consideration to the launch of 7E7 project. First, airplane profits arrived at lowest point for few decades. Second, Boeing was experiencing pressure from its largest rival, Airbus. To be specific, Airbus for the first time in its history, beat Boeing in terms of order received. In 2002, Airbus recorded 233 orders, showing an excess of 57 orders over Boeing. Airbus also has possibility of acquiring key technology applied to 7E7 project by Boeing. According to the survey from Boeing’s potential clients, passengers instead tends to pay more for the flights using less fuel than for the faster rides, which provides another idea for Boeing’s future research concentration to gain market place.

For Boeing Group itself, it’s high time Boeing reformed to improve its unsatisfactory financial data and manufacturing methods. The cancellation of Boeing’s latest commercial-aircraft programs resulted in financial slump which was necessary to be solved immediately. Apart from demand for profit, Boeing’s 7E7 project would also be the first commercial aircraft built basically with carbon-reinforced material and use a more efficient engine, which would give Boeing cutting-edge advantage over its counterparts. Besides, changing Boeing’s production methods would help facilitate its effort to cut overall costs.