replica hermes From regional to large wide body One thing that I have been hearing a lot is that if Boeing develops a regional jet it has the benefit of providing a complete line up that can benefit from moving from small aircraft to big aircraft as demand for air travel increases. I find that a flawed argument. First of all, it makes very little sense to spend money to develop an aircraft now knowing that demand for the aircraft will fall as upgauging to bigger aircraft becomes more attractive. Secondly compared to the single aisle market the regional jet market is relatively low profit and has limited market potential. Secondly, there are some voids in the Boeing product line up. Between the Boeing 787 and Boeing 737 MAX 10, we are seeing a void in Boeing’s product line up that it wants to fill with the Boeing 797 and there also is the void between the regional jet market and the large single aisle market: the small single aisle market. Because absolute margins and sales prices for regional jets are low, jet makers are trying to expand in the small single aisle market. Embraer sees demand for over 4,000 aircraft in the small single aisle market. That is a market that remains unaddressed if Boeing were to pursue the development of a regional jet. The fact that there is an unaddressed market between the regional jet market and the current Boeing product line up renders the argument of needing a regional jet to complete the product line up pretty much invalid and even if Boeing would offer a complete line up, it does not mean that Boeing would bag every order as airlines seek bigger jets. In most of the cases, airlines will choose the airframe that provides most value to its business. In the hypothetical case of Boeing going for a regional jet, it would have a super efficient regional jet but nothing to match its efficiency in either the small or the large single aisle market. So, it is unlikely that it would win a lot of orders from airlines looking for the efficiency of a regional jet. replica hermes
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