GLG News by Airline Global Distribution System Experts

• Airbus expansion is necessary for cash flow, given two major failures (A350 and A380)• This is risky and problematic, given Power 8 program, job cutbacks and political realities• The opportunity exists for Boeing to leapfrog the A320 family with new technology, and create a competitive...

• Open Skies is the equivalent of deregulation, which will invite new competition into the transatlantic market• New Low fare carriers as well as business oriented carriers will enter the market and compete with existing legacy carriers• Fares and yields will drop due to new competition,...

• The last remaining customer for the A380, UPS has canceled its orders.• Airbus can now defer development of the A380F and put additional engineering resources on the passenger version.• Boeing will have the large freighter market to itself for the next few years with the 747-400F...

• Eclipse has been unable to attain a production certificate to being mass production of its aircraft• A change in avionics manufacturer will likely result in further delays, possibly as much as a year• Significant delays in deliveries and cash flow will result, as well as delays to...

• Because major US carriers do not want to replace aging fleets with existing technology aircraft nearing the end of their lifecycle, they will not order existing models• The potential for massive orders from American, United, Delta and Northwest will be perhaps $20B to the winner, an attractive...

• UPS is the only remaining customer for the A380F• By deferring a potential cancellation decision until later this year, Airbus needs to continue to develop the A380F and spend money during a cash flow crisis• It would have been better for Airbus for UPS to cancel its order, deferring...

• Compliance is necessary• Responsibility like a bartender appears to apply• Potential liability for airlines, especially those unlicensed

• The good will build up by JetBlue, which offers superior service when times are good, has been lost by incompetent management during a weather crisis• A follow-up storm with minor snowfall also created massive cancellations and delays• JetBlue initiated a Passenger Bill of Rights...

• Higher prices at Peak Times at LaGuardia• Those who really want to serve the New York market from LaGuardia will pay a premium price

Boeing can play leapfrog and place Airbus in an untenable situation by attacking its major cash generator, the A320 family.Aircraft manufacturing has four to five year lead times for product development, and Boeing currently has an advantage on the chessboard.An annoucement from Boeing will likely occur...