It was one of the most hyped project ever started by Boeing in its history and they claim it is most fuel efficient airplane built in the aviation history. Company has put huge stake on this plane and successfully gained order for over 800 planes till now. Yesterday, Boeing announced that delievery of its Dreamliner going to be further delayed. Though aviation industry is very monopolistic business and there are just a handful manufacturer for the non-military planes, but still brand image is very important in this industry because if the customers lose trust in the company they will switch to another competitor (e.g. Airbus, though it had its own problem in launch of A380 but those are solved now and its production is on in full capacity). In airplane manufacturing industry, customers look for price, dependability, flexibility and of course quality comes first. If Boeing fails in providing Dreamliner on time, it will lose its dependability advantage and it will raise credibility issue. Since, planes are ordered with a very strategic plans in progress, airlines company’s around the world cannot always bear the huge delays in supplies as is the case with Dreamliner now.
Some of the companies around the world are already demanding for the compensation for the delays in delivery of the planes. (Air India wants compensation for Dreamliner delay and Qantas seeks compo for Dreamliner delay). This is not a good precedence in this industry, if this continues and other companies also starting compensation for delays or start moving to Airbus for future orders, Boeing will be in big problem.
It is very important for the management of the Boeing to sit and see what’s the exact problem is and how long it is going to take to solve the problems practically. It is true they have to answer the shareholders every quarter about the share price in the stock exchange but just giving promises those cannot be fulfilled time-after-time will also make company venerable for bigger problems like loss of credibility. Whole aerospace business is based on trust, company can’t afford to lose it.
Some of the companies around the world are already demanding for the compensation for the delays in delivery of the planes. (Air India wants compensation for Dreamliner delay and Qantas seeks compo for Dreamliner delay). This is not a good precedence in this industry, if this continues and other companies also starting compensation for delays or start moving to Airbus for future orders, Boeing will be in big problem.
It is very important for the management of the Boeing to sit and see what’s the exact problem is and how long it is going to take to solve the problems practically. It is true they have to answer the shareholders every quarter about the share price in the stock exchange but just giving promises those cannot be fulfilled time-after-time will also make company venerable for bigger problems like loss of credibility. Whole aerospace business is based on trust, company can’t afford to lose it.
No comments:
Post a Comment