8.8 Billion Reasons Why On-Time Delivery Is Important

According to the Seattle Times, Qatar Airways announced on October 7th a firm order from Boeing for 30 787-9 Dreamliners and 10 777-300ERs widebody jets and an additional letter of intent to order a further 60 single-aisle 737 MAX 8s. The total order would be worth about $8.8 billion at discounted prices.

This announcement came as no big surprise to me. Qatar Airways has been signaling its displeasure with the Airbus order execution for some time now. I had read this was reaching a boiling point and it finally happened. Here’s a statement from Chief Executive Officer Akbar Al Baker in this article:

“Our relationship is very strained,” he said. “What’s happening at Airbus with the deliveries is seriously affecting our growth.” With the A350 shortfall having a “huge” impact on Qatar Air’s expansion plans and finances, the planemaker needs to catch up on deliveries this fiscal year, he added.

On-time delivery of a product that meets specifications is critical in today’s world particularly when there is competition. This metric can’t be ignored. You can be sure your customers won’t ignore the metric. Airbus opened the door for Boeing by failing to deliver on-time.

Are you opening the door for your competition with poor on-time delivery?

Thought for the week:

“It’s no longer information technology; its business technology” – Michael Dell

What do you think? I welcome your comments! Dave Gardner

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