Boeing Sonic Case

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Date Submitted: 11/06/2012 10:45 PM

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Choosing Innovation project: Boeing’s Sonic Cruiser

Developed from studies that began in the ‘90s, the Sonic Cruiser was a concept airliner which Boeing first proposed in 2001. Boeing had to decide whether it would continue the development and launch of its new commercial aviation concept, the Sonic Cruiser.

Sonic Cruiser would accommodate 200 to 250 passengers, fly between 6,000 and 9,000 nautical miles, and travel at a speed between Mach 0.95 ~ 0.98 – 15 to 20% faster than existing models. With its huge speed advantage, the new airplane would cut travel times by approximately 20%, 1hour for every 3,000miles traveled. And because it could travel at altitude well above existing commercial airplanes(around 45,000feet, about 10,000feet higer than typical commercial airliners) the airlines would be less affected by traffic congestion, an emerging industry concern. Sonic Cruiser could cost 12~15% more to operate than the B767 that it would replace.

The principal customers in the commercial aircraft market are the airlines and air cargo carriers that directly purchase the planes. Their buying decisions depend on the product’s ability to serve the needs of the airlines’ end consumers most efficiently. The variables that go into this decision involve operating costs over specific distance ranges with forecasted levels of passengers and cargo. Furthermore, Complementarity of models within a family of aircraft also influence the purchase decision. There were significant advantages to airlines that operated only one or a few types of aircraft. For each different type, pilots and maintenance staff had to be continuously trained to ensure safety, parts had to be kept in inventory, and maintenance crews had to be able to provide support. A diverse fleet of aircraft dramatically increased the complexity and cost of operating the airline. Most airlines attempted to fulfill their aircraft needs within reduce these costs. In connection with developing of Sonic...