The Airbus A350 which is the answer to the question of how big a nightmare is the dreamliner. Just looking at the chart below whats the case for buying a Dreamliner? Currently its estimated Boeing loses $45 million on every sale. This as I understand it does not include warranty costs. If the troubled introduction of this plane is any indication they are going to be substantially more than any plane in history.
When I see a plane take off and slowly rise up and away I am still filled with a sense of wonder. I have flown millions of miles but not on any of the three planes above. I loved flying 747 but the A380 has made them obsolete just like another of my favourites the A340 was done in by the 777-200.
The case at the time Boeing made was that people would prefer to ride a 787 point to point 15,000KM compared to taking a A380 from a hub.
Even if this remains a good argument and it seems there is a great market for this type of plane: the A350 looks like a better choice.
Admittedly the A380 has been a bit of a bust but its to soon to tell. One thing that really hurt the A380 was US airports general refusal to upgrade infrastructure to accept it. Damm those Yankees not playing fair. However, it makes it harder to sell a plane that cant go to most of America. Neverthe less the battle for long haul hub to hub flight is far from over. From one Airport in 2007 America now has 10 that can accept the A380.
Boeing's new 777 will be a competitor but it will not arrive at the earliest until 2020. And the A350 will already has versions that can nearly match its passenger capacity. Furthermore the 777XXX is not a new plane. It is an old plane built with new materials. I doubt it will match the A350 or A380 in cost per passenger mile.
One can conclude that Boeing potentially has a weak hand in the Jumbo and mid sized plane market going forward.
In summary its my recommendation that if you own Boeing stock be advised.