Boeing launches the 787-10, ALC, GECAS, IAG-British Airways, Singapore Airlines and United Airlines place orders
Boeing (Chicago) announced today at the 2013 Paris Airshow that it has launched the 787-10 Dreamliner, the third member of the super-efficient 787 family. Commitments for 102 airplanes from five customers across Europe, Asia and North America provide a strong foundation to support development and production of the newest Dreamliner.
Customer launch commitments for the 787-10 include Air Lease Corporation, with 30 airplanes; GE Capital Aviation Services, with 10; International Airlines Group / British Airways, with 12 subject to shareholder approval; Singapore Airlines, with 30 and United Airlines, with 20 airplanes.
The new 787-10 will fly up to 7,000 nautical miles (12,964 km) — covering more than 90 percent of the world’s twin-aisle routes — with seating for 300-330 passengers, depending on an airline’s configuration choices. The second member of the family, the 787-9, is in final assembly in Everett, Wash., and is set to make its first flight later this year.
“The 787-10 Dreamliner will be the most-efficient jetliner in history. The airplane’s operating economics are unmatched and it has all the incredible passenger-pleasing features that set the 787 family apart as truly special,” said Boeing Commercial Airplanes President and CEO Ray Conner. “The 787-10 is 25 percent more efficient than airplanes of its size today and more than 10 percent better than anything being offered by the competition for the future.”
Design of the 787-10 has already started at Boeing, and international partners will be involved in detailed design in the months ahead. Final assembly and flight test of the 787-10 are set to begin in 2017, with first delivery targeted for 2018.
“Our ongoing investment in the 787 family is well-founded,” said Conner. “With the 787-10, we’ve designed an exceptional airplane supported by an efficient and integrated production system that can meet increasing demands and create new opportunities for us. Our team and our customers are excited about growing the product line and expanding our presence with this family of airplanes.”
The 787 family’s unique interior offers passengers technologies that make their flights more enjoyable, including large, dimmable windows; cleaner air; higher humidity; lower cabin altitude; bigger stowage bins; soothing LED lighting and a smoother ride. The 787-10 will share a common type rating not only with the 787-8 and 787-9 but also with the popular Boeing 777, giving airlines additional flexibility in scheduling and training flight crews.
United Airlines issued this statement:
United Airlines today increased its 787 Dreamliner order to 65 aircraft (including six previously delivered aircraft) with an order for 20 787-10s.United is the North American launch customer for the 787-10 and it expects delivery of its first aircraft in 2018. United ordered 10 incremental 787-10 aircraft and will convert 10 existing 787s on order to 787-10s, enabling the airline to further modernize its international widebody fleet by replacing older, less efficient aircraft. The advanced technology and composite construction of the 787 reduce fuel burn and carbon emissions, while providing a superior customer experience.
United is currently the only U.S. airline to operate the 787. United has six new 787-8 aircraft in service and had previous orders for an additional 49 Dreamliners consisting of both the -8 and -9 variants. The 787-10 is a stretched version of the 787-9 and will offer the lowest fuel burn per seat of any aircraft in its size category. The 787 offers up to 20 percent better fuel efficiency per seat than similarly sized aircraft, due in part to the more than 50 percent composite makeup of its structure. The 787 also boasts an enhanced inflight experience including larger windows, larger overhead bins and lower cabin altitude with enhanced ventilation systems that reduce the effects of jet lag.
The 787-10 order is the latest in United’s commitment to improve the efficiency of its fleet. In July of last year, United announced a narrowbody order for 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900ER aircraft. In addition, United has an order for 25 Airbus A350 aircraft. The airline is also modernizing its United Express fleet by adding 70 76-seat Embraer aircraft that will be operated by United Express regional partners.
Boeing (Chicago) and GE Capital Aviation Services (GECAS) (Stamford), the commercial aircraft leasing and financing arm of General Electric (GE), announced today at the 2013 Paris Air Show a commitment to order 10 787-10X Dreamliners equipped with state-of-art GEnx engines, subject to the 787-10 program launch.
Boeing looks forward to working with GECAS to finalize the details of the agreement, at which time the airplanes will be posted to the Boeing Orders & Deliveries website as a firm order.
“We have studied the capabilities Boeing is developing for the 787-10X and anticipate strong demand from our airline customers for this airplane,” said GECAS President and CEO Norman C.T. Liu. “The 787-10X will be a perfect complement to our broad portfolio of modern, fuel-efficient aircraft offering the lowest operating costs in the market.”
Boeing has been working closely with airline and leasing customers to define the key capabilities and features of 787-10X, which would be the third and largest member of the 787 family. The 787-10X under consideration would add approximately 15 percent passenger capacity over the 787-9 with superior fuel efficiency to serve medium and long-haul markets.
Once finalized, these 787s will bring the total number of airplanes GECAS has ordered from Boeing to 598 since 1995, including 737s, 747s, 757s, 767s and 777s. To date, GECAS has taken delivery of 444 of the airplanes.
Boeing (Chicago) will reportedly formally launch a new 323-seat version of the 787, dubbed the 787-10, next week at the Paris Airshow according to this report by Reuters. Boeing did not have a comment.
Read the full report: CLICK HERE
Boeing (Chicago) projects a demand for more than 35,000 new airplanes over the next 20 years, valued at $4.8 trillion. The company released its annual Current Market Outlook (CMO) today in Paris, forecasting the world fleet to double over the next two decades. Both passenger traffic and cargo traffic are expected to grow 5 percent annually.
“This forecast gives us confidence as we increase our production rates and invest in new products like the 777X and 787-10X,” saidRandy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “Airlines are demanding more efficiency and that is exactly what we’ll be giving them.”
The single-aisle market, served by Boeing’s Next-Generation 737 and the future 737 MAX, is the main driver of the forecast and continues to show strength. 24,670 new airplanes will be needed in this segment due to the growth of low-cost carriers and airlines from emerging markets.
Widebodies, such as Boeing’s 747-8, 777 and 787 Dreamliner, also make up a large part of the forecast. 8,590 new airplanes will be needed in this segment, fueled in part by airlines replacing their older fleet with new, more fuel-efficient airplanes.
|New Airplane Deliveries: 2013-2032|
|Airplane type||Seats||Total deliveries||Dollar value|
|Regional jets||90 and below||2,020||$80B|
|Single-aisle||90 – 230||24,670||$2,290B|
|Small wide-body||200 – 300||4,530||$1,100B|
|Medium wide-body||300 – 400||3,300||$1,090B|
|Large wide-body||400 and above||760||$280B|
The market for new airplanes will continue to become more geographically balanced over the next two decades. Asia-Pacific, including China, will lead the way in total airplane deliveries.
|New Airplane Deliveries: 2013-2032|
After facing high and volatile fuel prices and a highly competitive environment, airlines have been forced to change the way they manage their business.
“Our customers are focused on growing their networks, managing their capacity and investing in new fleets,” said Tinseth. “These trends will shape market demand for airplanes that have highly efficiency, low operating costs, environmentally progressive technologies and a great passenger experience. We believe Boeing’s current and future products are perfectly aligned to meet those needs.”
About the Boeing Current Market Outlook
Since the beginning of the jet age, Boeing has produced a long-term market outlook which was first shared publicly in the early 1960s. The CMO is the longest running complete worldwide jet forecastand is regarded as the most respected and comprehensive analysis of the aviation industry.
The report and a feature, which provides an interactive database of forecast numbers, can be found at www.boeing.com/cmo.
Boeing (Chicago) has begun final assembly of the first 787-9 Dreamliner. The newest member of the 787 family began taking shape on schedule on May 30 in Everett, Washington, when Boeing started joining large sections of the super-efficient jet.
Boeing will build the first three 787-9s on its Temporary Surge Line in Everett to allow for smoother integration of the 787-9 into the production system while continuing to ramp up production across the 787 program.
The 787-9 will complement and extend the 787 family, offering airlines the ability to grow routes opened with the 787-8. With the fuselage stretched by 20 feet (6 meters), the 787-9 will carry 40 more passengers an additional 300 nautical miles (555 kilometers) while using 20 percent less fuel than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering the features passengers prefer such as large, dimmable windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.
The vertical stabilizer on this 787-9 reflects the new Boeing Commercial Airplanes livery, a refreshed look for the Boeing family of airplanes that started with the 747-8 and evolved with the 737 MAX. Many features of the livery on the original 787 are reflected in the new design. The prominent number designator on the tail helps distinguish various models within the same product family.
First flight of the 787-9 is scheduled for the second half of 2013, with first delivery to launch customer Air New Zealand set for early 2014. 20 customers around the world have ordered 355 787-9s, accounting for 40 percent of all 787 orders.
Copyright Photo: Boeing.
Boeing (Chicago) yesterday (May 29) celebrated the 50th delivery of a 747-800. Lufthansa (Frankfurt), the launch customer of the passenger version, took delivery of the milestone aircraft almost one year after the first revenue flight of the 747-800 Intercontinental. It is the airline’s seventh 747-8 and its 82nd 747.
Boeing delivered the first 747-800 Intercontinental to Lufthansa in April 2012. The airplane entered service on June 1, 2012 with a flight from Frankfurt, Germany to Washington (Dulles), D.C. Cargolux Airlines took delivery of the first 747-800 Freighter in October 2011. To date, 35 Freighters and 15 Intercontinentals, including eight of the Boeing Business Jet version, have been delivered.
Top Copyright Photo: Boeing. Pictured at a soggy Paine Field, Boeing 747-830 D-ABYI (msn 37833) was handed over to the carrier on May 29.
Bottom Copyright Photo: Joe G. Walker/AirlinersGallery.com. Another view of D-ABYI arriving at Paine Field on May 18.
Boeing (Chicago) and Southwest Airlines (Dallas) announced today the launch of the 737 MAX 7, the third member of the 737 MAX family. The carrier and launch customer for the 737 MAX program became the first airline to order the 737 MAX 7, when it converted 30 existing orders for Next-Generation 737s into orders for the 737 MAX 7.
Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest’s ongoing effort to improve fuel efficiency and profitability. The 737 MAX 7 supports Southwest’s expanding fleet modernization effort. Southwest is expected to take its first 737 MAX 7 delivery in 2019.
“We are thrilled to announce that Southwest Airlines and Boeing have entered into an agreement for Southwest to be the launch customer for the Boeing MAX 7 series, with deliveries beginning in 2019,” said Gary C. Kelly, Southwest Airlines Chairman of the Board, President, and CEO. “The 737 MAX 7 builds on the strengths of today’s Next-Generation 737-700, incorporating the latest CFM International LEAP-1B engines is expected to reduce fuel burn and CO2 emissions by an additional 12 percent over today’s most fuel-efficient single-aisle airplane.”
The 737 MAX 7 (below) brings the most advanced engine technologies to the world’s best-selling airplane, building on the strengths of today’s Next-Generation 737-700. The 110-ft long airplane incorporates the latest CFM International LEAP-1B engines to deliver improved efficiency with the most reliability and passenger comfort in the single-aisle market. The 737 MAX 7 also will extend the range over today’s 737-700 by approximately 400 nautical miles (741 km).
“Southwest has been a valued partner in the evolution of the 737 program,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We have worked together to launch several models of the 737 including the 737 MAX family in 2011. We are excited to bring the 737 MAX 7 to market with Southwest.”
With the MAX 7 conversions and exercised options for 737-800s, Southwest’s unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. The 737 MAX now has orders for 1,315 airplanes.
In other news, Southwest Airlines’ Board of Directors, at its meeting held today, significantly increased the Company’s quarterly dividend to $.04 per share from $.01 per share. Annualized, this amounts to over $100 million. The increase in the quarterly dividend will begin with the 147th consecutive quarterly dividend declared today to Shareholders of record at the close of business on June 5, 2013 on all shares then issued and outstanding. The dividend will be paid on June 26, 2013. The Board also increased the Company’s existing $1 billion share repurchase authorization to $1.5 billion. Of the remaining share repurchase authorization, an initial $250 million of Southwest common stock will be repurchased under an accelerated stock repurchase program.
Gary C. Kelly, Chairman of the Board, President, and CEO, stated: “Over the past 24 months, we have returned over 20 percent of our operating cash flows, or approximately $770 million, to Shareholders through share repurchases and dividends. I am pleased to announce several actions taken today by our Board that follow through with our commitment to deploy free cash flow1 to our Shareholders. The Board authorized an increase in our quarterly dividend payment to $.04 per share from $.01 per share. Based on yesterday’s closing stock price of $13.98, this would provide an approximate one percent annual dividend yield to our Shareholders. The Board also increased our existing $1 billion share repurchase authorization to $1.5 billion. To date, $725 million in share repurchases of the $1.5 billion authorization have been completed since August 2011. This means we have the authority to repurchase an additional $775 million of our common stock. We intend to execute an agreement today to repurchase $250 million of our shares under an accelerated stock repurchase program, which, upon implementation, will immediately bring shares back into the Company.
Top Copyright Photo: Brian McDonough/AirlinersGallery.com. With this announcement, Southwest exercised options to add five more Next-Generation 737-800s to its growing fleet. Boeing 737-8H4 WL N8308K (msn 36682) arrives at Washington (Reagan National).