Boeing (Chicago and Seattle) has signed a memorandum of agreement with leading composite supplier Toray Industries to expand its current contract for the Boeing 787 Dreamliner to include the 777X wings. Once finalized, the long-term contract extension will take effect in 2015 and meet Boeing’s customer affordability goals through the Partnering for Success program.
The addition of the 777X to the current 787 contract represents a significant increase in the material provided to Boeing by Toray. Boeing and Toray will also collaborate to improve commercialization of composites in the aerospace market. Specific areas the companies will address include increased consistency and performance of composites across the production system and a cost structure that is more competitive with metals.
Boeing and Toray pioneered the use of prepreg composites – a combination of high-strength carbon fiber and toughened epoxy resin – in the 1970s. By 1994, assemblies including the empennage and floor beams were being produced for the 777 program, the first commercial airplane featuring structurally significant composite parts. That early success culminated in the launch of the 787 in 2004, the world’s first largely composite commercial airplane.
With this agreement, Boeing will have contracts in place for more than 75 percent of the major structural material for the 777X. The wingspan of the 777X measures 71.7 meters (235.4 feet), 6.95 meters (22.8 feet) longer than the span of today’s 777-300ER. Its raked wingtip and optimized span will deliver greater efficiency and significant fuel savings while being compatible with today’s airport gates. The 777X wings will be manufactured at Boeing’s Everett, Wash., site.
In 2013, Boeing spent more than $4 billion on goods and services in Japan. Including this agreement for the 777X composite wing, Boeing expects to purchase an additional $36 billion of goods and services locally by the end of the decade, supporting tens of thousands of aerospace jobs.
Boeing (Chicago and Seattle) and SMBC Aviation Capital (Dublin) have announced an order for 80 737 MAX 8s, valued at more than $8.5 billion at list prices. This is the largest single order for 737 MAXs from a leasing company and will help SMBC Aviation Capital grow its portfolio of high-demand, fuel-efficient airplanes.
With this agreement SMBC Aviation Capital becomes the 50th 737 MAX customer and grows the program’s order book to more than 2,400 airplanes.
“It is 10 years since our business placed its first order with Boeing and we have enjoyed a decade of successful partnership since then,” said Peter Barrett, CEO, SMBC Aviation Capital. “The 737 MAX 8 is one of the most fuel efficient and versatile aircraft available and today’s announcement shows our ongoing commitment to the new generation of the popular 737 family, as well as our appetite to keep broadening and deepening our platform in order to service our customers’ requirements. Following this order and given the clear commitment of our shareholders and the strength of the global aircraft leasing sector, we remain very confident in our ability to continue to deliver long-term growth.”
SMBC Aviation Capital is the world’s third largest aircraft lessor, with a modern fleet of over 370 owned and managed aircraft valued at more than $10.5 billion. The business’s strategy is to own and lease liquid, investor-friendly aircraft assets with continuous trading through the industry cycle to maximise profitability and manage risk. The business has sold more than 240 commercial aircraft valued at over $7.5 billion.
SMBC Aviation Capital has 95 airline customers and over 40 investors in more than 40 countries around the world. It is headquartered in Dublin and has offices in, Tokyo, Shanghai, Beijing, Hong Kong, Singapore, New York, Amsterdam, Toulouse and Seattle.
SMBC Aviation Capital has 180 Boeing airplanes in its portfolio and has 95 airline customers in more than 40 countries.
Boeing (Chicago and Seattle) and its employees on November 8 joined the Puget Sound community in celebrating the donation of one of the original 787-8 Dreamliner (N787BX, msn 40692) flight test airplanes to the Museum of Flight in Seattle.
The Dreamliner Boeing donated to the museum is known as ZA003 (N787BX), the third 787-8 produced. The airplane has a unique past, first as part of the 787 flight test and certification program and later circumnavigating the globe several times in 2011 and 2012 during the Dream Tour, which introduced the 787 to more than 68,000 visitors in 23 countries.
“This revolutionary airplane caps the museum’s collection of historic commercial airplanes, beginning with our 1932 Boeing 247, which was the first all-metal, modern airliner,” said Doug King, president and CEO, Museum of Flight. “It was followed by our 1969 prototype 747, the first jumbo jet, and now with the first composite airliner, the 787. It’s an incredible addition to our comprehensive display.”
The celebration at the Museum of Flight included several Boeing employees whose work over the years played a role in the design, build and test of the 787 Dreamliner. Each person disembarked the airplane and presented a special artifact tied to the history of the airplane to museum docents and students from local high schools.
The artifacts given by employees ranged from a commemorative cachet carried aboard the 787′s first flight, to early artist renderings of the 7E7. Those artifacts will now be housed at the Museum of Flight.
ZA003 is the first of three flight test 787-8s Boeing plans to share with museums around the world, the aviation community and future generations of employees and airplane enthusiasts.
About The Museum of Flight:
The independent, non-profit Museum of Flight is one of the largest air and space museums in the world, attracting more than 500,000 visitors annually. The Museum’s collection includes more than 160 historically significant air- and spacecraft, the original manufacturing facility of The Boeing Company, and the world’s only full-scale NASA Space Shuttle Trainer. The Museum’s aviation and space library and archives are the largest on the West Coast. More than 130,000 individuals are served annually by the Museum’s on-site and outreach educational programs. The Museum of Flight is accredited by the American Association of Museums, and is an Affiliate of the Smithsonian Institution.
The Museum of Flight is located at 9404 E. Marginal Way S., Seattle, Exit 158 off Interstate 5 on Boeing Field halfway between downtown Seattle and Sea-Tac Airport. The Museum is open daily from 10 a.m. to 5 p.m.
Top Copyright Photo: Ariel Shocron/AirlinersGallery.com. N787BX stopped at Madrid on its Dream Tour.
Bottom Copyright Photo: Boeing. Boeing 787-8 N787BX is pictured at its new home at Boeing Field.
The Boeing Company (Chicago and Seattle) today reported third quarter revenue increased 7 percent to $23.8 billion on higher deliveries (Table 1). Core earnings per share (non-GAAP) increased 19 percent* to $2.14, driven by strong performance across the company’s businesses. Third-quarter core operating earnings (non-GAAP) increased 13 percent* to $2.4 billion from the same period of the prior year.
GAAP earnings per share was $1.86 and GAAP earnings from operations was $2.1 billion.
Core earnings per share guidance for 2014 increased to between $8.10 and $8.30, from $7.90 to $8.10 on continued strong operating performance. GAAP earnings per share guidance for 2014 increased to between $6.90 and $7.10, from $6.85 to $7.05. Operating cash flow before pension contributions* guidance increased to greater than $7 billion. Commercial Airplanes operating margin guidance increased to approximately 10.5 percent.
Read the full report: CLICK HERE
Boeing (Chicago and Seattle) and Commercial Aircraft Corporation of China (COMAC) today (October 22) opened a demonstration facility that will turn waste cooking oil, commonly referred to as “gutter oil” in China, into sustainable aviation biofuel. The two companies estimate that 500 million gallons (1.8 billion liters) of biofuel could be made annually in China from used cooking oil.
Boeing and COMAC are sponsoring the facility, which is called the China-U.S. Aviation Biofuel Pilot Project. It will use a technology developed by Hangzhou Energy & Engineering Technology Co., Ltd. (HEET) to clean contaminants from waste oils and convert it into jet fuel at a rate of 160 gallons (650 liters) per day. The project’s goal is to assess the technical feasibility and cost of producing higher volumes of biofuel.
Sustainably produced biofuel, which reduces carbon emissions by 50 to 80 percent compared to petroleum through its lifecycle, is expected to play a key role in supporting aviation’s growth while meeting environmental goals. The Boeing Current Market Outlook has forecast that China will require more than 6,000 new airplanes by 2033 to meet fast-growing passenger demand for domestic and international air travel.
Boeing and COMAC have been collaborating since 2012 to support the growth of China’s commercial aviation industry. Their Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center in Beijing works with Chinese universities and research institutions to expand knowledge in areas that improve aviation’s efficiency, such as aviation biofuel and air traffic management.
Biofuel produced by the China-U.S. Aviation Biofuel Pilot Project will meet international specifications approved in 2011 for jet fuel made from plant oils and animal fats. This type of biofuel has already been used for more than 1,600 commercial flights.
COMAC is also the builder of the new C919 jetliner.
In other news, Boeing yesterday (October 21) celebrated the groundbreaking of its new 777X Composite Wing Center at the Everett, Washington, campus. Permitting for the new 1-million-square-foot facility was completed approximately seven weeks earlier than anticipated, allowing for an accelerated start to construction.
Boeing is investing more than $1 billion in the Everett site for construction and outfitting of the new building.
Once completed, the facility located on the north side of the main final assembly building will help usher in composite wing fabrication for the company’s newest commercial jetliner and sustain thousands of local jobs for decades to come.
Completion of the new building, which is expected in May 2016, will require approximately 3.5 million hours of work. At its peak, there will be approximately 1,200 contract employees working on the project. By the numbers, the new building will require:
31,000 tons (28,000 metric tons) of steel
480 miles (770 kilometers) of electrical cable
80,000 linear feet (24,384 meters ) of process piping
530,000 cubic yards (405,210 cubic meters) of fill material
170,000 tons (154,000 metric tons) of concrete
To date, the 777X has accumulated 300 orders and commitments. Two models will comprise the 777X family – the 777-8X, with approximately 350 seats and a range capability of more than 9,300 nautical miles; and the 777-9X, with approximately 400 seats and a range of more than 8,200 nautical miles. The 777-8X competes directly with the Airbus A350-1000, while the 777-9X is in a class by itself, serving a market segment that no other airplane can. First delivery of the 777X is targeted for 2020.
British Airways (London) is taking each of its eight Boeing 787-8 Dreamliners out of service one at a time for routine warranty service work by Boeing at Victorville, California. Starting with the pictured Boeing 787-8 G-ZBJA (msn 38609), each aircraft from the first four deliveries (JA-JD), is expected to take around 10 days for the service work. The last four 787s to be delivered (JE-JH) are expected to take less time since they are closer to the new 787s being delivered. Each of the eight aircraft, when finished, will be the same as new production 787s currently being delivered. This is normal procedure for a new aircraft type as the manufacturer often makes some changes as aircraft roll off the production line.
Copyright Photo: SPA/AirlinersGallery.com. G-ZBJA departs from London (Heathrow).
Boeing (Chicago and Seattle) has started production of the first 737 MAX fuselage stringers at Boeing Fabrication Integrated AeroStructures in Auburn, Washington. Stringers run the length of the fuselage structure giving it stability and strength.
After forming, Boeing will send the stringers to Spirit Aerosystems in Wichita, Kansas for incorporation into the first 737 MAX fuselage. From there the fuselage will be shipped to Boeing’s Renton, Washington facility where Boeing employees will build the 737 MAX. The program is on track to begin final assembly of the first 737 MAX in 2015. The airplane will be part of the flight test fleet and is scheduled to fly in 2016.
The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be 14 percent more fuel-efficient than today’s most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service.
All images and videos by Boeing.
Video: Using flax for aircraft interiors:
Boeing 737 Aircraft Slide Show through the years:
Aviation Partners Boeing receives additional FAA Supplemental Type Certificates for the Split Scimitar Winglets
Aviation Partners Boeing (APB) announced today that it has received FAA Supplemental Type Certification (STC) covering the installation of Split Scimitar Winglets for three additional configurations of the Boeing 737NG.
Split Scimitar Winglets can now be installed on all Boeing 737-800 and 737-900 ER aircraft. All remaining commercial and private variants of the 737 Next-Generation aircraft are scheduled to be certified by May of 2015.
According to the company, “APB’s Split Scimitar Winglet program is its latest fuel efficiency success and the culmination of a five-year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all-new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet, but adds new aerodynamic scimitar tips and a large ventral strake. Split Scimitar Winglets can save up to 60,000 gallons of fuel per aircraft per year.”
Since launching the Split Scimitar Winglet program early last year, APB has taken orders and options for 1,657 systems. Over the last 10 years, APB has sold nearly 8,000 Blended Winglet Systems. More than 5,300 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide 4.5 billion gallons of jet fuel to-date thus eliminating over 47 million tons of carbon dioxide emissions.
Aviation Partners Boeing is a Seattle based joint venture of Aviation Partners, Inc. and The Boeing Company.
Copyright Photo: APB. Kulula of South Africa is the latest operator of the SSWs. Boeing 737-8LD ZS-ZWB (msn 40852) climbs away with the new winglets.
Boeing (Chicago and Seattle) projects air cargo traffic will grow at an annual rate of 4.7 percent over the next 20 years, with global air freight traffic expected to more than double by 2033. The company released its biennial World Air Cargo Forecast at the International Air Cargo Forum and Exhibition earlier today.
“We see strong signs of a recovery as air freight traffic levels continue to strengthen after several years of stagnation,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “The air cargo market is now growing at nearly the long-term rates.”
World air cargo traffic began to grow again in second quarter of 2013 with growth reaching 4.4 percent for the first seven months of 2014, compared to the same period a year earlier. If this trend continues, 2014 will be the highest growth year for the air freight industry since 2010.
Much of the weak air cargo growth in the previous years can be attributed to two principal causes – an underperforming world economy and lackluster trade growth, particularly in those traditional commodities served by the air cargo industry.
The new Boeing forecast shows Asia-North America and Europe-Asia will continue to be the dominant world air cargo markets with the most traffic volume. Intra-Asia, domestic China and Asia-North America markets are expected to have the fastest rates of growth over the next 20 years.
With increased air cargo traffic, the world freighter fleet is also expected to grow with deliveries of 840 new factory-built airplanes and 1,330 passenger to freighter conversion airplanes. More than 52 percent of those deliveries are expected to replace retiring airplanes and the remainder used for growth.
More than 70 percent of the new factory-built airplanes scheduled to deliver between 2014 and 2033 are forecast to be large freighters, such as the 747-8 and 777.
The World Air Cargo Forecast 2014/2015 is available at http://www.boeing.com/boeing/commercial/cargo and the full text is downloadable in PDF format. Boeing has published the biennial World Air Cargo Forecast as an individual report since 1986.
Boeing (Chicago and Seattle) has announced it will produce 777X parts at its site in St. Louis, Missouri, bringing back inside the company work that is currently performed at suppliers or performed overseas for the current 777 program.
The design for these parts will be done in St. Louis, Boeing Aerostructures Australia (BAA) and other Boeing sites.
The parts built by the St. Louis team will support 777X work at the composite wing center in Everett, Washington, home of the 777X program. The new composite wing center is currently under construction and will be more than 1 million square feet.
Earlier this year, Boeing selected its Everett, Washington site as the location for a new composite wing center for the 777X program. In this wing center, Boeing will perform fabrication and assembly of the 777X’s composite wing. Additionally, Boeing will perform final assembly of the 777X in Everett.
To accommodate this production work, Boeing will expand its current St. Louis composites facility, which will begin producing parts for the 777X program in 2017.
The 777X builds on today’s passenger-preferred, market-leading 777 and offers more market coverage and revenue capability than the competition. First delivery is targeted for 2020.
Image: Boeing. The proposed 777X-9.
Boeing (Chicago and Seattle) announced today that it will increase production on the 737 program to 52 airplanes per month in 2018 in response to strong market demand from customers worldwide. Once the increase is implemented, the 737 program is expected to build more than 620 airplanes per year, the highest rate ever for the world’s best-selling commercial airplane.
Boeing currently produces 42 airplanes per month at its Renton, Wash., factory, and the company previously announced plans to increase the production rate to 47 airplanes per month in 2017.
The 2014 Current Market Outlook, Boeing’s long-term forecast of air traffic volumes and commercial airplane demand, projects a need for more than 25,000 single-aisle airplanes over the next 20 years, worth $2.56 trillion total market value.
To date, 266 customers worldwide have placed more than 12,100 orders for the single-aisle airplane – including more than 6,800 orders for the Next-Generation 737 and more than 2,200 orders for the 737 MAX. Boeing currently has more than 4,000 unfilled orders across the 737 family.
The production rate increase announced today is not expected to have a significant impact on 2014 financial results.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing Corporate 737-7BC (BBJ) N835BA (msn 30572) arrives in Los Angeles.
Boeing (Chicago and Seattle) and leasing company Avolon have finalized an order for six 787-9 Dreamliners and five additional 737 MAX 9s, valued at more than $2.1 billion at list prices. Avolon announced a commitment to purchase the airplanes during the 2014 Farnborough Airshow in July.
This marks Avolon’s first order for the 787 Dreamliner and will increase the lessor’s 737 MAX portfolio to 20 airplanes.
The 737 MAX has surpassed 2,200 orders from 47 customers worldwide. The largest in the 737 MAX family, the 737 MAX 9 offers the best fuel-efficiency per seat and will be 7 percent per trip less expensive to operate than its competitor, the A321neo. The 737 MAX 9 provides versatile growth capacity for airlines needing larger single-aisle options in their fleet.
Boeing (Chicago and Seattle) has issued this statement on the Al Jazeera documentary on the 787:
We have not been afforded the opportunity to view the full program, but the promotional trailer and published media reviews suggest that what has been produced is as biased a production as we have seen in some time. It is unfortunate that the producers of this television program appear to have fallen into the trap of distorting facts, relying on claims rejected by courts of law, breathlessly rehashing as “news” stories that have been covered exhaustively in the past and relying on anonymous sources who appear intent only on harming The Boeing Company.
When first contacted by the producers, we accommodated them in order for them to produce a fair and objective report including facilitating factory access, interviews and providing full and open responses to their questions. The 787 is an outstanding airplane delivering value to our customers, but we have also talked candidly in public about its challenging development process. There are no tougher critics about our early performance than Boeing. Unfortunately, the reporting team appears to have chosen to take advantage of our trust and openness and abused their position from the outset by deliberately misrepresenting the purpose, objective and scope of their planned coverage.
This specious production appears to have ignored the factual information provided by Boeing and instead based the majority of its reporting on unnamed sources pursuing their own agendas and a disgruntled former employee engaged in a legal dispute with Boeing. In one instance, the producers resorted to ambush tactics normally seen only in tabloid-style TV news. The anonymous sources the TV program depends on are clearly working with those who seek to harm Boeing and its workers. They appear to have no real interest in truth, safety or better informing the public.
Even on-the-record sources seem to have changed their stories for the producers. For example, former Society of Professional Engineering Employees in Aerospace (SPEEA) President Cynthia Cole said this about the 787’s first flight in 2009: “Today’s flight is a testament to the skill, hard work and diligence Boeing employees put in to get this airplane ready to fly,” SPEEA President Cynthia Cole said in a news release. “Boeing returned to engineering, and that’s what made today possible and successful.” Now, she states in the documentary trailer that Boeing “shortchanged the engineering process.”
Instead of an objective view of the 787’s development, viewers and our employees will see a television program that is neither balanced nor accurate in its portrayal of the airplane, our employees, or our suppliers. This program and those involved with it do a disservice to the hard-working men and women of Boeing and our supplier partners who designed and build the 787.
Furthermore, the program presents a false impression of Boeing South Carolina and the quality of work performed there. Airplanes, whether delivered from South Carolina or Washington, meet the highest safety and quality standards that are verified through robust test, verification and inspection processes. Our data of the current 787 fleet in service show parity in the quality and performance of airplanes manufactured in both locations.
Video: The Al Jazeera documentary on the Boeing 787:
Boeing (Chicago and Seattle) announced today an order by BOC Aviation for 50 737 MAX 8s, 30 Next-Generation 737-800s and two 777-300ERs (Extended Range). The order, valued at $8.8 billion at list prices, is the largest in BOC Aviation’s 20-year history and part of the Singapore-based leasing company’s effort to grow its portfolio of fuel-efficient airplanes.
As the news is light during the “dog days” of the late summer in the Northern Hemisphere, we thought you would appreciate a diversion. We are always looking for great airline oriented videos (please send us your recommendations). Here is a new one. The 737Channel brings aviation enthusiasts an insight to the airline world from a pilot’s perspective. You can now see what pilots see, as HD footage is captured in real life operations. The above Episode 2 video is a nighttime approach. Below are a few more of the episodes.
Episode 1 video above. De-icing as seen from the flight deck of a Boeing 737-800.
Episode 3 video above.
Episode 4 video above. Boeing 737-800 ILS CAT II approach to minimums with Autoland.
Episode 5 video above. Flying a Boeing 737-800 from a Caribbean airport to a Canadian snowstorm.
Episode 7 video above. A Boeing 737-800 landing in Jamaica.
Episode 8 video above. Flying a Boeing 737-800 across North America and the Caribbean.
Boeing (Chicago and Seattle), South African Airways (SAA) (Johannesburg) and SkyNRG announced they are collaborating to make sustainable aviation biofuel from a new type of tobacco plant. This initiative broadens cooperation between Boeing and SAA to develop renewable jet fuel in ways that support South Africa’s goals for public health as well as economic and rural development.
“It’s an honor for Boeing to work with South African Airways on a pioneering project to make sustainable jet fuel from an energy-rich tobacco plant,” said J. Miguel Santos, managing director for Africa, Boeing International. “South Africa is leading efforts to commercialize a valuable new source of biofuel that can further reduce aviation’s environmental footprint and advance the region’s economy.”
SkyNRG is expanding production of the hybrid plant known as Solaris as an energy crop that farmers could grow instead of traditional tobacco. Test farming of the plants, which are effectively nicotine-free, is underway in South Africa with biofuel production expected from large and small farms in the next few years. Initially, oil from the plant’s seeds will be converted into jet fuel. In coming years, Boeing expects emerging technologies to increase South Africa’s aviation biofuel production from the rest of the plant.
“By using hybrid tobacco, we can leverage knowledge of tobacco growers in South Africa to grow a marketable biofuel crop without encouraging smoking,” said Ian Cruickshank, South African Airways Group Environmental Affairs Specialist. “This is another way that SAA and Boeing are driving development of sustainable biofuel while enhancing our region’s economic opportunity.”
“We strongly believe in the potential of successfully rolling out Solaris in the Southern African region to power sustainable fuels that are also affordable,” said Maarten van Dijk, Chief Technology Officer, SkyNRG.
In October 2013, Boeing and SAA said they would work together to develop a sustainable aviation biofuel supply chain in Southern Africa. As part of that effort, they are working with the Roundtable on Sustainable Biomaterials to position farmers with small plots of land to grow biofuel feedstocks that provide socioeconomic value to communities without harming food supplies, fresh water or land use.
Boeing is the aviation industry’s leader in the development of sustainable aviation biofuel, working with partners in the United States, Europe, China, Middle East, Brazil, Japan, South Africa, Australia and other countries. When produced sustainably, aviation biofuel reduces carbon emissions by 50 to 80 percent compared to petroleum jet fuel through its lifecycle. Airlines have conducted more than 1,500 passenger flights using biofuel since the fuel was approved in 2011.
Copyright Photo: Paul Denton/AirlinersGallery.com. Boeing 737-844 ZS-SJU (msn 32644) of South African Airways arrives back at the Johannesburg hub.
Boeing (Chicago and Seattle) has announced that final assembly of the 787-10, the newest and longest member of the 787 Dreamliner family of airplanes, will take place exclusively in North Charleston, South Carolina.
Boeing will continue to assemble both 787-8s and 787-9s in Everett, Washington, and North Charleston. Design of the 787-10 is underway in Everett, with final assembly of the first 787-10 scheduled to begin in South Carolina in 2017.
“We looked at all our options and found the most efficient and effective solution is to build the 787-10 at Boeing South Carolina,” said Larry Loftis, vice president and general manager, 787 program, Boeing Commercial Airplanes. “This will allow us to balance 787 production across the North Charleston and Everett sites as we increase production rates. We’re happy with our growth and success in South Carolina, and the continued success at both sites gives us confidence in our plan going forward.”
The 787-10 will be 18 feet (5.5 meters) longer than the 787-9. With 10 feet (3 meters) of that increase in the midbody section, the 787-10 midbody is too long to be transported efficiently from North Charleston, where systems integration work is performed, to the Everett facility for final assembly. In addition, introducing the 787-10 in North Charleston takes advantage of that facility’s capacity while allowing the Everett facility to continue improving productivity as it focuses on the 787-8 and 787-9.
The 787 production system includes three production lines: two in Everett (including a temporary surge line) and one in South Carolina. The integrated production system currently operates at a production rate of 10 airplanes per month. As announced last year, the 787 production rate will increase to 12 airplanes per month in 2016 and 14 per month by the end of the decade.
The Everett facility will continue to assemble seven airplanes per month, while Boeing South Carolina final assembly will gradually increase from three 787s per month today to five per month in 2016 and seven per month by the end of the decade.
The Boeing 787 Dreamliner family of airplanes offers airlines unmatched fuel efficiencies and environmental performance, while providing a new level of comfort for passengers through the thoughtful application of new technologies. To date, the 787 family has won more than 1,000 orders and more than 165 airplanes have been delivered to 21 customers worldwide.
The 787-10 will leverage 787 technology to provide more passenger and cargo capacity along with unparalleled seat-mile economics in the medium twin-aisle market. Since its launch in June 2013, the 787-10 has won 132 orders from six global customers.
Copyright Photo: Arisara Petersen/AirlinersGallery.com. The Boeing 787-8 production line at North Charleston, SC (CHS).
Boeing (Chicago and Seattle) is forecasting continued strong growth in demand for commercial aviation pilots and maintenance technicians as the global fleet expands over the next 20 years.
Boeing’s 2014 Pilot and Technician Outlook, released today at EAA AirVenture Oshkosh, projects that between 2014 and 2033, the world’s aviation system will require:
533,000 new commercial airline pilots
584,000 new commercial airline maintenance technicians
“The challenge of meeting the global demand for airline professionals cannot be solved by one company or in one region of the world,” said Sherry Carbary, vice president, Boeing Flight Services. “This is a global issue that can only be solved by all of the parties involved—airlines, aircraft and training equipment manufacturers, training delivery organizations, regulatory agencies and educational institutions around the world.”
The 2014 outlook projects continued increases in pilot demand, which is up approximately 7 percent compared to 2013; and in maintenance training, which increased just over 5 percent. Pilot demand in the Asia Pacific region now comprises 41 percent of the world’s need, and the Middle East region saw significant growth since last year’s outlook due to increased airline capacity and orders for wide-body models which require more crew members.
Overall, the global demand is driven by steadily increasing airplane deliveries, particularly wide-body airplanes, and represents a global requirement for about 27,000 new pilots and 29,000 new technicians annually.
Projected demand for new pilots and technicians by global region:
Asia Pacific – 216,000 pilots and 224,000 technicians
Europe – 94,000 pilots and 102,000 technicians
North America – 88,000 pilots and 109,000 technicians
Latin America – 45,000 pilots and 44,000 technicians
Middle East – 55,000 pilots and 62,000 technicians
Africa – 17,000 pilots and 19,000 technicians
Russia and CIS – 18,000 pilots and 24,000 technicians
Boeing (Chicago and Seattle) rolled out the 5000th Next-Generation 737 this week. The airplane is a Boeing C-40A Clipper, a modified 737-700C, that will serve as a transport aircraft for the U.S. Navy.
Utilizing the 737 commercial platform takes advantage of the proven efficiencies, manufacturing processes and performance of the existing Next-Generation 737 production system. Boeing’s P-8 maritime patrol aircraft, Airborne Early Warning and Control (AEW&C) and the C-40 are among the 737 military derivatives.
To date, orders stand at 6,804 for Next-Generation 737s and 2,109 for 737 MAXs. Total 737 orders have surpassed 12,000 including Classics and more than 100 orders for military derivatives.
Copyright Photo: Boeing.
The 787-9 Dreamliner took to the skies on July 14 with a powerful, yet quiet, performance in front of Farnborough Airshow attendees as it closed out the day’s flying demonstrations.
Boeing (Chicago and Seattle) has issued this statement on the evolving design features of the 777X:
Boeing announced today at the Farnborough Airshow new details about the innovative passenger experience being created for its newest long-haul twin-aisle airplane – the 777X.
By building on the award-winning passenger-preferred interior of today’s 777 and applying 787 Dreamliner cabin innovations, Boeing will continue its leadership in offering unprecedented levels of comfort for the traveling public and enhanced flexibility for airlines.
Among its advances, the 777X interior will feature:
A cabin altitude of 6,000 feet – comparable to the 787 Dreamliner
Windows that are more than 15 percent larger than the competition and located higher on the fuselage so they’re at eye level for a larger percentage of passengers
Increased ambient light made possible by the larger, newly positioned windows
All-new interior design that allows airlines to customize their cabin architectures by class. This innovation includes an adaptable suite of parts that facilitates choices in overhead ceiling and stow bin configurations, allowing airlines to create the feeling of separate and distinct cabins that meet both airline and passenger needs
A cabin that is 16 inches wider than the competition, allowing airlines a variety of economy class seat widths up to 18 inches wide
Higher cabin humidity, comparable to the 787 Dreamliner
Enhanced air filtration, incorporating the latest filtration technologies to increase passengers’ well-being
Next-generation LED lighting, further enhancing the passenger experience throughout the flight and allowing airlines more branding opportunities
Lower cabin noise, achieved through the new engine nacelle design, new high bypass ratio engines, better insulation and a passenger cabin that doubles the number of air nozzles with lower velocity and less noise
In addition to the advancements announced today, Boeing is continuing to explore new ways to create a better flying experience.
The 777X program has 300 orders and commitments from six customers worldwide. Production is set to begin in 2017, with first delivery targeted for 2020.
Copyright Photos: Boeing.
Boeing (Chicago and Seattle) today at the Farnborough Air Show announced that it is in the final phases of testing and production readiness of a new method for building 777 fuselages as part of its ongoing technology investment strategy.
Known as the Fuselage Automated Upright Build, or FAUB, this Advanced Manufacturing technology improves workplace safety and increases product quality. This technology has been in development by Boeing since 2012.
With this new technology, fuselage sections will be built using automated, guided robots that will fasten the panels of the fuselage together, drilling and filling the more than approximately 60,000 fasteners that are today installed by hand.
FAUB offers numerous benefits including an improvement in employee safety. The nature of the drilling and filling work makes it ideal for an automated solution. More than half of all injuries on the 777 program have occurred during the phase of production that is being automated. In addition, the automated system is expected to reduce build times and improve first-time quality of the build process.
“This is the first time such technology will be used by Boeing to manufacture widebody commercial airplanes and the 777 program is leading the way,” said Elizabeth Lund, vice president and general manager, 777 program and Everett site, Boeing Commercial Airplanes.
The 777 program has already begun testing FAUB at a facility in Anacortes, Washington (near Everett). Production readiness preparations are underway and the system will be installed in Everett in a new portion of the main factory that is under construction now. The technology is expected to be implemented in the next few years.
The robotic system, designed for Boeing by KUKA Systems, is the latest in a series of strategic Advanced Manufacturing moves on the 777 program, which have already included new systems for painting wings and other drilling operations.
Copyright Photo: Boeing.
Boeing (Chicago and Seattle) projects a demand for 36,770 new airplanes over the next 20 years, an increase of 4.2 percent from last year’s forecast. The company released its annual Current Market Outlook (CMO) in London, estimating the total value of those new airplanes at $5.2 trillion.
“This market is strong and resilient,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “With new and more efficient airplanes entering service, the growth in air travel is being driven by customers who want to fly where they want, when they want.”
Fueling this year’s forecast is the single-aisle market, which is projected to be the fastest growing and most dynamic segment due to the continued emergence of low-cost carriers. 25,680 new airplanes will be needed in this segment, making up 70 percent of the total units in the forecast.
“Based on the overwhelming amount of orders and deliveries, we see the heart of the single-aisle market in the 160-seat range,” said Tinseth. “There’s no question the market is converging to this size, where network flexibility and cost efficiency meet. The Next-Generation 737-800 and new 737 MAX 8 offer our customers the most revenue potential in this mid-sized space.”
Boeing forecasts that 8,600 new airplanes will be needed in the twin-aisle segment, led by small widebody airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner. This year’s forecast reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X.
Boeing’s Current Market Outlook is the longest running jet forecast and regarded as the most comprehensive analysis of the aviation industry. The full report can be found at www.boeing.com/cmo.
Boeing (Chicago and Seattle) and Emirates Airline (Dubai) have finalized an order for 150 777Xs, valued at $56 billion at list prices. First announced as a commitment at the 2013 Dubai Airshow, the order by the world’s largest 777 operator was part of the largest product launch in commercial jetliner history.
The order – a combination of 115 777-9Xs and 35 777-8Xs – also includes purchase rights for an additional 50 airplanes that, if exercised, could increase value to approximately $75 billion at list prices.
“With the order for 150 777Xs, Emirates now has 208 Boeing 777s pending delivery, creating and securing jobs across the supply chain,” said Emirates president Sir Tim Clark. “Today Emirates operates more than one in every 10 Boeing 777s aircraft built. We fly 138 of these efficient planes across the globe spanning the USA and Latin America in the west, to New Zealand and Japan in the East. The 777X will offer us operational flexibility in terms of range, more passenger capacity and fuel efficiency, and we look forward to inducting them into our fleet from 2020.”
The 777X will introduce the latest technologies including the most advanced commercial engine ever – the GE9X by GE Aviation – and an all-new high efficiency composite wing that has a longer span than today’s 777. The 777X family includes the 777-8X and the 777-9X, both designed to respond to market needs and customer preferences.
The 777-9X will be 12 percent more fuel efficient than any competing airplane, necessary in today’s competitive environment. The 777-8X is 5 percent more efficient than its competitor at all ranges while providing for new network opportunities.
Design of the 777X is underway and production is set to begin in 2017, with first delivery targeted for 2020. To date, the 777X has accumulated 300 orders and commitments from six customers worldwide.
Boeing 737 fuselages end up in the Clark Fork River near Superior, Montana, crews will attempt to remove
Eyewitness New 12 reports:
“Linda Frost, Montana Rail Link, told CBS-affiliate KPAX 19 cars derailed about 18 miles east of Superior, Montana around 4 p.m Thursday (July 3). Seven of the cars were carrying aircraft components, three cars soybeans, three cars with denatured alcohol and the other seven were empty, Frost said. The aircraft components landed in the Clark Fork River.”
The fuselages were manufactured by Spirt Aerosystems (Wichita) and were headed by train to Boeing’s 737 assembly plant in Renton, WA. The fuselages are a probable insurance write off and will not be used. However someone’s delivery may be affected.
Read the full story: CLICK HERE
July 6 Update: From the The Spokesman-Review in Spokane:
“Crews today (July 6) will attempt to remove three Boeing 737 fuselages that tumbled down a steep embankment and into the Clark Fork River in Western Montana after a train derailed.
Montana Rail Link spokeswoman Lynda Frost said Saturday that it’s unclear the type of challenge involved because it’s the first time the company has faced such a task.
No one was injured when 19 cars from a westbound train derailed Thursday about 10 miles west of Alberton. The cause of the derailment is under investigation.
The train carried six fuselages. Three others also fell off but stayed on land. Frost said Boeing has had workers at the scene assessing the damage.”
Read the full account: CLICK HERE
Photo: Twitter photo by Robotpig.
Boeing (Chicago and Seattle) has delivered the 1,500th 747 to come off the production line to Lufthansa (Frankfurt). The milestone airplane is a 747-8 Intercontinental, the 14th one that Lufthansa will incorporate into its long-haul fleet.
“Reaching this milestone delivery is a testament to the capabilities of the airplane and our commitment to continuous innovation,” said Eric Lindblad, 747 vice president and general manager, Boeing Commercial Airplanes. “The new 747-8 is delivering on its promise to our customers, and we continue to look at ways to make it even more efficient in the future.”
The 747 is the first widebody airplane in history to reach the 1,500 milestone. Its iconic shape makes it instantly recognizable, and passengers have consistently voted it their favorite airplane to fly.
At a delivery ceremony yesterday (June 28), a special logo commemorating the 1,500th airplane was revealed for the first time on the pictured 747-830 D-ABYP (msn 37839).
“Lufthansa is honored that the 1,500th 747 will fly with the Lufthansa livery,” said Nico Buchholz, executive vice president, Lufthansa Group Fleet Management. “Lufthansa is an important partner and a valued advisor in developing new commercial airplanes with exceptional economical and ecological performance such as the 747-8. The commemorative logo will be a reminder of our relationship with Boeing, now and into the future.”
Lufthansa is the launch customer of the 747-8 Intercontinental and took delivery of its first airplane in April 2012. The airline has 19 747-8 Intercontinentals on order.
The first Boeing 747-100 entered revenue service on January 22, 1970 with Pan Am on the New York–London route.
Lufthansa German Airlines on March 10, 1970 became the first European airline to take delivery of the Boeing 747-100. The first LH 747, 747-130 D-ABYA (msn 19746), was accepted on this historic day. The Jumbo was introduced into revenue service between Frankfurt and New York (JFK) on April 26, 1970. LH has operated a variant of the 747 for over 44 years.
Lufthansa also issued this statement:
Lufthansa’s 14th Boeing 747-8 landed in Frankfurt on Sunday, June 29, at 9.17 a.m. as scheduled. As well as being the 76th Jumbo that Lufthansa has received from the American manufacturer Boeing in Seattle since the 1970s, the aircraft also represents a veritable milestone in aviation history. This aircraft, whose tail number is D-ABYP (“Yankee Papa”), is the 1,500th Jumbo to be built in the world.
‘It’s an honor for Lufthansa that the anniversary Jumbo will fly in the colors of the Lufthansa crane,’ said Nico Buchholz, Head of Group Fleet Management at Deutsche Lufthansa AG. ‘For decades, Lufthansa has been one of the aircraft manufacturer’s closest advisers – a pioneer when it comes to developing new, environmentally friendly and fuel-efficient aircraft,’ added Buchholz at the handover in Seattle. Lufthansa is expecting to receive a total of 19 aircraft of this type, and will therefore be the world’s largest operator of 747-8s among passenger airlines.
The “Dash 8”, as it is also known, has plenty to offer. By using the latest Jumbo, Lufthansa is taking a further step towards having a “three-liter fleet” (per passenger and 100 kilometers). The aircraft is 15 percent more fuel-efficient than its predecessor model and, as a result, its CO2 emissions are around 15 percent lower. The noise footprint of the Boeing 747-8 is 30 percent smaller compared with the older Boeing 747-400. What started as the first training flight with the new Boeing 747 over the mountains east of Seattle in October 1969 went on to become an icon of the Lufthansa fleet, and, indeed, of commercial aviation as a whole.
On March 9, 1970, the then Lufthansa CEO Herbert Culmann took delivery of the first Lufthansa Boeing 747-130 in front of the factory in Everett. The aircraft’s production number was 12 and its Lufthansa registration was D-ABYA. Lufthansa thereby became the second international airline, after Pan Am, and the first European carrier to deploy the Jumbo on scheduled services. The aircraft was host to several major world premières in succession, including the first film shown on board a Jumbo jet. Only twenty months after the maiden flight of the Boeing 747-130, the fourth Lufthansa Jumbo took off on April 2, 1971 as a modified model. Boeing had equipped the 747-200 with larger fuel tanks and a higher take-off weight of 378 tons. This meant that the aircraft had a longer range. Originally intended as a military aircraft, the Jumbo’s career was not limited to carrying passengers. On April 10, 1972, Lufthansa received the world’s first “smiling” Boeing as the launch customer of the cargo version, the Boeing 747-230F. The nose of the aircraft could be opened horizontally, making it possible to load even bulk goods without any problem. On April 19, 1972, the world’s first cargo Jumbo took off, bearing the tail number D-ABYE. This quickly catapulted Lufthansa to number one in airfreight transport.
‘A step towards the 1990s’ is how Lufthansa CEO Heinz Ruhnau described the purchase agreement signed on June 23, 1986 for an initial order of six enhanced Boeing aircraft. Lufthansa had already been involved in the planning of the Boeing 747-100. However, as the first airline to order the “Dash 400” (Boeing 747-400), it now played a key part in the development of the new aircraft, providing many hundreds of suggestions for improvements and more than 20,000 engineer hours. With this aircraft, the modern, digitalized two-man cockpit that Jürgen Weber, the man responsible for aircraft development at Lufthansa Technik in Hamburg at the time and later Chairman of the Executive Board and CEO of Lufthansa AG, and Reinhard Abraham, the former Chief Technical Officer of the Lufthansa Group, had worked to achieve became a reality. Upwards-pointing winglets, new and more economical engines, new materials such as composite materials and aluminium alloys: all of these innovations helped to cut fuel consumption by 24 percent compared with the -200 series.
On 23 May 1989, Lufthansa received the first enhanced Super Jumbo with tail number D-ABVA. The aircraft could cover almost 13,000 kilometers in 16 hours and thus reach nearly every destination in the world. As the new millennium started, the idea was put forth to develop an enhanced version of the Boeing 747-400. And so not only was the Jumbo extended by 5.6 meters, it was also totally redeveloped, including a new wing design and new engines. On May 2, 2012, Lufthansa became the first passenger airline in the world to receive a Boeing 747-8.
Copyright Photo: Bernie Leighton/AirlinersGallery.com. Boeing 747-830 D-ABYP with the special “1500th” emblem prepares to depart from Paine Field near Everett yesterday (June 28) on its delivery flight to Frankfurt.
Boeing (Chicago and Seattle) has announced Southwest Airlines (Dallas) has selected Boeing Airplane Health Management (AHM) to enhance operational efficiency in its maintenance and engineering operations.
Southwest Airlines will use Airplane Health Management to collect and evaluate airplane operations data while the airplane is in flight. This real-time data is used to signal ground operations crews of any potential maintenance issues before the airplane lands, minimizing flight schedule disruptions and maintenance-related delays.
Boeing technical teams will work with Southwest to facilitate initial deployment of the system for its Next-Generation 737s. Southwest is Boeing’s 66th customer for Airplane Health Management.
According to Boeing, “Boeing Airplane Health Management is a powerful, data-driven capability used worldwide by airplane operators and maintenance, repair and overhaul providers (MROs) to proactively manage the serviceability of airplanes and fleets. It is designed to interface with existing airplane systems and communication infrastructure, using state-of-the-art airplane and ground technology to address day-of-operation disruptions, help predict future operations events and prevent unplanned maintenance and schedule interruptions.”
Airplane Health Management is part of an integrated suite of aviation services marketed as the Boeing Edge. These include parts, training, engineering, maintenance and software solutions that increase the efficiency and profitability of airlines and leasing companies.
Southwest Airlines is an all-Boeing carrier and operates the largest 737 fleet of any airline. In 2011, the airline became the launch customer for the 737 MAX.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-7H4 N214WN (msn 32486) in the special “Maryland One” state theme arrives at Los Angeles International Airport.
Boeing (Chicago and Seattle) has released this statement:
The Boeing 787-9 Dreamliner has been certified by the U.S. Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA) for commercial service. Boeing is now in the final stages of preparing for the first 787-9 delivery to launch customer Air New Zealand.
Boeing started its flight-test program with the 787-9′s first flight in September, 2013.
To earn certification for the 787-9, Boeing undertook a comprehensive test program with five airplanes and more than 1,500 hours of flight testing, plus ground and laboratory testing. Following the rigorous and thorough certification process, the FAA and EASA each granted Boeing an Amended Type Certificate for the 787-9, certifying that the design complies with aviation regulations and is safe and reliable.
The FAA also has granted Boeing an Amended Production Certificate, validating that the Boeing production system can produce 787-9s that conform to the design. EASA accepts FAA oversight of Boeing production certificates, just as the FAA accepts EASA oversight of European manufacturers’ production certificates.
The new 787-9 Dreamliner will complement and extend the super-efficient 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly more passengers and more cargo farther with the same exceptional environmental performance — 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering passengers features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.
Twenty-six customers around the world have ordered 413 787-9s, accounting for 40 percent of all 787 orders.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 787-9 N789EX (msn 41988) lands at Boeing Field after a test flight.
Boeing (Chicago and Seattle) and Air Lease Corporation (ALC) (Los Angeles) celebrated the direct delivery of the first of 15 777-300 ERs (Extended Range) from its existing order pipeline with the manufacturer. This 777-300 ER, the eighth 777 in ALC’s fleet, is one of two delivering to British Airways (London) on long-term lease from the lessor. The second 777-300 ER (777-336 ER G-STBL, msn 42124) for British Airways is scheduled to be delivered from Boeing in July 2014.
The aircraft involved is Boeing 777-336 ER G-STBK (msn 42121), handed over to British Airways on May 28.
Copyright Photo: Karl Cornil/AirlinersGallery.com. Sister ship Boeing 777-36N ER G-STBE (msn 38696) arrives back at the London (Heathrow) base.
Boeing (Chicago and Seattle) has released this statement about extended ETOPS for the 787:
The U.S. Federal Aviation Administration (FAA) has approved additional extended operations (ETOPS) for the Boeing 787 Dreamliner. The move will allow 787s to be operated up to 330 minutes from a landing field and signals continued confidence in the airplane’s technical capabilities.
Dreamliners have been allowed to operate up to 180 minutes away from a landing field since they were introduced into service in 2011. Granting of the expanded operational permission will allow airlines to introduce additional routes after they meet the proof of capabilities requirements and receive approval from their own regulatory agencies for such operations.
ETOPS operations will make the 787 even more efficient in operations as they enable more direct flight paths, which can save thousands of pounds of fuel and reduce carbon emissions.
More than 1,030 787s have been ordered by 60 customers to date. Boeing has delivered 146 Dreamliners to 19 customers.
Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 787-8 VT-ANC (msn 36274) in Air India colors lands at Boeing’s facility at Paine Field near Everett, Washington. VT-ANC is one of the earlier models and remains undelivered.
NTSB issues recommendations to the FAA for the evaluation and certification of lithium-ion batteries on Boeing 787s
The National Transportation Safety Board (NTSB) (Washington) has issued a series of recommendations related to the evaluation and certification of lithium-ion batteries for use in aircraft systems, as well as the certification of new technology.
The five safety recommendations, all addressed to the Federal Aviation Administration (FAA) (Washington), are derived from the NTSB’s ongoing investigation of the January 7, 2013, fire event that occurred in a lithium-ion battery on a Boeing 787 that was parked at Boston Logan Airport.
Investigators found that the battery involved in the Boston 787 fire event showed evidence not just of an internal thermal runaway but that “unintended electrical interactions occurred among the cells, the battery case, and the electrical interfaces between the battery and the airplane.”
The 12-page safety recommendation letter said that the processes used in 2006 to support the certification of the lithium-ion battery designed for the 787 were inadequate, in part, because there is no standardized thermal runaway test that’s conducted in the environment and conditions that would most accurately reflect how the battery would perform when installed and operated on an in-service airplane.
Further, the NTSB said that because there is no such standardized thermal runaway test, lithium-ion battery designs on airplanes currently in service might not have adequately accounted for the hazards associated with internal short circuiting.
In its examination of the challenges associated with introducing newer technologies into already complex aircraft systems, the NTSB said that including subject matter experts outside of the aviation industry “could further strengthen the aircraft certification process” by ensuring that both the FAA and the aircraft manufacturer have access to the most current research and information related to the developing technology.
To address all of these issues, the NTSB asked the FAA to do the following:
1. Develop an aircraft-level thermal runaway test to demonstrate safety performance in the presence of an internal short circuit failure
2. Require the above test as part of certification of future aircraft designs
3. Re-evaluate internal short circuit risk for lithium-ion batteries now in-service
4. Develop guidance for thermal runaway test methods
5. Include a panel of independent expert consultants early in the certification process for new technologies installed on aircraft
“The history of commercial aviation is one in which emerging technologies have played a key role in enhancing flight safety,” said NTSB Acting Chairman Christopher A. Hart. “This is why it’s crucial that the process by which these technologies are evaluated and certified is as robust and thorough as possible. These recommendations will take us further in that direction.”
The final report on the January 2013 Boston 787 battery fire investigation is estimated to be completed in the fall.
Read the full report: CLICK HERE
Read about the original Boston JAL Boeing 787 incident: CLICK HERE
Boeing (Chicago and Seattle) celebrated a milestone achievement today (May 20) on the 737 MAX program, surpassing the 2000th order for the super-efficient single-aisle airplane. With the addition of 30 orders from unidentified customers this week, the 737 MAX now has a total of 2,010 orders from 39 customers worldwide, valued at $209 billion at list prices. The 737 MAX also has commitments for more than 250 additional airplanes.
The 737 MAX has reached 2,000 orders faster than any other Boeing airplane in history. This unprecedented demand is fueled by air traffic growth and the need for more fuel-efficient airplanes.
According to Boeing, “the 737 MAX will be 14 percent more fuel-efficient than today’s most efficient Next-Generation 737s – and 20 percent better than the original Next-Generation 737s when they first entered service. The 737 is more fuel efficient than the A320 today and will be more fuel efficient than the A320neo tomorrow. Airlines operating the 737 MAX will see an 8 percent operating cost per seat advantage over the A320neo”.
On track to begin final assembly in mid-2015, the 737 MAX will fly in 2016 and will be delivered to launch customer Southwest Airlines in the third quarter of 2017.
Boeing and Embraer announce a joint research center to advance sustainable aviation biofuel in Brazil
Boeing and Embraer S.A. today announced that they will open a joint research center to advance a sustainable aviation biofuel industry in Brazil.
Under a memorandum of understanding, the two companies will perform joint biofuel research, as well as fund and coordinate research with Brazilian universities and other institutions. The research will focus on technologies that address gaps in a supply chain for sustainable aviation biofuel in Brazil, such as feedstock production and processing technologies. The companies’ biofuel research center will be located in Sao Jose dos Campos Technology Park.
“Boeing is working aggressively around the world to expand the supply of sustainable aviation biofuel and reduce aviation’s carbon emissions,” said Julie Felgar, managing director of Environmental Strategy and Integration, Boeing Commercial Airplanes. “With our joint biofuel research center, Boeing and Embraer are making a strong commitment toward a successful, sustainable aviation biofuel industry in Brazil.”
“Embraer is committed in supporting the development of sustainable biofuels for aviation and the joint efforts with Boeing will undoubtedly contribute to the company continuing to be in the forefront of research in this area,” says Mauro Kern, Executive Vice President, Engineering and Technology, Embraer. “Brazil has tradition in the area of alternative fuels and enormous potential yet to be explored in bioenergy research.”
In 2013, Boeing, Embraer and the Fundacao de Amparo a Pesquisa of the State of Sao Paulo (FAPESP) completed an action plan – Flightpath to Aviation Biofuels in Brazil – that identified gaps in a potential biofuel supply chain. The joint research between Boeing and Embraer will help address those gaps.
When produced sustainably, aviation biofuel emits 50 to 80 percent lower carbon emissions through its lifecycle than petroleum jet fuel. Globally, more than 1,500 passenger flights using biofuel have been conducted since the fuel was approved for use in 2011.
The Boeing Company (Chicago and Seattle) reported first quarter revenue increased 8 percent to $20.5 billion on higher commercial volume (Table 1). Core earnings per share (non-GAAP) increased 14 percent* to $1.76 when excluding a benefit of $0.19 per share for the 2012 research and development tax credit recorded in the first quarter of 2013. First quarter 2014 core operating earnings (non-GAAP) increased 12 percent to $2.1 billion and core operating margin (non-GAAP) increased to 10.2 percent reflecting continued strong operating performance. GAAP earnings from operations included previously announced non-cash charges totaling $334 million ($0.29 per share) for retirement plan changes.
Core earnings per share guidance for 2014 increased to between $7.15 and $7.35, from $7.00 to $7.20, to reflect the benefit of a tax settlement to be recognized in the second quarter of 2014. GAAP earnings per share guidance for 2014 is reaffirmed at between $6.10 to $6.30 as the tax settlement benefit was offset by the retirement plan charges. GAAP pension expense guidance for 2014 is now at approximately $3.2 billion, up from $3.1 billion, to reflect the retirement plan charges. The company reaffirmed its 2014 revenue, operating cash flow and deliveries guidance.
Boeing Commercial Airplanes first-quarter revenue increased to $12.7 billion on higher 787 and 737 deliveries. First-quarter operating margin improved to 11.8 percent reflecting the delivery volume and mix and lower period costs partially offset by higher R&D.
During the quarter, the 787 program reached a 10 per month production rate and completed preliminary design review on the 787-10. The company selected the Everett, Washington site as the location for a new composite wing center for the 777X. In April, the 737 program reached a production rate of 42 per month.
Commercial Airplanes booked 235 net orders during the quarter. Backlog remains strong with over 5,100 airplanes valued at $374 billion.
Read the full report: CLICK HERE
Boeing (Chicago and Seattle) yesterday (April 16) delivered the 8,000th 737 to come off the production line to United Airlines (Chicago) as N68821, marking another important milestone for the world’s best-selling airplane. The airplane, a Next-Generation 737-900 ER (Extended Range), features a special logo.
The 737 is the first commercial airplane in history to reach this delivery milestone. The program has a strong backlog with more than 3,700 airplanes on order, including 1,934 orders for the new 737 MAX.
United was the first airline to order and take delivery of the 737-200. Since 1965, United has taken delivery of more than 550 737s and operated nearly every model.
Copyright Photo: Joe G. Walker/AirlinersGallery.com. Boeing 737-924 ER N68821 (msn 43535) lands at Boeing Field in Seattle. N68821 has small “8000th 737″ gray titles by the main cabin door.
Boeing (Chicago and Seattle) has debuted its new 737 Configuration Studio, a new facility where airline customers can choose their jetliner interiors. The 20,000 square-foot (1,900 square-meter) studio is located in Renton, Washington near the factory where 42 737s are produced per month.
Similar to the 787 Dreamliner Gallery, the 737 Configuration Studio provides a private and welcoming showroom environment to assist Next-Generation 737 and 737 MAX customers with the design and configuration of new airplane interiors.
More than two dozen major interior configuration introductions are expected over the next two years. To help 737 customers select among them, the studio presents views of suppliers’ products side by side in one location. Customers can see, touch and experience choices in galleys, seats and in-flight entertainment. They also can select interior colors and decors that highlight and support their brand.
Additionally, customers can use the 737 Boeing Sky Interior light lab (below) to study how fabrics, carpets, drapes and uniforms appear under various light settings. The facility also houses the “new features room,” which provides customers with a glimpse of future technologies.
Copyright Photos: Boeing.
Boeing (Chicago and Seattle) has announced the launch of the Boeing Business Jet (BBJ) MAX family of airplanes after receiving the first order from an undisclosed customer. The order is for a BBJ MAX 8, which is based on the 737 MAX 8 and the newest business jet to join the BBJ family.
BBJ is the market leader in the large cabin, ultra-long-range business jet market and the new BBJ MAX will extend that advantage.
With new CFM International LEAP-1B engines and other aerodynamic improvements including Advanced Technology winglets, the 737 MAX will provide a 14 percent fuel-use improvement compared to today’s most efficient single-aisle airplanes. The fuel-use improvement is even greater at longer ranges typically flown by BBJ customers.
The BBJ MAX 8 will have a range of 6,325 nautical miles (11,713 km), an increase of more than 800 nautical miles (1,482 km) over the BBJ2. It will share the same cabin size with today’s BBJ2, offering customers a 19-foot (5.8 meter) longer cabin and three times the cargo space of today’s BBJ, while improving on its market-leading range capability and maintaining the BBJ advantages of lower cabin altitude, unmatched reliability and outstanding product support around the globe. The BBJ continues to be the leading choice for businesses, corporations and private owners.
The new BBJ family also will include the BBJ MAX 9, based on the 737 MAX 9, and is expected to offer a 6,255 nautical mile (11,584 km) range with an even larger cabin than the BBJ MAX 8. Plans for a BBJ MAX 7 are still being studied.
Development of the 737 MAX is on schedule with firm configuration of the airplane achieved in July 2013. First flight is scheduled in 2016 with deliveries to commercial airline customers beginning in 2017. The 737 MAX has accumulated more than 1,900 orders to date from 37 customers worldwide
The first BBJ MAX will be delivered in 2018 without an interior, and a completion center of the customer’s choosing will install the jet’s VIP interior.
The first Boeing (Chicago and Seattle) Next-Generation 737 to be built at the increased rate of 42 airplanes per month rolled out of the factory in Renton, Washington yesterday (march 19). The 737-800 will soon be delivered to Airberlin (Berlin-Tegel) and ultimately leased to Transavia France (Paris).
The airplane will now undergo functional, systems and flight testing over the next three weeks before being delivered.
Market demand remains strong for the Next-Generation 737, the world’s best-selling commercial jetliner. Since 2010, production has risen about 33 percent, from 31.5 to 42 airplanes a month. As previously announced, the production rate is scheduled to increase to 47 airplanes a month in 2017.
Copyright Photo: Boeing.
The U.S. Federal Aviation Administration (FAA) and Boeing (Chicago and Seattle) have completed a comprehensive review of the 787′s critical systems. The joint review, initiated in January 2013, included an examination of the processes for the design, certification and production of the 787-8. The review’s findings validate the integrity of the airplane’s design and confirm the strength of the processes used to identify and correct issues that emerged before and after the airplane’s certification.
The review concludes that the 787 meets the intended high level of safety expected by the FAA and Boeing. The report includes recommendations aimed at further strengthening the FAA and Boeing’s processes.
“We welcomed the opportunity presented by this joint review of the 787 and its in-service performance,” said Boeing Commercial Airplanes President and CEO Ray Conner. “The findings validate our confidence in both the design of the airplane and the disciplined process used to identify and correct in-service issues as they arise. I am grateful for the hard work of the joint review team and for its recommendations, which will allow us to further improve our processes as we move forward.”
The review team outlined four recommended improvements for Boeing. Three of the recommendations focus on improving the flow of information, standards and expectations between the company and its suppliers. Boeing has already taken significant steps to implement these recommendations.
The fourth recommendation encourages Boeing to continue implementing and maturing the gated processes for development programs.
“Gated process” refers to the disciplined criteria followed as a new airplane model is developed. This ensures a sufficient level of maturity is gained before a program proceeds to key milestones such as design completion, production start and entry into service.
Boeing has made a range of improvements to its airplane development processes since the start of the 787 program. These efforts included a restructuring last year to bring all commercial airplane development programs under one umbrella organization.
Copyright Photo: Brandon Farris/AirlinersGallery.com.
Boeing (Chicago and Seattle) has kicked off expansion of its 737 Commercial Delivery Center (CDC) at Boeing Field in Seattle. The project more than doubles the space that will be available for customers and groups supporting increased 737 deliveries.
The expanded CDC will be more than 90,000 square feet and include a new three-story building, as well as new delivery and departure areas with three covered jetways. The design features an open, airy look with large windows overlooking the Boeing Field flight line. The CDC expansion is the latest of many investments Boeing is making across the Puget Sound region and in the future of the 737 program.
Production of the 737 is set to increase to 42 airplanes per month in April and to 47 airplanes per month in 2017, an increase in output of nearly 50 percent since 2010. Deliveries of the 737 MAX, with the latest technology CFM International LEAP-1B engines and other efficiency enhancements like Advanced Technology winglets, will also begin in 2017 at the upgraded facility.
Plans are in place to ensure seamless deliveries to 737 customers during construction, which includes the demolition of one building. The CDC expansion is scheduled for completion in mid-2015.
Boeing (Chicago and Seattle) yesterday reported “hairline cracks” on about 40 787s in production according to Reuters. The wings are made by Mitsubishi. The cracks were also discovered on the new 787-9 which could delay the introduction of the new type. No cracks were found on aircraft currently flying with the airlines.
Read the full report: CLICK HERE
Boeing (Chicago and Seattle) according to Bloomberg “is struggling to find buyers for 11 of its earliest 787 Dreamliners valued at $1.1 billion after two airlines dropped orders for the holdover models from the jet’s troubled birth.”
The partially built 787s, now sitting unfinished at Paine Field in Everett, Washington, are known as the “terrible teens” (due to the line numbers). The undelivered aircraft start at line number 10. The “terrible teens” weight more than the current production and flying 787s and will not be able to fly as far if they are finished and delivered to a willing customer looking for a bargain. Most have been parked for around four years according to the report.
Garuda Indonesia is reportedly considering buying the under-performing “terrible teens” according to the report.
The 11 aircraft were originally destined for Lion Air, RwandAir and Transaero Airlines.
Read the full report: CLICK HERE
Bloomberg originally reported in January 2010 how Boeing was working on trimming the weight of the early 787 Dreamliners.
Read this report: CLICK HERE
Copyright Photo: Nick Dean. Most of the “terrible teens” are sitting in a sealed manner like the pictured Air India 787-8 VT-ANB (msn 37274, line number 26) once did. VT-ANB was just delivered to Air India on January 31, 2014.
Boeing (Chicago and Seattle) today announced the selection of its Everett, Washington, site as the location for a new composite wing center for the 777X program. Boeing evaluated criteria that were designed to find the wing fabrication location that would best support the 777X business plan. The new composite wing center will be located north of the Everett factory and will sustain thousands of Puget Sound area jobs for years to come.
Boeing selected the Everett site for 777X final assembly following the International Association of Machinists & Aerospace Workers (IAM) District 751 approval of an eight-year contract extension earlier this year. As part of the contract extension, the company agreed to fabricate the parts for, and assemble, the 777X composite wings in the Puget Sound region. After studying several options, the company determined that the Everett site will meet its business needs for fabrication and assembly.
The new facility will support fabrication of the 777X composite wings and will be approximately 1 million square feet. Construction on the new facility is scheduled to begin later this year.
Assembly of the composite wings will also take place at the company’s Everett site, with the exact location to be determined in the months ahead.
The 777X builds on today’s passenger-preferred, market-leading 777 and offers more market coverage and revenue capability than the competition. First delivery is targeted for 2020.
Aviation Partners Boeing (APB) (Seattle) has announced it has received Supplemental Type Certification (STC) from the FAA for Split Scimitar Winglets to be installed on Boeing 737-800 aircraft. According to the company, “the Split Scimitar Winglet program is the culmination of a five-year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all-new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet structure, but adds new strengthened spars, aerodynamic scimitar tips, and a large ventral strake.”
APB will develop and certify the Split Scimitar Winglet modification for all of the Boeing 737-700, 800 and 900 series aircraft including Boeing Business Jets. APB expects to start certification flight testing on the 737-900ER in mid-February achieving certification by late July 2014.
APB’s Split Scimitar Winglet program is the most successful product launch in its history. Since launching the program early last year, APB has now taken orders and options for 1,461 Split Scimitar Winglet systems. Over the last 10 years, APB has sold more than 7,000 Blended Winglet Systems. 5,300 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide 4.1 billion gallons of jet fuel to-date thus eliminating over 43 million tons of carbon dioxide emissions.
Aviation Partners Boeing is a Seattle based joint venture of Aviation Partners, Inc. and The Boeing Company.
Copyright Photo: PR Newswire. United Airlines‘ Boeing 737-824 N37277 (msn 31595) is the test and certification airplane. United put the first aircraft with Split Scimitar Winglets into revenue service of February 18, 2014 between the Houston (Bush Intercontinental Airport) hub and Los Angeles as flight UA 1273.
Boeing (Chicago and Seattle) is starting assembly this week of the first Next-Generation 737 to be built at the increased rate of 42 airplanes per month. Since 2010, production of the 737 has increased about 33 percent, from 31.5 to 42 airplanes a month, its highest rate ever.
Early Wednesday morning, mechanics will load initial parts of the spars – internal support structures in the wings – into an automated spar-assembly machine. The spar is the first step in building the wings and marks the start of the assembly of the airplane at the Renton, Washington factory.
The first Next-Generation 737 built at the new rate is scheduled to be delivered in the second quarter. As previously announced, the 737 production rate is scheduled to increase to 47 airplanes a month in 2017.
Read the analysis by Bloomberg Businessweek: CLICK HERE
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-852 XA-AME (msn 36708) of AeroMexico approaches the runway at Los Angeles International Airport.
Boeing (Chicago and Seattle) yesterday (January 29) revealed a 747-8 Freighter (N770BA) painted in the livery of the NFL’s Seattle Seahawks. The livery commemorates the team’s National Football Conference Championship and upcoming appearance in Super Bowl XLVIII.
Boeing is a sponsor of the Seattle Seahawks and has partnered with the team for more than a decade on programs in the Puget Sound area.
“The Seahawks have been an inspiration to our entire community throughout this incredible season,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We’re honored that we could join together two Northwest icons, the Seahawks and the 747, for this special salute from the entire Boeing team.”
This 747-8 is owned by Boeing and currently being used for flight testing. The special livery features the distinctive Seahawks logo and a “12″ on the tail to salute the team’s fans. The airplane will make its first flight in its new livery on Thurs., January 30.
“The 747 team is proud that one of our airplanes could be used as a tribute to the Seahawks’ success this season and a rallying cry for the team as they prepare for the Super Bowl,” said Eric Lindblad, vice president and general manager, 747 program, Boeing Commercial Airplanes. “The partnerships we have with the Seahawks and others are making a positive difference in the communities where Boeing employees live and work. We join with all Seahawks fans in wishing the team success on Sunday.”
Boeing 747-8 Seahawks Livery Fun Facts
- Seattle Seahawks quarterback Russell Wilson’s longest pass this season, 80 yards (240 ft.), was almost the same length as a 747-8 fuselage (243.5 ft.)
- Russell Wilson threw for 3,357 yards (10,071 ft.) this season, similar to the runway takeoff distance for a 747-8 (10,650 ft.)
- Seattle Seahawks wide receiver Percy Harvin can dash the full length of the 747-8 main deck, 180 ft., in less than seven seconds
- Seattle Seahawks running back Marshawn Lynch can squat with 16 economy seats (30 lbs. per seat)
- A 747-8 Freighter can carry 121 million Skittles candies, or 302,400 one lb. bags
- It would take 144 747-8 passenger airplanes (Intercontinentals) to carry all the Seahawks fans in CenturyLink Field (67,000 seats)
- The 747-8 can cover the length of a football field in one second at takeoff
- Seahawks fans’ Guinness World Record for crowd noise is approximately 38 times louder than the 747-8 at departure
On January 30 the Boeing Seattle Seahawks 747 took to the skies over Washington in advance of the team’s appearance Sunday in Super Bowl XLVIII.
The airplane’s flight pattern took it past Seattle landmarks including the Space Needle and CenturyLink Field, home of the Seahawks. The 747-8 then flew over Eastern Washington in a pattern that formed the number “12,” a salute to all Seahawks’ fans.
“You may remember that we drew a ’747′ over the continental United States during 747-8 certification flight testing,” said Boeing 747 chief pilot Mark Feuerstein “Although the ’12′ is smaller in scale, the pride and sense of community behind it make it feel just as big for the entire Boeing team.”
Boeing is a sponsor of the Seattle Seahawks and has partnered with the team for more than a decade on programs in the Puget Sound area.
Copyright Photo: Boeing. Boeing 747-87UF N770BA (msn 37564) pushes out of the paint shop at rainy Paine Field.
The Boeing Company (Chicago) reported fourth-quarter revenue of $23.8 billion and core earnings per share (non-GAAP) that increased 29 percent* to $1.88, driven by strong performance across the company’s businesses and higher deliveries (Table 1). Fourth-quarter core operating earnings (non-GAAP) of $1.8 billion includes a $406 million non-cash charge to settle A-12 litigation dating back to 1991, retiring a longstanding risk to the company. Excluding the A-12 charge, fourth-quarter 2013 core operating earnings increased 22 percent* to $2.2 billion and core operating margin increased to 9.4 percent*. Core and GAAP earnings per share includes a charge of $0.34 per share related to A-12 partially offset by a benefit of $0.28 per share for a tax regulation change.
Revenue rose 6 percent in the full year to a record $86.6 billion and core earnings per share increased 20 percent* to a record $7.07. Full-year 2013 GAAP earnings per share was $5.96.
Core earnings per share guidance for 2014 is set at between $7.00 and $7.20, while GAAP earnings per share guidance is established at between $6.10 and $6.30. Revenue guidance is between $87.5 and $90.5 billion, including commercial deliveries of between 715 and 725. Operating cash flow before pension contributions* is expected to be approximately $7 billion, while operating cash flow guidance is set at approximately $6.25 billion.
“Strong fourth-quarter results underscored an outstanding full year of core operating performance that drove record revenue and earnings and increased returns to shareholders,” said Boeing Chairman and Chief Executive Officer Jim McNerney.
“Our Commercial Airplanes business accelerated delivery of its record backlog by successfully increasing production rates while also achieving important development milestones on the 737 MAX and 787-9 and launching the new 787-10 and 777X models with an unprecedented customer response. Our Defense, Space & Security unit overcame a tough operating environment to record expanded revenue, earnings and margins while executing to our commitments on the KC-46A tanker and developing and delivering important new capabilities to customers, such as the P-8 maritime aircraft and the Inmarsat-5 satellite,” said McNerney.
“For 2014, we remain focused on maintaining our commercial airplanes market leadership, strengthening and repositioning our defense, space and security business and continuing to meet the needs of our customers by improving productivity, executing to development plans and delivering our unmatched portfolio of innovative aerospace products and services.”
|Table 2. Cash Flow||Fourth Quarter||Full Year|
|Operating Cash Flow Before Pension Contributions*||$1,409||$4,204||$9,721||$9,058|
|Operating Cash Flow||$1,380||$4,167||$8,179||$7,508|
|Less Additions to Property, Plant & Equipment||($638)||($495)||($2,098)||($1,703)|
|Free Cash Flow*||$742||$3,672||$6,081||$5,805|
Operating cash flow in the quarter was $1.4 billion, reflecting commercial airplane production rates, strong core operating performance and timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 7.6 million shares for $1.0 billion and paid $0.4 billion in dividends, reflecting a 10 percent increase in dividends paid compared to the same period of the prior year. Based on the strong cash generation and outlook, in December, the board of directors authorized an additional $10 billionshare repurchase program and raised the quarterly dividend 50 percent.
|Table 3. Cash, Marketable Securities and Debt Balances||Quarter-End|
|(Billions)||Q4 13||Q3 13|
|Marketable Securities 1||$6.2||$5.9|
|The Boeing Company, net of intercompany loans to BCC||$7.0||$7.0|
|Boeing Capital Corporation, including intercompany loans||$2.6||$2.6|
|Total Consolidated Debt||$9.6||$9.6|
|1||Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”|
Cash and investments in marketable securities totaled $15.3 billion at year-end (Table 3), down from$15.9 billion at the beginning of the quarter. Debt was $9.6 billion, unchanged from the beginning of the quarter.
Total company backlog at year-end was a record $441 billion, up from $415 billion at the beginning of the quarter, and included net orders for the quarter of $48 billion. Backlog is up $51 billion from prior year-end, reflecting $135 billion of net orders in 2013.
Boeing Commercial Airplanes
|Table 4.||Fourth Quarter||Full Year|
|($ in Millions)||2013||2012||Chg||2013||2012||Chg|
|Opg Margin||10.3%||8.9%||1.4 Pts||10.9%||9.6%||1.3 Pts|
Boeing Commercial Airplanes fourth-quarter revenue increased to $14.7 billion and full-year revenue increased to a record $53 billion on higher delivery volume. Fourth-quarter operating margin improved to 10.3 percent and full-year operating margin grew to 10.9 percent on the higher volume, favorable delivery mix and continued strong operating performance (Table 4).
During the quarter, the company launched the 777X with 259 orders and commitments. During the year, the 787 program completed first flight of the 787-9, successfully launched the 787-10 and began operating at a 10 per month production rate in final assembly. The 737 program delivered at a record production rate of 38 per month and has won nearly 1,800 firm orders for the 737 MAX since launch. In 2013, a record 648 commercial aircraft were delivered. In January 2014, the company reached an eight-year contract extension through 2024 with the International Association of Machinists & Aerospace Workers District 751 (IAM).
Commercial Airplanes booked 465 net orders during the quarter and 1,355 during the year. Backlog remains strong with 5,080 airplanes valued at a record $374 billion.
Boeing Defense, Space & Security
|Table 5.||Fourth Quarter||Full Year|
|(Dollars in Millions)||2013||2012||Chg||2013||2012||Chg|
|Boeing Military Aircraft||$4,395||$4,037||9%||$15,936||$16,019||(1)%|
|Network & Space Systems||$2,272||$2,024||12%||$8,512||$7,911||8%|
|Global Services & Support||$2,188||$2,282||(4)%||$8,749||$8,677||1%|
|Total BDS Revenues||$8,855||$8,343||6%||$33,197||$32,607||2%|
|Earnings from Operations|
|Boeing Military Aircraft||$441||$313||41%||$1,465||$1,489||(2)%|
|Network & Space Systems||$233||$138||69%||$719||$562||28%|
|Global Services & Support||$280||$300||(7)%||$1,051||$1,017||3%|
|Total BDS Earnings from Ops||$954||$751||27%||$3,235||$3,068||5%|
|Operating Margin||10.8%||9.0%||1.8 Pts||9.7%||9.4%||0.3 Pts|
Boeing Defense, Space & Security’s fourth-quarter revenue increased 6 percent to $8.9 billion, while operating margin increased to 10.8 percent (Table 5). For the full year, revenue increased 2 percent to$33.2 billion, while operating margin increased to 9.7 percent.
Boeing Military Aircraft (BMA) fourth-quarter revenue increased to $4.4 billion, reflecting higher deliveries. Operating margin increased to 10.0 percent, reflecting the higher deliveries and strong performance. During the quarter, BMA achieved Initial Operating Capability (IOC) on the P-8A Poseidon aircraft.
Network & Space Systems (N&SS) fourth-quarter revenue increased to $2.3 billion, reflecting higher delivery volume and mix, and operating margin increased to 10.3 percent on strong performance. During the quarter, N&SS was awarded a contract for a fourth Inmarsat-5 satellite.
Global Services & Support (GS&S) fourth-quarter revenue was $2.2 billion, reflecting lower volume in integrated logistics. Operating margin was 12.8 percent. During the quarter, GS&S was awarded contracts for the B-52 and B-1 bomber modifications and upgrades.
Backlog at Defense, Space & Security was $67 billion, of which 37 percent represents orders with international customers.
Additional Financial Information
|Table 6. Additional Financial Information||Fourth Quarter||Full Year|
|(Dollars in Millions)||2013||2012||2013||2012|
|Boeing Capital Corporation||$105||$129||$408||$468|
|Unallocated items and eliminations||$123||($358)||($65)||($610)|
|Earnings from Operations|
|Boeing Capital Corporation||$9||($12)||$107||$88|
|Other segment income/(expense)||($99)||$31||($156)||($186)|
|Unallocated items and eliminations excluding unallocated pension/postretirement expense||($532)||($200)||($1,105)||($492)|
|Unallocated pension/postretirement expense||($323)||($212)||($1,314)||($899)|
|Other income, net||$15||$23||$56||$62|
|Interest and debt expense||($96)||($112)||($386)||($442)|
|Effective tax rate||14.0%||36.3%||26.4%||34.0%|
At quarter-end, Boeing Capital Corporation’s (BCC) net portfolio balance was $3.9 billion down from $4.1 billion at the beginning of the quarter. BCC’s debt-to-equity ratio was 5.0-to-1. Other segment earnings decreased $130 million in the quarter partly due to higher asset impairment expense.
Unallocated items and eliminations excluding unallocated pension/postretirement expense increased in the fourth quarter of 2013 primarily due to a $406 million charge associated with the A-12 settlement. Total pension expense for the fourth quarter was $717 million, up from $576 million in the same period last year. The company’s income tax expense was $201 million in the quarter, compared to $557 million in the same period of the prior year, due to a $212 million benefit recorded in fourth-quarter 2013 for a tax regulation change.
The company’s 2014 financial guidance (Table 7) reflects continued strong performance in both businesses.
|Table 7. Financial Outlook|
|(Dollars in Billions, except per share data)||2014|
|The Boeing Company|
|Revenue||$87.5 – 90.5|
|Core Earnings Per Share*||$7.00 – 7.20|
|Earnings Per Share||$6.10 – 6.30|
|Operating Cash Flow Before Pension Contributions*||~ $7|
|Operating Cash Flow 1||~ $6.25|
|Boeing Commercial Airplanes|
|Deliveries 2||715 – 725|
|Revenue||$57.5 – 59.5|
|Operating Margin||~ 10%|
|Boeing Defense, Space & Security|
|Boeing Military Aircraft||~ $15|
|Network & Space Systems||~ $7.7|
|Global Services & Support||~ $7.8|
|Total BDS Revenue||$30 – 31|
|Boeing Military Aircraft||~ 9.5%|
|Network & Space Systems||~ 8.5%|
|Global Services & Support||~ 10.5%|
|Total BDS Operating Margin||~ 9.5%|
|Boeing Capital Corporation|
|Pre-Tax Earnings||~ $0.05|
|Research & Development||~ $3.2|
|Capital Expenditures||~ $2.5|
|Pension Expense 3||~ $3.1|
|Effective Tax Rate 4||~ 31%|
|1||After discretionary cash pension contributions of $0.75 billion and assuming new aircraft financings under $0.5 billion|
|2||Assumes approximately 110 787 deliveries|
|3||Approximately $1.1 billion is expected to be recorded in unallocated items and eliminations|
|4||Assumes the extension of the research and development tax credit|
|*||Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”|
Boeing’s 2014 revenue guidance is established at between $87.5 and $90.5 billion. Core earnings per share guidance is set at between $7.00 and $7.20, and earnings per share guidance is expected to be between $6.10 and $6.30. Total company 2014 operating cash flow before pension contributions is expected to be approximately $7 billion, while operating cash flow is expected to be approximately $6.25 billion in 2014, including $0.75 billion of discretionary pension contributions. Total company pension expense in 2014 is expected to be approximately $3.1 billion (of which approximately $2.0 billion is expected to be recorded in core operating earnings and $1.1 billion recorded in unallocated items and eliminations).
Commercial Airplanes’ 2014 deliveries are expected to be between 715 and 725, which includes approximately 110 787 deliveries. Revenue at Commercial Airplanes is expected to be between $57.5 and $59.5 billion with operating margins of approximately 10 percent. Defense, Space & Security’s revenue for 2014 is expected to be between $30 and $31 billion with operating margins of approximately 9.5 percent.
Boeing Capital Corporation expects that its aircraft finance portfolio will continue to decline in 2014, as new aircraft financing of less than $0.5 billion is expected to be lower than normal portfolio runoff through customer payments and depreciation. Boeing’s 2014 R&D forecast is approximately $3.2 billion, and capital expenditures for 2014 are expected to be approximately $2.5 billion. Boeing’s effective tax rate is expected to be approximately 31 percent in 2014, which assumes the extension of the research and development tax credit.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding unallocated pension and post-retirement expense. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of unallocated pension and post-retirement expense. Unallocated pension and post-retirement expense represents the portion of pension and other post-retirement costs that are not recognized by business segments for segment reporting purposes. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude unallocated pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.
Core Operating Margin and the Increase in Core Operating Earnings Excluding A-12 Settlement Charge
The company is disclosing the core operating margin and the increase in core operating earnings in the fourth quarter of 2013 over the fourth quarter of 2012 excluding the A-12 settlement charge in the fourth quarter of 2013. Management believes it is useful to occasionally exclude certain items that are not reflective of underlying performance and that can distort period to period performance comparisons. Management uses similar measures for purposes of evaluating and forecasting underlying business performance. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.
Operating Cash Flow Before Pension Contributions
Operating cash flow before pension contributions is defined as GAAP operating cash flow less pension contributions. Management believes operating cash flow before pension contributions provides additional insights into underlying business performance. Management uses operating cash flow before pension contributions as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and operating cash flow before pension contributions.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8KZF N50217 (msn 36137) became JA12KZ on delivery.
Boeing rolls out the first 787-8 at the increased production rate, flight track all 787s live with Google Earth
Boeing (Chicago) has rolled out the first Boeing 787 Dreamliner built at the rate of 10 airplanes per month. The airplane, a 787-8 and the 155th Dreamliner built, will be delivered to International Lease Finance Corp. for operation by AeroMexico (Mexico City).
The new 10 per month rate is the highest ever for a twin-aisle airplane. The 787 program has now increased its production rate three times in just over a year, including to five airplanes per month in November 2012 and seven per month in May 2013.
Boeing assembles and delivers 787s in two locations: Everett, Washington, and North Charleston, South Carolina.
To date, 115 787s have been delivered to 16 customers. The program has 1,030 total orders from 60 customers worldwide.
This airplane will be the fourth 787 operated by AeroMexico and will be used on the airline’s Mexico City - London Heathrow route.
See the Boeing 787 Dreamliner Dream Pass (a view from the cockpit with pilot commentary): CLICK HERE
Flight Track all Boeing 787s using Flight Tracker and Google Earth: CLICK HERE
Boeing (Chicago) is adding hundreds of contract workers at its Boeing 787 North Charleston, South Carolina assembly plant to help deal with production problems according to the Wall Street Journal and The Post and Courier.
According to the WSJ, “Boeing is hiring more than 300 contract mechanics and inspectors immediately and could increase that number to between 500 and 1,000, according to three people familiar with the hiring. Those workers would assist the more than 7,000 people Boeing employed at the Charleston plant.”
Read the full report from The Post and Courier: CLICK HERE
Copyright Photo: Arisara Petersen. The production flight line at North Charleston. The Air India 787s are mainly assembled at Charleston.
Boeing to work with Etihad Airways and others to develop a sustainable aviation biofuel in the United Arab Emirates
Boeing (Chicago), Etihad Airways (Abu Dhabi), Takreer, Total and the Masdar Institute of Science and Technology today announced they will collaborate on a new initiative to support a sustainable aviation biofuel industry in the United Arab Emirates.
BIOjet Abu Dhabi: Flight Path to Sustainability will engage a broad range of stakeholders to develop a comprehensive framework for a U.A.E. biofuel supply chain. This initiative will focus on research and development and investments in feedstock production and refining capability in the U.A.E. and globally.
Etihad Airways showed the promise of this homegrown effort yesterday with a 45-minute demonstration flight in a Boeing 777 powered in part by U.A.E.-produced sustainable aviation biofuel. The biofuel was partially converted from plants by Total and refined into jet fuel by Takreer, a wholly-owned subsidiary of Abu Dhabi National Oil Co. (ADNOC). U.A.E. is now among a handful of countries that have produced and flown on their own aviation biofuel, which emits at least 50 percent less carbon dioxide than fossil fuel over its lifecycle.
Boeing and Etihad Airways are also among the founding partners of the Sustainable Bioenergy Research Consortium, hosted by the Masdar Institute in Abu Dhabi. The consortium has been researching and developing salt-tolerant plants that would be raw material for the same refining processes used to produce renewable fuel for the Etihad Airways flight.
The flight and BIOjet Abu Dhabi announcement lead into Abu Dhabi Sustainability Week and the World Future Energy Summit. These activities and Masdar Institute’s aviation biofuel research are aligned with the Abu Dhabi Economic Vision 2030, which seeks to develop sustainable energy sources to diversify the U.A.E. economy and increase workforce opportunities for Emiratis.
Etihad Airways is an airline industry leader in supporting the development of lower-carbon renewable fuels. A member of the Sustainable Aviation Fuel Users Group (SAFUG), the airline operated the Gulf region’s first biofuel flight in January 2011 with a Boeing 777 delivery from Seattle to Abu Dhabi powered by a blend of petroleum-based and certified plant oil-based jet fuel.
Boeing collaborates with airlines, research institutions, governments and other stakeholders to develop sustainable biofuel supply chains around the world, including the United States, Middle East, China,Brazil, Europe and Australia.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Etihad Airways’ Boeing 777-3FX ER A6-ETG (msn 39681) with special “Abu Dhabi Grand Prix 2014 Formula 1″ emblems arrives in Bangkok.