Thai Airways International (Bangkok) yesterday (July 17) took delivery of its first Boeing 787-8 Dreamliner. The pictured HS-TQA (msn 35315) departed Seattle on its delivery flight.
The airline issued this statement:
Thai Airways International Public Company Limited announced that its first 787-8 Dreamliner aircraft departed from Boeing’s Everett Delivery Center in Seattle, Washington, on a nonstop, 15-hour flight to Suvarnabhumi Airport, Thailand.
ACM Siwakiat Jayema, Acting President of Thai Airways International said, “As the national airline, the addition of the 787 to our fleet is a major milestone for Thai and Thailand. Boeing and AerCap have provided an airplane that is perfect for Thai and our passengers.” The 787-8 is the first of eight Dreamliners that Thai will lease from AerCap (six 787-8 set for delivery between 2014-2015, and two 787-9 for delivery in 2017).
Thai’s 787 Dreamliner is configured with 24 lie-flat seats in Royal Silk Class and 240 seats in Economy Class. The 787-8 is a mid-size aircraft that can fly longer distances and offer great fuel efficiency, complete with the interior environment that has been designed to make passenger travel comfortable and convenient.
Thai’s Boeing 787-8 aircraft is equipped with the next-generation Rolls-Royce Trent 1000-AE engines. The culmination of advanced aerodynamics, and lightweight structures contribute to 20 per cent reduction in fuel consumption and CO2 emissions, as well as less “roar” around airport boundaries and airport communities.
Copyright Photo: TMK Photography/AirlinersGallery.com. HS-TQA lands at Paine Field before the handover.
Thai Slide Show: CLICK HERE
Boeing (Chicago and Seattle) celebrated the first 787-9 Dreamliner delivery yesterday (July 8) with launch customer Air New Zealand (Auckland). About 1,000 Boeing employees representing the 787 program joined Air New Zealand executives and guests at a unique celebration of this milestone event (below, Boeing).
“We are proud to be the launch customer for the 787-9,” said Air New Zealand Chief Financial Officer Rob McDonald. “We believe it will be a game-changer for Air New Zealand, with increased levels of fuel efficiency and passenger comfort. We look forward to inviting our customers on board to experience the aircraft and all of its benefits for themselves.”
Air New Zealand’s Rolls-Royce powered 787-9 is part of the airline’s fleet modernization effort. This 787-9, painted in a unique black livery, is the first of 10 Dreamliners to join Air New Zealand’s fleet. The airline said the airplane will operate the Auckland–Perth route in October 2014 and to both Tokyo and Shanghai in November 2014.
The 787-9 complements and extends the 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 450 nautical miles (830 km) 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 from around the world have ordered 409 787-9s, accounting for 40 percent of all 787 orders.
Top Copyright Photo: Bernie Leighton/AirlinersGallery.com (all others by Boeing). Boeing 787-9 N1012N landing at Paine Field near Everett became ZK-NZE (msn 34334) when it was handed over on July 8.
Videos: The building and delivery of the first ANZ 787-9:
And the now famous “Swimsuit Safety Video”:
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.
United Airlines (Chicago) will initially operate its new stretched Boeing 787-9 on the domestic Los Angeles – Houston (Bush Intercontinental) – Los Angeles route from September 20 through October 25 per Airline Route. The new type will then be assigned to international routes from Los Angeles.
As previously reported, United will introduce nonstop flights between its hub at Los Angeles International Airport and Melbourne, Australia, effective on October 26, 2014 (westbound). The airline will fly the route six times weekly with the new Boeing 787-9 Dreamliner aircraft. United is the North American launch customer for the 787-9, and this will be its first international deployment of the aircraft type.
United previously announced its second route for the 787-9. UA will introduce the new stretched Boeing 787-9 Dreamliner on the Los Angeles-Shanghai (Pudong) route on March 5, 2015, initially with four weekly flights (daily by May 8, 2015).
Copyright Photo: Bernie Leighton/AirlinersGallery.com. An aerial view at the Boeing’s flight line at Paine Field, Everett of the first United Airlines Boeing 787-9, registered as N38950 (msn 36401).
United Airlines (Chicago) previously announced that it will fly the new Boeing 787-9 on international nonstop service between its hub at Los Angeles International Airport and Melbourne, Australia, beginning in October. The airline will fly the route six times weekly with the aircraft. United will be the first North American carrier to take delivery of the stretched 787-9.
United has completed the final cabin configuration and painting. The 787-9 will be configured with 252 seats – 48 in United BusinessFirst and 204 in United Economy, including 88 Economy Plus seats with added legroom and increased personal space. The first 787-9 will also be one of five aircraft used by Boeing in a flight test program to certify the aircraft.
United has now announced its second route for the 787-9. UA will introduce the new stretched Boeing 787-9 Dreamliner on the Los Angeles-Shanghai (Pudong) on March 5, 2015, initially with four weekly flights (daily by May 8, 2015).
In other news, United Airlines has announced that dispatchers, represented by the Professional Airline Flight Control Association (PAFCA) and the Transport Workers Union (TWU), have ratified a new joint labor agreement for all United Airlines dispatchers. The agreement covers more than 330 United dispatchers.
United has achieved joint collective bargaining agreements with a majority of the company’s represented work force, including pilots, fleet service, passenger service, reservations and storekeeper workgroups.
The company is starting an expedited negotiations process with the Association of Flight Attendants and expects to enter back into negotiations with the International Brotherhood of Teamsters, representing United’s technicians, soon.
Copyright Photo: Bernie Leighton/AirlinersGallery.com. An aerial view at the Boeing’s flight line at Paine Field, Everett of the first United Airlines Boeing 787-9, registered as N38950 (msn 36401).
Video: A tour of the initial Boeing 787-8:
Boeing (Chicago and Seattle) and Arke (formerly Arkefly) (Amsterdam) today celebrated the arrival of the airline’s first 787-8 Dreamliner at the Dutch carrier’s base at Schiphol Airport in Amsterdam. The pictured 787-8 PH-TFK (msn 36427) departed Paine Field in Everett, Washington on Wednesday (June 4) on its delivery flight to the Netherlands. Arke is part of TUI Travel PLC, the largest tourism group in the world.
Arke will use the 787 on its service between Amsterdam and the islands of Curacao, Aruba and Bonaire in the Dutch Caribbean. The airplane is the first of three Dreamliners to join the carrier’s all-Boeing fleet that also includes Next-Generation 737s and 767-300 ERs (Extended Range). TUI Travel has ordered a total of 15 787-8s, of which six have been delivered and are currently in operation with three of the six airlines it operates; Thomson Airways, Jetairfly and now Arke.
Copyright Photo: Boeing.
Thai Airways International (Bangkok) has released this photo of its first Boeing 787-8 Dreamliner. The pictured HS-TQA (msn 35315) is being prepared for the handover at Boeing’s Paine Field plant.
According to the airline, in the beginning, the airline will operate the Boeing 787 on its flights TG 102, TG 103, TG 110, TG 111, TG 120 and TG 121 on the Bangkok-Chiang Mai-Bangkok route. The new type will also be operated on the Bangkok-Manila-Bangkok route on flights TG 620 and TG 621.
Copyright Photo: Thai Airways International.
Air New Zealand (Auckland) has announced it has placed an order for 10 Airbus A320neo aircraft (above), one A320ceo and three A321neo aircraft (above, image via Airbus). The signing ceremony took place at the IATA annual meeting today in Doha, Qatar.
In other news, on May 29 Air New Zealand’s first Boeing 787-9 (ZK-NZE) (above) took to the air for the first time, successfully completing its first production test flight in the skies above Seattle, Washington.
Copyright Photo: Daniel Gorun/AirlinersGallery.com. Boeing 787-9 ZK-NZE (msn 34334) taxies at Paine Field near Everett, WA.
The aircraft, which is in Air New Zealand’s signature black livery, is currently in the final phases of the delivery process before being formally handed over to the airline as the new owner.
Air New Zealand is the launch customer for the Boeing 787-9 and has 10 of these stretch versions of the 787 on order.
Copyright Photo: Air New Zealand/Boeing. ZK-NZE departs from PAE on its first flight.
This first test flight is known as a B1 flight where the two pilots put the aircraft through its paces thoroughly exercising its systems to verify performance while at the same time the functionality of every aspect of the cabin is tested in-flight.
The distinctive black aircraft departed from Paine Field airport north of Seattle at 1:45 pm (1345) local time. It reached an altitude of 11,800 meters (39,000 feet) and an airspeed of 360 knots which is standard for a B1 flight and returned to Paine Field three hours and ten minutes later.
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.
Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) is arguing before the DOT and public opinion, citing an editorial by USA Today, to allow its Irish subsidiary Norwegian Air International (NAI) (Dublin) to operate its Boeing 787 Dreamliners on low-fare flights to the United States. Several unions of other airlines are arguing against this approval process. Norwegian issued this statement:
Citing the airline’s “discount ticket prices” that give “passengers a reason to celebrate,” the USA Today has endorsed Norwegian Air International (NAI)’s application to begin flying from the United States. The USA Today argued that U.S. Department of Transportation – which has delayed approval of NAI’s application for months – could provide a major boon to consumers by approving NAI’s application and introducing competition into the transatlantic flight market. The full editorial is available here:
Read the editorial from USA Today: CLICK HERE
The editorial noted that NAI is able to offer fares far below those of U.S. legacy carriers because NAI is more efficient than its competitors. The airline is using 787 Dreamliners, which “provide big savings on fuel costs.” Further, NAI “steers clear of high-cost, congested airports.”
The editorial further criticized opposition to NAI for running ads that “try to cast NAI as a lawbreaker while implying that safety is being compromised.” The editorial clearly states, however, that NAI’s opposition “lacks any proof” that NAI will not follow the highest safety standards and all U.S. laws.
The USA Today made clear that it believes that “unless the critics can prove that [NAI] is doing something unsafe or illegal, the U.S. government should let NAI fly.”
Meanwhile, the Association of Flight Attendants-CWA continues to oppose NAI and issued this statement:
Association of Flight Attendants-CWA (AFA), was joined by the European Transport Workers’ Federation (ETF) as well as the International Transport Workers’ Federation (ITF) in calling on the United States Department of Transportation (DOT) to deny an application for a foreign air carrier permit submitted by Norwegian Air International (NAI).
AFA, ETF and ITF once again spotlight the unfair labor practices established by NAI in their mission to enter the U.S. aviation market. NAI’s business plan is crafted to circumvent worker protections by evading international labor laws, creating unfair competition with EU and U.S. carriers and threatening to degrade labor standards both in the U.S. and in Europe.
Veda Shook, AFA International President stated: “AFA remains committed to a healthy and robust global aviation marketplace that provides career opportunities and good jobs for workers across the world. Competition and growth are essential to our industry but we must remain dedicated to promoting strong labor standards. Skirting international laws in order to gain unfair advantage cannot be tolerated. We call on Secretary Foxx to deny NAI’s current application before such labor practices become the norm in international aviation, triggering a race to the bottom.”
François Ballestero, the ETF Civil Aviation Political Secretary commented: “The attempt of Norwegian Air to import cheap labor from Asia by employing non-European cabin crew on its long-haul routes are an attack on working conditions of the existing workers. The ETF is committed to fight against social dumping and we urge the DOT to put an end to these unfair practices. And we are not alone in our concerns: the Norwegian Minister of Transport and Communications recently raised his concern to the European Commission about the challenges facing European aviation that are created by fragmented operations between multiple countries.”
Gabriel Mocho Rodriguez, ITF Civil Aviation Secretary added: “The practice of establishing subsidiaries and registering vessels under flags of convenience in order to avoid oversight and slash costs has long been a feature of the maritime industry. The results are well known: lower safety standards, sometimes shocking working conditions, little protection for workers. The ITF is well known for fighting these abuses. For decades we have been warning that the flags of convenience model could be copied in the aviation sector. Just last month, our cabin crew committee decisively rejected the outsourcing and flagging out practices of NAI. The AFA together with the IAM (International Association of Machinists and Aerospace Workers), TWU (Transport Workers’ Union) and APFA (Association of Professional Flight Attendants), supported that resolve and are actively lobbying the U.S. government and urging it to prevent those unacceptable practices being imported into the US. The ITF will continue to support their effort.”
The ETF represents more than 250,000 civil aviation workers all over Europe, including 80,000 cabin crews.
The ITF represent more than 650,000 civil aviation workers all over the world, including nearly 100,000 Flight Attendants in the United States.
Copyright Photo: James Helbock/AirlinersGallery.com. Boeing 787-8 EI-LNB (msn 35305) is pictured at Paine Field in Everett.
Norwegian signs a contract for three additional Boeing 787-9 Dreamliners, loses $137.6 million in the first quarter
Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has entered into an agreement for the delivery of three new long-haul Boeing 787-9 Dreamliners. Two of the aircraft will be delivered in 2016 and one in 2017.
Norwegian continues to expand its international operations and has agreed to also lease two 787-9 Dreamliners. Norwegian will put two of the planes in service in 2016 and one in 2017. Today, Norwegian has five long-haul type Dreamliner 787-8 in its fleet and another three on order. In addition, Norwegian has already placed an order for six 787-9s. With this new contract, Norwegian in 2018 will have a long-haul fleet of 17 long-haul 787s.
Facts about Boeing 787-9 Dreamliner:
Holds up to 20 percent more passengers than 787-8
Six meters (20 feet) longer than the 787-8
Significantly greater cargo capacity than the 787-8
Eight percent less fuel per seat than today’s version, which also gives the corresponding reduction in environmental emissions
In other news, Norwegian announced a quarterly loss before taxes of -813 million NOK ($137.6 million). Quarterly earnings were affected by additional costs for hiring of crews and a weak Norwegian crown.
During the first quarter, the revenue increased to 3.55 billion Norwegian kroner, an increase of 22 percent compared to the same quarter last year.
9 million passengers flew with Norwegian representing growth of 24 percent. The traffic growth (RPK) was at 50 percent, which is also linked to each Norwegian passengers now fly much longer than they did a year ago.
The figures also show strong output growth with an increase of 48 percent (ASK). The load factor was 77 percent in the first quarter, up one percentage point compared to the same quarter the year before. Adjusted with extra costs and a weak currency decreased costs (CASK) by nine percent in the first quarter.
Extra costs associated with long-haul operations accounted for 78 million NOK. These costs included the leasing of aircraft, additional fuel and the cost of hotels, food and drink to passengers affected by technical and operational problems with long-distance business.
During the first quarter, Norwegian phased in five new Boeing 737-800s and a Boeing 787-8 Dreamliner. With the Dreamliner (EI-LNE) that was delivered last week, Norwegian now has a total of five long-haul aircraft in service and 12 on order.
Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first, the pictured 787-8 EI-LNA (msn 35304) displays the likeness of Sonja Henie on the tail.
Delta Air Lines‘ (Atlanta) Board of Directors have announced the next phase of the company’s plans to return capital to shareholders, including a 50 percent increase to its dividend and a new share repurchase authorization. The Board has authorized a new $2 billion share repurchase program, to be completed no later than Dec. 31, 2016. In addition, beginning in the September 2014 quarter, the company’s quarterly dividend will increase to $0.09 per share from the current $0.06 per share. Together, these two programs are expected to return an additional $2.75 billion to shareholders through 2016.
“Delta has deployed its strong cash flows to drive value for owners by strengthening its balance sheet through debt and pension reductions while also returning a significant amount of cash back to shareholders,” said Daniel Carp, chairman of Delta’s Board of Directors. “The Board is furthering our long-term commitment to Delta shareholders by substantially increasing our dividend and also providing a flexible vehicle to return additional cash to shareholders through the $2 billion share repurchase program. This next phase of our shareholder return program reflects the Board’s confidence in Delta’s ability to sustain and improve upon its already strong financial performance.”
Balanced Approach to Capital Deployment
In an investor presentation this morning, Delta updated its progress against the balanced capital deployment plan announced by the company in May 2013. With its financial performance and cash flows having exceeded the targets under that plan, Delta announced new plans to further drive shareholder value by accelerating the company’s efforts to reduce debt levels, address its pension obligations, and return cash to shareholders.
Debt: Delta ended the March 2014 quarter with $9.1 billion of adjusted net debt, a reduction of $2.6 billion since the end of 2012 and nearly $8 billion since the company began its debt reduction efforts in 2009. The company expects to reach $7 billion of adjusted net debt in 2015, two years ahead of its originally stated goal, and $5 billion of adjusted net debt by the end of 2016.
Pension: For 2013 and 2014, the company contributed nearly $1 billion each year to its defined benefit pension plans, through a combination of $700 million in required minimum funding and $250 million of incremental funding. This pension funding level, combined with higher interest rates and returns on pension assets, helped lower the company’s unfunded pension liability by 25 percent to just over $10 billion. The company plans to maintain its current $1 billion annual funding level through 2020, with a goal of achieving 80 percent funded status by that date.
Cash returns to shareholders: The company is on track to return $700 million to shareholders by early June 2014, through $200 million of dividends and completing its original $500 million share repurchase authorization more than two years ahead of its June 30, 2016 expiration date. The new repurchase authorization and increase to the quarterly dividend approved by Delta’s Board of Directors are expected to return an additional $2.75 billion to shareholders through 2016.
Repurchases under Delta’s program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions in compliance with applicable regulatory guidelines, including Securities and Exchange Commission Rule 10b-18. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors. Delta had approximately 853 million shares of common stock outstanding as of March 31, 2014.
Bloomberg Businessweek article on Delta’s quest for a billion dollars in baggage fees!: CLICK HERE
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-232 LR (Longer Range) N706DN (msn 30440) climbs away from the runway at Paine Field near Everett, WA with the snow-capped Olympic Mountains in the background.
Lufthansa (Frankfurt) and Boeing (Chicago and Seattle) celebrated the delivery of the German airline’s 75th 747 on Wednesday (April 30).
Lufthansa is the launch customer for the 747-8 Intercontinental jetliner and took delivery of the first one in April 2012. The airplane delivered Wednesday is Lufthansa’s 13th 747-8 Intercontinental, namely 747-830 D-ABYO (msn 37841). The airline currently flies the 747 to 22 destinations in 10 countries. Over the years, Lufthansa has ordered a total of 81 747s.
Lufthansa’s first 747 – a 747-100 – was delivered in 1970. The airline was also the first to order the 747-200 Freighter.
The 747-8 has accumulated 120 orders for passenger and cargo versions, 68 of which have been delivered.
Top Copyright Photo: Boeing. This poor-quality publicity photo shows D-ABYO departing from Paine Field.
Bottom Copyright Photo: Bruce Drum/AirlinersGallery.com. It all started with the Boeing 747-130. The pictured Boeing 747-130 D-ABYA (msn 19746) at New York (JFK) was delivered new to LH as the first 747 on March 10, 1970.
Jet Airways‘ (Mumbai) flight 9W 117 from London (Heathrow) to Mumbai flew over the busy German airspace without radio contact on March 13, five days after Malaysia Airlines flight MH 370 disappeared. Boeing 777-35R VT-JEG (msn 35163) was flown for 30 minutes without positive radio contact from the cockpit crew.
Both pilots, who failed to notice they had lost air traffic control radio contact, were suspended by the company.
Read the full report from the Economic Times: CLICK HERE
Previously the airline on February 12, 2014 had inaugurated flights from the new international integrated terminal T2 at Mumbai’s Chhatrapati Shivaji International Airport on this route to London Heathrow.
Jet Airways’ flight 9W 118 from Mumbai to London Heathrow became the first international flight to take off at 1320 from India’s most new, modern and spacious Terminal 2.
Copyright Photo: Nick Dean/AirlinersGallery.com. Sister ship Boeing 777-35R ER N834BA became VT-JEL (msn 36563) on delivery.
Boeing (Chicago and Seattle) yesterday (April 5) rolled out of the paint hangar the first 787-9 Dreamliner (ZK-NZE, msn 34334) to be delivered to launch customer Air New Zealand (Auckland), revealing the carrier’s new-look livery. The airplane, painted in a distinctive black color scheme, features the iconic official New Zealand Fern Mark.
This 787-9 is the first airplane to feature the distinctive black version of Air New Zealand’s new-look livery design, with the white version having been gradually rolled out across the airline’s domestic fleet in recent months. While the majority of Air New Zealand’s fleet will eventually feature the white version, a limited number will feature the signature black version.
Air New Zealand plans to have the airplane begin service on its Auckland-Perth route later this year. Air New Zealand has 10 787-9s on order.
The 787-9 will complement and extend the 787 family. With the fuselage stretched by 20 feet (6 m) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 300 nautical miles (555 km) with the same exceptional environmental performance — 20 percent less fuel use and 20 percent fewer emissions than similarly sized airplanes.
Twenty-six customers from around the world have ordered 405 787-9s, accounting for approximately 39 percent of all 787 orders.
Air New Zealand issued this statement:
The aircraft, which will soon become the first 787-9 in commercial operation, rolled out of Boeing’s paint hangar on Saturday evening April 5 and will join the Air New Zealand fleet mid year.
The 787-9 is the first Air New Zealand aircraft to feature the distinctive black version of the airline’s new-look livery. The white version of the livery has been gradually rolled out across the airline’s A320 domestic fleet in recent months.
The paint job took five days to complete and was done by 12 painters using around 350 liters of paint.
Air New Zealand’s new livery features the New Zealand Fern Mark, the use of which is authorised by Tourism New Zealand and New Zealand Trade and Enterprise. While the majority of the airline’s fleet will eventually feature the white version of the design a limited number will feature this signature black version.
This aircraft is the first of ten 787-9 Dreamliners to join Air New Zealand’s fleet. Air New Zealand is the global launch customer for the 787-9 which is 20 percent more fuel efficient than the aircraft it’s replacing. The 787-9 will operate the Auckland – Perth route from October 15, 2014 and to both Tokyo and Shanghai from November.
Copyright Photo: Bernie/Leighton/AirlinersGallery.com.
Video: Air New Zealand. The building of the first ANZ 787-9:
Images below: Air New Zealand. The 2013 livery has two versions:
Kenya Airways (Nairobi) and Boeing (Chicago and Seattle) yesterday (April 4) celebrated the delivery and flyaway of the Kenyan flag carrier’s first 787 Dreamliner. Boeing 787-8 5Y-KZA (msn 35510) departed Paine Field in Everett for a 7,800 nautical mile (14,456 km) nonstop flight to Kenya Airways’ home base in Nairobi at Jomo Kenyatta International Airport.
This delivery is the first of nine 787 Dreamliners set to join Kenya Airways’ fleet. The deliveries of additional 787s, along with 777-300ER (Extended Range) airplanes, forms part of the East African carrier’s 10-year strategic plan called “Project Mawingu.” The plan is focused on increasing the airline’s fleet size from 44 airplanes to 107 by 2021 and destinations from the 62 to 115. Currently the Nairobi-based carrier operates an all-Boeing long-haul fleet of six 767-300 ERs, four 777-200ERs and one 777-300 ER.
Kenya Airways’ first 787 is scheduled to begin flying regionally within Africa (Mombasa and Johannesburg) in the coming weeks, before beginning long-haul service to Paris (CDG) in early June. Currently the “Pride of Africa” serves destinations across Africa, Asia, Europe and the Middle East. To date, more than 130 Dreamliners have been delivered to 17 customers worldwide.
Top Copyright Photo: Royal S. King/AirlinersGallery.com. 5Y-KZA is beautifully captured at Paine Field near Everett before the delivery.
Bottom Copyright Photo: Kenya Airways. 5Y-KZA lands in Nairobi on April 5. CEO Dr. Titus Naikuni carries the Kenyan flag and walks towards H.E Uhuru Kenyatta for the hand over of the aircraft.
Boeing (Chicago and Seattle) has delivered a 777-200 LR (Longer Range) (777-22K LR EZ-A778, msn 42296) passenger aircraft to Turkmenistan’s national flag carrier, Turkmenistan Airlines (Ashgabat). The airplane is the first of two new 777-200 LRs Turkmenistan Airlines has on order. The delivery coincided with the opening of a new terminal at the Ashgabat International airport.
Previously Turkmenistan took delivery of the pictured 777-22K LR EZ-A777 (msn 39548) on August 31, 2010.
Turkmenistan Airlines’ fleet modernization plan started in 1992 when the airline became the first in the Commonwealth of Independent States to order airplanes from Boeing. The airplane will join Turkmenistan’s fleet of airplanes, which currently include seven 717-200s, three 737-300s, four 737-700s, five 737-800s and four 757-200s.
Copyright Photo: Nick Dean/AirlinersGallery.com. EZ-A777 departs from Paine Field near Everett, WA.
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.
Garuda Indonesia Airways (Jakarta) today (March 5) has become the 20th member of SkyTeam. SkyTeam issued this statement:
SkyTeam, the global airline alliance, has welcomed Garuda Indonesia as its 20th member and second airline from Southeast Asia. Garuda’s membership adds Jakarta as an alternative gateway to and from South East Asia, as well as 40 new destinations to SkyTeam’s global network served uniquely by the alliance.
Garuda flies to 64 destinations in 12 countries, including 40 domestic destinations. SkyTeam customers from every continent will benefit from easier access to Indonesia’s key business and tourism destinations, facilitated by Garuda’s partnerships with alliance members.
The airline boosts SkyTeam’s presence in Australia with service to Brisbane, Melbourne, Perth and Sydney; and in Tokyo with flights to both Narita and Haneda airports. Garuda will increase its service to Europe in May this year with a new route between Jakarta and London’s Gatwick airport.
As part of the requirements of joining SkyTeam, Garuda is implementing the alliance’s customer-focused initiatives. These include SkyPriority – priority airport services for Elite Plus, First and Business Class passengers worldwide – which has been rolled out at over 900 airports globally. Effective immediately, Garuda’s 19 million annual passengers will be able to earn and redeem miles when flying on SkyTeam member-operated flights. Members of other SkyTeam airlines’ frequent flyer programs can also earn and redeem miles when flying on Garuda Indonesia operated flights.
Copyright Photo: Nick Dean/AirlinersGallery.com. Garuda Indonesia has added new Boeing 777-300 ERs for its long-range routes. Boeing 777-3U3 ER PK-GIC (msn 40075) departs from Paine Field near Everett.
Air China (Beijing) following up on our report last month, will commence Beijing-Washington (Dulles) nonstop service on June 10, 2014, making Washington the 7th North American destination that Air China serves alongside New York, Los Angeles, San Francisco, Houston, Honolulu and Vancouver.
The four-times weekly service CA 817/8 will be offered on Monday, Tuesday, Thursday and Saturday with Boeing 777-300 ER aircraft. The outbound flight leaves Beijing at 13:00 and arrives in Washington at 14:35 local time. The return flight leaves Washington at 16:35 local time and arrives in Beijing at 18:15 Beijing time the following day.
Copyright Photo: Nick Dean/AirlinersGallery.com. Brand new Boeing 777-39L ER B-2040 (msn 38680) climbs away from Paine Field near Everett, Washington.
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) yesterday (February 25) delivered the first 777-300 ER (Extended Range) (777-31B ER, B-2099, msn 43219) to China Southern Airlines (Guangzhou), Asia’s largest airline in fleet size and number of passengers carried. The new airplane is the first of 10 777-300 ERs China Southern has on order with Boeing.
China Southern plans to operate its first 777-300ER on its new North America route, where it will be able to directly connect passengers in the southern region of China to the eastern coast of the United States. Initially it will be deployed on the domestic Guangzhou-Shanghai (Hongqiao) route in March.
China Southern has configured its new 777-300 ER to feature four distinct cabins. On board passengers will find four first class seats, 34 business class seats, 44 premium economy seats and 227 economy seats, for a total of 309 passengers.
China Southern Airlines has been a valued Boeing customer for 25 years. In 2013, China Southern was the first Chinese carrier to operate the 787 Dreamliner. The airline was the first carrier in Asia to operate the 777 in 1995 and the first to operate 777s on nonstop routes across the Pacific Ocean, connecting Guangzhou and Los Angeles.
China Southern was the first Chinese carrier to take direct delivery of the 757-200, 777-200, 777-200 ER (Extended Range), 777 Freighter and 747-400 Freighter from Boeing.
Copyright Photo: Boeing.
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 (Chicago) set a company record in 2013 for the most commercial airplanes delivered in a single year with 648. The company’s unfilled commercial orders stood at 5,080 at the end of the year – also a new Boeing record.
Boeing also booked 1,531 gross commercial orders in 2013, a new company record and 1,355 net commercial orders in 2013, the second-largest number in company history.
In 2013, three programs set records for deliveries in single year:
- The 737 program delivered 440 Next-Generation 737s
- The 777 program delivered 98 airplanes
- The 787 program delivered 65 Dreamliners, now flying with 16 customers around the world
With the higher production rates achieved in 2013, all three Boeing Commercial Airplanes production sites in Everett and Renton, Washington and North Charleston, South Carolina also delivered a record number of airplanes.
Boeing’s leadership position in the twin-aisle market continued in 2013 with the launch of two new airplane programs. The 777X launched in November at the Dubai Air Show with 259 orders and commitments worth more than $95 billion at list prices. Boeing also launched the 787-10 Dreamliner, the most fuel-efficient jetliner in history, at the Paris Air Show in June.
Orders, deliveries and unfilled orders as of December 31, 2013, by program were as follows:
|Family||Gross Orders||Net Orders||Deliveries||Unfilled Orders|
Boeing Commercial Airplanes highlights in 2013 included:
- Boeing Delivers 7,500th 737
- Boeing, Southwest Airlines Announce Launch of 737 MAX 7
- Boeing Opens New Everett Delivery Center
- Boeing Delivers 1,000th Airplane to China
- Boeing Launches 787-10 Dreamliner
- Boeing Begins Assembly of 1st KC-46A Tanker Aircraft
- Boeing Flies First 787-9 Dreamliner
- Boeing Completes 737 MAX 8 Firm Configuration
- Boeing to Increase 737 Production Rate in 2017
- Boeing, GOL Airlines Announce Collaboration to Increase Sustainable Aviation Biofuel Supply in Brazil
- Boeing 787 Dreamliner Reaches 1,000th Order with Etihad Airways
- Boeing Launches 777X with Record-Breaking Orders and Commitments
- Boeing Delivers First 747-8 with Performance-Improved Engines
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8R7F N747EX (msn 35808) lands at Paine Field near Renton.
Cathay Pacific Airways (Hong Kong) and Boeing (Chicago) announced the airline has ordered an additional 747-8 Freighter and three 777-300 ER (Extended Range) airplanes. The order, valued at about $1 billion at current list prices, will bolster Cathay Pacific’s 747-8 Freighter fleet and 777-300ER fleet to 14 and 53, respectively.
Hong Kong’s flag carrier is in the midst of renewing its freighter fleet with newer, more efficient airplanes, while also looking to strengthen its position as a market leader in the air cargo business.
The 747-8 Freighter gives cargo operators the lowest operating costs and best economics of any large freighter airplane while providing enhanced environmental performance. At 250 feet, 2 inches (76.3 m) long — 18 feet, 4 inches (5.6 m) longer than the 747-400 Freighter — the 747-8 Freighter gives customers 16 percent more revenue cargo volume compared to its predecessor with nearly equivalent trip costs and lower ton-mile costs.
The Boeing 777 is the world’s most successful twin-engine, long-haul airplane. The 777-300ER is equipped with the world’s most powerful GE90-115B commercial jet engine, and can seat up to 386 passengers in a three-class configuration with a maximum range of 7,930 nautical miles (14,685 km).
Hong Kong’s flag carrier operates 55 777s, including 38 777-300 ERs and an all-Boeing freighter fleet that includes 13 747-8 Freighters. With this order, Cathay Pacific will have 21 777-9X airplanes, 15 777-300 ERs and one 747-8 Freighter on order with Boeing.
Top Copyright Photo: Nick Dean/AirlinersGallery.com. Brand new Boeing 747-867F B-LJI (msn 39247) lifts off the runway at Paine Field near Everett, Washington.
Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. The Stretch Triple Seven is becoming the mainstay of the Cathay Pacific long-range passenger aircraft fleet as the Boeing 747-400 replacement. Sleek Boeing 777-367 B-KPN (msn 36165) steadily climbs away from the runway at Los Angeles International Airport (LAX).
Norwegian to lease two Boeing 787-9s from MG Aviation, will operate seasonal New York-Bergen 787 flights, ALPA opposes Norwegian Air International in Ireland
Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has entered into a lease agreement for two new Boeing 787 Dreamliners for delivery in the first quarter of 2016. The aircraft are the new model 787-9 Dreamliner, which is slightly larger than the 787-8s Norwegian currently uses on its long-haul routes.
Norwegian continues to build up its long-haul fleet for further international growth and has signed an agreement with MG Aviation Ltd. to lease two long-haul Boeing 787-9 Dreamliners. Norwegian plans to put the aircraft into service during the first quarter of 2016. Norwegian has three Boeing 787-8 Dreamliners currently in the fleet and five more on order. Through this, the company in the future will have a fleet of 10 long-haul aircraft, including four delivered in 2014, one in 2015 and two in 2016.
Despite the early problems, “the Dreamliner is a wonderful aircraft, with high passenger comfort, long range and low fuel consumption”, says CEO Bjorn Kjos.
This larger Dreamliner model accommodates more passengers and is more fuel efficient and environmentally friendly than the 787-8 model. Boeing has already made a series of test flights and this type is scheduled to enter commercial operation in 2014.
The company MG Aviation, based in New York and is a leasing company owned by Jordache Enterprises.
In addition, Norwegian will fly one flight per week between New York (JFK) to Bergen (BGO). The first flight from BGO will start on May 3, 2014. The first flight from JFK departs on May 9, 2014 and the route will be operated until September 27, 2014.
Finally, ALPA has issued this statement opposing Norwegian attempt to establish a subsidiary called Norwegian Air International in Ireland:
The Air Line Pilots Association, Int’l (ALPA) yesterday called for the U.S. Department of Transportation (DOT) to immediately reject Norwegian Air International’s (NAI) foreign air carrier permit application because the company appears to be attempting to evade its national laws and regulations to compete unfairly against U.S. airlines and their employees. The call came in an answer that ALPA filed in response to NAI’s application.
“Norwegian Air International was clearly designed to attempt to dodge laws and regulations, starting a race to the bottom on labor and working conditions,” said Capt. Lee Moak, ALPA’s president. “If successful, the company would gain a serious and unfair economic advantage over U.S. airlines in the competition for the business of international passengers flying to and from the United States. This exploitation of the laws intended to prevent labor law shopping cannot be allowed to stand.”
While Norwegian citizens control NAI, which is a subsidiary of Norwegian Air Shuttle (NAS), the company uses aircraft registered in Ireland and has applied for an air operator certificate from that country. It appears that its flight crews will work under individual employment contracts that are governed by Singapore law and that have wages and working conditions substantially inferior to those of NAS’s Norway-based pilots.
“If NAS is permitted to pick and choose the countries in which it establishes its subsidiaries and employs its flight crews, U.S. carriers will be put at a severe competitive disadvantage because the United States has one set of laws and regulations for all of its airlines,” said Capt. Moak. “The U.S.-EU air services agreement was never intended to allow this type of scheme, which games the system for competitive economic advantages.”
ALPA maintains that the NAI scheme raises the specter of the “flag of convenience” business practice that undermined the U.S. maritime industry by allowing a vessel to be registered in a country different from its ownership and apply the country of registry’s laws to its operations. The practice precipitated the decline of the industry and the loss of tens of thousands of U.S. maritime jobs as companies flew the flag of countries with the weakest labor and tax laws and regulations.
Moak noted a quote by the AFL-CIO’s Transportation Trades Department in an opinion piece published today by Aviation Daily: “We must reject business models premised on scouring the globe for cheap labor no matter the consequences, and not pretend this is somehow acceptable competitive behavior.”
“The NAI scheme must be immediately and unequivocally rejected,” said Moak. “The DOT must not permit U.S. airlines and their employees to face an unfair competitive disadvantage from this runaway shop and swiftly dismiss NAI’s air carrier permit application.”
Moak also called on the Irish government to reject NAI’s attempt to register the aircraft in Ireland. “Ireland should not allow itself to be complicit in NAI’s avoidance scheme,” he concluded.
Copyright Photo: The Norwegian Long Haul Boeeing 787-8s are registered in Ireland. 787-8 EI-LNA (msn 35304) is pictured at Paine Field before the hand over.
Atlas Air Worldwide Holdings, Inc. (New York) has announced that its Atlas Air, Inc. (New York-JFK) unit has entered into a contract with BST Logistics (Hong Kong) Company Limited (BST Logistics), a business partner of Navitrans International Freight Forwarding Co., Ltd., to provide Boeing 747-8 freighter service.
The contract is for one aircraft under an ACMI (Aircraft, Crew, Maintenance and Insurance) agreement, with service expected to begin in February 2014 and operating in key global routes connecting the U.S., Europe and Asia.
BST Logistics provides dedicated airfreight services on a global basis and serves some of the largest shippers in the world.
Copyright Photo: Nick Dean/AirlinersGallery.com. Atlas Air’s Boeing 747-87UF N854GT (msn 37566) departs from Paine Field near Everett.
Air India (Mumbai) has finalized the details in order to sell five Boeing 777-200 LR (Longer Range) aircraft to Etihad Airways (Abu Dhabi). As previously prorated, the two airlines signed a Letter of Intent (LOI) in October. The aircraft will be delivered by March 2014 according to this report by The Economic Times.
The 777-200 LR is a new type for Etihad Airways.
Read the full story from The Economic Times: CLICK HERE
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-237 LR VT-ALH (msn 36307) is relatively new as it was delivered to Air India on August 28, 2009.
Hainan Airlines (Haikou and Beijing) today announced it plans to launch nonstop service from Boston’s Logan Airport to Beijing on June 20, 2014. This will represent the first scheduled nonstop flight from Boston to Mainland China in history – and with the industry’s most advanced airliner – the Boeing 787 Dreamliner.
Hainan Airlines will operate the flights every Monday, Wednesday, Friday and Saturday. With its international hub at Beijing, Hainan will offer connections to cities throughout China, including Shanghai, Guangzhou, Fuzhou, Xi’an and Haikou. Travelers may stopover in Beijing in either direction and connect with numerous additional Chinese cities across the Hainan network such as Chengdu or Dalian. The new Boston flight will complement the carrier’s existing North American service to Beijing from Seattle, Chicago and Toronto.
Flight 482 will depart Logan Airport at 5:10 pm (1710) and arrive in Beijing at 6:50 pm (1850) the following day. Flight 481 will depart Beijing at 1:50 pm (1350) and reach Logan Airport at 3:10 pm (1510) the same day. Flight time is a little over 13 hours.
Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 787-8 Dreamliner B-2728 (msn 34938) lands at Paine Field near Everett.
JAL-Japan Airlines (Tokyo) announced today, according to Retuters, it will pull its Boeing 787-8s from two international routes after Boeing notified the carrier of icing concerns in the General Electric GEnx engines.
The carrier was advised to not fly the aircraft with these engines near thunderstorms following a recent incident in which a 747 experienced a loss of power after flying through a thunderstorm.
JAL will remove the 787-8 on its Tokyo-Delhi and Tokyo-Singapore routes while also dropping plans to use 787-8s on its Tokyo-Sydney route starting next month.
Read the full Reuters report: CLICK HERE
Copyright Photo: Royal S. King/AirlinersGallery.com. Boeing 787-8 Dreamliner JA828J (msn 38438) lands after a test flight at Paine Field near Everett.
Boeing (Chicago) has delivered a 777-300 ER (Extended Range) jet to GE Capital Aviation Services (GECAS) for lease to Ethiopian Airlines (Addis Ababa). The 777-300 ER is now the largest airplane in the Ethiopian flag-carrier’s fleet and will provide it with increased capacity and improved operating economics on key routes from its base in the Ethiopian capital, Addis Ababa.
The pictured 777-36N ER ET-APX (msn 42101) was handed over on November 7 as scheduled.
Ethiopian’s first 777-300 ER will seat nearly 400 passengers in a two-class configuration and perfectly complements its existing fleet of six 777-200 LR (Longer Range) airplanes by providing additional capacity and flexibility on popular routes, such as Guangzhou, Washington, D.C. and Dubai.
The 777-300 ER can fly up to 7,825 nautical miles (14,490 kilometers) and is equipped with GE90-115B engines, the world’s most powerful commercial jet engine. Ethiopian’s 777-300ER also features the Boeing Signature Interior that offers wider seats, wider aisles, more headroom and more seating flexibility.
Ethiopian currently serves 76 destinations across five continents and was recently awarded African Business of the Year at the annual African Business Awards. The carrier’s partnership with Boeing stretches back over six decades, with a current fleet of nearly 50 Boeing airplanes that includes Next-Generation 737s, 757s, 767s, 777s, and 787 Dreamliners and a cargo fleet that includes 757s, 777 Freighters and a MD-11.
The airline issued this statement:
Ethiopian Airlines, the fastest growing and most profitable African airline, took delivery of the first of its four Boeing 777-300 ERs on November 7, 2013. The Boeing 777-300 ER is the largest aircraft in the airline’s fleet with 400 passengers seating capacity.
Ethiopian Boeing 777-300 ER will operate in its dense routes such as Guangzhou, Washington D.C., Dubai and Luanda. The aircraft is scheduled to serve the Addis Ababa – Luanda route three times a week, as of November 10, 2013, and three times a week on the Addis Ababa – Guangzhou route, as of November 15, 2013.
Ethiopian, which is a multi-award winning Pan-African carrier as the Passenger Choice “Best Airline in Africa” and the SKYTRAX “Best Staff Service in Africa” of 2013, will phase in three additional B777-300ERs in January 2014, May and June 2015.
Copyright Photo: Ethiopian Airlines.
Boeing (Chicago) has delivered a 777-300 ER (Extended Range) to GE Capital Aviation Services (GECAS) for lease to Kenya Airways (Nairobi). The pictured 777-36N ER 5Y-KZZ (msn 41818) was handed over on October 24.
Kenya Airways’ 777-300 ER is configured with 400 seats, 28 in Premier World and 372 in Economy, and features USB ports, power sockets and an all-new in-flight entertainment system throughout the cabin. The airplane can fly up to 7,825 nautical miles (14,490 kilometers) and is equipped with GE90-115B engines, the world’s most powerful commercial jet engine.
Kenya Airways is set to take delivery of a further two 777-300 ERs, including an additional lease, as part of the carrier’s 10-year strategic plan dubbed ‘Project Mawingu.’ The Nairobi-based carrier plans to increase its fleet size from 44 airplanes to 107 by 2021 and destinations from the current 62 to 115. Currently the airline operates an all-Boeing long-haul fleet of four 777-200 ERs and six 767-300 ERs.
With this delivery, Kenya Airways is also working with Boeing to support the Alaskan Sudan Medical Project (ASMP) by carrying 10,400 lbs (4,717 kilograms) of humanitarian supplies on the 777-300 ER’s delivery flight to Kenya. ASMP will use the supplies to build medical clinics, drill water wells and construct bio-sand filters for clean water in the Jonglei region of South Sudan. The humanitarian cargo will also include water pumps and agriculture equipment to support local farmers, fulfilling the ASMP’s mission statement of saving lives through health, clean water and agriculture.
Kenya Airways operates a fleet of more than 25 Boeing airplanes including, 777s, 767s and 737s. The carrier serves more than 60 destinations across Asia, Africa, the Middle East and Europe and has nine 787 Dreamliners currently on order from Boeing.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-36N ER 5Y-KZZ (msn 41818) climbs beautifully from the runway at Paine Field near Everett.
FedEx Express (Memphis), an operating company of FedEx Corporation (Memphis), yesterday introduced its new Boeing 767-300 cargo jet scheduled to begin service this fall. The aircraft is the first of several new 767-300 freighters being added to the FedEx fleet, and represents a major step in the company’s strategically important aircraft fleet modernization program. The 767-300 joins 777s and 757s in the company’s growing fleet of more efficient, lower-emission freighters.
The aircraft was center stage at an event attended by FedEx team members and special guests at the company’s World Hub in Memphis.
The initial 767 was delivered to FedEx from Boeing last month and is undergoing the certification process required to begin service. It is among 50 767s FedEx has ordered, which are scheduled to be delivered through the end of the company’s fiscal year 2019.
With a maximum gross payload capacity of 127,100 pounds, the medium wide-body 767 Freighter has a flight range of 2,922 nautical miles (3,362 statute miles).
The 767 brings FedEx an array of double-digit efficiencies. The freighter is approximately 30 percent more fuel efficient and has unit operating costs that are more than 20 percent lower than the MD10 aircraft it will replace. The ability to share parts, tooling and flight simulators with FedEx 757 freighters is another efficiency of the 767.
Across its aircraft fleet, FedEx projects a 30 percent reduction in its unit carbon emissions by the year 2020. In addition, the company has reaffirmed its commitment to sourcing at least 30 percent of its jet fuel from alternative fuels by the year 2030.
With the 767 freighter, FedEx is also introducing a new “efficient container” or Unit Load Device used to hold individual packages on the aircraft. The FedEx Efficient Container is lighter and its construction includes more recycled materials.
Under its aircraft fleet modernization program, FedEx began upgrading its fleet in 2007 with the addition of 757 freighters to replace 727s. The final 727 in the FedEx fleet was retired in June.
In 2009, the company introduced the 777, the world’s largest twin-engine cargo freighter with a non-stop flight range of 5,800 nautical miles (6,675 statute miles) and a cargo capacity of 178,000 pounds in typical FedEx service.
Copyright Photo: Duncan Kirk/AirlinersGallery.com. Boeing 767-3S2F ER N101FE (msn 42706) taxies at Paine Field near Everett. N101FE was delivered to FedEx on September 4, 2013.
Boeing (Chicago) has just announced that it will adjust the production rate for the 747-8 program from 1.75 airplanes to 1.5 airplanes per month through 2015 because of lower market demand for large passenger and freighter airplanes.
The company expects long-term average growth in the air cargo market to begin returning in 2014, and forecasts global demand for 760 large airplanes (such as the 747-8) over the next 20 years, valued at $280 billion.
The 747-8 family provides airlines with double-digit improvements in fuel efficiency, operating costs and emissions, while being 30 percent quieter and adding more capacity. To date, the 747-8 has accumulated 107 orders for passenger and cargo versions, 56 of which have been delivered.
The first delivery at the new production rate is expected in early 2014. The production rate change is not expected to have a significant financial impact.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8KZF N50217 (JA12KZ) (msn 36137) climbs away from the runway at Paine Field near Everett, WA.
Air India‘s (Mumbai) Boeing 787-8 VT-ANO (msn 36286) while being operated on flight AI 803 from Delhi to Bangalore with 148 passengers and crew members, lost a 4′ x 8′ panel while en route between the two cities on October 12, 2013. The troubled airliner made a safe emergency landing at Bangalore. The panel has since been repaired and the aircraft is back in service according to The Times of India.
VT-ANO was delivered to Air India on October 4, 2013.
Read the full article: CLICK HERE
Copyright Photo: Nick Dean/AirlinersGallery.com. Soon to be delivered Boeing 787-8 VT-ANG (msn 36275) Completes a test flight at Paine Field near Everett.
All AG images are available as framable color prints or posters.
Alaska Airlines (Seattle/Tacoma) today is expected to formally unveil this new “Employee powered” Boeing 737-800 logojet as a way of thanking its employees. Here is a sneak preview.
The dashes between the two stripes are signatures of employees that attended the FlightPath meetings of Alaska Airlines.
Copyright Photo: Nick Dean/AirlinersGallery.com. Formerly painted in the “Follow Apolo to Hawaii” special scheme, the pictured Boeing 737-890 N568AS (msn 35183) at Paine Field in Everett, WA now wears this special color scheme dedicated to its employees. It is not a new livery for Alaska but the company has been rumored to be testing new designs to replace its current 1990 livery.
Jetstar Airways (Melbourne) and Boeing (Chicago) celebrated the delivery of the carrier’s first 787 today, which is also the first 787 for Australia.
Jetstar’s 787 Dreamliner departed Monday morning from Boeing’s Everett, Washington delivery center en route to Melbourne, Australia where the plane will be greeted by airline employees and special guests.
Jetstar, the QANTAS Group’s low-cost brand, plans to introduce the 787 first on domestic routes and then its international network. The airline has a total of 14 787 on order and expects to fly an all-787 long-haul fleet by 2015.
Copyright Photo: Nick Dean/AirlinersGallery.com. The pictured 787-8 VH-VKA (msn 36227) at Paine Field near Everett is the first 787 for Jetstar.
Royal Brunei Airlines (Bandar Seri Begawan) and Boeing (Chicago) celebrated the delivery of the 787 Dreamliner – the first for the flag carrier of the Sultanate of Brunei and for Southeast Asia. The pictured 787-8 V8-DLA (msn 34785) was handed over to the carrier on October 2.
The airplane departed Paine Field in Everett on Wednesday evening (October 2) for a 6,540 nautical miles (12,112 km) nonstop flight home to Bandar Seri Begawan International Airport in Brunei.
The new 787 is scheduled to begin flying regionally to Singapore on October 18, with long-haul service to London, via Dubai, set to begin on December 1. Royal Brunei anticipates delivering on its promise of 100 percent Dreamliner long-haul service in the second quarter of 2014 when it will introduce the 787 on flights to Melbourne, Australia.
Copyright Photo: Nick Dean/AirlinersGallery.com
Video: The building of the first 787 for Royal Brunei:
AeroMexico (Mexico City) yesterday (September 24) introduced its new Boeing 787-8 on the Mexico City-New York (JFK) route. AM is now operating its flights AM 0409 and AM 0408 from New York to Mexico City with its new Boeing 787-8 Dreamliner with the following schedule:
|New York – Mexico City||Mexico City – New York|
|AM 0409||1440||1850||Daily||AM 0408||0725||1300||Daily|
The schedules are published in each country’s local time and are subject to changes without notice.
According to the airline, “the Boeing 787 Dreamliner has unique technological and structural advances in its type. The cabins are configured with 32 seats with a 180 degree “full flat bed” tilt in Clase Premier, y 211 cutting edge seats with greater space in the Economy cabin. The aircraft is also equipped with Sky Interiors Led lighting and outfitted with significantly larger windows for its kind of airplane, with pressurization features that reduce fatigue during the flight”
This new airplane is also equipped with personal entertainment systems with 16 inch Elite High Definition Panasonic screens in Clase Premier and Eco Monitor touch screens in the Economy cabin, where passengers can enjoy watching a wide variety of films and TV series. It also features the Moving Maps system that offers real time flight information the Jukebox software that allows users to program playlists with the 1,500 songs the system offers; iConnect to synchronize iPods with the entertainment system and the Seat Chat feature passengers can use to chat with each other on the same airplane, among many other advances.
The AeroMexico 787 operates with General Electric GEnx-1B engines whose structure is made of carbon fiber, plus high efficiency systems and equipment that serves to maximize operating and maintenance costs. All of this translates into significant benefits in environmental terms as this new airplane significantly reduces pollution levels with its lower carbon dioxide (CO2) emissions and lower takeoff and landing noise pollution.
By operating the Boeing 787-8, AeroMexico becomes one of the first 14 carriers in the world to operate the new type.
Copyright Photo: Nick Dean/AirlinersGallery.com. AeroMexico’s first Boeing 787-8 N961AM (msn 35306) is pictured at Paine Field near Everett.
Boeing (Chicago) and FedEx Express (Memphis), an operating company of FedEx Corp. (Memphis), yesterday (September 4) celebrated the delivery of the company’s first 767-300 freighter. The delivery supports the FedEx strategy to modernize its fleet with more efficient freighters.
The 767 Freighter is an ideal upgrade for the fleet serving the FedEx Express domestic network, providing improved fuel, maintenance and cost savings over the MD-10 freighters it will replace. FedEx Express gains additional efficiency through the ability to share parts, tooling and flight simulators between the 767 and the more than 70 757 freighters already in its fleet.
The 767 freighter is based on the popular 767-300 ER (extended range) passenger airplane. Able to carry approximately 58 tons (52.7 tons) of revenue cargo with intercontinental range, the 767 Freighter is ideal for developing new long-haul, regional or feeder markets.
The airplane joins other Boeing freighters in the FedEx fleet such as the MD-10, MD-11, 757 and the 777.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 767-3S2F N101FE (msn 42706) is pictured at Paine Field near Everett, WA on a test flight prior to the official hand over.
Norwegian Long Haul (Norwegian Air Shuttle) (Oslo) continues its long-range expansion and is launching new routes from Stockholm (Arlanda) to Los Angeles (twice-weekly starting March 2, 2014) and San Francisco (twice-weekly starting on May 3, 2014). Additionally, the carrier will launch nonstop services between Copenhagen and Los Angeles (twice-weekly starting on March 1, 2014) and New York (twice-weekly starting February 28, 2014), along with Oslo and Los Angeles (weekly starting on June 1, 2014) , Oakland (three flights a week starting on May 28, 2014) and Orlando (MCO) (twice weekly starting on May 29, 2014).
Meanwhile, the company is increasing its capacity between Fort Lauderdale/Hollywood and Copenhagen, from two to three flights a week. In addition, Norwegian is adding a new direct route to New York (JFK) from Copenhagen.
Norwegian started flying long haul services in May and now offers six flights a week between Scandinavia and New York (JFK) and five weekly flights between Scandinavia and Bangkok. In November, the company will start flights to Fort Lauderdale/Hollywood from Stockholm (Arlanda), Copenhagen and Oslo.
Copyright Photo: James Helbock/AirlinersGallery.com. The pictured Boeing 787-8 EI-LNB (msn 35305) was delivered on August 25, 2013 and will soon have a famous person on the tail.
British Airways (London) today announced that it will launch a new service between Austin-Bergstrom International Airport and London Heathrow beginning in early March 2014. This will be the first regular trans-Atlantic flight for the city of Austin.
British Airways will operate a Boeing 787 aircraft five days a week, increasing to daily flights later in the year. Seats and vacation packages are available for purchase at ba.com beginning today.
The new service will have three cabins, Club World (business), World Traveller Plus (premium economy) and World Traveller (economy). The cabins feature stylish new interiors with state-of-the-art entertainment systems. British Airways provides meals, snacks and beverages, including full service bar for free. Customers can also benefit from a generous baggage allowance.
This marks British Airways’ third destination in Texas, with the airline also serving Houston and Dallas/Fort Worth. Business and leisure travelers will fly into the modern Terminal 5 at Heathrow Airport with fast connections to the city or easy transfer to onward destinations in Europe, Asia and Africa.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 G-ZBJB (msn 38610) lands back at Everett (Paine Field) before it was handed over to British Airways.
ANA (All Nippon Airways) (Tokyo) is planning to expand capacity on routes between Japan, Asia and North America. ANA issued this report:
|ANA Group is set to expand capacity on routes between Japan, Asia and North America in a modification to its international and domestic air transportation plan for second half of FY2013. This expansion will allow the airline to capitalize on the strong demand for travel to Japan and for flights between Asia and North America.On international routes, ANA Group is preparing for the second round of additional takeoff and landing slots for international routes at Haneda Airport. In addition, the airline is increasing the frequency of flights on routes to North America and expanding supply capacity on Asian routes, in line with its strategy to absorb increasing demand for flights to Japan and flights between Asia and North America, transiting in Japan.
These service enhancements will make it more convenient for ANA passengers to travel both domestically and internationally and will improve ANA’s standing as a full-service carrier, further enhancing the Company’s competitive edge.
Details can be found below.
|ANA Group has strengthened its North American route network by increasing flights to New York from October 2012 and by increasing flights to Chicago from September 1. In addition, in order to respond to further increases in demand for flights to Japan and flights between Asia and North America transiting in Japan via the Narita Airport hub, ANA Group will be expanding capacity on Asian routes by introducing larger aircraft.(1) Introduction of Boeing 787-8 on Asian routes
*All 14 flights will be operated by B787-8 from Sunday, October 27, 2013
The premium economy seats and services which have proved extremely popular on Boeing 777-300 ER long-haul international flights (routes to Europe and North America) will be sequentially introduced on to 787* flights.
From September 1, 2013, premium economy service will begin on the Haneda = Frankfurt route, and will subsequently be introduced sequentially onto other routes.
|ANA Group is planning, at the end of fiscal year 2013, to retire all Boeing 747-400 aircraft, which have served for many years as the Group’s mainstay aircraft model, principally on major routes. For Cargo flights, ANA Group is launching two new routes from Sunday, October 27, 2013. The routes are Narita=Guangzhou and Okinawa=Qingdao, both operated by Boeing 767-300F . Tokyo(Narita)=Guangzhou will serve from above date until Monday, March 3, 2014.
Furthermore, at the end of fiscal 2013, ANA will be taking delivery of its tenth Boeing 767-300F dedicated cargo aircraft, with the aim of expanding cargo business.
Copyright Photo: Nick Dean/AirlinersGallery.com. ANA’ Boeing 787-8 JA815A (msn 40899) taxies at Paine Field near Everett, WA.
ANA (All Nippon Airways) (Tokyo) reported on Wednesday it had discovered wiring problems in the fire extinguishers on three of its Boeing 787-8s.
United Technologies reported yesterday its units were responsible for the problem due to an assembly error. The error has been corrected and all 787s are being inspected with the assistance of Boeing according to this report by Reuters.
Read the full report: CLICK HERE
Copyright Photo: James Helbock/AirlinersGallery.com. Brand new Boeing 787-8 JA823A (msn 42246) destined for ANA touches down again at Paine Field near Everett after a test flight by Boeing.
Boeing (Chicago), International Lease Finance Corporation (ILFC) and AeroMexico (Mexico City) on August 15 celebrated the first delivery of the 787 Dreamliner. AeroMexico is leasing the aircraft from ILFC.
The pictured 787-8 N961AM was delivered from Boeing’s Paine Field (PAE), Everett, Washington, delivery center on August 15. N961AM took off for Mexico City yesterday (August 16).
N961AM is the first of nine 787-8 airplanes that AeroMexico will operate, including five on lease from ILFC. The airline will operate a total of 19 Dreamliners, including 10 787-9 models ordered in 2012.
AeroMexico’s 787 Dreamliners will be configured with 32 Clase Premier lie-flat seats and 211 seats in economy class.
AeroMexico is the second 787 customer to take delivery of an airplane leased through ILFC.
Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 Dreamliner N961AM (msn 35306) taxies off the runway at PAE.
Norwegian Air Shuttle (Norwegian.com) (Oslo) will launch its Norwegian Long Haul Boeing 787-8 scheduled service from Stockholm (Arlanda) to both New York (JFK) and Bangkok (Suvarnabhumi) on August 15. The airline has been operating the new 787 on inter-European routes from Oslo (Gardermoen).
The Dreamliner will be repositioned to Arlanda on August 11. It is due to arrive at ARN at 1500 local time.
Copyright Photo: Duncan Kirk/AirlinersGallery.com. This dramatic view shows Boeing 787-8 EI-LNA (msn 35304) landing back at Paine Field near Everett, WA.
American launches codeshare agreement with LAN Colombia, creditors and shareholders tentatively approve the merger with US Airways
American Airlines (Dallas/Fort Worth) has announced the launch of a new codeshare agreement with LAN Colombia (Bogota), adding new service to key destinations in Colombia and further strengthening American’s relationship with LATAM Airlines Group. Customers can begin booking travel on the codeshare flights for travel beginning August 8.
The new codeshare agreement will give American’s customers seamless connecting service within Colombia and provide LAN Colombia’s customers access to new destinations in the United States. The two airlines will codeshare on flights between the U.S. and Colombia and provide American’s customers access to four new destinations in Colombia – Barranquilla, Bucaramanga, Cartagena and Pereira, while giving LAN Colombia’s customers access to 12 new cities in the U.S. from Miami, including Chicago (O’Hare), Dallas/Fort Worth, Los Angeles and New York (JFK).
In addition, LAN Colombia plans to join the oneworld® alliance in the fourth quarter of this year. LAN Colombia operates more than 990 weekly flights to cities throughout Colombia as well as destinations in Brazil and the U.S. From its Bogota hub, LAN Colombia offers 125 daily flights, including service to 20 Colombian cities.
In addition to the codeshare agreement with LAN Colombia, later this year American will launch new service from Dallas/Fort Worth (DFW) to Bogota (BOG), demonstrating its mission to provide customers with expanded options through a growing network footprint in Latin America. American currently operates up to 35 weekly flights from its hub in Miami to Bogota (BOG), Cali (CLO) and Medellin (MDE).
In others news, AMR Corporation, the parent company of American Airlines, Inc., announced the preliminary voting results on the Company’s Plan of Reorganization, which indicate overwhelming acceptance of the Plan by those creditors and shareholders entitled to vote.
Of the eight creditor classes entitled to vote, at least 88 percent of the ballots received and tabulated in each class, representing more than 97 percent of the claims value voting in each class, were voted in favor of the Plan. Additionally, more than 99 percent of the shares tabulated for the class of AMR stockholders voted to accept the Plan.
The final voting results for the Plan will be certified and filed with the U.S. Bankruptcy Court for the Southern District of New York in advance of the confirmation hearing on August 15, 2013.
On June 7, 2013, the Court authorized the company to begin soliciting approval of the Plan from AMR’s creditors and stockholders. Voting on the Plan ended July 29, 2013 at 5 p.m. EDT.
The effective date of the Plan and American’s Chapter 11 emergence are expected to occur simultaneously with the closing of the merger with US Airways. The merger is expected to close in the third quarter of 2013.
Top Copyright Photo: Nick Dean/AirlinersGallery.com. Brand new Boeing 777-323 ER N725AN (msn 41666) was handed over to American Airlines on July 31, 2013.
Bottom Copyright Photo: Bernardo Andrade/AirlinersGallery.com. Former AIRES Colombia Boeing 737-73S EI-EEB (msn 29081) of LAN Colombia taxies past the camera at Sao Paulo (Guarulhos).
Qatar Airways (Doha) stated yesterday (July 26) it had taken one of its Boeing 787-8 out of service for a “minor” technical issue according to this report by Reuters. New pressure is mounting on Boeing over possible new electrical problems.
The airline and Boeing declined to give further details but industry sources said they were treating seriously reports that the aircraft had been grounded for days after smoke was seen near an electrical panel according to the report.
Read the full report: CLICK HERE
Copyright Photo: Nick Dean/AirlinersGallery.com. Newly-manufactured Boeing 787-8 A7-BCE (msn 38323) is pictured leaving Paine Field near Everett, WA yesterday (July 26) on delivery.
FedEx Pilots’ Union: Report on UPS Boeing 747 crash highlights the need for new regulations on the carriage of Lithium Batteries
The FedEx Express Pilots Union (FedEx Express) (Memphis) has issued this statement reference the release of the Accident Report on the UPS Airlines (Atlanta and Louisville) Boeing 747-400F freighter crash at Dubai (please see our previous report). At the heart of the issue, are lithium batteries safe on any airplane?:
On September 3, 2010, our industry lost two fellow aviators when UPS Flight 6 crashed near Dubai, United Arab Emirates (UAE). The UAE General Civil Aviation Authority (GCAA) released its final report concerning the investigation into this fatal crash. The GCAA, while not pinpointing the origin of the fateful blaze, determined that the ensuing fire was promulgated by lithium batteries and found that smoke-detection equipment took too long to alert the crew.
The report provides recommendations specific to air cargo fire safety. The FedEx Master Executive Council (MEC) joins Air Line Pilots Association (ALPA), Int’l in praising the GCAA for its thorough report. The report makes unmistakably clear the dangers of carrying large quantities of lithium batteries. “As cargo pilots, we are fully aware of the potential dangers associated with the carriage of lithium batteries,” said MEC chairman Captain Scott Stratton. “These pilots’ lives were tragically cut short as they valiantly tried to bring their crippled aircraft back to the ground. Through their actions, they were able to prevent a much larger disaster from occurring. We owe it to them as well as to all of those who fly this nation’s commerce every day, to ensure that regulatory directives are harmonized across the globe and robust enough to preclude future events such as this.”
The GCAA recommended that the Federal Aviation Administration (FAA) and its European counterpart develop better firefighting standards and equipment for cargo planes, with visual warnings about where a fire is located. The FedEx MEC strongly believes that the United States must take a leadership role in protecting aircraft against the possibility of catastrophic fires caused by lithium batteries. The improvement in regulations covering the transportation of large quantities of lithium batteries must proceed immediately in order to begin to eliminate this deadly hazard. “Now is the time for the U.S. government to act to ensure the safety of our skies,” said FedEx Legislative Affairs chairman Captain Fred Eissler. “We will continue to work with our government leaders, dangerous goods regulatory authorities, and our fellow airline pilots to address the safety issues and concerns found in the GCAA report.”
“The FedEx pilots are committed to working with industry and government leaders to minimize the risks associated with the carriage of dangerous goods,” continued Captain Stratton. “The GCAA’s report adds to the building body of evidence that clearly shows much more effort is needed to facilitate negating the risks associated with the carriage of lithium batteries.”
Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first Boeing 767-300F for FedEx Express is being prepared for its first flight at Paine Field near Everett, WA. 767-3S2F N101FE (msn 42706) taxied to the runway yesterday afternoon.