Category Archives: Boeing

Boeing, Adient launch new company to design and build airplane seats

Boeing issued this statement:

Boeing and Adient have announced the formation of Adient Aerospace, a joint venture that will develop, manufacture and sell a portfolio of seating products to airlines and aircraft leasing companies. The seats will be available for installation on new airplanes and as retrofit configurations for aircraft produced by Boeing and other commercial airplane manufacturers.

The joint venture between Boeing, the world’s largest aerospace company, and Adient, the global leader in automotive seating, addresses the aviation industry’s needs for more capacity in the seating category, superior quality and reliable on-time performance. Adient Aerospace will benefit from the world-class engineering teams and innovative cultures at both companies, as well as shared expertise in managing complex, global supply chains.

“Seats have been a persistent challenge for our customers, the industry and Boeing, and we are taking action to help address constraints in the market. Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world,” said Kevin Schemm, senior vice president of Supply Chain Management, Finance & Business Operations and chief financial officer for Boeing Commercial Airplanes. “This joint venture supports Boeing’s vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value.”

“Adient has a strong set of transferable competencies that will offer a unique opportunity to create value for our company and for Boeing, our shareholders and the broader commercial aircraft market,” said Adient chairman and CEO Bruce McDonald. “To enhance the customer experience for passengers, airlines and commercial airplane manufacturers, we will apply our unmatched expertise for comfort and craftsmanship along with our reputation for operational excellence.”

Adient Aerospace’s operational headquarters, technology center and initial production plant will be located in Kaiserslautern, Germany, near Frankfurt. The joint venture’s initial customer service center will be based in Seattle, Washington. Adient Aerospace aftermarket spare parts distribution will be performed exclusively through Aviall, a wholly owned subsidiary of Boeing.

Adient is the majority stakeholder in the new company (50.01 percent share) and expects the joint venture to be included in its consolidated financial statements. Boeing (as 49.99 percent partner) will receive a proportionate share of the earnings and cash flow. Both will have representation on Adient Aerospace’s board of directors.

Industry analysts forecast the commercial aircraft seating market to grow from approximately $4.5 billion in 2017 to $6 billion by 2026.

 

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Photo of the Day

From Boeing: 737 MAX program delivers another signature moment as the MAX 7, MAX 8 and MAX 9 are all in same production line simultaneously in our Renton factory.

Boeing sets airplane delivery record, finishes 2017 with larger order book

The first Boeing 787-10 Dreamliner

Boeing delivered more commercial airplanes than any manufacturer for the sixth consecutive year and set an industry record with 763 deliveries in 2017, driven by high output of the market-leading 737 and 787 jets. At the same time, the company grew its backlog with 912 net orders, reflecting healthy demand for its single-aisle and twin-aisle airplanes.

Boeing reached a new high on the 737 program as it raised production to 47 airplanes a month during the year and began delivering the new 737 MAX, contributing to a record 529 deliveries, including 74 of the MAX variety. On the 787 Dreamliner program, Boeing continued building at the highest production rate for a twin-aisle jet, leading to 136 deliveries for the year.

On the orders front, 71 customers placed the 912 net orders, valued at $134.8 billion at list prices. The total extends Boeing’s backlog to a record 5,864 airplanes – at year end – which is equal to about seven years of production.

In 2017, the 787 Dreamliner family racked up nearly 100 net orders and the 777 family captured 60 net orders, as shown in the table below. A detailed report is available on Boeing’s Orders and Deliveries website.

Other major commercial airplanes milestones include the first flights of the 737 MAX 9 and the 787-10 Dreamliner, and the start of production of the 737 MAX 7 and the new 777X.

Family

Gross Orders

Net Orders

Deliveries

Unfilled orders

737

865

745

529

4,668

747

6

-2

14

12

767

15

15

10

98

777

60

60

74

428

787

107

94

136

658

Total

1,053

912

763

5,864

Copyright Photo: Boeing 787-10 Dreamliner N528ZC (msn 60256) BFI (Joe G. Walker). Image: 937791.

Boeing and Embraer confirm discussions on potential combination

Boeing issued this statement:

The Boeing Company and Embraer have confirmed the two companies are engaged in discussions regarding a potential combination, the basis of which remains under discussion.

There is no guarantee a transaction will result from these discussions. Boeing and Embraer do not intend to make any additional comments regarding these discussions.

Any transaction would be subject to the approval of the Brazilian government and regulators, the two companies’ boards and Embraer’s shareholders.

Boeing’s statement on the ITC Hearing concerning “Bombardier’s Harm to U.S. Industry”

The Boeing Company released the following statement regarding the public hearing at the International Trade Commission (ITC) on Bombardier’s illegal business practices with its C Series aircraft and how those practices have harmed U.S. domestic industry.

“Boeing brought this case seeking enforcement of U.S. trade law, which mirrors the widely-accepted rules of international trade adopted by most WTO member nations, including Canada. The resulting Department of Commerce and ITC investigations are part of a longstanding, transparent, and rigorous fact-based process for resolving precisely these sorts of commercial trade disputes. Today’s hearing was simply the next step in that process, as the ITC considered extensive evidence that underscored the harm Bombardier’s unlawful actions have caused U.S. industry.

“These investigations have already established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program. The C Series would not even exist at this point but for those subsidies. The investigations have also left no doubt Bombardier used these government funds to dump aircraft into the U.S. market at absurdly low prices, millions below their cost of production and millions below the price of the same aircraft in Canada. Bombardier’s conduct is flatly inconsistent with U.S. trade law, and it has caused severe harm to Boeing, its employees, and its suppliers.

“Boeing welcomes competition, but it must be competition on a level playing field. Bombardier can sell their aircraft anywhere in the world, so long as they follow the law and comply with the trade rules we have all agreed to.”

Boeing, Avolon finalize a deal for 75 737 MAX airplanes

Boeing and Avolon, the international aircraft leasing company, have finalized an order for 75 737 MAX airplanes. The confirmed order is for 55 MAX 8s and 20 MAX 10s, with options for 20 additional MAX 8s.

The agreement, announced as a Memorandum of Understanding (MOU) at the 2017 Paris Air Show, is valued at nearly $11 billion at list prices including the 75 firm and 20 option aircraft.

Launched at the 2017 Paris Air Show, the MAX 10 will have the lowest seat-mile cost of any single-aisle airplane. The new airplanes will bolster Avolon’s airplane portfolio to meet growing customer demand in the narrow-body market segment.

Headquartered in Dublin, Ireland, Avolon is one of the world’s leading aircraft leasing firms, with an owned, managed and committed fleet of 915 aircraft as of September 30, 2017. Avolon also has the youngest owned fleet amongst the top three lessors and an order book of exclusively new technology aircraft.

 

Boeing, Azerbaijan Airlines announce a deal for additional 787-8 Dreamliners, Freighters

Azerbaijan Airlines Boeing 787-8 Dreamliner VP-BBR (msn 37920) JFK (Fred Freketic). Image: 934847.

Boeing and Azerbaijan Airlines (AZAL) have announced an order for five more 787-8 Dreamliners and a commitment to purchase two large freighters. The agreement, announced at the 2017 Dubai Air Show, is valued at about $1.9 billion at current list prices.

The freighter commitment will be finalized at a later time.

Azerbaijan Airlines also announced it will be the launch customer for the 787 Landing Gear Exchange Program whereby Boeing Global Services will provide the carrier with a lower-cost solution for overhauled and certified landing gears for its Dreamliner fleet, which now grows to seven airplanes.

Azerbaijan Airlines is a major air carrier and industry leader in the Central Asia region, serving 40 destinations in 25 countries. The airline currently flies two 787 airplanes as well as a fleet of Boeing 757 and 767s.

Boeing’s 787 Landing Gear Overhaul and Exchange Program provides a simple and economical solution for managing landing gear overhauls, while building on Boeing’s successful history of exchange programs. Through the offering, a carrier can exchange landing gears that need to be repaired or overhauled for another set of certified landing gear from a pool that Boeing maintains. This service eliminates the need for operators to contract, schedule and manage the overhaul process.

Boeing Global Services, headquartered in Texas, was formed by integrating the services capabilities of the government, space and commercial sectors into a single, customer-focused business. Operating as a third business unit of Boeing, Global Services provides agile, cost-competitive services to commercial and government customers worldwide.

Copyright Photo: Azerbaijan Airlines Boeing 787-8 Dreamliner VP-BBR (msn 37920) JFK (Fred Freketic). Image: 934847.