Category Archives: Boeing

New Boeing ecoDemonstrator Program testing 30 sustainable technologies on a 777-200ER

Boeing has unveiled its 2022 ecoDemonstrator with a livery that honors a decade of testing to reduce fuel use, emissions and noise. The latest ecoDemonstrator, a Boeing-owned 777-200ER, will test about 30 new technologies aimed at improving sustainability and safety for the aerospace industry, including a water conservation system and technologies to improve operational efficiency.

During six months of flight and ground tests starting this summer, the 2022 ecoDemonstrator will evaluate:

  • In collaboration with NASA, SMART vortex generators – small vertical vanes on the wing – that improve aerodynamic efficiency during takeoff and landing
  • A system to conserve onboard water and reduce weight as well as fuel use
  • Additively manufactured airplane and engine parts to help reduce fuel use and manufacturing waste
  • An environmentally preferred refrigerant and a new fire suppression agent to reduce greenhouse gas emissions
  • A heads-up enhanced vision system for pilots to improve operational efficiency
  • Continued comprehensive study of the impact of sustainable aviation fuel toward the reduction of emissions
  • For all flight tests, the 777-200ER will fly on a highest approved blend of sustainable aviation fuel (SAF) available

Shown here, the 2022 ecoDemonstrator – a Boeing-owned 777-200 ER (Extended Range) — after its livery was painted in San Bernardino, Calif., in June. (Photo: Boeing)

Since its initial flights in 2012, the Boeing ecoDemonstrator program has accelerated innovation by taking new technologies out of the lab and testing them in an operational environment. Including this year’s platform, the program has tested about 230 technologies to help decarbonize aviation, improve operational efficiency and enhance safety and the passenger experience. Approximately a third of tested technologies have progressed onto Boeing’s products and services.

IAG orders 50 Boeing 737-8-200s and 737-10s, plus 100 options

Boeing and International Airlines Group (IAG) have announced an order for a combined total of 50 737-8-200s and 737-10s, plus 100 options.

The 737-8-200 will enable IAG to configure the airplane with up to 200 seats, increasing revenue potential and reducing fuel consumption.

(Boeing photo)

The largest model in the family, the 737-10 seats up to 230 passengers in a single-class configuration and can fly up to 3,300 miles. The fuel-efficient jet can cover 99% of single-aisle routes, including routes served by 757s.

The 737 incorporates the latest-technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 family of airplanes is on average 14% more fuel-efficient than today’s most efficient Next-Generation 737s and 20% more efficient than the original Next-Generation 737s when they entered service.

This announcement finalizes a commitment made by IAG for the 737 at the 2019 Paris Air Show and is subject to approval by IAG shareholders.

Note: IAG did not specify which airlines will operate the aircraft.

Boeing to move its headquarters from Chicago to Northern Virginia

Boeing has announced that its Arlington, Virginia campus just outside Washington, D.C. will serve as the company’s global headquarters. The aerospace and defense firm’s employees in the region support various corporate functions and specialize in advanced airplane development and autonomous systems. In addition to designating Northern Virginia as its new headquarters, Boeing plans to develop a research & technology hub in the area to harness and attract engineering and technical capabilities.

“We are excited to build on our foundation here in Northern Virginia. The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent,” said Boeing President and Chief Executive Officer Dave Calhoun.

Boeing will maintain a significant presence at its Chicago location and surrounding region.

“We greatly appreciate our continuing relationships in Chicago and throughout Illinois. We look forward to maintaining a strong presence in the city and the state,” said Calhoun.

“We also want to especially thank Governor Youngkin for his partnership, and Senator Warner for his support as we worked through the process.”

Future of Work Enables More Investment in Manufacturing, Engineering, Training

Over the past two years, Boeing has implemented flexible and virtual solutions that have enabled the company to reduce its office space needs. At its Chicago office, less office space will be required for the employees who will continue to be based there. Boeing will adapt and modernize the workspace to better support future work requirements.

“In today’s business environment, we have adopted a flexible work strategy in parts of our company and are taking steps to be more efficient within a reduced footprint. This helps us channel investments toward our critical manufacturing and engineering facilities and training resources,” said Calhoun.

New Boeing Research & Technology Hub

As part of its effort to tap into engineering and technology talent across the U.S and around the world, Boeing plans to establish a research and technology hub in Northern Virginia. The hub will focus on developing innovations in the areas of cyber security, autonomous operations, quantum sciences and software and systems engineering.

“The future of Boeing is digital,” said Greg Hyslop, Boeing’s chief engineer and executive vice president of Engineering, Test and Technology. “Focusing our R&D and talent development in areas that support digital innovation will fuel the introduction of cutting-edge capabilities. This new hub in Northern Virginia will follow the successful implementation of this technology strategy in other regions.”

Boeing’s Footprint and Impact

As the nation’s largest exporter, Boeing employs more than 140,000 people and is hiring as the commercial market recovers and the company invests in production, innovation and product development. The company’s three business units will continue to be based at their current headquarters, which include:

  • Boeing Commercial Airplanes in Seattle, Wash.
  • Boeing Global Services in Plano, Texas
  • Boeing Defense, Space and Security in Arlington, Va.

In addition to the company’s operations, Boeing works with more than 12,000 businesses supporting more than one million supplier jobs across the United States, and located in every state. Globally, the company has operations in more than 65 countries.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity.

Boeing CEO updates employees on first quarter results, 777-9 paused

Boeing President and CEO Dave Calhoun shared the following message with employees today addressing the company’s first-quarter results:

Team,

First, I want to again acknowledge the loss of those on board China Eastern Airlines Flight MU 5735. Our thoughts and prayers remain with the family members and loved ones of the passengers and crew, and everyone who has been affected by this accident. We will continue to support our airline customer and a Boeing technical team continues to support the National Transportation Safety Board and the Civil Aviation Administration of China, who is leading the investigation.

The first quarter presented new challenges for our world, our industry and our business. As we share an update on our company’s performance today, I want to begin by saying thank you. Despite the current environment, we continue to make important progress together toward our key commitments.

Through our first-quarter results, you’ll see we still have more work to do; but I remain encouraged with our trajectory, and we are on track to generate positive cash flow for 2022. We are a long-cycle business, and the success of our efforts will be measured over years and decades; not quarters. The deliberate actions we’re taking now will drive stability in our operations and position us for long-term, sustainable performance.

We’ve embodied this approach on the 737 MAX program by following a comprehensive and methodical process to safely return airplanes to service.

The 737 MAX is now approved to fly in nearly every country, and since late 2020, the fleet has safely flown more than one million flight hours with schedule reliability above 99 percent. We delivered 81 737 MAX airplanes in the first quarter, including 34 in March. We also steadily increased production and are on track to reach a rate of 31 per month in the second quarter. We’ll continue to prioritize quality, stability and supply chain capacity in determining future production increases.

The Commercial Airplanes team is applying that same focus to the 787 program as we complete a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. Marking an important step, we have submitted the certification plan to the FAA. We also completed the required work on initial airplanes and are conducting Boeing check flights. We will continue to give our teams the time they need, engage transparently and follow the lead of our regulator on next steps and timing.

We also successfully launched our 777-8 Freighter program in the quarter, with our partner Qatar Airways, as cargo demand continues to grow. And on the 777-9 program, while the team is progressing well in development and testing, delivery of the first 777-9 airplane is now expected in 2025, based on an updated assessment of the time required to meet certification requirements.

To minimize inventory and the number of airplanes requiring change incorporation, we’re also adjusting the 777-9 production rate ramp, including a temporary pause through 2023. This adjustment will also enable us to add 777 freighter capacity starting in late 2023. We remain confident in the 777 program and our customers continue to see the value in its compelling economics and sustainability benefits. Airplane programs serve our market for several decades, and it is important we take the time now to position for long-term success.

Within our Defense, Space and Security business, we continue to see solid and stable demand. Our portfolio is well positioned and our future franchise programs have a long runway ahead. That said, supply chain constraints, COVID-19 disruption and inflationary challenges drove cost pressures and earnings charges on some of our fixed price development programs. We’re navigating through these challenges and are focused on improving our own performance as we mature these programs and transition to production.

At Global Services, our business has largely recovered from the most severe impacts of COVID-19 and the team has demonstrated exceptional resilience and adaptability. As the market recovers, our well-balanced portfolio of both commercial and government services is well positioned for growth.

Across our markets, we’re seeing increasing stability. Notably, the commercial market recovery is broadening and demand is solid as operators look to bring capacity back online and plan for growth, with an eye on sustainability. In fact, we booked 167 gross commercial airplane orders this quarter, including 134 for the 737 MAX.

While many markets stabilize, we also continue to navigate the shifting global landscape, including the impacts of the war in Ukraine. The safety of our employees in Ukraine has our focus, and we are supporting them every way we can. We have also contributed to humanitarian groups offering food, shelter and medical care to displaced Ukrainians. I am proud of our teammates who have made their own donations, which Boeing is matching, and of all those in the region who have opened their hearts and homes to displaced teammates to ensure they have the shelter and supplies they need.

At the same time, we are following the lead of the U.S. government and strictly adhering to export controls and restrictions. We have suspended engineering support, flight training and customer operations, as well as parts delivery and maintenance support services for Russian customers. Separately, we’ve also halted the importation of titanium from Russia.

While these actions had an impact on our business; they are the right thing to do and our operations are well positioned. We have built up a substantial titanium inventory and a diverse supply base. We have sufficient material and parts in inventory for production in the near-term and are working to ensure long-term continuity.

As we navigate today’s environment, we’re also positioning for our future and increasing investments in key areas of safety, producibility, digital transformation, sustainable aerospace as well as in our people. At Boeing, our team has an opportunity to make a meaningful impact on the world — and we are investing in you, in your experience and in our culture. As we hire engineers, mechanics, quality professionals, safety experts and more, we’re also advancing our inclusive culture and ensuring Boeing is a great place for everyone to build rewarding and fulfilling careers.

Thank you for all you continue to do to support our customers, our company and each other. I am confident we are taking the best actions to rebuild trust, strengthen safety, enhance quality and drive stability for our future. I am proud to be on your team and look forward to continuing our progress forward, together.

Dave

Boeing reports a first quarter loss

Boeing issued this financial report for the first quarter:

First Quarter 2022

  • 737 production and deliveries continue to increase; submitted 787 certification plan to the FAA
  • Launched 777-8 Freighter; now anticipate first 7779 delivery in 2025
  • Recorded charges on fixedprice defense development programs as well as for impacts of the war in Ukraine
  • Operating cash flow of ($3.2) billion; continue to expect positive cash flow for 2022
  • Revenue of $14.0 billion; GAAP loss per share of ($2.06) and core (non-GAAP)* loss per share of ($2.75)
  • Total backlog of $371 billion; including nearly 4,200 commercial airplanes

Table 1. Summary Financial Results

First Quarter

(Dollars in Millions, except per share data)

2022

2021

Change

Revenues

$13,991

$15,217

(8)%

GAAP

Loss From Operations

($1,169)

($83)

NM

Operating Margin

(8.4)%

(0.5)%

NM

Net Loss

($1,242)

($561)

NM

Loss Per Share

($2.06)

($0.92)

NM

Operating Cash Flow

($3,216)

($3,387)

NM

Non-GAAP*

Core Operating Loss

($1,452)

($353)

NM

Core Operating Margin

(10.4)%

(2.3)%

NM

Core Loss Per Share

($2.75)

($1.53)

NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”    

The Boeing Company reported first-quarter revenue of $14.0 billion, driven by lower defense volume and charges on fixed-price defense development programs, partially offset by commercial services volume. GAAP loss per share of ($2.06) and core loss per share (non-GAAP)* of ($2.75) also reflect $212 million of pre-tax charges for impacts of the war in Ukraine (Table 1). Boeing recorded operating cash flow of ($3.2) billion.

“While the first quarter of 2022 brought new challenges for our world, industry and business, I am proud of our team and the steady progress we’re making toward our key commitments,” said Dave Calhoun, Boeing president and chief executive officer. “We increased 737 MAX production and deliveries and made important progress on the 787 by submitting our certification plan to the FAA. Despite the pressures on our defense and commercial development programs, we remain on track to generate positive cash flow for 2022, and we’re focused on our performance as we work through certification requirements and mature several key programs to production. Leading with safety and quality, we’re taking the right actions to drive stability throughout our operations, deliver on our commitments to customers and position Boeing for a sustainable future.”

Table 2. Cash Flow

First Quarter

(Millions)

2022

2021

Operating Cash Flow

($3,216)

($3,387)

Less Additions to Property, Plant & Equipment

($349)

($291)

Free Cash Flow*

($3,565)

($3,678)

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”    

Operating cash flow was ($3.2) billion in the quarter due to unfavorable receipt timing (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q1 22

Q4 21

Cash

$7.4

$8.0

Marketable Securities1

$4.9

$8.2

Total

$12.3

$16.2

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$56.2

$56.6

Boeing Capital, including intercompany loans

$1.5

$1.5

Total Consolidated Debt

$57.7

$58.1

1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities decreased to $12.3 billion, compared to $16.2 billion at the beginning of the quarter, primarily driven by operating cash outflows and debt repayment (Table 3). The company has access to credit facilities of $14.7 billion which remain undrawn.

Total company backlog at quarter-end was $371 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

First Quarter

(Dollars in Millions)

2022

2021

Change

Commercial Airplanes Deliveries

95

77

23%

Revenues

$4,161

$4,269

(3)%

Loss from Operations

($859)

($856)

NM

Operating Margin

(20.6)%

(20.1)%

NM

Commercial Airplanes first-quarter revenue of $4.2 billion decreased slightly, primarily due to timing of wide-body deliveries, partially offset by higher 737 deliveries (Table 4). Operating margin of (20.6)% also reflects abnormal costs and period expenses, including charges for impacts of the war in Ukraine and higher research and development expense.

Boeing has nearly completed the global safe return to service of the 737 MAX and the fleet has flown more than one million total flight hours since late 2020. The 737 production rate continues to increase and is expected to increase to 31 airplanes per month during the second quarter.

On the 787, the company has submitted the certification plan to the FAA. Rework has been completed on the initial airplanes and the company continues to work closely with the FAA on timing of resuming deliveries. The program is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time. The company continues to anticipate 787 abnormal costs of approximately $2 billion, with most being incurred by the end of 2023, including $312 million recorded in the quarter.

During the quarter, the company launched the 777-8 Freighter with an order from Qatar Airways. Delivery of the first 777-9 airplane is now expected in 2025, which reflects an updated assessment of the time required to meet certification requirements. To minimize inventory and the number of airplanes requiring change incorporation, the 777-9 production rate ramp is being adjusted, including a temporary pause through 2023. This will result in approximately $1.5 billion of abnormal costs beginning in the second quarter of this year and continuing until 777-9 production resumes. The 777 program is also leveraging the adjustment to the 777-9 production rate ramp to add 777 Freighter capacity starting in late 2023.

Commercial Airplanes delivered 95 airplanes during the quarter and backlog included nearly 4,200 airplanes valued at $291 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

First Quarter

(Dollars in Millions)

2022

2021

Change

Revenues

$5,483

$7,185

(24)%

(Loss)/earnings from Operations

($929)

$405

NM

Operating Margin

(16.9)%

5.6%

NM

Defense, Space & Security first-quarter revenue decreased to $5.5 billion and first-quarter operating margin decreased to (16.9) percent, primarily driven by lower volume and charges on fixed-price development programs, including VC-25B and T-7A Red Hawk. The VC-25B program recorded a $660 million charge, primarily driven by higher supplier costs, higher costs to finalize technical requirements and schedule delays. The T-7A Red Hawk program recorded $367 million in charges, primarily driven by ongoing supplier negotiations impacted by supply chain constraints, COVID-19 and inflationary pressures.

During the quarter, Defense, Space & Security captured an award for 6 MH-47G Block II Chinook rotorcraft for U.S. Army Special Operations. Defense, Space & Security completed mission profile flights on the SB>1 DEFIANT and completed the 400th test flight on the T-7A Red Hawk. Also in the quarter, Defense, Space & Security began build of the first P-8A for the Royal New Zealand Air Force and delivered 41 aircraft.

Backlog at Defense, Space & Security was $60 billion, of which 33% percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services

First Quarter

(Dollars in Millions)

2022

2021

Change

Revenues

$4,314

$3,749

15%

Earnings from Operations

$632

$441

43%

Operating Margin

14.6%

11.8%

24%

Global Services first-quarter revenue increased to $4.3 billion and first-quarter operating margin increased to 14.6 percent primarily driven by higher commercial volume and favorable mix.

During the quarter, Global Services secured a fuel-saving digital solutions contract for Etihad Airways’ 787 fleet and was awarded a contract for KC-135 horizontal stabilizers from the U.S. Air Force. Global Services captured a 767 converted freighter order from Air Transport Services Group and also announced plans to create additional capacity for 767 converted freighters.

Additional Financial Information

Table 7. Additional Financial Information

First Quarter

(Dollars in Millions)

2022

2021

Revenues

Boeing Capital

$46

$60

Unallocated items, eliminations and other

($13)

($46)

(Loss)/Earnings from Operations

Boeing Capital

($36)

$21

FAS/CAS service cost adjustment

$283

$270

Other unallocated items and eliminations

($260)

($364)

Other income, net

$181

$190

Interest and debt expense

($630)

($679)

Effective tax rate

23.2%

1.9%

At quarter-end, Boeing Capital’s net portfolio balance was $1.6 billion. Earnings from operations at Boeing Capital decreased primarily due to a provision for losses related to the war in Ukraine. The change in loss from other unallocated items and eliminations was primarily due to decreased share-based plan expense and deferred compensation expense as compared to the first quarter 2021. The first quarter effective tax rate primarily reflects the tax benefit of pretax losses and realizable R&D tax credits.

Reuters: Boeing tells airlines 787 deliveries to restart in second half of 2022

From Reuters:

“Boeing Company has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said.

Boeing’s swollen 787 inventory, amassed since it halted deliveries nearly a year ago over structural flaws, has locked up desperately needed cash and cut airline capacity.”

Read the full article:

https://www.reuters.com/business/aerospace-defense/exclusive-boeing-tells-airlines-787-deliveries-restart-second-half-2022-sources-2022-04-20/

Air Lease Corporation adds 32 Boeing 737 MAX jets to its orderbook

Boeing and Air Lease Corp. (ALC) today announced the aircraft lessor is expanding its airplane portfolio with an order for 32 additional 737-8 and 737-9 jets. As the travel market recovers, ALC is increasing its 737 MAX family offering to meet airline demand for modern, fuel-efficient and sustainable operations.

ALC continues to grow its investment in the 737 MAX family. In February the lessor added 18 737 MAXs to its portfolio. With the new order, ALC has 130 737 MAXs in its backlog.

Boeing statement on China Eastern Airlines flight MU 5735

Boeing issued this short statement on China Eastern Airlines flight MU 5735:

“We extend our deepest condolences for the loss of those on board China Eastern Airlines Flight MU 5735. Our thoughts and prayers are with the passengers and crew, their families and all those affected by this accident.

Boeing will continue to support our airline customer during this difficult time.

In addition, a Boeing technical team is supporting the NTSB and the Civil Aviation Administration of China who will lead the investigation.”

China Eastern Airlines flight MU 5735 was a scheduled domestic passenger flight from Kunming to Guangzhou in China. On March 21, 2022, the Boeing 737-89P aircraft (B-1791) descended steeply mid-flight and struck the ground at high speed in Teng County, Wuzhou, Guangxi Zhuang Autonomous Region, killing all 123 passengers and 9 crew members.

Flight MU735 from Kunming to  Guangzhou with 132 on board crashed into a forest on March 21, 2022

Above Copyright Photo: China Eastern Airlines Boeing 737-89P WL B-1791 (msn 41474) (Yunnan Peacock) PEK (Michael B. Ing). Image: 957101.

China Eastern Airlines aircraft slide show:

China Eastern Airlines aircraft photo gallery:

FAA finalizes Boeing 777 safety directives after fan blade failures

From Reuters:

“The Federal Aviation Administration (FAA) said on Wednesday it is finalizing three safety directives for some grounded Boeing 777 planes with Pratt & Whitney 4000 engines that will allow them to return to service.”

Reporting by David Shepardson; editing by Grant McCool

FAA says 5G could impact radio altimeters on most Boeing 737s

From Reuters:

“U.S. regulators are warning that 5G wireless operations could affect radio altimeters in most Boeing 737 aircraft and impact crew workload and airplane landings, according to a government notice posted online on Wednesday.

The Federal Aviation Administration’s directive affects Boeing’s 737s, except its -200 and -200C series, the Federal Register notice said.

It added that their “radio altimeters cannot be relied upon to perform their intended function if they experience interference from wireless broadband operations in the 3.7-3.98 GHz frequency band (5G C-Band).”

Read the full article:

https://www.reuters.com/business/aerospace-defense/faa-issues-notice-over-boeing-737s-5g-wireless-interference-2022-02-23/