Category Archives: Boeing

The first Boeing 747-8 Intercontinental is scrapped

On April 15, 2022, long time Basle resident Boeing 747-8 BBJ N458BJ (msn 40065/line number 1446) was ferried from Basle (Switzerland) to the Pinal Airpark in Marana, AZ (USA).

The airframe was built in 2012, and made its first flight on May 30, 2012. The aircraft was registered as N458BJ on behalf of the thrust owner, the Bank of Utah, and was intended for Saudi Crown Prince Sultan Abdul Aziz, but he died in October 2011.

The aircraft was planned for interior outfitting at Jet Aviation in Basle, Switzerland, but this contract was cancelled in early 2012. Nonetheless the aircraft was ferried to Basle for interior modifications on December 29, 2012.
Since then, not much had happened to the airframe. The aircraft was offered for sale with, according to pictures on the webpage of the sales agent, the aircraft has an empty cabin. At the time it was announced for sale, the price was considered a bargain at $95 million, nearly one-fifth the value of a new 747-8. 
 
After almost ten years of storage it was flown back to the US in Marana, AZ.
At this Arizona’s boneyard, scrapping has already started, as the images taken a few days ago confirms. It is the first 747-8 airframe to be scrapped with just 42 flight hours.

 

The nine Boeing 747-8 BBJs that are still flying around can be found with the Kuwait Government, Egyptian Government (they have taken over an ex-Lufthansa 747-8), Qatar Amiri Flight (2), Qatar Executive, Brunei Government, Oman Government, Turkish Government, and the Moroccan Government.

Besides this, ten 747-8 BBJs, Boeing has built 36 passenger 747-8Is and 107 cargo 747-8Fs (including the last four 747s, currently being built for Atlas Air).

Two 747-8Is which were originally built for Transaero Airlines, were sold to the US Government to be converted to a VC-25B (Air Force One). 

Report by Javier Rodriguez.

Final Boeing 747 (N863GT) leaves the Everett factory

The end of an era:

The last Boeing 747 left the company’s widebody factory in advance of its delivery to Atlas Air in early 2023 as N863GT.

The last Boeing 747 left the company’s widebody factory in advance of its delivery to Atlas Air in early 2023. (Photo: Boeing/Paul Weatherman)

“For more than half a century, tens of thousands of dedicated Boeing employees have designed and built this magnificent airplane that has truly changed the world. We are proud that this plane will continue to fly across the globe for years to come,” said Kim Smith, Boeing Vice President and general manager, 747 and 767 Programs.

The 747 has played a key role in Boeing’s history of aerospace leadership.

  • Production of the 747, the world’s first twin-aisle airplane, began in 1967 and spanned 54 years, during which a total of 1,574 airplanes were built.
  • At 250 ft 2 in (76.2 m), the 747-8 is the longest commercial aircraft in service. At typical cruising speeds, the 747-8 travels roughly the length of three FIFA soccer fields or NFL football fields, per second.
  • The final airplane is a 747-8 Freighter. This model has a revenue payload of 133.1 tonnes, enough to transport 10,699 solid-gold bars or approximately 19 million ping-pong balls or golf balls.

Boeing reports a third quarter net loss of $3.3 billion

Boeing issued this financial report:

Third Quarter 2022

  • Operating cash flow of $3.2 billion; continue to expect positive free cash flow for 2022
  • Resumed 787 deliveries and delivered 9 airplanes
  • Recorded losses on fixed-price defense development programs
  • Revenue of $16.0 billion; GAAP loss per share of ($5.49) and core (non-GAAP)* loss per share of ($6.18)
  • Total backlog of $381 billion; including over 4,300 commercial airplanes

Table 1. Summary Financial Results

Third Quarter

Nine Months

(Dollars in Millions, except per share data)

2022

2021

Change

2022

2021

Change

Revenues

$15,956

$15,278

4 %

$46,628

$47,493

(2) %

GAAP

(Loss)/Earnings From Operations

($2,799)

$329

NM

($3,194)

$1,269

NM

Operating Margin

(17.5)

%

2.2

%

NM

(6.8)

%

2.7

%

NM

Net Loss

($3,308)

($132)

NM

($4,390)

($126)

NM

Loss Per Share

($5.49)

($0.19)

NM

($7.24)

($0.10)

NM

Operating Cash Flow

$3,190

($262)

NM

$55

($4,132)

NM

Non-GAAP*

Core Operating (Loss)/Earnings

($3,078)

$59

NM

($4,040)

$461

NM

Core Operating Margin

(19.3)

%

0.4

%

NM

(8.7)

%

1.0

%

NM

Core Loss Per Share

($6.18)

($0.60)

NM

($9.31)

($1.72)

NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” 

The Boeing Company reported third-quarter revenue of $16.0 billion, GAAP loss per share of ($5.49) and core loss per share (non-GAAP)* of ($6.18). Third-quarter results reflect higher commercial volume and losses on fixed-price defense development programs (Table 1). Boeing generated operating cash flow of $3.2 billion.

“We continue to make important strides in our turnaround and remain focused on our performance,” said Dave Calhoun, Boeing President and Chief Executive Officer. “We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs. We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions. We remain in a challenging environment and have more work ahead to drive stability, improve our performance and ensure we’re consistently delivering on our commitments. Despite the challenges, I’m proud of our team and the progress we’ve made to strengthen our company.”

Table 2. Cash Flow

Third Quarter

Nine Months

(Millions)

2022

2021

2022

2021

Operating Cash Flow

$3,190

($262)

$55

($4,132)

Less Additions to Property, Plant & Equipment

($284)

($245)

($896)

($758)

Free Cash Flow*

$2,906

($507)

($841)

($4,890)

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” 

Operating cash flow improved to $3.2 billion in the quarter, reflecting higher commercial deliveries, favorable receipt timing, and a tax refund (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q3 22

Q2 22

Cash

$13.5

$10.0

Marketable Securities1

$0.8

$1.4

Total

$14.3

$11.4

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$55.7

$55.7

Boeing Capital, including intercompany loans

$1.5

$1.5

Total Consolidated Debt

$57.2

$57.2

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

Cash and investments in marketable securities increased to $14.3 billion, compared to $11.4 billion at the beginning of the quarter, primarily driven by cash from operations (Table 3). The company has access to credit facilities of $12.0 billion, which remain undrawn.

Total company backlog at quarter-end was $381 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Third Quarter

Nine Months

(Dollars in Millions)

2022

2021

Change

2022

2021

Change

Commercial Airplanes Deliveries

112

85

32 %

328

241

36 %

Revenues

$6,263

$4,459

40 %

$16,643

$14,743

13 %

Loss from Operations

($643)

($693)

NM

($1,744)

($2,021)

NM

Operating Margin

(10.3)

%

(15.5)

%

NM

(10.5)

%

(13.7)

%

NM

Commercial Airplanes third-quarter revenue increased to $6.3 billion, driven by the resumption of 787 deliveries and higher 737 deliveries (Table 4). Operating margin of (10.3) percent also reflects lower abnormal costs as compared to the third quarter of 2021, partially offset by higher period expenses, including R&D expense.

The company also resumed 787 deliveries in late August, following comprehensive reviews to ensure each airplane meets the company’s highest standards. The program is producing at a low rate with an expected gradual return to five per month over time.

Since late 2020, the 737 MAX fleet has completed nearly 1 million revenue flights. During the quarter, the company secured net orders for 227 aircraft, including 167 737 airplanes, 27 767 airplanes, 18 777 airplanes, and 15 787 airplanes. Commercial Airplanes delivered 112 airplanes during the quarter and backlog included over 4,300 airplanes valued at $307 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

Third Quarter

Nine Months

(Dollars in Millions)

2022

2021

Change

2022

2021

Change

Revenues

$5,307

$6,617

(20) %

$16,981

$20,678

(18) %

(Loss)/earnings from Operations

($2,798)

$436

NM

($3,656)

$1,799

NM

Operating Margin

(52.7)

%

6.6

%

NM

(21.5)

%

8.7

%

NM

Defense, Space & Security third-quarter revenue decreased to $5.3 billion and third-quarter operating margin decreased to (52.7) percent, primarily due to $2.8 billionof losses on certain fixed-price development programs, driven by higher estimated manufacturing and supply chain costs, as well as technical challenges. These losses were recorded on the KC-46A, VC-25B, MQ-25, T-7A and Commercial Crew programs. Results were also impacted by unfavorable performance on other programs.

During the quarter, Defense, Space & Security captured KC-46A Tanker awards from the U.S. Air Force for 15 aircraft and the Israeli Air Force for four aircraft, and Poland selected the AH-64E Apache as its future attack helicopter. Defense, Space & Security delivered 34 aircraft and two satellites, including the first four MH-139A Grey Wolf helicopters to the U.S. Air Force. Also during the quarter, Defense, Space and Security opened the Advanced Composite Fabrication Center in Mesa, Arizona.

Backlog at Defense, Space & Security was $55 billion, of which 31 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services

Third Quarter

Nine Months

(Dollars in Millions)

2022

2021

Change

2022

2021

Change

Revenues

$4,432

$4,221

5 %

$13,044

$12,037

8 %

Earnings from Operations

$733

$644

14 %

$2,093

$1,616

30 %

Operating Margin

16.5

%

15.3

%

8 %

16.0

%

13.4

%

19 %

Global Services third-quarter revenue increased to $4.4 billion and third-quarter operating margin increased to 16.5 percent primarily driven by higher commercial services volume and favorable mix, partially offset by lower government services volume.

During the quarter, Global Services was awarded a follow-on KC-767A Performance Based Logistics support contract for the Italian Air Force and received an F/A-18 depot support order for the U.S. Navy. Global Services also signed a Landing Gear Exchange and Airplane Health Management agreement with Ethiopian Airlines. Also in the quarter, Global Services delivered the 100th contracted 737-800BCF to AerCap.

Additional Financial Information

Table 7. Additional Financial Information

Third Quarter

Nine Months

(Dollars in Millions)

2022

2021

2022

2021

Revenues

Boeing Capital

$52

$71

$150

$209

Unallocated items, eliminations and other

($98)

($90)

($190)

($174)

(Loss)/Earnings from Operations

Boeing Capital

$23

$42

$14

$99

FAS/CAS service cost adjustment

$279

$270

$846

$808

Other unallocated items and eliminations

($393)

($370)

($747)

($1,032)

Other income, net

$288

$30

$722

$419

Interest and debt expense

($621)

($669)

($1,901)

($2,021)

Effective tax rate

(5.6)

%

57.4

%

(0.4)

%

62.2

%

At quarter-end, Boeing Capital’s net portfolio balance was $1.6 billion. The change in other income was driven by the absence of a pension settlement charge recorded in the third quarter of 2021. Interest and debt expense decreased due to lower debt balance. The third quarter effective tax rate primarily reflects tax expense due to an increase in the valuation allowance.

Top Copyright Photo: Boeing 737-10 MAX 10 SSWL N27751 (msn 66122) BFI (Joe G. Walker). Image: 954396.

A Fond Farewell – The Boeing 747 – The end of production is coming

Boeing issued this salute to the iconic Boeing 747:

Safety Firsts

Production of the storied 747 will come to an end as 2022 draws to a close. With more than five decades of service so far, the iconic “Queen of the Skies” leaves a lasting legacy of safety firsts.

The 747 was the first airplane with:

Triple redundancy in all major systems.

Quadruple redundancy in the control and hydraulic systems.

Three wing spars, with the third spar extending to the outboard engine.

Four main landing gear (the plane can operate with just two) that contribute to a soft landing.

Enclosed overhead bins replacing open hat racks. n Full-motion simulators for training.

The 747 team created the industry’s first full-motion simulator. During development of the airplane, Boeing invested millions of dollars in a flight training program, including behavioral flight training (instead of procedural) and a cadre of top flight instructors.

PHOTOS: BOEING ARCHIVES

HOME STRETCH SKETCH

One of the last 747s under construction, in Everett, Washington, as seen through the pencil, pen then paint of Jeff Barlow from Boeing Creative & Digital.

IMAGE: JEFF BARLOW/BOEING

Boeing 747-100 slide show:

Boeing 747-200 slide show:

Boeing 747-300 slide show:

Boeing 747-400 slide show:

Boeing 747-8 Intercontinental slide show:

Boeing 747SP slide show:

Boeing announces its deliveries in the third quarter, Dreamlifter wheel falls off on takeoff

 

The Boeing Company has announced major program deliveries across its commercial and defense operations for the third quarter of 2022.

The company will provide detailed third quarter financial results on October 26. Major program deliveries during the third quarter were as follows:

 

Major Programs

3rd Quarter
2022

Year-to-Date
2022

Commercial Airplanes Programs

737

88

277

747

—

3

767

9

21

777

6

18

787

9

9

Total

112

328

Defense, Space & Security Programs

AH-64 Apache (New)

7

20

AH-64 Apache (Remanufactured)

8

36

CH-47 Chinook (New)

1

10

CH-47 Chinook (Renewed)

2

6

F-15 Models

4

9

F/A-18 Models

3

11

KC-46 Tanker

1

9

MH-139

4

4

P-8 Models

4

10

Commercial and Civil Satellites

2

2

Military Satellites

—

—

 

Note: Delivery information is not considered final until quarterly financial results are issued.

 

Top Copyright Photo: Boeing 777-212 ER N861BC (msn 32336) (ecoDemonstrator-10 Year Anniversary) PAE (Nick Dean). Image: 959003.

Boeing slide show:

A sneak peek at Boeing’s new 777X cockpit

Boeing presented this view of the new Boeing 777X cockpit:

When passengers board an airplane, they pass by the pilots’ seats and marvel at the myriad levers, switches, knobs and glowing lights in the flight deck. Pilots walk into the flight deck and see their office for the day. And thanks to the Boeing Flight Deck team, it’s a space in which pilots will feel increasingly at ease.

Here are five flight deck technologies in development for the 777X, Boeing’s newest commercial airplane
family member.

Boeing delivers the 100th 737-800 BCF to AerCap for Gol Linhas Aereas

Boeing has made this announcement:

Boeing has announced the milestone delivery of the 100th contracted 737-800 Boeing Converted Freighter (BCF) to the world’s largest lessor, AerCap. The 100th 737-800BCF was converted at Boeing Shanghai Aviation Services Co. Ltd., (BSAS), home to the first 737-800BCF conversion line.

AerCap Cargo has leased the aircraft to GOL Linhas Aéreas, as part of the growth strategy and logistics solution of GOLLOG, GOL´s logistics business unit. GOL will operate the freighter for a Latin American e-commerce company.

100th 737-800 BCF

In 2016, AerCap Cargo was the launch customer for Boeing’s 737-800BCF program. Today, AerCap Cargo has the largest fleet of 737-800BCFs with 65 firm orders and nine options.

BGS Converted Freighter Infographic

Since program launch, BSAS has added a second conversion line for the 737-800BCF. It is now one of five global sites in three countries with 737-800BCF conversion capacity.

With up to 20% lower fuel use and CO2 emissions per tonne, 737-800BCF operators are carrying more payload with less fuel. The in-service 737-800BCF fleet has already logged more than 70,000 flights, with average utilization of 7 hours per day, more than double the typical utilization of older generation freighters in the same size category.

The 737-800BCF is the market leader with more than 250 orders and commitments from over 20 customers.

Documentary about Boeing MAX 737 disaster premieres on Amazon Prime

Kreindler & Kreindler LLP has issued this statement:

The work of NYC-based aviation accident law firm Kreindler & Kreindler is featured in a new documentary released by Amazon Studios. The tragic story of the Ethiopian Airlines flight 302 Boeing 737 MAX crash is told through the perspective of Pulitzer prize-winning journalist Dominic Gates, the victims’ families and their attorneys with added insight from former Boeing workers turned whistle-blowers.

Amazon Studios released the movie, Flight / Risk, a documentary that follows everyday people thrust into the midst of a global tragedy in the aftermath of two horrific crashes of new Boeing 737 MAX airplanes – tragedies that took place only five months apart. The two similar crashes resulted in the combined loss of 346 people. The story is revealed through several perspectives – Pulitzer prize-winning journalist Dominic Gates, the victims’ families and their attorneys, including Kreindler & Kreindler’s Justin Green, with additional insight from a former Boeing engineer turned whistle-blower.

Kreindler Attorney Justin T. Green in a deposition with a client
Kreindler Attorney Justin T. Green in a deposition with a client

View movie trailer for Amazon Prime documentary “Flight / Risk”:

[youtube https://www.youtube.com/watch?v=urYOTavhz6c&w=560&h=315%5D

A Law Firm Working on Behalf of the Victims of Ethiopian Airlines Flight 302

The film focuses particularly on the Kreindler law firm’s representation of 34 families who lost loved ones in the 2019 Ethiopian Airlines Flight 302 crash. Kreindler attorney Justin Green is Co-Chair of the Plaintiffs’ Executive Committee (PEC) for the victims’ families litigation against Boeing. Green, along with law partners Daniel Rose and Brian Alexanderare each military-trained pilots, bringing a unique perspective to their work on the PEC. Additional Kreindler attorneys appointed to the plaintiffs’ committee are Anthony Tarricone, Megan Benett, and Erin Applebaum. Kreindler attorneys Andrew Maloney, Kevin Mahoney, Vincent Lesch and Marc Moller round out the firm’s legal team working on the case. Kreindler is the largest and most successful plaintiffs’ aviation accident law firm in the world.

The Litigation Between Boeing and the Victims’ Families

In the lawsuit filed against Boeing in 2019, the victims’ families allege that Boeing put the financial interests of its shareholders ahead of the safety of passengers and flight crews. Boeing rushed the design, manufacture and certification of the Boeing 737 MAX, misrepresented to the public, the FAA, and Boeing’s customers that the airplane was safe to fly and Boeing shockingly continued to claim that the aircraft was safe to fly even after the second crash of a Boeing 737 MAX. The plaintiffs’ allege that Boeing was eager to get the plane into service quickly, as the company viewed the new aircraft as Boeing’s best weapon in its war for market share with European rival Airbus and their new A320neo airplane.

Lawsuits arising from the crash, yet still unresolved, are scheduled for trial in the U.S. District Court for the Northern District of Illinois, beginning March 2023 (In re: Ethiopian Airlines Flight ET 302 Crash (1:19-cv-02170).

Ryanair says MAX 10 will not be certified by year-end

According to Reuters, Boeing “faces a late December deadline to win approval for the 737 MAX 10, which can hold 230 passengers, otherwise it must meet new cockpit alerting requirements under a 2020 law unless waived by Congress.”

Boeing Chief Executive Dave Calhoun said in July this issue could force the cancellation of the 737-10 program..

Boeing to open Japan Research Center and expand sustainability partnerships

Boeing will strengthen its partnership with Japanby opening a new Boeing Research and Technology (BR&T) center. The facility will focus on sustainability and support a newly expanded cooperation agreement with Japan’s Ministry of Economy, Trade and Industry (METI).

Boeing and METI have agreed to broaden their 2019 Cooperation Agreement to now include a focus on sustainable aviation fuels (SAF), electric and hydrogen powertrain technologies, and future flight concepts that will promote zero climate impact aviation. That is in addition to exploring electric and hybrid-electric propulsion, batteries, and composite manufacturing that will enable new forms of urban mobility.

The BR&T – Japan Research Center will be located in Nagoya, which is already home to many of Boeing’s major industrial partners and suppliers. The facility will further expand Boeing’s research and development footprint in the region, which includes centers in Australia, China and Korea.

Boeing is fully committed to supporting Japan’s SAF industry and has been accepted as the latest member of ACT FOR SKY, a voluntary organization of 16 companies that works to commercialize, promote and expand the use of SAF produced in Japan. It was founded by Boeing airline customers All Nippon Airways (ANA) and Japan Airlines (JAL), along with global engineering company JGC Holdings Corporation, and biofuel producer Revo International.

In addition to becoming partners in ACT FOR SKY, Boeing has a long history of innovating with ANA and JAL on sustainable aviation, which includes pioneering SAF-powered flights and launching the ground-breaking 787 Dreamliner. Today, they signed agreements to work together to study advanced sustainable technologies, including electric, hybrid, hydrogen and other novel propulsion systems in an endeavor to reduce the carbon footprint of aircraft.