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 issued this short statement on China Eastern Airlines flight MU 5735:
โWe 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.โ
China Eastern Airlines flight MU 5735 was a scheduled domestic passenger flightย fromย Kunmingย toย 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,ย Wuzhou,ย Guangxi Zhuang Autonomous Region, killing all 123 passengers and 9 crew members.
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:
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.”
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:
Qatar Airways is reportedly planning an order with Boeing for 50 new Boeing 777X freighters according to Bloomberg.
The unconfirmed deal is likely to be announced at a meeting between Qatar’s Emir, Sheikh Tamim bin Hamad Al Thani, and U.S. President Joe Biden in Washington, D.C., on January 31, 2022.
The new Boeing 777X will be the worldโs largest and most efficient twin-engine jet, unmatched in every aspect of performance. With new breakthroughs in aerodynamics and engines, the 777X will deliver 10 percent lower fuel use and emissions and 10 percent lower operating costs than the competition. A true family, the 777X offers low-risk, profitable growth, industry-leading reliability and seamless integration with the 777 and 787 Dreamliner families for even more flexibility. But performance is just part of the story. With a spacious, wide cabin, new custom architecture and innovations from the 787 Dreamliner, the 777X will deliver the flight experience of the future.
Read more from Bloomberg Business Wire:
Boeing issued this financial report:
Fourth Quarter 2021
Full-Year 2021
|
Table 1. Summary Financial Results |
Fourth Quarter |
Full Year |
||||||||||
|
(Dollars in Millions, except per share data) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
||||||
|
Revenues |
$14,793 |
$15,304 |
(3)% |
$62,286 |
$58,158 |
7% |
||||||
|
GAAP |
||||||||||||
|
Loss From Operations |
($4,171) |
($8,049) |
NM |
($2,902) |
($12,767) |
NM |
||||||
|
Operating Margin |
(28.2)% |
(52.6)% |
NM |
(4.7)% |
(22.0)% |
NM |
||||||
|
Net Loss |
($4,164) |
($8,439) |
NM |
($4,290) |
($11,941) |
NM |
||||||
|
Loss Per Share |
($7.02) |
($14.65) |
NM |
($7.15) |
($20.88) |
NM |
||||||
|
Operating Cash Flow |
$716 |
($4,009) |
NM |
($3,416) |
($18,410) |
NM |
||||||
|
Non-GAAP* |
||||||||||||
|
Core Operating Loss |
($4,536) |
($8,377) |
NM |
($4,075) |
($14,150) |
NM |
||||||
|
Core Operating Margin |
(30.7)% |
(54.7)% |
NM |
(6.5)% |
(24.3)% |
NM |
||||||
|
Core Loss Per Share |
($7.69) |
($15.25) |
NM |
($9.44) |
($23.25) |
NM |
||||||
|
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”ย ย ย ย |
The Boeing Company reported fourth-quarter revenue of $14.8ย billion, reflecting higher commercial volume and lower defense revenue. GAAP loss per share ofย ($7.02)ย and core loss per share (non-GAAP)* ofย ($7.69)ย reflect lower charges and higher commercial volume (Table 1). Boeing recorded operating cash flow ofย $0.7 billion.
“2021 was a rebuilding year for us as we overcame hurdles and reached key milestones across our commercial, defense and services portfolios. We increased 737 MAX production and deliveries, and safely returned the 737 MAX to service in nearly all global markets. As the commercial market recovery gained traction, we also generated robust commercial orders, including record freighter sales. Demonstrating progress in our overall recovery, we also returned to generating positive cash flow in the fourth quarter,” saidย David Calhoun, Boeing President and Chief Executive Officer. “On the 787 program, we’re progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term. Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.”
|
Table 2. Cash Flow |
Fourth Quarter |
Full Year |
||||||
|
(Millions) |
2021 |
2020 |
2021 |
2020 |
||||
|
Operating Cash Flow |
$716 |
($4,009) |
($3,416) |
($18,410) |
||||
|
Less Additions to Property, Plant & Equipment |
($222) |
($265) |
($980) |
($1,303) |
||||
|
Free Cash Flow* |
$494 |
($4,274) |
($4,396) |
($19,713) |
||||
|
*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”ย ย ย ย |
Operating cash flow improved toย $0.7 billionย in the quarter, reflecting higher commercial volume, higher advance payments, and lower expenditures (Table 2).
|
Table 3. Cash, Marketable Securities and Debt Balances |
Quarter-End |
|||
|
(Billions) |
Q4 21 |
Q3 21 |
||
|
Cash |
$8.0 |
$9.8 |
||
|
Marketable Securities1 |
$8.2 |
$10.2 |
||
|
Total |
$16.2 |
$20.0 |
||
|
Debt Balances: |
||||
|
The Boeing Company, net of intercompany loans to BCC |
$56.6 |
$60.9 |
||
|
Boeing Capital, including intercompany loans |
$1.5 |
$1.5 |
||
|
Total Consolidated Debt |
$58.1 |
$62.4 |
||
|
1ย Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities decreased toย $16.2 billion, compared toย $20.0 billionย at the beginning of the quarter, primarily driven by debt repayment partially offset by operating cash flow. Debt wasย $58.1 billion, down fromย $62.4 billionย at the beginning of the quarter due to the prepayment of a term loan and repayment of maturing debt.
Total company backlog at quarter-end wasย $377 billion.
Segment Results
Commercial Airplanes
|
Table 4. Commercial Airplanes |
Fourth Quarter |
Full Year |
||||||||||
|
(Dollars in Millions) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
||||||
|
Commercial Airplanes Deliveries |
99 |
59 |
68% |
340 |
157 |
117% |
||||||
|
Revenues |
$4,750 |
$4,728 |
0% |
$19,493 |
$16,162 |
21% |
||||||
|
Loss from Operations |
($4,454) |
($7,648) |
NM |
($6,475) |
($13,847) |
NM |
||||||
|
Operating Margin |
(93.8)% |
(161.8)% |
NM |
(33.2)% |
(85.7)% |
NM |
||||||
Commercial Airplanes fourth-quarter revenue increased slightly toย $4.8 billion primarily driven by higher 737 deliveries, partially offset by lower widebody deliveries and less favorable mix. Fourth-quarter operating margin was primarily driven by a charge on the 787 program.
Boeing is continuing to make progress on the global safe return to service of the 737 MAX. In December, the Civil Aviation Administration ofย Chinaย issued an airworthiness directive outlining changes required for Chinese airlines to prepare their fleets to resume service. Since the FAA’s approval to return the 737 MAX to operations inย November 2020, overย 300,000ย revenue flights have been completed, and the reliability of the 737 MAX fleet remains above 99 percent (as ofย January 24, 2022). The 737 program is currently producing at a rate of 26 per month and continues to progress towards a production rate of 31 per month in early 2022. The company is evaluating the timing of further rate increases.
The company continues to perform rework on 787 airplanes in inventory and is engaged in detailed discussions with the FAA regarding required actions to resume deliveries. In the fourth quarter, the company determined that these activities will take longer than previously expected, resulting in further delays in customer delivery dates and associated customer considerations. Accordingly, Commercial Airplanes recorded aย $3.5 billionย pre-tax non-cash charge on the 787 program. 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 now anticipates 787 abnormal costs will increase to approximatelyย $2 billion, with most being incurred by the end of 2023, includingย $285 millionย recorded in the quarter.
Commercial Airplanes secured orders for 164 737 MAX and 24 freighter aircraft. Commercial Airplanes delivered 99 airplanes during the quarter and backlog included over 4,200 airplanes valued atย $297 billion.
Boeing President and CEO Dave Calhoun shared the following message with employees today addressing the companyโs fourth-quarter results:
As we share our fourth-quarter results, I want to thank you for your hard work and resilience. 2021 was a key rebuilding year for us, and together, we overcame significant hurdles. While we have more work to do, I am confident that we are well positioned to accelerate our progress in 2022 and beyond.
The industryโs mounting recovery has spurred solid commercial airplane demand. Order activity picked up significantly, particularly for the 737 MAX. In total, we booked over 900 gross commercial airplane orders including approximately 750 orders for the 737 family.
The 737 MAX is now safely flying in nearly every jurisdiction around the globe and the fleet is performing very well. With about 1,600 flights daily and more than 300,000 revenue flights completed since late 2020, the fleet is delivering reliability equal to or better than any fleet flying. And with over 800,000 total flight hours since late 2020, the fleet has now flown more flight hours than it had prior to the initial grounding. We also delivered 245 737 MAX airplanes in 2021, and weโve steadily increased production with a focus on safety and quality. We began 2021 at very low production rates, and today, are producing at 26 airplanes per month on our way to 31 per month early this year. Looking back at where we started, 2021 was a pivotal year for the 737 team.
Weโre now applying that same disciplined and detailed focus to the 787 program. As you know, we are progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications. This effort continues to impact our deliveries and our financial results โ but we are fully confident it is the right thing to do. I view the financial impacts of this work as a long-term investment in a program that has significant runway ahead. We are taking the time now to ensure weโre positioned well as widebody demand recovers. Weโll continue to keep you updated as we progress toward returning to 787 deliveries.
As cargo demand expands, we also booked record orders for new and converted Boeing freighters, including 84 orders for our 767, 777 and 747 freighters. Our Global Services team also announced 10 new converted freighter lines to meet the growing demand. Overall, our Global Services business showed great resilience, in part due to our well-balanced portfolio of both government and commercial offerings. This quarter, the team delivered our 50thย 767-300 converted freighter and captured new commercial and government business valued at $6 billion. As the commercial market recovers, BGS is well positioned for growth in 2022.
In our defense and space business, we secured key orders and delivered on critical customer milestones. We completed the first carrier tests with the U.S. Navy for the MQ-25, started flight testing on the second uncrewed Loyal Wingman aircraft, and delivered 47 total aircraft including the first KC-46 for Japan and Norwayโs first P-8A Poseidon. We also generated $7 billion in orders in the quarter, extending our BDS backlog to $60 billion.
We took another key step in our overall recovery, notably in our financial performance, by generating positive cash flow in the fourth quarter, which represents our first positive cash quarter since early 2019. At the same time, the ongoing 787 activities resulted in financial charges that significantly impacted our earnings. While we never want to disappoint our customers or miss expectations, the work weโre putting in now will build stability and predictability going forward.
And looking to our future, weโre sustaining and expanding key investments, including in our people, in sustainability, advanced manufacturing, digital engineering, supply chain capability, technology development and partnerships.
Weโll stay squarely focused on safety, quality and transparency as we strengthen our culture and rebuild trust each day. While challenges remain, I am confident in our future. Our market is resilient, our team is world-class and we are taking the right, tough actions today to position ourselves for success. Thank you for all you continue to do to support our customers, our communities and each other.
Dave
Stan Deal, Boeing Commercial Airplanes President and CEO, and Tony Douglas, group chief executive of Etihad Aviation Group, after signing an agreement expanding the companiesโ partnership towards sustainable aviation for the Abu Dhabi-based airline and wider industry. (Boeing Photo)
Boeing and Etihad Airways today announced they will expand the companies’ deep collaboration towards environmental goals. Centered on the airline’s 787 Dreamliner fleet, the new memorandum of understanding (MOU) furthers Boeing and Etihad’s mutual commitment โ initially set through a 2019 sustainability partnership โ to develop sustainable flight operations across Etihad’s global network.
The new agreement will focus on enhancing the efficiency of navigation and flight operations, airframe technologies and sustainable practices to reduce Etihad’s fuel use and emissions. In addition, company leaders said their partnership provides an opportunity to validate concepts that could be scaled up to benefit the broader aviation industry.
Etihad is the largest 787 operator in the Middle East, benefiting from the Dreamliner family’s superior efficiency. The agreement also includes collaboration to develop tools for flight planning, arrival and departure procedures, en-route flight optimization and community noise reduction.
To support this drive for operational efficiency, Boeing will provide multiple services for the Etihad’s 787 fleet including charting and Electronic Flight Bag navigational tools that provide pilots with real-time advisories to adjust course, altitude and speed to optimize fuel use and routing. Also, the two companies will collaborate on ways to reduce emissions at Etihad’s facilities, further the use of sustainable aviation fuel (SAF) and increase sustainable financing.
In 2020, as part of the Boeing ecoDemonstrator program, an Etihad 787-10 tested new technologies to reduce in-flight noise and emissions. In partnership with NASA, the program conducted the most comprehensive aero-acoustic research ever on a commercial airplane.
Boeing also partners with Etihad to test sustainable practices on the Abu Dhabi airline’s commercial flights. Last month, Etihad operated its most sustainable flight ever with a 787-10, utilizing learnings and efficiencies developed over the past two years to reduce carbon emissions in absolute terms compared to previous flights. Boeing provided navigation and flight tools to help avoid weather and turbulence, and worked with other industry partners to optimize the departure, arrival and taxi to reduce fuel use throughout the flight.
Boeing has made this announcement from Dubai:
As global demand for freighters continues to soar, Boeing has announced plans to add three conversion lines for the market-leading 737-800BCF across North Americaย andย Europe. The company also signed a firm order with Icelease forย eleven of the freighters as the launch customer for one of the new conversion lines.
In 2022, the company will open one conversion line at Boeing’s London Gatwick Maintenance, Repair & Overhaul (MRO) facility, its state-of-the-art hangar in theย United Kingdom; and two conversion lines in 2023 at KF Aerospace MRO inย Kelowna, British Columbia, Canada.
For Icelease, which recently expanded its cooperation with Corrum Capital through a joint venture called Carolus Cargo Leasing, the order forย eleven 737-800BCF will be their first converted freighter order with Boeing. The lessor will be the launch customer for conversions at Boeing’s London Gatwick MRO facility.
(Photo credit: Boeing)
Earlier this year, Boeing announced it would create additional 737-800BCF conversion capacity at several sites, including a third conversion line at Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO), and two conversion lines in 2022 with a new supplier, Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) inย Costa Rica. Once the new lines become active, Boeing will have conversion sites inย North America,ย Asiaย andย Europe.
Boeing forecasts 1,720 freighter conversions will be needed over the next 20 years to meet demand. Of those, 1,200 will be standard-body conversions, with nearly 20% of that demand coming from European carriers, and 30% coming fromย North Americaย andย Latin America.
From CNN:
“Boeing agreed on Wednesday to acknowledge liability for compensatory damages in lawsuits filed by families of the 157 people killed in the 2019 Ethiopian Airlines 737 Max crash, according to a filing in US District Court in Chicago.”
Read the full story:
https://www.cnn.com/2021/11/11/investing/boeing-737-max-ethopian-airlines/index.html
Boeing made this announcement:
The new Boeing 777X arrived at Dubai World Central at 14:02 p.m.ย (GST) on November 9, ahead of the upcoming Dubai Airshow. The airplane will be on static display and featured in the show’s flying program starting November 14.
The 777-9 flight test airplane made aย nearly 15-hourย nonstop flight fromย Seattle’sย Boeing Field toย Dubai, the first international flight and longest flight to date for the 777X as it continues to undergo a rigorous test program.
Photo: Boeing.
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