Tag Archives: boeing commercial airplanes

Boeing reports first quarter net income of $965 million

The Boeing Company (Chicago and Seattle) reported first quarter revenue increased 8 percent to $20.5 billion on higher commercial volume (Table 1). Core earnings per share (non-GAAP) increased 14 percent* to $1.76 when excluding a benefit of $0.19 per share for the 2012 research and development tax credit recorded in the first quarter of 2013. First quarter 2014 core operating earnings (non-GAAP) increased 12 percent to $2.1 billion and core operating margin (non-GAAP) increased to 10.2 percent reflecting continued strong operating performance. GAAP earnings from operations included previously announced non-cash charges totaling $334 million ($0.29 per share) for retirement plan changes.

Core earnings per share guidance for 2014 increased to between $7.15 and $7.35, from $7.00 to $7.20, to reflect the benefit of a tax settlement to be recognized in the second quarter of 2014. GAAP earnings per share guidance for 2014 is reaffirmed at between $6.10 to $6.30 as the tax settlement benefit was offset by the retirement plan charges. GAAP pension expense guidance for 2014 is now at approximately $3.2 billion, up from $3.1 billion, to reflect the retirement plan charges. The company reaffirmed its 2014 revenue, operating cash flow and deliveries guidance.

Boeing Commercial Airplanes first-quarter revenue increased to $12.7 billion on higher 787 and 737 deliveries. First-quarter operating margin improved to 11.8 percent reflecting the delivery volume and mix and lower period costs partially offset by higher R&D.

During the quarter, the 787 program reached a 10 per month production rate and completed preliminary design review on the 787-10. The company selected the Everett, Washington site as the location for a new composite wing center for the 777X. In April, the 737 program reached a production rate of 42 per month.

Commercial Airplanes booked 235 net orders during the quarter. Backlog remains strong with over 5,100 airplanes valued at $374 billion.

Read the full report: CLICK HERE

Boeing delivers 648 new airplanes in 2013, a new company record and 1,355 net commercial orders

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
737	1,208	1,046	440	3,680
747	17	12	24	55
767	2	2	21	49
777	121	113	98	380
787	183	182	65	916
Total	1,531	1,355	648	5,080

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

Boeing issues a new statement concerning failed IAM talks in Puget Sound for the 777X, receives relocation proposals from 22 states

Boeing (Chicago) has issued this statement concerning the contract extension discussions with the IAM for the Puget Sound (Seattle) area for the new 777X:

Boeing and the International Association of Machinists & Aerospace Workers District 751 have completed a third day of meetings following an attempt last month to secure a contract extension.

This afternoon, in response to a proposal presented yesterday by the union to secure 777X work in the Puget Sound region, Boeing presented a best and final counterproposal. That offer was rejected by the union leadership.

Boeing’s revised 8-year contract extension would have built on the company’s previous offer with substantial economic improvements. On top of the previous $10,000 signing bonus, employees would have received an additional lump sum bonus of $5,000. Employees also would have received additional dental benefits.

The proposal would have kept in place the current rate in which employees accelerate to the top of the pay scale – commonly referred to as “ZOOM.”

The company would have committed to placing final assembly of the 777X, as well as the fabrication and assembly of the airplane’s composite wing, at a Boeing location in the Puget Sound area. In addition, a separate agreement committing final assembly of the 737 MAX at the Renton, Washington site would have been extended through 2024.

As previously proposed, the long-term contract extension would have included changes to the way members earn future retirement benefits. Employees would keep everything they have accrued under the existing defined benefit plan and earn future benefits under a defined contribution plan with the new Special Company Retirement Contribution, starting November of 2016.

“We entered these discussions to address the concerns we were hearing from our employees,” said Ray Conner, president and CEO, Boeing Commercial Airplanes. “We’ve listened to the union leadership and had an open dialogue in hopes of moving toward each other. Unfortunately the offer, which would have ensured this great airplane for the Puget Sound region, was immediately rejected by the union leadership.”

The 777X site selection process has continued in parallel with this week’s IAM meetings. In an overwhelmingly strong response from interested participants, Boeing has received proposals from 22 states, many of which submitted multiple sites for consideration. A total of 54 sites are now being evaluated in the next critical stage of the process.

Who will now build the new 777X?

Boeing 777X Video:

Boeing and Gol to work on a sustainable biofuel in Brazil

Boeing (Chicago) and Gol Linhas Aereas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) will work together to speed the research, development and approval of new sources of sustainable aviation biofuel in Brazil. Their collaboration will support Gol’s plans to use this lower-carbon jet fuel on more flights during upcoming major sporting events and also will benefit long-term development of a new sustainable aviation biofuel industry in Brazil.

Paulo Sergio Kakinoff, chief executive officer of Gol, and Van Rex Gallard, vice president of Sales for Africa, Latin America and the Caribbean, Boeing Commercial Airplanes, signed a memorandum of understanding for biofuel collaboration at the Latin America and Caribbean Air Transport Association (ALTA) Airline Leaders Forum 2013.

Gol plans to use sustainable biojetfuel on 200 flights during the major sporting event in Brazil in 2014 and to incorporate biofuel into 20 percent of its flights during the major sporting event taking place in Rio de Janeiro in 2016. Boeing will work with Gol to identify and select the most promising feedstocks and refining technologies and then will play a leading role in the approval process for new fuel pathways to ensure the fuel meets safety and performance standards.

The agreement between Boeing and Gol is a significant new step in efforts to advance an aviation biofuel industry in Brazil. On October 23, Brazil’s Aviator’s Day, Gol conducted Brazil’s first commercial biofuel flight in a Boeing 737-800 powered in part by sustainable aviation biofuel made from waste cooking oil and blended by Petrobras, with support from the Inter-American Development Bank (IDB). Following the flight, aviation industry stakeholders including Gol and Boeing, as well as Brazilian officials and research institutions, announced a national effort called the Brazilian Biojetfuel Platform to establish a sustainable biojetfuel industry with research and development in several regions of the country. If the Platform is successful, Brazil, which has already established a biofuel industry could be the first nation to establish a sustainable aviation biofuel industry from biomass production to flight.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Gol’s Boeing 737-809 PR-GIT (msn 28403) in the striking Smiles special livery departs from Sao Paulo (Guarulhos).

Gol:

Will the Boeing 777X be moved out of the Seattle area after the IAM members vote down a long-term contract extension?

Boeing’s (Chicago) machinists rejected an eight-year labor contract extension yesterday that would have let Boeing build the company’s newest jetliner in Washington State. The IAM members voted down the extension by 67 percent. The extension would have secured an estimated 20 years of work building the proposed 777X. This vote may now permanently alter the relationship between Boeing and the Seattle area. The vote will now open a new opportunities for non-union areas like Charleston, South Carolina and other areas to build the new jetliner.

The driving issue for the union was the preservation of their pensions.

Boeing Commercial Airplanes quickly issued a statement from President and CEO Ray Conner after a long-term contract extension was voted down by the International Association of Machinists & Aerospace Workers District 751.

“We are very disappointed in the outcome of the union vote. Our goal was two-fold: to enable the 777X and its new composite wing to be produced in Puget Sound and to create a competitive structure to ensure that we continue market-leading pay, health care and retirement benefits while preserving jobs and our industrial base here in the region. But without the terms of this contract extension, we’re left with no choice but to open the process competitively and pursue all options for the 777X.

I’d like to thank Governor Jay Inslee and the Washington state legislature for all their efforts in this process. We had hoped for a different outcome.”

Read the analysis by Reuters: CLICK HERE

Aerolineas Argentinas finalizes its order for 20 Boeing 737-800s

Aerolineas Argentinas (Buenos Aires) , the flag carrier of Argentina, and Boeing (Chicago) have completed an agreement for 20 Next-Generation 737-800 airplanes.

At a signing ceremony in Buenos Aires, Dr. Mariano Recalde, president of Aerolineas Argentinas and Austral Lineas Aereas, and Van Rex Gallard, vice president of Sales, Latin America, Africa and the Caribbean for Boeing Commercial Airplanes, formalized the agreement, which will help Aerolineas build on a fleet of 26 Next-Generation 737s currently operated by the Argentine carrier.

Gallard noted that the agreement extends a long legacy of partnership between Boeing and Aerolineas Argentinas. “Our partnership with Aerolineas extends back to the days of the Douglas DC-3”.

Copyright Photo: Malcolm Nason/AirlinersGallery.com. The pictured former Airberlin Boeing 737-86J D-ABBA (msn 30570) became LV-CTC with Aerolineas Argentinas.

Aerolineas Argentinas:

Ryanair finalizes its order for 175 Boeing 737-800s

Ryanair (Dublin) has finalized a firm order for 175 Next-Generation 737-800 airplanes with Boeing valued at $15.6 billion at list prices. The order, originally announced as a commitment in March, is Boeing’s largest ever aircraft order from a European airline.

CEO O’Leary flew into the air show on one of Ryanair’s 303 737-800s, which bore a special livery celebrating the agreement.

Ryanair, which took delivery of its first 737-800 from Boeing in 1999 and has the largest fleet of Boeing airplanes in Europe.

The airline operates over 1,600 flights per day from 57 bases on 1,600 routes across 29 countries, connecting more than 180 destinations.

Copyright Photo: Boeing. Michael O’Leary, president and CEO of Ryanair (left) joined Ray Conner, Boeing Commercial Airplanes president and CEO (right), at the Paris signing ceremony.

Video:

Ryanair:

Boeing Accelerates First Delivery of 737 MAX, cockpit revealed

Boeing (Chicago) announced today that first delivery of the 737 MAX 8 to launch customer Southwest Airlines (Dallas) will be a quarter earlier than originally scheduled – in the third quarter of 2017 instead of fourth quarter.

“Through our disciplined development on the 737 MAX program, the team has retired key technology risks,” said Scott Fancher, vice president and general manager, Airplane Development, Boeing Commercial Airplanes, during a briefing at the 2013 Paris Air Show. “We have informed our customers and they are pleased they will be able to put these more fuel-efficient airplanes in their fleets sooner than planned.”

Since launch in August 2011, the 737 MAX team has worked to define the final configuration of the airplane including new LEAP-1B engines from CFM International, a redesigned tail cone and the Advanced Technology winglet. Testing in the wind tunnel and data analysis prove that the 737 MAX configuration, set to be final in July, will give customers a 13 percent fuel-burn improvement over today’s most fuel efficient single-aisle airplanes.

The work done by Boeing has enabled the program to accelerate the 737 MAX schedule. “We continue to follow our knowledge points through the development process and we have an executable plan. Testing, improvement workshops, and solid early data have allowed us to validate the airplane’s performance and move the schedule forward,” said Fancher.

Image: Boeing. The Boeing 737 MAX will feature new large-format flight deck displays supplied by Rockwell Collins. The new displays will deliver enhanced visuals, improved reliability, lower spares and maintenance costs, lower weight and lower upgrade costs over the life of the airplane. The flight deck layout will maintain operational commonality with the Next-Generation 737 on entry-into-service of the 737 MAX while preparing the airplane for future flight deck capabilities.

Pictured here is an artist’s rendering of the 737 MAX flight deck with the four new large format displays.

Boeing launches the 787-10, ALC, GECAS, IAG-British Airways, Singapore Airlines and United Airlines place orders

Boeing (Chicago) announced today at the 2013 Paris Airshow that it has launched the 787-10 Dreamliner, the third member of the super-efficient 787 family. Commitments for 102 airplanes from five customers across Europe, Asia and North America provide a strong foundation to support development and production of the newest Dreamliner.

Customer launch commitments for the 787-10 include Air Lease Corporation, with 30 airplanes; GE Capital Aviation Services, with 10; International Airlines Group / British Airways, with 12 subject to shareholder approval; Singapore Airlines, with 30 and United Airlines, with 20 airplanes.

The new 787-10 will fly up to 7,000 nautical miles (12,964 km) — covering more than 90 percent of the world’s twin-aisle routes — with seating for 300-330 passengers, depending on an airline’s configuration choices. The second member of the family, the 787-9, is in final assembly in Everett, Wash., and is set to make its first flight later this year.

“The 787-10 Dreamliner will be the most-efficient jetliner in history. The airplane’s operating economics are unmatched and it has all the incredible passenger-pleasing features that set the 787 family apart as truly special,” said Boeing Commercial Airplanes President and CEO Ray Conner. “The 787-10 is 25 percent more efficient than airplanes of its size today and more than 10 percent better than anything being offered by the competition for the future.”

Design of the 787-10 has already started at Boeing, and international partners will be involved in detailed design in the months ahead. Final assembly and flight test of the 787-10 are set to begin in 2017, with first delivery targeted for 2018.

“Our ongoing investment in the 787 family is well-founded,” said Conner. “With the 787-10, we’ve designed an exceptional airplane supported by an efficient and integrated production system that can meet increasing demands and create new opportunities for us. Our team and our customers are excited about growing the product line and expanding our presence with this family of airplanes.”

The 787 family’s unique interior offers passengers technologies that make their flights more enjoyable, including large, dimmable windows; cleaner air; higher humidity; lower cabin altitude; bigger stowage bins; soothing LED lighting and a smoother ride. The 787-10 will share a common type rating not only with the 787-8 and 787-9 but also with the popular Boeing 777, giving airlines additional flexibility in scheduling and training flight crews.

United Airlines issued this statement:

United Airlines today increased its 787 Dreamliner order to 65 aircraft (including six previously delivered aircraft) with an order for 20 787-10s.United is the North American launch customer for the 787-10 and it expects delivery of its first aircraft in 2018. United ordered 10 incremental 787-10 aircraft and will convert 10 existing 787s on order to 787-10s, enabling the airline to further modernize its international widebody fleet by replacing older, less efficient aircraft. The advanced technology and composite construction of the 787 reduce fuel burn and carbon emissions, while providing a superior customer experience.

United is currently the only U.S. airline to operate the 787. United has six new 787-8 aircraft in service and had previous orders for an additional 49 Dreamliners consisting of both the -8 and -9 variants. The 787-10 is a stretched version of the 787-9 and will offer the lowest fuel burn per seat of any aircraft in its size category. The 787 offers up to 20 percent better fuel efficiency per seat than similarly sized aircraft, due in part to the more than 50 percent composite makeup of its structure. The 787 also boasts an enhanced inflight experience including larger windows, larger overhead bins and lower cabin altitude with enhanced ventilation systems that reduce the effects of jet lag.

The 787-10 order is the latest in United’s commitment to improve the efficiency of its fleet. In July of last year, United announced a narrowbody order for 100 Boeing 737 MAX 9 aircraft and 50 Boeing 737-900ER aircraft. In addition, United has an order for 25 Airbus A350 aircraft. The airline is also modernizing its United Express fleet by adding 70 76-seat Embraer aircraft that will be operated by United Express regional partners.

Images: Boeing.

Boeing starts the final assembly of the first 787-9

Boeing (Chicago) has begun final assembly of the first 787-9 Dreamliner. The newest member of the 787 family began taking shape on schedule on May 30 in Everett, Washington, when Boeing started joining large sections of the super-efficient jet.

Boeing will build the first three 787-9s on its Temporary Surge Line in Everett to allow for smoother integration of the 787-9 into the production system while continuing to ramp up production across the 787 program.

The 787-9 will complement and extend the 787 family, offering airlines the ability to grow routes opened with the 787-8. With the fuselage stretched by 20 feet (6 meters), the 787-9 will carry 40 more passengers an additional 300 nautical miles (555 kilometers) while using 20 percent less fuel than similarly sized airplanes. The 787-9 leverages the visionary design of the 787-8, offering the features passengers prefer such as large, dimmable windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

The vertical stabilizer on this 787-9 reflects the new Boeing Commercial Airplanes livery, a refreshed look for the Boeing family of airplanes that started with the 747-8 and evolved with the 737 MAX. Many features of the livery on the original 787 are reflected in the new design. The prominent number designator on the tail helps distinguish various models within the same product family.

First flight of the 787-9 is scheduled for the second half of 2013, with first delivery to launch customer Air New Zealand set for early 2014. 20 customers around the world have ordered 355 787-9s, accounting for 40 percent of all 787 orders.