Tag Archives: Boeing

BBC: EASA will not accept the FAA’s decision on the Boeing 737 MAX

Boeing’s troubles with 737 MAX could continue, this time from Europe.

According to the BBC, the European Aviation Safety Agency (EASA) will conduct its own tests on the Boeing 737 MAX before it is permitted to fly in Europe. This represents a break from international protocol of aviation regulators accepting each other’s standards and findings.

Will the 737 MAX be allowed to fly in the United States (under the FAA’s clearance) and not in other places?

Read the full story.

Copyright Photo: Joe G. Walker.

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KLM orders two additional Boeing 777-300ER jets

Named "Grand Canyon National Park"

Boeing made this announcement:

Boeing and KLM Royal Dutch Airlines have announced that the carrier has ordered two more 777-300ER (Extended Range) airplanes.

Above Image: Boeing.

The order, valued at $751 million at current list prices, was previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website.

The 777-300ER can seat up to 396 passengers in a two-class configuration and has a maximum range of 7,370 nautical miles (13,650 km). The airplane is the world’s most reliable twin aisle with a schedule reliability of 99.5 percent.

Operating out of its home base in Amsterdam, the KLM Group serves a global network of 92 European cities and 70 intercontinental destinations with a fleet of 209 aircraft. The carrier operates 29 777s, including 14 777-300ERs. It also flies 747s and the 787 Dreamliner family.

KLM, the world’s oldest airline still operating under its original name, is celebrating its centenary this year. In 2004 it merged with Air France to create Europe’s largest airline group. The Air France-KLM Group is also one of the largest operators of the 777 family with nearly 100 between the combined fleets.

Top Copyright Photo: KLM Royal Dutch Airlines Boeing 777-300 ER PH-BVU (msn 61702) PAE (Nick Dean). Image: 939290.

KLM aircraft slide show:

KLM aircraft photo gallery:

Boeing delays the first flight and delivery of the new 777X

New Boeing 777-9 (777X) with foldable wingtips

Boeing, according to a Reuters report, has delayed the delivery of the new long-range 777X due to engine issues with the new type.

The first flight of the 777-9 (777X) is now expected in 2020. The aircraft has been going through taxi tests at Paine Field in Everett, WA (top).

The 777X features new General Electric GE9X engines, new composite wings with folding wingtips, greater cabin width and seating capacity, and technologies from the Boeing 787 according to Wikipedia.

The 777X was launched in November 2013 with two variants: the 777-8 and the 777-9. The 777-8 provides seating for 365 passengers and has a range of 8,690 nautical miles (16,090 km) while the 777-9 has seating for 414 passengers and a range of over 7,525 nautical miles (13,936 km).

There are currently 45 orders for the 777-8 and 280 orders for the 777-9.

Read the full report from Reuters.

Top Copyright Photo: Boeing 777-9 (777X) N779XW (msn 64240) PAE (Nick Dean). Image: 947287.

Reuters: Boeing to change 737 MAX flight-control software to address flaw

Reuters is reporting Boeing plans further changes to the MCAS software on the grounded Boeing 737 MAX to address a flight test flaw uncovered in June.

The change incorporates now taking input from both flight control computers.

Read the full report: CLICK HERE

Boeing reports a second quarter loss

The Boeing Company reported second quarter revenue of $15.8 billion, GAAP loss per share of ($5.21) and core loss per share (non-GAAP)* of ($5.82), reflecting the previously announced 737 MAX charge (which reduced revenue by $5.6 billion and earnings by $8.74 per share) as well as lower 737 deliveries partially offset by higher defense and services volume (Table 1). Boeing recorded operating cash flow of ($0.6) billion and paid $1.2 billion of dividends.

The previously issued 2019 financial guidance does not reflect 737 MAX impacts. Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date. Boeing is working very closely with the FAA on the process they have laid out to certify the 737 MAX software update and safely return the MAX to service. Disciplined development and testing is underway and we will submit the final software package to the FAA once we have satisfied all of their certification requirements. Regulatory authorities will determine the process for certifying the MAX software and training updates as well as the timing for lifting the grounding order.

“This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. “During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals.”

Copyright Photo: Joe G. Walker. Boeing 737 MAX aircraft in storage.

Commercial Airplanes second-quarter revenue was $4.7 billion reflecting the previously announced 737 MAX charge and lower 737 deliveries partially offset by favorable mix (Table 4). Second-quarter operating margin was (104.7) percent reflecting the previously announced 737 MAX charge and lower 737 deliveries partially offset by a higher margin on the 787 program.

During the quarter, Commercial Airplanes delivered 90 airplanes, including 42 787s, and captured orders for two 777 freighters for DHL and six 767 freighters for FedEx.

Highlights from the Paris Air Show included a letter of intent from IAG for 200 737 MAX airplanes as well as several wide body commitments. The 777X program is progressing well through pre-flight testing. While the company is still targeting late 2020 for first delivery of the 777X, there is significant risk to this schedule given engine challenges, which are delaying first flight until early 2020.

Commercial Airplanes backlog remains healthy with more than 5,500 airplanes valued at $390 billion.

Boeing to recognize charge and increased costs in second quarter due to 737 MAX grounding

Boeing has made this announcement on the on-going grounding of the 737 MAX:

Boeing has announced it will recognize an impact to earnings when it releases second quarter 2019 results on July 24.

Boeing will record an after-tax charge of $4.9 billion1 ($8.74 per share) in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays. This charge will result in a $5.6 billion reduction of revenue and pre-tax earnings in the quarter.

While the entire estimated amount will be recognized as a charge in the second quarter, the company expects any potential concessions or other considerations to be provided over a number of years and take various forms of economic value.

Additionally, Boeing’s estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in the second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate. The increased 737 program costs will reduce the margin of the 737 program in the second quarter and in future quarters.

Boeing continues to work with civil aviation authorities to ensure the 737 MAX’s safe return to service, and these authorities will determine the timing of return to service. For purposes of the second-quarter financial results, the company has assumed that regulatory approval of 737 MAX return to service in the U.S. and other jurisdictions begins early in the fourth quarter 2019. This assumption reflects the company’s best estimate at this time, but actual timing of return to service could differ from this estimate. The second-quarter financial results will further assume a gradual increase in the 737 production rate from 42 per month to 57 per month in 2020, and that airplanes produced during the grounding and included within inventory will be delivered over several quarters following return to service. Any changes to these assumptions could result in additional financial impact.

“We remain focused on safely returning the 737 MAX to service,” said Boeing Chairman, President and CEO Dennis Muilenburg. “This is a defining moment for Boeing. Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes. The MAX grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks.”

Boeing Chief Financial Officer and Executive Vice President of Enterprise Performance and Strategy Greg Smith added, “We are taking appropriate steps to manage our liquidity and increase our balance sheet flexibility the best way possible as we are working through these challenges. Our multi-year efforts on disciplined cash management and maintaining a strong balance sheet, in addition to our strong and broad portfolio offerings, are helping us navigate the current environment.”

Boeing’s previously-issued 2019 financial guidance did not reflect impacts related to the 737 MAX. Due to the uncertainty of the timing and conditions concerning 737 MAX return to service, new guidance will be issued at a future date.

1 = Reflects the tax impact recorded in the second quarter of 2019. Based on current assumptions, additional tax impact would be recorded later in the year bringing the 2019 after-tax charge down to approximately $4.4 billion.

Photo: Joe G. Walker.

Boeing dedicates $50 million of pledged $100 million to near-term relief for families of the victims of the Lion Air flight 610 and Ethiopian Airlines flight 302 accidents

Boeing has made this announcement:

Boeing has announced that it has dedicated $50 million of a previously announced $100 million fund to provide near-term financial assistance to families of the victims of the Lion Air Flight 610 and Ethiopian Flight 302 accidents.

Boeing also announced that it has retained Kenneth Feinberg and Camille Biros, renowned experts in establishing and overseeing victims’ compensation funds, to design and administer the fund.

“The tragic loss of life in both accidents continues to weigh heavily on all of us at Boeing, and we have the utmost sympathy for the loved ones of those on board,” said Dennis Muilenburg, Boeing chairman, president and CEO. “Through our partnership with Feinberg and Biros, we hope affected families receive needed assistance as quickly and efficiently as possible.”

The $50 million fund represents the initial expenditure of a $100 million pledge by Boeing to address family and community needs of those affected by the accidents. All monies distributed by Mr. Feinberg and Ms. Biros will be independent from any resolution provided through the legal process.

“We are honored to take on this important assignment of providing needed financial relief to the families of these two tragedies,” added Kenneth Feinberg.

Co-Administrator Camille Biros continued, “We know how important it is to assist the families of the victims who have endured a personal tragedy and will work to design and administer the fund and distribute the money as efficiently and expeditiously as possible.”

Copyright Photo: Joe G. Walker.

Note: Meanwhile all of the Boeing 737 MAX airplanes in the world remain grounded and out of service.