Tag Archives: Boeing

Boeing 737 MAX 10 reaches firm configuration

(PRNewsfoto/Boeing)

Boeing’s 737 MAX 10 has reached a major milestone as the MAX program completed firm configuration on the airplane. This means engineers now have all the design requirements in place for what will be the largest member of Boeing’s single-aisle family. Boeing announced the achievement at the Singapore Airshow.

 

“The steps we’ve taken to reach this point ensure the MAX 10 will be the most efficient and profitable single-aisle airplane the market has ever seen,” said Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes. “We’re working closely with our airline customers to deliver on the performance and efficiency benefits we’ve promised.”

The 737 MAX 10, which will use a stretched fuselage that is 66 inches longer than the 737 MAX 9, now moves into the detailed design phase prior to the start of production. The airplane will carry up to 230 passengers, delivering 5 percent lower trip costs and 5 percent lower seat-mile costs compared to its competition.

The MAX 10 is coming off a strong launch at the 2017 Paris Air Show. The airplane now has more than 416 orders and commitments from 18 customers across the globe. Deliveries are scheduled to begin in the 2020 timeframe.

The MAX 10 will soon join the rest of the 737 MAX family. The first MAX 7 rolled out of the paint hangar earlier this week and will soon start flight tests. The MAX 8 has been in service since 2017, already carrying more than 1.8 million passengers. And the first MAX 9 is scheduled to be delivered in the coming weeks.

The 737 MAX family is designed to offer customers exceptional performance, with lower per-seat costs and an extended range that will open up new destinations in the single-aisle market. The 737 MAX incorporates the latest CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays and other features to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

Image: Boeing.

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Boeing announces nearly $1 billion in services orders at Singapore Airshow

Boeing made this announcement:

Boeing announced services orders valued at more than $900 million that will enable carriers and partners to excel in today’s competitive airline environment.

These agreements stretch across Global Services’ four capability areas, including parts; engineering, modifications and maintenance; digital aviation and analytics; and training and professional services.

Regional agreements announced today include in part:

  • All Nippon Airways signed a contract for 36 landing gear exchanges for the 787.
  • China Southern Airlines and Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) signed an agreement to develop service capabilities for the Boeing Global Fleet Care portfolio, as well as enhanced component and composite repair capabilities.
  • Malaysia Airlines signed an agreement for 48 landing gear exchanges for the Next-Generation 737. Through the program, operators receive an overhauled and certified landing gear from an exchange pool maintained by Boeing, with stocked components and supporting parts shipping within 24 hours.
  • Nippon Cargo Airlines signed a five-year agreement to renew Jeppesen charting and electronic flight bag services to optimize navigation and flight operations across their 747 fleet.
  • Royal Brunei Airlines signed an agreement for five 787-8 overhead flight crew rest retrofits. The modifications, to be completed at Boeing Shanghai, will allow the carrier to fly the 787-8 airplanes on long-haul routes, providing increased operations flexibility to the fleet and operator.
  • SilkAir signed an agreement to receive fleet material services for 54 of its 737 MAX and Next-Generation aircraft. Fleet material services include Component Services Program, Integrated Material Management and Customer Furnished Parts, providing the customer with a centralized supplier of parts.
  • Singapore Airlines signed a contract to use Electronic Logbook on its 777 and 787 fleet. As a Boeing electronic flight bag app, the Electronic Logbook replaces paper logbooks with digital records that improve operational efficiency and reliability, reducing schedule interruptions.
  • Singapore’s Defense Science and Technology Agency signed an agreement to engage in collaborative research and experimentation activities, powered by Boeing AnalytX.

Worldwide agreements announced include:

  • Alaska Airlines signed an agreement to renew Jeppesen Flight Planning for its 737 fleet.
  • Biman Bangladesh Airlines has expanded its use of Boeing’s Component Services Program by adding the service to support induction of new 787 aircraft that will enter its fleet in August this year, in addition to expanding and extending current component service coverage of its existing 737 and 777 fleets. With this service extension, Biman is on CSP support for all three of its airplane models.
  • DHL has ordered one 767-300ER Boeing converted freighter. Boeing converted freighters carry high-density cargo on long-range routes, as well as e-commerce cargo on domestic and regional routes.
  • Honeywell Aerospace signed a contract extending Aviall’s product support agreement as the exclusive distributor for Honeywell Aerospace through 2022, covering interior and exterior lighting equipment for all commercial aftermarket product sales. Products covered include indicators, annunciators and other components used on commercial aircraft.
  • Lufthansa Group signed an agreement for 25 landing gear exchange and overhauls across its 777-200F and 777-300ER fleets for AeroLogic, Lufthansa Cargo and Swiss International Airlines. The service eliminates the need for operators to contract, schedule and manage the overhaul process.
  • Parker Aerospace’s Aircraft Wheel & Brake Division signed a five-year master distributor agreement with Aviall for its Cleveland Wheels & Brakes product line. Aviall will forecast, warehouse and market through its network, including Parker AWB’s former network of direct distributors.
  • Tianjin Air Capital signed a contract with AerData for Secure Technical Records for Electronic Asset Management, a tool that transforms operations by replacing paper documents with digital ones, for a fleet of more than 50 aircraft.
  • Tunisair signed a contract to integrate Jeppesen Aviator services on iPad into its flight operations, reducing pilot time spent on data entry and accessing individual apps.

About Boeing Global Services

Boeing Global Services, headquartered in the Dallas area, was formed by integrating the services capabilities of the government, space and commercial sectors into a single, customer-focused business. Operating as a third business unit of Boeing, Global Services provides agile, cost-competitive services to commercial and government customers worldwide.

Boeing reports record 2017 results

Boeing issued this report:

Fourth-Quarter 2017

  • Record operating earnings of $3.0 billion with operating cash flow of $2.9 billion on strong performance
  • GAAP EPS of $5.18 and core EPS (non-GAAP)* of $4.80 on strong deliveries, performance and tax reform

Full-Year 2017

  • Record operating cash flow of $13.3 billion; repurchased 46.1 million shares for $9.2 billion
  • Revenue of $93.4 billion reflecting a record 763 commercial deliveries
  • Backlog remains robust at $488 billion, including a record 5,864 commercial aircraft
  • Cash and marketable securities of $10.0 billion provide strong liquidity

Outlook for 2018

  • Operating cash flow expected to increase to approximately $15.0 billion
  • Revenue guidance of between $96.0 and $98.0 billion reflects commercial deliveries of between 810 and 815
  • 2018 GAAP EPS of between $15.90 and $16.10; core EPS (non-GAAP)* of between $13.80 and $14.00

 

Table 1. Summary Financial Results

Fourth Quarter

Full Year

(Dollars in Millions, except per share data)

2017

2016

Change

2017

2016

Change

Revenues

$25,368

$23,286

9%

$93,392

$94,571

(1)%

GAAP

Earnings From Operations

$3,030

$2,183

39%

$10,278

$5,834

76%

Operating Margin

11.9%

9.4%

2.5 Pts

11.0%

6.2%

4.8 Pts

Net Earnings

$3,132

$1,631

92%

$8,197

$4,895

67%

Earnings Per Share

$5.18

$2.59

100%

$13.43

$7.61

76%

Operating Cash Flow

$2,904

$2,832

3%

$13,344

$10,499

27%

Non-GAAP*

Core Operating Earnings

$2,676

$2,064

30%

$8,970

$5,464

64%

Core Operating Margin

10.5%

8.9%

1.6 Pts

9.6%

5.8%

3.8 Pts

Core Earnings Per Share

$4.80

$2.47

94%

$12.04

$7.24

66%

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”     

The Boeing Company reported fourth-quarter revenue of $25.4 billion with GAAP earnings per share of $5.18 and core earnings per share (non-GAAP)* of $4.80 reflecting record deliveries and strong performance, as well as favorable tax reform of $1.74per share (Table 1).

Revenue was $93.4 billion for the full year reflecting deliveries mix with GAAP earnings per share of $13.43 and core earnings per share (non-GAAP)* of $12.04 reflecting strong execution and favorable tax reform.

“Across Boeing our teams delivered a record year of financial and operational performance as they focused on disciplined execution of production and development programs, growing services, and delivering value to customers,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. “That performance enables increased investments in our people and our business, and greater cash return to shareholders.”

“In 2017 we delivered the first 737 MAX airplanes, launched the 737 MAX 10 and completed the 787-10 first flight, all while delivering more commercial airplanes than ever before. We flew the first KC-46 Tanker to be delivered to the U.S. Air Force, were awarded an initial contract for the Ground Based Strategic Deterrent program, and a contract to provide 36 F-15 fighters to Qatar. We launched Boeing Global Services during the year, to deliver greater lifecycle value, and achieved growth that outpaced the market.”

“We actively positioned for future markets and growth by developing new products and services, investing to build vertical capabilities, launching the HorizonX innovation organization and bringing in new capabilities, including the acquisition of Aurora Flight Sciences. Looking forward, our team remains focused on winning through innovation, driving growth and productivity and extending our position as the world’s leading aerospace company – delivering the best value to our customers, our employees and our shareholders.”

Boeing’s 787-10 Dreamliner cleared for commercial service by the Federal Aviation Administration

The first Boeing 787-10 Dreamliner

Boeing has made this announcement:

Boeing announced on January 22, 2018 the 787-10 Dreamliner received an amended type certificate (ATC) from the U.S. Federal Aviation Administration (FAA), clearing the airplane for commercial service.

The awarding of ATC caps a successful flight test program that began in March 2017 and involved three flight test airplanes that accumulated about 900 test hours. Boeing’s flight test program team took the airplanes through a series of tests to confirm the airplane’s handling, systems and overall performance met internal requirements and certification standards to ensure safety of flight.

Other aviation regulatory agencies are expected to follow the FAA’s lead and certify the airplane before it enters service.

The 787 Dreamliner is a family of super-efficient airplanes with new passenger-pleasing features. As a stretch of the 787-9, the 787-10 retains over 95 percent commonality while adding seats and cargo capacity, setting a new benchmark for fuel efficiency and operating economics at 25 percent better fuel per seat and emissions than the airplanes it will replace. The airplane can fly 330 passengers, in a typical two-class configuration, up to 6,430 nautical miles (11,910 km).

To date, Boeing has over 170 orders for the 787-10 from nine customers worldwide.

First delivery is expected to Singapore Airlines in the first half of 2018.

Copyright Photo: Boeing 787-10 Dreamliner N528ZC (msn 60256) BFI (Joe G. Walker). Image: 937791.

Boeing, Adient launch new company to design and build airplane seats

Boeing issued this statement:

Boeing and Adient have announced the formation of Adient Aerospace, a joint venture that will develop, manufacture and sell a portfolio of seating products to airlines and aircraft leasing companies. The seats will be available for installation on new airplanes and as retrofit configurations for aircraft produced by Boeing and other commercial airplane manufacturers.

The joint venture between Boeing, the world’s largest aerospace company, and Adient, the global leader in automotive seating, addresses the aviation industry’s needs for more capacity in the seating category, superior quality and reliable on-time performance. Adient Aerospace will benefit from the world-class engineering teams and innovative cultures at both companies, as well as shared expertise in managing complex, global supply chains.

“Seats have been a persistent challenge for our customers, the industry and Boeing, and we are taking action to help address constraints in the market. Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world,” said Kevin Schemm, senior vice president of Supply Chain Management, Finance & Business Operations and chief financial officer for Boeing Commercial Airplanes. “This joint venture supports Boeing’s vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value.”

“Adient has a strong set of transferable competencies that will offer a unique opportunity to create value for our company and for Boeing, our shareholders and the broader commercial aircraft market,” said Adient chairman and CEO Bruce McDonald. “To enhance the customer experience for passengers, airlines and commercial airplane manufacturers, we will apply our unmatched expertise for comfort and craftsmanship along with our reputation for operational excellence.”

Adient Aerospace’s operational headquarters, technology center and initial production plant will be located in Kaiserslautern, Germany, near Frankfurt. The joint venture’s initial customer service center will be based in Seattle, Washington. Adient Aerospace aftermarket spare parts distribution will be performed exclusively through Aviall, a wholly owned subsidiary of Boeing.

Adient is the majority stakeholder in the new company (50.01 percent share) and expects the joint venture to be included in its consolidated financial statements. Boeing (as 49.99 percent partner) will receive a proportionate share of the earnings and cash flow. Both will have representation on Adient Aerospace’s board of directors.

Industry analysts forecast the commercial aircraft seating market to grow from approximately $4.5 billion in 2017 to $6 billion by 2026.

 

Boeing sets airplane delivery record, finishes 2017 with larger order book

The first Boeing 787-10 Dreamliner

Boeing delivered more commercial airplanes than any manufacturer for the sixth consecutive year and set an industry record with 763 deliveries in 2017, driven by high output of the market-leading 737 and 787 jets. At the same time, the company grew its backlog with 912 net orders, reflecting healthy demand for its single-aisle and twin-aisle airplanes.

Boeing reached a new high on the 737 program as it raised production to 47 airplanes a month during the year and began delivering the new 737 MAX, contributing to a record 529 deliveries, including 74 of the MAX variety. On the 787 Dreamliner program, Boeing continued building at the highest production rate for a twin-aisle jet, leading to 136 deliveries for the year.

On the orders front, 71 customers placed the 912 net orders, valued at $134.8 billion at list prices. The total extends Boeing’s backlog to a record 5,864 airplanes – at year end – which is equal to about seven years of production.

In 2017, the 787 Dreamliner family racked up nearly 100 net orders and the 777 family captured 60 net orders, as shown in the table below. A detailed report is available on Boeing’s Orders and Deliveries website.

Other major commercial airplanes milestones include the first flights of the 737 MAX 9 and the 787-10 Dreamliner, and the start of production of the 737 MAX 7 and the new 777X.

Family

Gross Orders

Net Orders

Deliveries

Unfilled orders

737

865

745

529

4,668

747

6

-2

14

12

767

15

15

10

98

777

60

60

74

428

787

107

94

136

658

Total

1,053

912

763

5,864

Copyright Photo: Boeing 787-10 Dreamliner N528ZC (msn 60256) BFI (Joe G. Walker). Image: 937791.