Boeing earnings: Boeing announced its 1Q2014 earnings today and they were better than expected on a per-share basis. David Strauss of UBS remains grumpy about the 787 deferred costs:
787 deferred production grew by $1.5B, in line with our forecast, with balance now at $23.1B as compared to BA’s ~$25B target. We estimate deferred production per unit at ~$50M, lower from $75-80M on positive production mix of nearly all 787-8s from Everett as problems continue on 787-9. We continue to believe that deferred production peaks at $30-35B as compared to BA’s $25B target.
Boeing’s earnings call is later this morning.
Shandong’s 737 order: Early this week, Chinese media announced that Shandong Airlines had ordered 50 737NGs and MAXes. Boeing’s statement the next day acknowledged the news report. With more than 600 737s listed in Boeing’s Unidentified customers, we asked if this was a new order or one from the Unidentifieds–Boeing told us this is new.
MH370: Flight Global’s safety expert reporter, David Learmont, doesn’t think the Boeing 777 that was Malaysian Airlines Flight MH370 will be found. We only found this story (pun intended) five days after it was posted. As Readers know, we wrote weeks ago that former NTSB investigator Greg Feith made this prediction.
Boeing SkyInterior: Boeing posted a video on its website about some of the thinking that goes into creating the SkyInterior, which is similar across the 787, 747-8 and 737 lines. Passenger experience has become an important part of Boeing’s product strategy (as with Airbus, Bombardier and Embraer as well), so in a departure from our usual practice of generally not linking “house videos,” we’re doing so on this one to give Readers a peek at what goes into some thinking at the OEMs.
Azul trans-ocean jets: Brazil’s domestic low cost carrier, Azul, will order Airbus wide-body jets for its planned trans-Atlantic service, according to Reuters.
A320 at 186 seats: Airbus is seeking certification of the A320 for 186 seats, just three short of the maximum of rival Boeing 737-800, according to this article in Aviation Week. (We had heard the effort was to 189 seats.)