Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
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Boeing expects solid 777 order stream
Here’s a story we did for Commercial Aviation Online. Comments are still closed. Comments are re-opened but moderated. Read our new Comment policies.
Boeing 777 orders on the cards
| Date: | 11/01/2011 09:42 |
| Source: | Commercial Aviation Online |
| Location: | Seattle |
| By: | Scott Hamilton |
Boeing is likely to have a very good next few months for its 777 line.
CAO has learned that that company is probably going to announce several major orders for the airplane, predominately if not entirely for the 777-300ER. One order is said to be for 20 777-300ERs and could be announced within the next few weeks. As many as four major orders are anticipated in the next few months, CAO is told.
Focus on Rolls-Royce Trent engines
Plane Talking has an interesting think piece about the Rolls-Royce Trent 900 engine that powers the Qantas Airbus A380.
As readers know, a Trent 900 had an uncontained failure on QF32 that severely damaged the A380. Qantas still hasn’t returned the A380 fleet to full service while questions about the Trent 900 remain unresolved.
Rolls-Royce has been uncommunicative to Qantas, and to Airbus, according to both companies, adding difficulties to the recovery of the program.
This portends something that has greater implications.
US helps Boeing–and Europe helps Airbus. So what?
Notice: All right, Everyone, given the persistent personal stuff in the Comments, we have closed Comments for this posting.
Wikileaks struck again with cables revealing US diplomats and the President support Boeing is sales efforts. The cables made a lot of news headlines, with The Seattle Times pickup of a New York Times piece typical.
Our reaction is, So what?
That diplomats help Boeing and European officials help Airbus is nothing new nor surprising to those of us in aviation. Heads-of-State do it, too. It happened for McDonnell Douglas, with a sale for MD-11s and MD-90s to Saudi Arabia. Happened with Israel and Boeing. Landing slots for Airbus sales? No surprise here, either.
Much ado about nothing, in our view.
Looking ahead for the tanker award
Will it ever end?
This is the question about the interminable KC-X tanker competition.
Unofficial word is now that the USAF is to announce its award in February, after slipping from January, December, November, October and August.
US Sen. Carl Levin announced that he will hold a hearing by February. 1 into the snafu by the USAF over sending Boeing and EADS information about the performance of each other’s tanker. Levin, holding the hearing at the request of Sen. Maria Cantwell (D-Boeing/WA), will try and determine if this is a harmless or fatal error to the procurement process. We have written before that mistakes like this happen and the government has set procedures for handling such errors, but in the highly charged competition, Boeing is taking advantage of the mistake to lay the groundwork for a protest should it lose.
Senate hearing in tanker snafu appropriate
US Sen. Carl Levin announced yesterday that he will hold a hearing by Feb. 1 into the snafu by the USAF over sending Boeing and EADS information about each other’s KC-X tanker submission.
We think this is appropriate, as we have written before. The Air Force and EADS must come forward with a detailed timeline and information about the what-when-where-why about this. So that there is a full airing, so does Boeing, though let’s be clear: the burden here appears to be on the USAF and EADS.
Odds and ends: Airbus/EADS and Boeing
With Christmas around the corner, here are some year-end thoughts, absent any breaking news of some kind in the week ahead:
737 upgrade: Southwest Airlines continues to pressure Boeing to do something about a more fuel efficient airplane, and there has been some recent buzz when Flightblogger published a picture of a 737 re-engine concept, but we believe the re-engine has been shelved for now–more likely in favor of the 737NG+. Work continues on the Boeing NLT (New Light Twin.)
787 flight tests: It’s been widely suggested by observers and analysts flight tests will resume in January; we understand Boeing is working toward resuming them after Christmas (to clarify for the cynics and comics, this means Christmas 2010 and before New Year’s 2011). P100 panel, software fixes proceeding faster than expected–but will FAA sign off when Boeing desires? An announcement is expected, in Boeing tradition, on the eve of a holiday.
Production boosts at Boeing: more to come for 737
Boeing’s announcement today that it will boost production of the 777 from the previously announced 7/mo to 8.3/mo (100 a year) is good news for Boeing, its customers, the supply chain and (to be parochial about it) Washington State, where the airplanes are made.
But this isn’t all.
As we have previously written, Boeing is already thinking of boosting 737 production beyond the 38/mo previously announced, to as much as 42: 41 commercial 737s and one 737-based P-8A Poseidon, all assembled in Renton (WA). (The fuselage is built by Spirit Aerosystems in Wichita (KS), which at one time was Boeing’s facility.)
We learned that even 42/mo may not be the end of it. Boeing foresees the 737 production rate to as many as 50/mo.
Inslee tanker amendment dropped for DOD Reauthorization
Update, 10:30 AM PST: We have now confirmed that the House leadership has dropped the Inslee Amendment from the Defense Reauthorization Act that will be sent to the Senate.
We also received confirmation this morning from Inslee’s office that the letter below the jump was written in advance of House action because it had been learned Section 848 might be removed from the House version of the Act.
Original Post:
It appears the so-called Inslee Amendment in the House Defense Reauthorization Act demanding the US Air Force take into account illegal subsidies provided Airbus and Boeing in the KC-X competition may be in jeopardy.
The Seattle Post Intelligencer first reported that Washington State Congressman Rick Larsen was circulating a letter to senior House members calling for the Inslee Amendment (official known as Section 848 of the Reauthorization bill) to be retained in the House version as it goes over to the US Senate for consideration.
But a close reading of the letter raises questions whether the Amendment is or isn’t currently in the Act. The House is in the process of revising the Act before sending it to the Senate for approval. Time is short for the Senate to act before the Christmas recess, and a bill that is not controversial is needed to speed things along.
The House version has a reported 300 add-on provisions that could cause debate in the Senate, including Don’t Ask, Don’t Tell, the Inslee Amendment and only the politicians in DC know what else.
The Don’t Ask provision was separated from the Act for a stand-alone vote yesterday in the House, where it passed. The Senate previously voted this down but another try is going to be made.
Outsourcing US Defense
As regular readers know, a major piece of controversy over the prospect of awarding the KC-X contract to EADS North America is the assertion that this will outsource US defense procurement to a foreign company.
We’ve noted in this space many times before that this issue, in this context, is a red herring, because the Defense Department has been doing so for years and is increasingly doing so–without the hue and cry that accompanies the prospect of EADS getting this contract.
A recent article by George Talbot of The Mobile Press-Register illustrates the outsourcing to foreign companies. While Talbot talks about EADS, because Mobile (AL) (which is, one may be reminded, part of the United States–the Confederacy did lose the Civil War) is where EADS plans to build the tanker, it is also the location of an Australian company called Austal that is poised to receive a contract to build the Navy’s Littoral Combat Ship (LCS).