June 18, 2019, © Leeham News: As the Paris Air Show prepares for Day 3 (June 19, Paris time), eyes will be on Boeing to see whether another commitment for the 737 MAX will be forthcoming.
Headlines the first day were split between Boeing’s early morning briefing in which executives apologized for the fatalities on the Lion Air and Ethiopian crashes, sympathies to their families and disruptions to the airlines for the groundings and the Airbus launch of the A321XLR.
Tuesday’s headlines belonged to Airbus until 4:30pm when International Airlines Group, the parent of British Airways, Iberia, Aer Lingus, Vueling and LEVEL, announced a commitment for 200 MAX 8s and MAX 10s.
If any such order was to come at the air show, observers expected it to be from Ryanair, whose CEO Michael O’Leary already had publicly endorsed the MAX and said he could order more.
June 18, 2019, © Airfinance Journal: Boeing received a much-needed vote of confidence in its grounded 737 Max aircraft with a commitment for 200 of the type from IAG.
Nonetheless, the US manufacturer failed to register a firm order from the second day in a row.
Airbus, in contrast, continued to build momentum for its new A321XLR with orders and commitments from IAG and Cebu Pacific.
CFM also had a good day, registering big orders from lessors and AirAsia for its LEAP engine.
June 18, 2019, © Leeham News: In a major vote of confidence for the embattled Boeing 737 MAX, International Airline Group (IAG), parent of British Airways, Vueling, Iberia, LEVEL and Aer Lingus, signed a letter of intent late today for 200 737-8/10s.
This is a huge shot in the arm Boeing, which until the Paris Air Show, hadn’t booked an order in two months following the March 13 grounding of the MAX.
June 17, 2019, © Leeham News: Boeing executives focused on its top priority, returning the grounded 737 MAX, safely to service, in its lead off briefing today at the Paris Air Show.
Greg Smith, EVP of The Boeing Co., appeared instead of CEO Dennis Muilenburg, taking the lead in recapping much of what has been known for weeks: Boeing’s regret for the 346 fatalities in the Lion Air and Ethiopian accidents, the MCAS software upgrade and working with airlines and regulators to determine the path back to recertifying the MCAS and the best curriculum for pilot training.
Boeing Commercial Airplanes CEO Kevin McAllister, Defense unit CEO Leanne Caret and Global Services unit CEO Stan Deal followed Smith in a tightly scripted set of presentations and answers to questions.
The four immediately left the stage after the Q&A instead of loitering for the usual press gaggles.
June 17, 2019, © Leeham News: The Paris Air Show opens today and the elephant in the room is the Boeing 737 MAX.
There is no telling when the airplane will get FAA approval to return to service. According to some news reports, Boeing will hasn’t turned over the MCAS revisions to the FAA for review, testing and approval.
The acting administrator of the FAA said he expects the MAX to be back in the air by the end of the year. Some leapt to the conclusion this means December—and it may, but let’s remember September, October and November are before the “end of the year,” too.
There’s no telling how other global regulators will act, and when, to conduct their own review and approvals. Airlines would like a global action. It’s tough to tell customers one country sees the airplane as safe but others don’t.
By Dan Catchpole
June 5, 2019, © Leeham News: Boeing is focused on smoothing out 737 production at 42 aircraft a month for now. Any decision to returning production to 52/month is well down the road, Boeing CFO Greg Smith said Wednesday at the UBS Global Industrials and Transportation Conference in New York.
“It’s going to be all about stability,” Smith said. “And stability is not just about on schedule but ensuring that we’ve got predictability and accuracy that’s more finite than what it’s been in the past.”
The company had planned to step up production from 52/month to 57/month in June or July. Boeing slowed down production of the workhorse single-aisle in April after a second 737 MAX crashed shortly after takeoff. At the time, it cited the accidents as the reason for slowing 737 production. However, the aerospace giant already had been struggling with production disruptions prior to the crashes. The biggest headache came from slow deliveries from engine-maker CFM, as LNA reported in April.
Industry insiders at the Aviation Week MRO Americas conference in April said Boeing already planned to hit 57/month in September. However, at Wednesday’s investor conference, Smith’s sidestepped any question about when 737 production could reach that pace.
By Dan Catchpole
May 30, 2019, © Leeham News: Boeing CEO Dennis Muilenburg said Wednesday steady progress is being made on getting the 737 MAX back in the air following two devastating crashes within a few months of each other. He stopped short of giving a specific time frame, though.
However, a spokesman for the International Air Transport Association said the same day that the trade group does not expect the MAX to be back in service before mid-August.
Speaking at the Bernstein Strategic Decisions Conference, Muilenburg struck an upbeat tone overall and called the crashes a “defining moment” for Boeing. However, he did not indicate that Boeing intends any major changes as a result, and he expressed confidence in the company’s design and certification processes. Though, he did not shut the door to making changes as a result of lessons learned in the wake of the crash.
Muilenburg insisted that the MAX challenges will not affect entry into service for either the 777X in 2021 or the New Midsize Airplane (NMA) in 2025. He also discussed changes to the 737 supply chain, resumption of deliveries and future production rates for the popular single-aisle airplane.
May 27, 2019, © Leeham News: Airlines are increasingly going public with desires to be compensated by Boeing for the grounding of the 737 MAX.
Norwegian Air Shuttle and Spice Jet said shortly after the MAX grounding March 13 they were going to seek compensation from Boeing.
Air China has asked for compensation, reports Reuters. Other airlines with grounded MAXes are also beginning to notify Boeing about compensation claims.
Compensation for delivery delays is also a risk to Boeing. This already has reached $1bn, one aviation lawyer estimates, and stands to climb by billions more, depending on how long new deliveries are delayed.
But Boeing is preparing to take a preemptive defensive move against these latter claims.
#AirbusID
May 21, 2019, © Leeham News, Toulouse: The chief commercial officer for Airbus half hopes Boeing will step into a briar patch and launch its long-discussed New Midmarket Airplane, but the real message is clear: leave well enough alone.
Left unsaid it Airbus doesn’t want to have to launch a new airplane of its own.
Christian Scherer, the chief commercial officer for Airbus, said he wouldn’t speak for Boeing when asked if Boeing “has” to launch the NMA because of the declining market share of the 737 MAX vs the A321neo and inferior range and field performance of the -9/10 MAXes. He questioned Boeing’s own position about the NMA.
He made these remarks on the sidelines of the annual Airbus Innovation Days pre-air show briefings.
“I’m not sure they have a unified position on it. What I want to say is that we are in a very competitive duopoly, which is great for our customers,” he said. “There’s competition everywhere. You don’t have to dominate one segment or the other segment. There’s quite healthy business in it for Boeing on the 737. There’s quite healthy business in it on bigger airplanes. I’m not sure they have to do anything. Do they want to do something? Yeah, maybe.”
By John Cox
May 20, 2019, © Leeham News: The latest version of the Boeing 737 is the MAX. It has new engines, new flight deck screens and the latest in-flight entertainment systems for passengers. It is quite a change from the 737-100 that first entered service 51 years earlier in 1968.
After flying operationally for 15 months (May 2017 to October 2018), there was a loss of a 737 MAX 8 in Indonesia. Five months later, another MAX 8 crashed. Something was wrong. How could such a proven workhorse have two accidents in such a short time in very similar circumstances?