By Bjorn Fehrm
October 8, 2019, ©. Leeham News: The FAA Air Worthiness Directive (AD) for high time Boeing 737 NGs regarding cracked rear pickle forks was issued Thursday last week.
Boeing had a call with 737 NG operators today giving the latest information regarding the cracks. Of the 500 first inspected aircraft, 5% had cracks. These aircraft are now grounded. Boeing is setting up repair lines with the US line starting work on the first NG this week. The expected repair time is three weeks for the first aircraft.
Oct. 7, 2019, © Leeham News: A recent call for Boeing CEO Dennis Muilenburg by my friend Ernie Arvai to resign or be removed has a litany of woes at the company that occurred under the CEO.
These mostly relate to the 737 MAX crisis, but also include the policy of returning free cash flow to shareholders rather than investing in new airplanes. Other issues are also cited.
Arvai makes many good points, but he doesn’t go far enough.
If Muilenburg deserves to go, so does Greg Smith, the Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy.
The emphasis on cost control, which have become part of the focus of the MAX development, emanates from Smith. The strategy for new products ultimately falls under Smith, who vehemently opposes investment in the New Midmarket Airplane.
If these two deserve to go, so do the Board of Directors.
It’s the Board of Directors who set the shareholders’ value policy that Muilenburg carries out.
October 4, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we now discuss pitch stability augmentation systems when we need to improve the pitch characteristics of a mechanical (“fly by steel wire”) pitch control system.
Sept. 30, 2019, © Leeham News: Boeing’s announcement last week that it’s establish a permanent Board level safety committee, realigning some functions and creating new lines of reporting is a good and necessary step.
It’s not only good and necessary for the 737 MAX return to service, it’s good and necessary for Boeing and for the industry.
It’s also just a first step in restoring confidence in the MAX and the Boeing brands.
Sept. 29, 2019, © Leeham News: The European Union is ready to retaliate against the US for any tariffs imposed, as early as October, in response to the World Trade Organization authorization to do so in connection with the Airbus subsidies case.
Even though the EU’s case against Boeing before the WTO, seeking authorization to impose subsidies for Boeing’s illegal subsidies, won’t be finished until next spring, the EU, French and German authorities pointed out that previous WTO cases against the US which they won allow them to impose tariffs they haven’t levied.
They are prepared to do so immediately in the Trump Administration levies tariffs on European goods.
September 27, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we started a discussion about the need for stability augmentation systems last week and how these are implemented.
We handled yaw augmentation and began the discussion on pitch augmentation. Now we dig deeper into the trickier form of pitch augmentation, the one needed because of regions of lower stability in pitch at higher Angles of Attack (AoA).
Sept. 25, 2019, © Leeham News: Boeing today outlined the results of the investigation of a special Board of Directors committee formed in August that creates new processes and organizational structures aimed at preventing another 737 MAX crisis and improving safety within Boeing Commercial Airplanes.
The Board-level Aerospace Safety Committee is the four-member committee announced by Boeing CEO Dennis Muilenburg following the second fatal accident of the MAX in March.
Admiral Edmund Giambastiani (Ret), a former nuclear submarine officer, chaired the committee. As a result of the committee’s work, the following recommendations have been made:
September 20, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we discussed the FBW flight control system of Embraer’s E-Jet E2 series last week.
We have now covered examples of classical flight controls and their modern FBW counterparts. Now we discuss how these handle different stability augmentation needs like Yaw damping, Mach tuck protection or Pitch control improvements like the Boeing 737 MAX MCAS system.
By Vincent Valery
Sep. 16, 2019, © Leeham News: Over the last few weeks, LNA outlined significant production gaps from 2022 onwards for the major widebody programs at Airbus and Boeing. The OEMs expect airlines to place large fleet renewal orders to fill those.
Aircraft deliveries need to be financed one way or another. Access to affordable financing is crucial for airlines and lessors to make good on their orders.
Interest rates in the world’s major currencies hit an all-time low a few weeks ago. The 30-year US Treasury yield dipped below 2%, while the 10Y German Bund was at -70 basis points.
Corporations duly took advantage of the lower rates to issue record amounts of debt in US dollars during the first week of September. United Airlines and Bank of China Aviation were among them.
We will analyze how lower interest rates could benefit the aviation industry.
Sept. 14, 2019, © Leeham News: The World Trade organization Friday concluded that the US may impose up to $10bn in tariffs against the European Union as a final result of the 15-year trade dispute over Airbus subsidies.
Politico first reported the WTO decision, which has not been made public.
Airbus issued a terse statement.
“The WTO decision is neither public nor authorized for release. We do not comment on rumors on a report that is not public,” a spokesman said in an email. “Aviation is a global industry, and no aircraft comes from one single country or zone. Nobody will win — it’s a lose-lose for the whole industry if we move to tariffs.”
Boeing declined comment.