Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Engine makers tout “Plan A” but have “Plan B” backups in R&D June 23, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 27. June 20, 2025
- Pontifications: A Personal Note June 19, 2025
- Airbus books 142 firm orders as Boeing retracts from the Paris Air Show June 19, 2025
- AIN Media Group Agrees to Acquire Leeham News & Analysis June 17, 2025
NTSB releases report on 787 battery incidents
The National Transportation Safety Board released a report on its investigation of the Boeing 787 battery fire on the Japan Air Lines 787 and the smoking battery on the ANA 787 in January 2013. The Federal Aviation Administration grounded the 787s for more than three months while a fix was designed.
The NTSB press release summarizing its points is here.
The agency’s 12-page letter of Safety Recommendations is here. Additional information is here.
ILA Berlin Air Show begins tomorrow
The ILA Berlin Air Show begins tomorrow. The Air Show is a poor cousin to the Farnborough Air Show (July this year) and the Paris Air Show (in odd-numbered years). We went to this show in 2006 and were more excited about returning to Berlin for the first time since before the Berlin Wall came down than we were about going to the event itself.
Boeing doesn’t place much stock in the show since it is viewed as an Airbus star vehicle. Best we can tell from the ILA website, Boeing isn’t even an exhibitor.
Airbus tries to have some major announcements for the show, although Farnborough and Paris–being the bigger draws and having greater international prestige–are clearly the favored forum.
What might Airbus announce at the Berlin show, other than a few orders? The aviation world is waiting and watching for what Airbus will do about the A330neo and, with it, the future of the A350-800. Airbus is sending the A350-900 to the Air Show for the first time–will this be the place Airbus puts the nail in the coffin of the A35-800? We have our doubts about that.
Could Airbus launch the A330neo at the ILA? We received an email over the weekend that an announcement could be forthcoming at this show, but the source is from outside Airbus (though information from this source is usually reliable). Expectations for the A330neo have centered on Farnborough, however. Our Market Intelligence tells us few potential customers have actually seen proposals from Airbus on the A330neo as yet, so we think it might be a bit premature to have a launch of the program. Information is also that Airbus has been looking at the “second half” of 2014 to make a decision (at least publicly). May isn’t in the second half–but July is.
Other than this suspense, if you can call it that, we don’t expect much out of ILA this week.
EU may challenge 777X tax breaks from Washington State
Reuters is reporting that the European Union may challenge the $8.7bn in tax breaks Washington legislators voted to grant Boeing in return for locating assembly of the 777X and its wing in the state.
Readers know we worried about this when the Legislature voted for these in a hurry-up session. We were blown off by the state and even the mainstream media in raising these concerns.
State officials asserted at the time that the State was merely “extending” the 2003 tax breaks voted for the 787, totaling $3.2bn, for the 777X. The 787 tax breaks had been ruled illegal by the World Trade Organization, and state officials brushed this aside saying the ruling was under appeal.
We found this to be an astounding position, particularly considering that Gov. Jay Inslee, as a Congressman, demanded that the WTO findings of illegal tax breaks to Airbus be considered during the KC-X USAF tanker competition, despite a pending appeal.
In the Reuters story, Tim Hepher writes:
Boeing said tax decisions by Washington were meant for the whole industry in the state, including some Airbus suppliers, and have been designed to comply with WTO rulings.
“The $8.7 billion figure that’s mentioned is the state’s estimate of the total value of its incentives for the entire commercial aerospace industry over 16 years,” Boeing spokesman Charlie Miller said. “The benefit to Boeing will only be a fraction of that amount.”
The first statement is certainly true. We’re a bit flabbergasted by Miller’s claim that Boeing will receive only a “fraction” of the tax breaks.
The tax breaks have come under much after-the-fact criticism when Boeing announced that more engineering jobs would be moved out of state. Critics of the tax breaks noted that there had been no job guarantee provisions in the Legislation, freeing Boeing to move jobs–and it is doing just that.
Although Boeing hasn’t said how many jobs will be associated with the 777X in Washington, it’s clear that more automation and robotics will be used on the X than on the 777 Classic.