It’s a slow August for news, but here are two items we’ll bring to your attention:
Assessing the MAX: Over at AirInsight, we have this post assessing the Boeing 737 MAX, written shortly after the Farnborough Air Show.
Airbus and Mobile: This story discusses how the Airbus plant at Mobile (AL) will add to the aerospace cluster there. The comparison with Seattle, which we make, highlights a real challenge we see for Airbus and the aerospace cluster in Mobile. The supply chain here is struggling under the weight of the high demand for airplanes (not just at Boeing, but all the OEMs), both in terms of product and skilled help. As a member of the Board of Pacific Northwest Aerospace Alliance, we hear of the manpower shortage all the time and the efforts by the State and others to boost training and education to meet demand.
The shortage of skilled labor, and of engineers, is a major challenge for Boeing, and (like it or not) one reason for outsourcing. But the impact on the supply chain is equally great. The lower Tier suppliers in effect become the training ground for the upper Tier and Boeing. This means there is a continuous skill-churn that these small businesses really can’t afford.
Washington State is not the only place where this problem exists; it’s a national problem. What we hear at PNAA is story after story of foreign students (notably Chinese) coming to this country for engineering education then taking their skills home rather than emigrating here. Nationally, there is a wide imbalance between education and training and demand. The shortage of our education institutions in graduating the skills in STEM and touch labor is large. Even high schools have cut back on vocational training of all kinds.
In this State, budget cuts have severely impacted the community colleges and high-ed schools. The aerospace industry is but one of those hurt by these cuts.
Dire Outlook: This article is nothing to cheer about. The author predicts a low growth in global GDP, and this is what Airbus and Boeing rely upon for their growth and production forecasts. It says airlines are emitting much more pollution than generally thought, and if true, this means more costs (especially in Europe) in fees. Also buried in the article is the revelation from Air New Zealand that it costs the airline $1.25m to operate a Boeing 777-300ER round trip from NZ to London, with more than 50% of the cost being in fuel. No wonder the prospect of the Boeing 787 and Airbus A350, with 20% lower fuel costs and 25%-30% lower trip costs, is so important.
787 Deliveries: They are still slow but they are picking up, and it will be about 1 1/2 years before the backlog of airplanes parked at Paine Field in Everett is cleaned out. But it’s progress.
American-US Airways: AirInsight has a podcast discussing the disruptive impact of a merger here.
737 Challenges: The Puget Sound Business Journal has this long piece about the challenges facing the 737 from Airbus and others.
737 MAX and China: Meantime, China is, at long last, looking at the MAX for its airlines.
American Airlines: A merger with US Airways makes the most sense, says Aspire Aviation (we agree as long as US management is in control)
We were traveling Wednesday so we’re a little behind on this:
American Airlines: The judge overseeing American’s bankruptcy denied a request to void labor contracts, particularly the pilot contract. This is a huge blow to management–and would seem a boost for the US Airways merger effort.
Hong Kong Airlines: This financially ailing carrier, under growth restrictions by the authorities, may cancel its order for the Airbus A380. The airline was supposed to firm up an order for the Boeing 747-8I that was announced as an “Unidentified” commitment during the Paris Air Show last year, but it never did.
The Boeing 787-10 will come much later than most suggestions, according to this article by Bloomberg.It was widely thought that Boeing Commercial would go to the Board by year-end to seek an Authority to Offer (ATO) the plane by year-end of next year, with an EIS perhaps around 2016.
Boeing officials bragged that this model would have superior economics and would be an “A330-300 killer.” It would also replace the 777-200ER.
Now, according to Bloomberg, no move to the Board is apparently imminent and the prospect of the EIS moves to the end of this decade.
What does this mean for the 777X? Does this mean the X timeline moves up? Boeing has been saying it’s not in a hurry due to what it believes to be uncertainty over the Airbus A350-1000.
Update: Boeing contacted us to say that nothing has changed in its timeline as outlined in the news article.
Boeing’s engineers’ union, SPEEA, has been pretty vocal in its campaign to members with internal statements, its website and on Twitter–the latter certainly read by media.
Boeing now has launched a public website of its own.
A320 Sharklets: Remember the lawsuits between Aviation Partners and Airbus over winglets and sharklets? AP wants an injunction against A320 sharklet sales. That sure got Airbus’ attention.
American and US Airways: Bloomberg has a long piece on US Airways’ effort to acquire American Airlines.
Emirates Airlines: The fast-growing carrier is about to become the world’s third largest.
Airbus and US Spending: Airbus wants to double its US supply-chain sourcing to $24bn.
Boeing BWB: This article has some pictures of Boeing’s latest version of the Blended Wing Body research model.