Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Bjorn’s Corner: Air Transport’s route to 2050. Part 21. May 9, 2025
- Does an A220-500 need a new wing and engines? Part 2. May 8, 2025
- Embraer downplays tariff impact on 2025 results May 6, 2025
- JetZero readies effort for private equity fund raising May 5, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 20. May 2, 2025
Outside the box
We spoke last week at the Pacific Northwest Aerospace Alliance (PNAA) annual conference in Lynnwood (WA) in which we made two proposals that were immediately labeled as radical–though we don’t think they are.
One involved Boeing and the IAM 751 local and the other was aimed at the State of Washington.
Boeing to decide by year-end on 737RE: McNerney
Boeing CEO Jim McNerney told an investor’s event that the company will decide by year-end on a 737 re-engine program, and by year-end or early next year on enhancing the 777, saying a new 777 is “unlikely.”
Tanker, 787, 747
Last week was quite active in aerospace and so were we, unable to post. So here’s a recap of some of the things that occurred and our thoughts.
More politics and the Tanker
For the past two years we have bemoaned the politicizing of the procurement process for the KC-X tanker, extending our criticism mostly on previous Boeing efforts with its Congressional supporters–most notably Sen. Patty Murray (D-Boeing/WA) and Reps. Norm Dicks (D-Boeing/WA) and Todd Tiahrt (R-Boeing/KS). Now comes Sen. Richard Shelby (R-Northrop/AL) who, in a display that represents all the worst of what’s wrong with Congress, placed a hold on 70 Obama Administration appointments in a fit over his displeasure of the KC-X Request for Proposals and his belief it disadvantages the Northrop Grumman KC-30.
New Report on Boeing
AirInsight has published a new report on The Boeing Co. This follows reports on Airbus, the emerging competitors to Airbus and Boeing and Re-Engining the A320 and 737 families published since August.
We co-authored these reports with Ernest Arvai and Addison Schonland of The Arvai Group and Innovation Analysis Group. The link to these reports is here.
The Boeing Co. report contains a competitive assessment vis-a-vis Airbus, updating our Airbus report published in August; a close look at Boeing’s programs; its relationship with labor; the prospect for replacing the 737 and 777 to meet Airbus competition; the KC-7A7 and more.
Boeing announced 4Q, YE2009 results
Boeing announced its 4Q and year-end 2009 results today. Here is a link to the press release. The earnings call is at 10:30 EST. We’ll have our usual running account when the time comes.
Here are some initial takes from analysts:
Tanker Contract: Follow the law
Update, Feb. 1:
The newspaper The Hill, which covers Capitol Hill, reports the USAF plans to award a contract for the KC-X this summer, sticking (more or less) to the timetable originally projected. Secretary Robert Gates also plans to urge President Obama to veto any FY2011 defense bill that contains funding for the Boeing C-17, which Gates cuts from the proposed budget.
We believe cutting funding for the C-17 is a mistake. We also believe the Administration ought to take Stimulus funds, double the KC-X procurement from 12-18 tankers a year (resulting in retiring the ancient KC-135s a lot faster) and split the contract between Boeing for the KC-767 and Northrop Grumman for the KC-30. In addition to the only political solution that will work, there are solid strategic reasons for the procurement to be split.
Taking Stimulus money to establish a new aerospace industrial base in Mobile (AL) while supporting the existing 767 program is far more productive than giving Stimulus money to things like a California dinner train.
Original Post:
Here’s a commentary from an outfit we’d never heard of before, the Forerunner Foundation. This op-ed piece appeared in the January 11 issue of Aviation Week magazine. The writer, Jerry Cox, makes an interesting point over the campaign by Boeing supporters to exclude the Northrop Grumman (Airbus) bid for the KC-X tanker.
Boeing’s C-17 on budget chopping block again
Reuters has this report that the FY2011 defense budget once again proposes chopping the Boeing C-17 from procurement.
The C-17 has been cut from several successive budgets, with Boeing and its supporters able to override this in Congressional earmarks.
France “protectionist,” says Boeing
We wonder what took Boeing so long to make this obvious point: France is protectionist in its defense purchases and should quit complaining about the KC-X competition in the US. See this Reuters story.