Leeham News and Analysis
There's more to real news than a news release.
OEM proposes assmbling air unit overseas
In a story that has a bit of irony, The Financial Times has this piece about an OEM that plans to assemble an air unit overseas. (Free registration may be required.)
Northrop may decide on KC-X this week or next
Northrop Grumman may decide this week or next what it will do about the bid for the USAF KC-X Final Request for Proposal, Leeham.net understands.
Northrop has said frequently and clearly that it may not bid because it believes the FRFP is skewed toward Boeing’s KC-767, and we are satisfied this is no idle threat. But we also believe that while the odds, as things stand today, are that Northrop won’t bid, don’t consider this a sure thing.
KC-X FRFP due Feb. 23; does a report hint on outcome?
The Final Request for Proposals for the USAF’s KC-X aerial tanker is due to be issued Feb. 23. The controversial and hotly contested procurement between Boeing and Northrop Grumman is supposed to be decided as a result of information provided in the FRFP, but does another document issued this month by DOD hint at the outcome?
Publication obtains Boeing’s SC deal
A publication obtained an 18-page summary of the incentives obtained by Boeing for its 787 Line 2 in Charleston (SC). The news report may be accessed here.
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: