Leeham News and Analysis
There's more to real news than a news release.
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.
SC incentives to Boeing nearing $1bn
Boeing told Washington State that incentives had nothing to do with its decision to locate 787 Line 2 in Charleston (SC)–that it was all about the unions.
This article in the Charleston Post and Courier reveals that incentives there are approaching, if not already exceeding, $1bn. And you know these weren’t negotiated in the short time IAM 751 and Boeing met. So while Boeing assured Washington that incentives weren’t an issue and it was all about the union….
Outlook for Airbus, Boeing in 2010
Introduction
2009 has faded into history and 2010 is here. Last year wasn’t kind to Airbus or Boeing—though it was worse for the latter than the former. How will this year be?
We’ll get right into how we see things lining up for the two largest airframe OEMs for this year.
787 Year-End News
Much was made over the fact that 787 #2 landed with its main gear doors open and whether they scraped the runway. The doors did not, but it was close as these photos from the sidelines show. You may click on the photo to get a much larger image to really see the detail.
Photos by Scott Morton
Jon Ostrower has this detail about why the plane landed with the main gear door open.
Why US transport producers failed
Defense analyst Loren Thompson picks up the old refrain about Airbus subsidies running McDonnell Douglas and Lockheed out of the commercial airliner business. We add our thoughts at the end of his article.
By Loren Thompson
Airbus subsidies have destroyed thousands of US jobs
Monday, December 21, 2009
In a few days, the world’s two major producers of commercial transports (jet airliners) will release their order and delivery results for 2009. The results will show that European champion Airbus delivered slightly over 50% of all planes built, while greatly exceeding American champion Boeing in the number of new planes ordered. It’s been going this way pretty much since the decade began, because after 40 years of subsidies from European governments, Airbus now has a complete family of transports that can aggressively compete in virtually any capacity/range category with Boeing.
Ryanair quits Boeing talks-for now
Ryanair terminated talks with Boeing for an order for 200 737-800s, ending a highly publicized negotiating tactic by the ever-talkative Ryanair CEO Michael O’Leary.
Here is the Ryanair statement.
The Financial Times has this interesting take. (Free registration may be required.)
Bloomberg has this report.