Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- AIN Media Group Agrees to Acquire Leeham News & Analysis June 17, 2025
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- Boeing bullish on 20-year forecast, despite short-term headwinds June 14, 2025
- Embraer’s 20-year market forecast under 150 seats: fewer turboprops, jets about the same June 14, 2025
Ahead of Boeing 3Q09 earnings787
Boeing releases its third quarter earnings tomorrow (Oct. 21). The company has already announced another $1bn write down for the 747-8 program and some aerospace analysts are predicting another $2.5bn write-off for the 787.
The company said it will provide an update on the 787 program tomorrow. Here are some of the things we think should come out of the call:
Boeing builds berms (with no delays)
Here in the Seattle area, there is a highly developed industrial, office and residential area called Kent Valley. As the name suggests, it is in a low-lying area that includes the Green River. And a flood plain, protected by the Hansen Dam, an old, old earthen dam that is in danger of breaching in the anticipated heavy winter rains.
Here is a KOMO TV (ABC-Seattle) story on the berms.
The Army Corp of Engineers said to prevent a breach and a catastrophic flooding, it may be forced to release waters into Kent Valley. (In one area of a suburb called Auburn, the main street could be 20 ft. deep even with a controlled release.)
A “flood emergency” has been declared by King County. Businesses, industries, residences, apartments and basically everyone who can have been constructing berms and sand-bagging. Boeing, with several facilities in Kent Valley (including the aforementioned Auburn), is building an eight foot berm around its facility. Naturally there are many questions from employees.
Here are some answers to some frequently asked questions at Boeing’s Kent Space Center regarding the Hansen Dam flood plans….
Boeing “leaning” toward KC-767
Boeing is “leaning” toward offering the KC-767 to the US Air Force in the KC-X competition, an executive revealed at a conference in Everett (WA) today. Boeing previously has been coy about whether it will offer the KC-767, or a tanker based on the 777 or two separate bids, one for each airplane.
George Maffeo, Vice President of Supplier Manager for all the 7-Series commercial programs except the 787, told the annual Aerospace Conference of the British-American Business Council-Pacific Northwest that the tanker development team of Boeing’s Integrated Defense Systems (IDS) unit has moved over to Boeing Commercial Aircraft (BCA) to learn from their experiences to offer better technologies and cost efficiencies to beat the Northrop Grumman/EADS/Airbus KC-30.
Washington CEOs to Boeing: Keep 787 Line 2 here
Dear Mr. McNerney: please take note of this.
SEATTLE--(Business Wire)-- A wide group of CEOs and corporate leaders recently sent this letter to Boeing Commercial Airplanes President & CEO James Albaugh urging the company to site its second 787 line in Washington state: Read more
“We want competition”
There is a competition underway for a military airplane in which the government is leaning toward a sole-source selection. The competition to the favored airplane company is advocating for a competition, saying the government will get a better price and a better airplane.
Growing Washington Aerospace
We addressed the Governor’s Eastern Washington Aerospace Summit October 7, 2009, in Spokane, outlining a number of opportunities that aerospace in Washington State should pursue to grow.
Here is the press release on this address, and below the jump is a link to our presentation.
Washington Should Look Beyond Tradition to Grow Aerospace
Issaquah, WA, October 7, 2009: Washington State officials should look beyond traditional businesses to grow aerospace opportunities here, said Scott Hamilton, managing director of Leeham Co., in a speech today before the Eastern Washington Governor’s Aerospace Summit in Spokane.
“State officials and stakeholders understandably focus on Boeing and its supporting supplier base when it comes to Washington aerospace,” Hamilton said. “But global aerospace is changing and it is a mistake to maintain this focus. The time has come to dramatically expand thinking to adjust to realities, opportunities and new requirements of commercial and defense aviation and aerospace.”
Boeing: new delay, charge in 747 program
Boeing announced a new delay and a new $1bn charge in its 747-8 program.
First flight has moved from 4Q09 (November) to 1Q10 (probably mid-quarter), or about five months; first delivery of the freighter has moved from 3Q10 (July or August) to 4Q10 (probably very late).
Boeing was very general as to the causes; here is the full press release.
Boeing, Airbus advance
There actually was other news last week besides the corporate food fight over the KC-X tanker involving Boeing and Airbus.
787 Line 2
This article from South Carolina wonders whether the competition between Charleston and Everett is SC Gov. Mark Sanford’s “last stand” to save his job. Sanford, of course, was caught lying to his family and his constituency over where he disappeared (he said initially he was on a hike in the Appalachian mountains; turns out he was in Argentina with his mistress). Republicans and Democrats alike have called on Sanford to resign. He won’t, and the effort to persuade Boeing to locate 787 Line 2 to Charleston may be the Republican governor’s last chance to save his job, the news article speculates.
Northrop wins tanker contract
Update, 9:30 am: We’ve added more information below the jump.
Northrop Grumman won a big KC-10 tanker maintenance contract from the Air Force this week, taking it away from Boeing, which has had it for 10 years. The value is $3.8bn.
Boeing hinted that it might protest the award. Here is the story.