Leeham News and Analysis
There's more to real news than a news release.
Nobody should be surprised at Boeing decision
| By Scott Hamilton
Commentary Oct. 1, 2020, © Leeham News: Nobody, but nobody, should be surprised that Boeing is going to consolidate 787 production in Charleston (SC). This die was cast Oct. 28, 2009, when Boeing announced that the second 787 Final Assembly Line would be placed in Charleston instead of Everett. It was only a matter of time.  Boeing 787 production and assembly plants in Charleston (SC). Source: Flight Global. |
Retrospective-4, 11/1/09: 787 Line 2 Postmortem
Retrospective-3, 10/20/09: Dueling Messages: Boeing vs IAM
Read more
Retrospective-2, 10/29/09: 787 Line 2 aftermath
Retrospective-1, 10/28/09: Boeing to Charleston for 787 FAL #2
Last month, Gov. Jay Inslee of Washington asked Boeing if there was anything the state could do to persuade Boeing do keep Line 1 in Everett.With 787 FAL closing and 747 production ending, what does Boeing do with massive space in Everett?
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By Scott Hamilton and Bryan Corliss
Introduction
Oct. 1, 2020, © Leeham News: Boeing is expected to announce as early as today that it will consolidate the 787 final assembly lines into one at its Charleston (SC) plant.
Footprint of Boeing Everett final assembly building. This map is somewhat outdated but a current one is not available. Source: Seattle Times.
Reuters reported last week the decision to consolidate production in Charleston was made. The Wall Street Journal Tuesday night also reported this decision, saying the decision could be announced this week.
The Everett (WA) line is expected to close as production of the 787 falls below seven a month. Boeing previously announced the rate will fall from a peak of 14/mo to 6/mo by 2022.
With the closure of the 747 line in Everett slated for 2022, this will open huge bays in Everett. Nearly half the world’s largest building by volume will be empty. Given lower production rates because of the COVID-19 pandemic, the 777 lines will be woefully underutilized.
Overhead costs probably can’t be absorbed by the remaining low-rate production 767/KC-46A and 777 lines. Boeing warned in its 2Q2020 10Q SEC filing that the 787 and 777 lines face a forward loss depending on production rates of other lines.
With no New Midmarket Airplane (NMA) being contemplated to fill the empty bays, what can Boeing do to utilize these massive spaces and retain profitability of Everett?
A radical solution is moving the 737 line from Renton to Everett. This means Renton would close well before the 2033 date LNA predicts and selling off the property for commercial development.
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FAA administrator flies MAX in next step to recertification
By Scott Hamilton
Sept. 30, 2020, © Leeham News: Boeing is one step closer to recertifying the 737 MAX.
Steve Dickson
Steve Dickson, the administrator of the Federal Aviation Administration, fulfilled a pledge this morning to pilot the MAX as one of the final steps in the recertification process.
The MAX was grounded in March 2019 following the second fatal accident of the airplane in five months.
Dickson said he would not recertify the airplane until he piloted it and was satisfied Boeing redesigned the now-infamous MCAS software that triggered events leading to the two crashes.
HOTR: Rolls 787 engine orders tank last 5 year
By the Leeham News team
Sept. 29, 2020, © Leeham News: Engine orders for Rolls-Royce on the Boeing 787 tanked in the last five years—pre-COVID.
An analysis reveals that over this period, Boeing booked 952 orders for 787. Of these, 755 selected the GEnx. A mere 80 orders were placed with RR. There were 117 orders for which engines were not selected. This gives GE a 90% share of the selected campaigns.
It gets worse.
Of the 80 aircraft that went to Trent 1000, Boeing removed 44 under ASC 606 accounting rules as too shaky to consider firm orders anymore. These include Avianca, Latam, Norwegian Air Shuttle, etc., which either went into bankruptcy or are restructuring as a result of COVID.
Under this scenario, GE’s share is closer to 95% in last five years.
RR’s Trent 1000 on the 787 is a thorn in the company’s side because of serious technical issues that grounded up to 50 aircraft. Groundings began several years ago. RR continues to deal with the financial fall-out. Some customers switched from RR engines to GEnx in follow-on orders for the 787.
Hydrogen, electric and hybrid alternatives not here yet
By Scott Hamilton
Sept. 25, 2020, © Leeham News: Commercial aviation has had 70 years to use jet fuel safely. It’s unclear how long it will take to reach the same level of safety with hydrogen, say Boeing.
In a briefing Tuesday, the day after Airbus revealed its hydrogen powered concepts for three potential airliners, the vice president and general manager of product development expressed caution about hydrogen as a fuel source.
Sunset of the Quads, Part 8. The A380, 747-8i and 777-9 compared.
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By Bjorn Fehrm
Introduction
September 24, 2020, © Leeham News: Airbus was disturbed for decades by Boeing’s rein of the Very Large Aircraft (VLA) airliner segment with the 747. It was determined Boeing used this dominance to outmaneuver Airbus in different situations.
Airbus needed an aircraft in this market segment, bigger and better than Boeing’s. The result was the A380, the world’s largest passenger aircraft. We know how this developed today, where the COVID pandemic finally killed the segment for Very Large Aircraft. But how good was it, and where were the weaknesses?
We compare the A380, 747-8i, and Boeing’s up and coming 777-9 to find out.
Summary
- The A380 outclassed the Boeing 747-400 efficiency-wise, as it was a 30 years younger design.
- The updated 747, the 747-8i narrowed the gap to the A380, but if both could be filled the A380 stayed ahead.
- The 777-9 is 15 years younger in design than the A380, and it shows. It is significantly more economical in operation than the A380.
- Throughout its career, the A380 had a graver problem than its efficiency. It was simply too big for a market that went for frequency instead of large departures.