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 28. June 27, 2025
- Parent agency, FAA often at odds as politics outweighs safety June 26, 2025
- Electric Flight and the Ugly Duckling June 25, 2025
- Engine makers tout “Plan A” but have “Plan B” backups in R&D June 23, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 27. June 20, 2025
Boeing sued in Seattle over 737 MAX
Feb. 13, 2020, © Leeham News: A Seattle law firm filed what is believed to be the first lawsuit over the Boeing 737 MAX crisis in King County Superior Court.
King County includes Seattle and Renton, where Boeing’s Commercial Airplanes division is headquartered.
Lane Powell PC filed the lawsuit (20-2-04003-7) naming The Boeing Co. and BCA as defendants. The plaintiffs are two special purpose companies (SPC) that own two 737-8-based MAX BBJs (business jets.) This is believed to be the first BBJ owners to file suit against Boeing.
MAX, 777X certification questions abound at Singapore Airshow
By Judson Rollins
February 13, 2020, © Leeham News: Despite depressed turnout at this year’s Singapore Airshow, there was still plenty of conversation around the return to service for Boeing’s beleaguered 737 MAX – and potential impacts on the certification of the 777X.
Summary
- Ungrounding will take ~30 days from certification flight; operators also have work to do
- Every MAX produced to date will require its own validation flight
- FAA will gradually hand back some oversight to Boeing
- 777X, other future certifications will be different; regulators still figuring out how
CAE readied MAX simulators, prepared to boost production
Feb. 9, 2020, © Leeham News: The principal provider of airliner simulators sold six for the Boeing 737 MAX since the first of the year.
CAE Inc. now sold 56.
In the third quarters earnings call Friday, Marc Parent, president and CEO, said that a “high majority” of airlines that ordered the MAX have ordered a simulator from CAE.
CAE has about 80% of the simulator market.
There are 36 MAX simulators across the globe now from all providers. CAE, as of the end of the year, provided 23 of them.
Airbus’ profitability challenges
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By Vincent Valery
Introduction
Feb. 10, 2020, © Leeham News: Airbus Commercial Aircraft ended 2019 with a surprisingly strong 1,131 new aircraft orders (768 net orders) and a backlog of 7,482 aircraft.
There were 863 aircraft deliveries, 8% higher than in 2018
But 2019 also sees settlement of a year-year probe into bribes and corruption of Airbus commercial airplane sales dating back years. A record fine of €3.6bn will be recorded against 2019 earnings. These results will be announced on Feb. 13.
Settling the probe lets Airbus off the hook from criminal prosecution, providing its skirts remain clean for the next three years.
But prosecution against individuals may proceed. The potential targets have not been identified.
Summary
- The poster child of European integration;
- Profitability lagging commercial success;
- Decades-old programs still causing headaches;
- Making up for early A220 program losses;
- Short and long-term challenges.
Pontifications: A few rays of sunshine emerge in MAX crisis
Feb. 10, 2020, © Leeham News: The was plenty of angst among suppliers last week at the annual Pacific Northwest Aerospace Alliance conference.
By Scott Hamilton
Worries about the production shutdown, its duration and lack of communication from Boeing prevailed.
But there were in fact rays of sunshine beginning to break through the dark clouds of the last year.
Some suppliers—not many—reported that they’ve been told to begin shipping parts and components as early as March 1.
This gives hope that production will resume in April.
To be sure, the good news is mixed with a lot of bad news for suppliers. Some laid off workers and more layoffs are yet to come.
1 of 2 trade secret lawsuits settled; plaintiff attorneys seek withdrawal in Boeing case
By Scott Hamilton
Feb. 07, 2020, © Leeham News: A trade secret theft lawsuit against the giant insurance company Xavian Holdings involving an insurance funding program for Boeing airplanes was settled last month under undisclosed terms.
Marsh and Boeing were sued in 2018 by Xavian, which claimed it created the plan and undertook all the research for a concept that it presented to Boeing under a trade secret/non-disclosure agreement.
The Boeing lawsuit is pending.
Replacing ExIm funding
The concept was intended to replace funding previously provided by the US ExIm Bank. Congress refused to renew the bank’s authority to fund deals of the size required for Boeing airplanes.
Boeing initially declined Xavian’s overtures when it looked like ExIm would be reauthorized. When Congress failed to do so, Boeing contacted Xavian to renew 
conversations, the lawsuits claimed.
Robert Morin of the US ExIm Bank, who was aware of Xavian’s efforts, later went to work for Marsh, taking with him information obtained under the Xavian plan, Xavian claimed—hence the lawsuit against Marsh.
In court documents in New York, the federal court in the Southern District ordered mediation. Documents reveal a settlement was reached, but terms were not disclosed. Court approval of the settlement is pending.
Boeing will proceed with NMA. Or FSA. Take a poll
By Scott Hamilton
Feb. 6, 2020, © Leeham News: Boeing will decide to proceed with the launch of the New Midmarket Aircraft (NMA).
Or it won’t and instead launch a single-aisle replacement for the 737 MAX that essentially 
reinvents the long-gone 757.
These are the two popular options discussed yesterday at the annual conference of the Pacific Northwest Aerospace Alliance in Lynnwood (WA).
Aerospace analyst Ken Herbert of Canaccord Genuity believes Boeing will launch the NMA.
Analyst Rob Epstein of Bank of America Merrill Lynch believes Boeing will go with the Future Small Airplane (FSA), a fresh design that is similar in size to the 757-200 and 757-300.
Consultants Kevin Michaels of Aerodynamic Advisory and Michel Merluzeau of AIR voted for the NMA. Consultant Richard Aboulafia of The Teal Group voted for the FSA.
Consultant to Boeing: cut dividends, invest in new airplane
By Scott Hamilton
Feb. 5, 2020, © Leeham News: Boeing is headed for a 30% market share unless it invests in a new airplane, and soon.
This is what aviation consultant Richard Aboulafia of The Teal Group predicted today at the annual conference of the Pacific Northwest Aerospace Alliance in Lynnwood (WA).
Aboulafia, who has been following Boeing for 30 years, implored the new CEO, David Calhoun, to redirect billions of dollars in shareholder dividends toward research and development instead.
Calhoun recently suspended 2 ½ year focus on the New Midmarket Aircraft to conduct a clean-sheet review of the next new airplane.
This has been widely interpreted as a move to kill the NMA. In reality, LNA understands, this is more about reassessing the market and what the airplane should ultimately be.
“Who’s going to fail?”
By Scott Hamilton
Feb. 5, 2020, © Leeham News: “Who’s going to fail?”
This is a key question on the sidelines of the annual Pacific Northwest Aerospace Alliance conference in Lynnwood (WA).
The question, of course, related to the small- and medium-sized suppliers caught up in the grounding of the Boeing 737 MAX.
Boeing 737 production rate boost to 57/mo delayed by four years
- Plan called for 737 rate to go to 57/mo YE 2019.
- This rate won’t be achieved until 2023.
- Rate reduction considered for 777.
By Scott Hamilton
Feb. 5, 2020, © Leeham News, Lynnwood (WA): Suppliers attending the annual conference of the Pacific Northwest Aerospace Alliance say they gained some clarity from Boeing last week about future production plans for the 737 MAX.
But they still face a multi-year challenge that puts strain on everyone.
Boeing’s plans to return to the pre-grounding production rate of 52/mo will take until 2022. Plans to boost the rate won’t be fulfilled until 2023—four years later than planned.