Oct. 16, 2019: AlJazeera produced a 30 minute special report on the Boeing 737 MAX.
Unlike the hour-long hit piece on the 787 several years ago, undertaken with questionable tactics, this one is well done.
See the report below.
Oct. 14, 2019, © Leeham News: Look for Boeing CEO Dennis Muilenburg to leave in 2020.
At least this is my view.
But some aerospace analysts I spoke with over the weekend are split. Some believe Friday’s action by the Boeing Board of Directors “stripping” (as most media headlines and stories positioned it) the chairman’s title from Muilenburg, while his retaining the president and CEO titles, is the first step in easing him out the door next year. This is my view, too.
Muilenburg also remains on the Board.
Others think handing the non-executive chairman’s title to lead director David Calhoun is actually an effort to save Muilenburg’s job.
Here’s the divergent thinking. None of the analysts wanted to be identified because by investment bank policy, their remarks hadn’t been cleared for quotation and none had yet issued research notes in reaction.
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Oct. 14, 2019, © Leeham News: Boeing is reconsidering a previous idea to re-engine the 767 with GEnx powerplants, Flight Global reported last week.
The idea was run up the flagpole, so-to-speak, in 2017.
At that time, the 737 MAX was just entering service. There was, of course, no hint of any turbulence on the horizon.
The business case for the New Midmarket Aircraft was difficult even then. So why not look at a 767RE and restarting the 757 line, also up upgrades?
Boeing being Boeing, it looks at everything. It ruled out restarting the 757 line (the challenges would have been pretty daunting).
The 767 got more studious traction, including simply restarting the passenger line and providing a really cheap acquisition. A 767RE, however, was viewed as too complex under the circumstances and it would compete with the 787.
American Airlines and United Airlines were actually interested in the airplane restart.
Oct. 11, 2019: The international study group that was named to examine the certification of the Boeing 737 MAX and the MCAS system was issued today.
The New York Times obtained an advance copy. It wrote that the study is “damning” to Boeing and the FAA.
LNA now has the full study. It may be downloaded here: Final_JATR_Submittal_to_FAA_Oct_2019.
October 11, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we continue our discussion of pitch stability augmentation systems when we have a mechanical (“fly by steel wire”) pitch control system.
By Bjorn Fehrm
October 8, 2019, ©. Leeham News: The FAA Air Worthiness Directive (AD) for high time Boeing 737 NGs regarding cracked rear pickle forks was issued Thursday last week.
Boeing had a call with 737 NG operators today giving the latest information regarding the cracks. Of the 500 first inspected aircraft, 5% had cracks. These aircraft are now grounded. Boeing is setting up repair lines with the US line starting work on the first NG this week. The expected repair time is three weeks for the first aircraft.
Oct. 7, 2019, © Leeham News: A recent call for Boeing CEO Dennis Muilenburg by my friend Ernie Arvai to resign or be removed has a litany of woes at the company that occurred under the CEO.
These mostly relate to the 737 MAX crisis, but also include the policy of returning free cash flow to shareholders rather than investing in new airplanes. Other issues are also cited.
Arvai makes many good points, but he doesn’t go far enough.
If Muilenburg deserves to go, so does Greg Smith, the Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy.
The emphasis on cost control, which have become part of the focus of the MAX development, emanates from Smith. The strategy for new products ultimately falls under Smith, who vehemently opposes investment in the New Midmarket Airplane.
If these two deserve to go, so do the Board of Directors.
It’s the Board of Directors who set the shareholders’ value policy that Muilenburg carries out.
October 4, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we now discuss pitch stability augmentation systems when we need to improve the pitch characteristics of a mechanical (“fly by steel wire”) pitch control system.
Figure 1. The pitch moment curve of a modern airliner when circling before landing. Source: Leeham Co.
By Bjorn Fehrm
October 1, 2019, ©. Leeham News: The FAA has issued an Air Worthiness Directive (AD) for high time Boeing 737 NGs, requiring immediate inspections for cracks in their wing attachments called pickle forks.
The cracks were discovered on high time aircraft which were torn down for conversion to freighters. The affected 737 types are NG only; the MAX and Classic have a different wing attachment design. The P-8 Poseidon, a derivative of the NG, also is unaffected.
Sept. 30, 2019, © Leeham News: An obscure and largely forgotten European win in a previous illegal subsidies case against Boeing and the United States before the World TradeOrganization (WTO) opens the door for immediate retaliation against Boeing if the Trump Administration levies tariffs against Airbus.
LNA yesterday revealed the European Union may retaliate immediately against US tariffs on Airbus or EU goods. The US will be free to do so as early as October.