Oct. 4, 2018, © Leeham News: A consensus appears to have developed among aerospace analysts that the business model for the prospective Boeing New Midmarket Aircraft is about much more than the profit-and-loss case for a stand-alone airplane program.
It’s something that Boeing CEO Dennis Muilenburg has alluded to many times on earnings calls and elsewhere.
But now, as Boeing moves toward a decision to launch the NMA program next year, the business model has fundamentally become defined.
Note that I say, “toward a decision,” not “if the program will be launched.” I’m convinced Boeing will greenlight the NMA.
Oct. 1, 2018, © Leeham Co.: The Choose Washington NMA task force said last week it will release this month recommendations for improving aerospace workforce activities in Washington.
It’s about time.
The task force was appointed by Gov. Jay Inslee to come up with a plan to persuade Boeing to choose Washington as the assembly site for its prospective New Midmarket Airplane, the NMA.
Two studies, one by the Teal Group and the other by Price Waterhouse Cooper, conclude Washington is the best aerospace cluster and location to build the NMA. The conclusions are unsurprising, given the maturity, size and scope of the cluster in Puget Sound (the greater Seattle area). No other place in the country has this level of aerospace activity.
But the reports failed to adequately address the top priority that Boeing has: the need for skilled workers and engineers.
At long last, the NMA council is getting there.
By Bjorn Fehrm
October 1, 2018, © Leeham News.: Boeing and its partner SAAB Thursday won a $9.2bn U.S. Air Force T-X Pilot Training contract. It was a win for its Defense, Space & Security division, yet it will have major implications for Boeing’s Commercial Airplane (BCA) division and the NMA.
The NMA will change the way Boeing develops, produces and supports airliners. The T-X is the pilot for this change.
Sept. 27, 2018, © Leeham News: Boeing hasn’t gone to a production rate of 57/mo for its 737 and studies have long been underway looking at a rate of not only 63/mo but also 70/mo, supply chain sources tell LNC.
Rate 57, up from 52, is scheduled for next July. Sixty-three has long been considered the maximum allowed for the current Renton (WA) factory, the sole location where commercial 737s are assembled.
But Boeing, in yet another step in its drive for more efficiencies, is analyzing how to push 70 airplanes a month through the same facility.
Sept. 24, 2018, © Leeham News: This week we catch up on Odds and Ends.
Boeing has reversed the number of 737s piling up at Renton Airport and Boeing Field and is starting to burn off the “gliders” and other aircraft plagued by traveled work.
Although some aerospace analysts came away from the investors day this month skeptical that Boeing would clear the backlog by year end, barring another hiccup of size, it looks like the company will do so.
Spirit Aerosystems said it had caught up on the delivery of fuselages while Boeing told aerospace analysts at its investors’ day this month that delays were still causing issues.
How does this conflict of information converge?
It’s a matter of sequencing the fuselages back into the system, I’m told.
Sept. 17, 2018, © Leeham News: With the supply chain under major stress and Airbus and Boeing trying to recover from scores of “gliders” sidelined at airports without engines, each company nevertheless continues to study production rate increases for the A320 and 737 families.
Supply chain sources tell LNC Airbus is studying an even higher rate, into the “70s,” at early as 2020—a date that most consider out of the question.
Boeing is known to be considering a rate of 70/mo for its most profitable program.
Today, LNC looks at the A320 scenario. A future post will examine the 737.
Sept. 17, 2018, © Leeham News: The surprise resignation last week by Eric Schulz as Chief Commercial Officer for Airbus re-opened the door for the man who should have been named in the first place, Christian Scherer.
Scherer spent the last two years as CEO of ATR, which is 50% owned by Airbus, but his lineage is pure Airbus.
His father, Gunter, was one of the original Airbus pioneers. He was a flight engineer on the early A300B2 test flights when Airbus was formed. Gunter died in May.
Christian joined Airbus in 1984. Since then, he was Head of Contracts, Leasing Markets and Deputy Head of Sales as well as Head of Strategy and Future Programmes. At Airbus Defence and Space, he headed Marketing & Sales. He was named CEO of ATR in October 2016.
Sept. 13, 2018, (c) Airfinance Journal: Air Lease’s executive chairman Steven Udvar-Hazy says that Boeing could make a decision on whether or not launch the 797 model mid-year 2019.
If so, the timing could coincide with the Paris Air Show.
“In the NMA market, whether Boeing will launch the 797 is a ‘multi-billion dollars question’, he says, adding that right now the US manufacturer is assessing the engine availability.
“There are two potential engines applications. They are all derivative engines,” he says at the UK Aviation Club Lunch on 13 September.
“We all know the problems that Airbus and Boeing have been going through with the new engines on the Max and the Neo as well as the 787s,” he adds.
And for him Boeing is very ‘cautious’ on a decision. “They are trying to understand what is the real market demand for this aircraft and all indications points out to a decision sometimes in the middle of next year,” he says.
Boeing can’t seem to close the business case on its Middle of the Market airplane, the New Midmarket Aircraft, or NMA.
And Airbus continues to stir the pot with talk of an A321XLR and the ever-present A321neo Plus.
Other than this, everything is fine.
By Bjorn Fehrm
August 23, 2018, © Leeham News.: Last week we examined the areas which limit the capabilities of the Airbus A321LR from addressing a larger part of what is called the Middle of the Market or the NMA segment.
We now discuss the changes Airbus can do which would make an A321XLR cover more of an NMA space.