Dec. 6, 2018, © Leeham News: The prospective Boeing 797 (NMA) must stand on its own business case and not rely on aftermarket contracts for a profitable program, reports investment bank JP Morgan.
JPM’s aerospace analyst Seth Seifman met with Boeing CEO Dennis Muilenburg, CFO Greg Smith and Boeing Commercial Airplanes VP-marketing Randy Tinseth Dec. 4. In a research note issued yesterday, Seifman reported that the business case for the New Midmarket Aircraft still hasn’t closed—but “if Boeing launches the NMA, it will be with the intention of earning a return on the aircraft itself that is comparable to existing programs; it will not be a plan to accept lower margins on the aircraft and make it up in the aftermarket.” (Emphasis in original.) Read more
Dec. 3, 2018, © Leeham News: Safran, the French company that is a 50% partner in CFM International, believes Boeing will launch the New Midmarket Airplane next year.
Safran held its investors day last Thursday.
In sideline conversation, one of those attending reports that Safran met recently with Boeing and is convinced the NMA is a “go.”
(Others, elsewhere, remain skeptical.)
Engine company responses for proposals are due this month to Boeing. CFM, Rolls-Royce and Pratt & Whitney are competing for the engine selection.
It’s believed Boeing would like a dual source (certainly airlines do), but in all likelihood, the odds-on favorite is that the NMA will have a sole source engine. The betting is that it will be CFM. Read more
By Bjorn Fehrm
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November 29, 2018, © Leeham News.: Bloomberg wrote in the week Airbus is bringing out a 200 tonnes version of the A330neo as a counterstroke to the NMA. Having checked the characteristic of such a version, we contacted Airbus for clarifications.
Here is what Airbus said and how any 200t A330neo fits into Airbus future deliveries.
By Bjorn Fehrm
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November 14, 2018, © Leeham News.: Last week we operated the future Boeing NMA from North American hubs. The aircraft would cover the North American market well but would have limitations when flying to South America. The coverage would be sensitive to where our hub would be, as would European coverage.
Now we finish the series by comparing the NMA to its main alternatives for range and operational economics.
Summary:
By Bjorn Fehrm
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November 8, 2018, © Leeham News.: Last week we flew a Boeing NMA from the Middle East. We found the aircraft would be well suited to serve this market.
Now we finish the coverage part of the series with checking how useful the NMA would be for North American based carriers.
Update, Nov. 6: Boeing said the Wedgetail will be assembled in Renton, as it has in the past. Discussions are underway with the UK to perform final modifications there (similar to how KC-46A tankers move from final assembly to the Everett Modification Center for installation of military equipment). However, no agreement has been reached yet.
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Nov. 5, 2018, © Leeham News: A UK defense publication reported late today (US time) that Boeing agreed to final assembly of the 737-based Wedgetail radar and surveillance airplane in the UK.
This marks the first time a 7-Series commercial-based airplane will be assembled outside the US.
Boeing 737-based Wedgetail. Boeing photo.
The 737 finishing center in China, which opens this year, installs interiors and paints the airplane of finished 737s.
If the report is confirmed by Boeing, this marks a huge strategic and psychological step in how Boeing Commercial Airplanes approaches final assembly in the future.
By Bjorn Fehrm
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November 1, 2018, © Leeham News.: Last week we looked at how a Boeing NMA would function as a medium range airliner in the Asia-Pacific.
We now continue with flying the two aircraft variants from Middle East locations, exploring how large an area in Asia, Europe and Africa the aircraft would cover.
Summary:
Oct. 22, 2018, © Leeham News: I was in New York City last week for a series of meetings. Here’s what “the street” is talking about. I make no judgment calls about whether the thoughts are on target or not. Read more
By Bjorn Fehrm
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October 18, 2018, © Leeham News.: Last week we started an article series which analyzes how useful a Boeing NMA will be for medium to long-haul flights in different markets.
We first went through all the factors which will change the OEM’s nominal range to an operational range. Now we fly the NMA in one of its main markets and look how it fairs.
Summary:
Danieljcatchpole[at]gmail[dot]com
Oct. 16, 2018, © Leeham News: Puget Sound-area Boeing suppliers are anxiously awaiting an Oct. 30th meeting at the Lynnwood Convention Center. The aerospace giant has invited dozens of suppliers to the meeting.
Attendees have been required to sign non-disclosure forms in advance, though Boeing has been tight-lipped about what exactly it plans to discuss with them. Each company has been limited to sending only two representatives, according to several suppliers attending the meeting.
“It doesn’t matter if you’re a machine shop or a big (tier one supplier), you can only send two people,” said an executive at a Puget Sound-area supplier. The supplier spoke on condition of not being named for fear of losing business with Boeing.
Boeing has indicated that the conference is to discuss sweeping changes to how the terms and structure of its supply chain contracts. But it has revealed few details, according to executives at two suppliers.
“You know it’s bad if they won’t tell you what it’s about,” one of the executives said.