Freighter market faces turmoil while passenger sector gets the headlines

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By Scott Hamilton

June 10, 2024, © Leeham News: Delivery delays of widebody airplanes are causing disruptions in freighter conversion plans as feedstock is retained for passenger operations.

IAI Bedek Boeing 777-300ER P2F. Photo: IAI Bedek.

Demand for passenger airplanes also is slowing Airbus’ plans for the A350 freighter, according to market intelligence.

Softening of the cargo market since the end of the COVID-19 pandemic also impacts the immediate need for converting airliners to freighters, sources say.

Although Boeing’s delays with the 787 and 777X get most of the blame, Airbus also gets some credit for the A350 program. Already, say potential cargo airplane buyers, the A350 freighter is looking at a delay beyond the 2026 entry into service (EIS) date. Uncertainties among Middle Eastern carriers Etihad and Emirates over the A350-1000 Rolls-Royce engine durability are also causing officials to rethink retaining Boeing 777-200LRs and 777-300ERs in service.

Certification of the IAI Bedek 777-300ER freighter conversion program is taking longer than expected. The reason: the negative halo effect dating to the Federal Aviation Administration (FAA) certification crisis with the Boeing 737 MAX.

It took Boeing 21 months to recertify the MAX after its grounding began in March 2019. The MAX 7 and MAX 10 still aren’t certified and aren’t expected to be until sometime next year.

Certification of the 777X, also affected by the negative halo effect of the MAX crisis, isn’t certified. EIS was intended to be in 1Q2020. Boeing has yet to receive Type Inspection Authorization (TIA) from the FAA, one of the final steps required before certification. Boeing officially hopes certification will occur next year. But quietly some within Boeing now don’t think TIA will come until 1Q2025. Emirates and Lufthansa Airlines, the first scheduled operators of the airplane, openly say they don’t expect deliveries until 2026.

The upshot: feedstock of the 777-300ERs for conversion companies is drying up.

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Bjorn’s Corner: New engine development. Part 10. Propeller, Rotor or Fan?

By Bjorn Fehrm

June 7, 2024, ©. Leeham News: We do an article series about engine development. The aim is to understand why engine development now has longer timelines than airframe development and carries larger risks of product maturity problems.

To understand why engine development has become a challenging task, we need to understand engine fundamentals and the technologies used for these fundamentals.

Following the last Corner on airframe integration, several comments were made about the definition of propeller, open rotor, and/or fan. So, we’ll explore this further.

Figure 1. Evolution of Wright Brothers propellers from 1903 to 1905. Source: wright-brothers.org

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The all-important cabin. Part 3

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By Bjorn Fehrm

June 6, 2024, © Leeham News: We do an article series about the all-important cabin and its seating for an airliner. We have looked at different narrowbody cabins and how the seating differs widely depending on the market and customer segments the aircraft addresses.

This week, we focus on why widebody aircraft have relatively low seat counts compared with single-aisle aircraft, like the A321neo.

We use the cabin generator in our Aircraft Performance and Cost Model (APCM) to configure widebody cabins and compare these with the narrowbody equivalents.

Summary:
  • The widebody cabins are configured for longer flight times, resulting in them taking more space.
  • When a widebody is configured for domestic flights, its seating per cabin area is closer to that of a narrowbody.

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Analyzing Boeing’s 90-Day Plan

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By the Leeham News Team

Analysis

June 3, 2024, © Leeham News: There is no timetable for Boeing to gain approval to boost production rates of the 737 MAX. And there is no timetable for the beleaguered company to regain “ticketing” authority for certification of its 737s or 787s. The Federal Aviation Administration (FAA) will be calling the shots indefinitely.

Boeing last week presented the FAA with its plan to improve safety. The long PowerPoint, said FAA Administrator Mike Whitaker in a press conference on Thursday, wasn’t released to the public. But press releases from the FAA and Boeing, and an 11-page Executive Summary released by the manufacturer, were in many ways recitations of what’s already been done.

“All those highlighted bullet points posted below were all being done when I worked as a delivery manager 14 years ago,” a retired Boeing employee emailed LNA after reviewing the Boeing press release and Executive Summary.

“Eliminate defects? They’ve been saying that for 100 years. Of course, we want zero defects. The KPIs are nothing new. Been there done that. Nothing’s changed. Nothing.”

KPI stands for Key Performance Indicators. Boeing, and Whitaker, highlighted these in statements. There are six KPIs:

  • Employee proficiency measures share of employees who are deemed proficient in core skills.
  • Notice of Escape (NoE) rework hours measures time performing rework in Boeing’s final assembly facilities to address non-conforming work from its fabrication division and external suppliers.
  • Supplier shortages measures shortages per day from Boeing’s fabrication division and external suppliers.
  • Rework hours per airplane measures time spent performing rework in Boeing’s final assembly facilities.
  • Travelers at factory rollout measures unfinished jobs traveling from Final Assembly
  • Ticketing performance measures quality escapes per ticketed airplane prior to delivery.

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The Boeing 90 day executive summary to the FAA: An analysis

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By the Leeham News Team

June 3, 2024, © Leeham News:  Boeing and the Federal Aviation Administration last week released summaries of the company’s plan to fix its safety shortcomings following the Jan. 5 accident of Alaska Airlines Flight 1282.

That’s the day a 10-week-old 737-9 MAX saw a door plug blow out at 16,000 ft on take-off from Portland (OR). Nobody died but there were some injuries and damage throughout the cabin and the cockpit occurred. The flight crew made an emergency landing at Portland.

Following this accident, the FAA on Feb. 29 gave Boeing 90 days to come up with yet another plan to address safety and production failures. (Boeing developed plans after the 2018/19 737-8 MAX crashes that killed 346 people.)

In a three-hour meeting on May 31, Boeing CEO David Calhoun and other senior executives outline its latest plan. The FAA’s press release afterward largely was a reaffirmation that it will hold Boeing’s feet to the fire until it is satisfied the safety culture at Boeing changes. There is no timeline for Boeing to implement changes—at least none that was announced.

Boeing released an 11-page Executive Summary that largely outlined steps it has taken to improve safety, and which ones continue. The detailed PowerPoint presentation given to the FAA was not released. Through a spokesperson, the FAA declined to make FAA Administrator Mike Whitaker available for an interview.

A key element of the go-forward plan is a requirement by the FAA that a voluntary Safety Management System (SMS) is now mandatory.

The FAA and Boeing statements released last week drew immediate criticism for lack of detail, repetitive nature of steps already taken, and—given the steps taken in 2019 and 2020—why this is necessary today.

LNA’s news team, which includes former Boeing employees whose duties included safety, reviewed the information announced last week. This is the analysis.

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Boeing, firefighters settle contract, ending lockout

By the Leeham News Team

Analysis

May 31, 2024, © Leeham News: Boeing firefighters on Thursday approved a new contract, ending a lockout by Boeing since May 1.

Firefighters approved the new contract by a vote of 78% to 22% (86 to 24). Firefighters return to work tomorrow.

Contract Summary

The offer was good enough to end the lockout, but it’s not clear whether it will solve the chronic turnover in Boeing’s Fire Department. Despite Boeing’s attempts to paint the offer as competitive with other industrial fire departments around the United States, pay remains below the municipal departments right next door to its facilities in Everett, Renton and Seattle.

It still will take Boeing firefighters 10 years to get to maximum pay, which is an improvement over the current 14. (Most Seattle-area departments move firefighters to maximum pay in three to five years.)

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Bjorn’s Corner: New engine development. Part 10. Airframe integration

By Bjorn Fehrm

May 24, 2024, ©. Leeham News: We do an article series about engine development. The aim is to understand why engine development now has longer timelines than airframe development and carries larger risks of product maturity problems.

To understand why engine development has become a challenging task, we need to understand engine fundamentals and the technologies used for these fundamentals.

In the last Corner, we looked at the nacelles used for a turbofan engine and for an open-rotor engine. Now, we go one step further and look at the integration of modern engines on an airliner.

Figure 1. Boeing 737NG (left) and MAX (right) nacelles compared. Source: Leeham Graphic from Boeing 737 images.

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Boeing releases Executive Summary of FAA plan (Update with FAA comment)

Update: The FAA, responding to a query from LNA about deadlines and milestones, had this to say:

“This is about systemic change, and there’s a lot of work to be done. Boeing must meet milestones and the timing of our decisions will be driven by their ability to do so.  Boeing has delivered a roadmap to change its safety culture, and the FAA will make sure Boeing implements the changes they have outlined. We will not approve production increases beyond the current cap until we’re satisfied they’ve followed through on implementing corrective actions and transforming their safety culture. The FAA will make sure Boeing makes lasting change using all of the tools at our disposal. We need to see a strong and unwavering commitment to safety and quality that endures over time.”

May 30, 2024, © Leeham News: Boeing today released an 11-page executive summary of its plan to the Federal Aviation Administration.

A top-level summary is below.

“A significant component of our Safety & Quality Plan are these six key performance indicators (KPIs) focused on safety, quality and production health,” a spokesperson wrote in an email.

  • Employee proficiency measures share of employees who are deemed proficient in core skills.
  • Notice of Escape (NoE) rework hours measures time performing rework in Boeing’s final assembly facilities to address non-conforming work from its fabrication division and external suppliers.
  • Supplier shortages measures shortages per day from Boeing’s fabrication division and external suppliers.
  • Rework hours per airplane measures time spent performing rework in Boeing’s final assembly facilities.
  • Travelers at factory rollout measures unfinished jobs traveling from Final Assembly
  • Ticketing performance measures quality escapes per ticketed airplane prior to delivery.

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The all-important cabin. Part 2

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By Bjorn Fehrm

May 30, 2024, © Leeham News: We will do an article series about the all-important cabin and its seating for an airliner. The cabin layout and its comfort are the most important part of an airliner for the passenger. For an airline it’s its face to the customer.

We will look at the different types of cabins used and how these use the airliner’s real estate, what the cost is, and what the weight is. With the weight, we can also predict how different cabins affect the aircraft’s performance.

Summary:
  • The configuration of the cabin has a large influence on total seating, weight, and cost.
  • The relationships change up to 500%.

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FAA, Boeing meet; “They must follow through on corrective actions.” Update 3: Boeing’s issues its statement

Update #3: Boeing released its own press release. Here it is:

Boeing’s plan is based on findings from FAA audits, recommendations from the FAA’s ACSAA panel review and feedback from our employees. This Safety and Quality Plan generally fits into four categories of actions:

  • Invest in workforce training
  • Simplify plans and processes
  • Eliminate defects
  • Elevate safety and quality culture

Statement from Dave Calhoun: “After the Jan. 5 accident involving a 737 airplane, we took immediate containment and mitigation actions to ensure airplane safety. We also made the decision to slow production as we took a hard look across every facet of our operations. We listened to our employees, engaged transparently with our regulator, welcomed the findings and recommendations from the FAA’s ACSAA panel review, and invited scrutiny from customers and independent experts. Based on that feedback and oversight, today we presented to the FAA our comprehensive plan to strengthen our safety management, quality system, safety culture and ODA responsibilities.

Many of these actions are underway and our team is committed to executing on each element of the plan. It is through this continuous learning and improvement process that our industry has made commercial aviation the safest mode of transportation. The actions we are taking today will further strengthen that foundation.

We thank Administrator Whitaker and the FAA team for their feedback today and we will continue to work under their oversight as we move forward.”

Statement from Stephanie Pope: “Our plan is built on the feedback of our employees who know best how to design, build and deliver safe, high-quality airplanes. We also incorporated the requirements and feedback from our regulator and welcomed the recommendations from our customers and industry experts.

Based on that feedback, our roadmap includes major investments to expand and enhance workforce training, simplify manufacturing plans and processes, eliminate defects at the source, and elevate our safety and quality culture, along with specific measures to monitor and manage the health of our production system.

We are confident in the plan that we have put forward and are committed to continuously improving. We will work under the FAA’s oversight and uphold our responsibility to the flying public to continue delivering safe, high-quality airplanes. We are also grateful for our customers’ patience as we implement this plan and return to predictable deliveries.”

 

From: Stephanie Pope
Sent: Thursday, May 30, 2024 11:22 AM
Subject: Our Safety & Quality Plan

 

***This message is to all Commercial Airplanes employees.***

Team,

On January 5, a mid-exit door plug departed one of our 737-9 airplanes mid-flight because of a quality escape that occurred in our factory. We immediately took actions to contain that risk to ensure an accident like that does not happen again. In the months since, we have slowed production to examine every aspect of our airplane production system and develop actions to strengthen our safety management, quality system and safety culture. Today, we submitted a comprehensive action plan to the U.S. Federal Aviation Administration.

As we shared during our All-Team Meeting last month, our Safety & Quality Plan is built on your feedback, along with recommendations from an FAA industry panel, our customers and industry experts, all under the requirements and oversight of our regulator.

Our plan includes actions that fit within four categories with specific measurements to continuously manage the health of our production system (Click on each to learn more).

•               Invest in workforce training

•               Simplify plans and processes

•               Eliminate defects

•               Elevate safety and quality culture

Many of these actions are underway, again powered by your engagement and feedback:

You said We did
Investments in training ✔  Added ~300 hours of training material
✔  Deployed workplace coaches and peer trainers onto the production lines
Simplification ✔  Cut the steps it takes to access build plans
✔  Began simplifying 400 quality-related command media to remove redundancies, contradictions
✔  Cleared more time for managers to spend on factory floor through fewer meetings, tasks
Eliminate defects ✔  Implemented quality inspection and approval of 737 fuselages before shipment from supplier
✔  Re-established daily compliance sweeps
Safety and quality culture ✔  Pilot program to make sure airplanes are “move ready” as way to manage traveled work
✔  Re-launched Employee Involvement Teams
✔  Ordered ~7,500 pieces of tooling and equipment

This is a journey, and we will keep taking action. It is through continuous learning and improvement that our industry has made commercial aviation the safest mode of transportation. We are committed to continuously improve as we build our Boeing, working every day to deliver airplanes to our customers that are safe, high-quality and on-time.

Please continue to Speak Up, and we will work the issues and share updates. We will succeed as a team and execute with safety, quality, and compliance in everything we do.

Stephanie

 

 

Update #2: The FAA issued the following press release in the wake of its meeting with Boeing. Boeing is expected to release its own statement today. Additional updates will be made as developments occur.

FAA Continues to Hold Boeing Accountable for Implementing Safety and Production Quality Fixes

Agency meets with company on next steps following submission of their safety roadmap

WASHINGTON – The Federal Aviation Administration (FAA) will continue to hold Boeing accountable after reviewing the company’s roadmap to fix its systemic safety and quality-control issues, Administrator Mike Whitaker said Thursday following a three-hour meeting with senior Boeing leaders at FAA headquarters.

In February, Whitaker directed Boeing to develop a comprehensive action plan to set a new standard for safety and how the company does business following the January 5 Alaska Airlines Boeing 737 MAX door plug incident. This roadmap is necessary to reset the safety culture at Boeing, as well as address the findings of the FAA’s special audit and the expert review panel report.

The company has developed this proposal over the last 90 days, with detailed input from the FAA throughout the process. Boeing senior leadership met with the FAA this morning to present the roadmap and discuss future implementation. Boeing is also now required to have a mandatory Safety Management System, which will ensure a structured, repeatable, systematic approach to identify hazards and manage risk.

“In the immediate aftermath of January 5, the FAA took unprecedented steps to increase oversight on Boeing. Over the last 90 days, that has meant everything from more safety inspectors in the facilities to halting production expansion. Today, we reviewed Boeing’s roadmap to set a new standard of safety and underscored that they must follow through on corrective actions and effectively transform their safety culture,” Administrator Whitaker said. “On the FAA’s part, we will make sure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business.”

Whitaker met Thursday morning with Boeing President and CEO David Calhoun and other senior leaders to discuss next steps to ensure effectiveness.

“I made clear once again that we need to see a strong and unwavering commitment to safety, which must always come first,” Whitaker said. “Systemic change isn’t easy but in this case is absolutely necessary, and the work is never really done when it comes to the safety of the flying public – from Boeing, airlines, or the FAA. But we will hold the company accountable every step of the way to make sure these changes happen.”

The FAA communicated with Boeing officials throughout the last 3 months, including 30- and 60-day check-ins, to ensure they clearly understood the agency’s expectations and were making real-time progress.

The agency required Boeing to provide a detailed update on completed actions as well as mid- and long-term actions Boeing will take. These actions include:

  • Strengthening its Safety Management System, including employee safety reporting
  • Simplifying processes and procedures and clarifying work instructions
  • Enhanced supplier oversight
  • Enhanced employee training and communication
  • Increased internal audits of production system

Additionally, Boeing had to identify the results of completed actions and how it will monitor those and future actions to validate progress and sustain the changes.

To ensure long-term success, the FAA will actively monitor review Boeing’s progress in a variety of ways, including:

  • A team of FAA subject matter experts will continually review Boeing’s progress and the effectiveness of the changes in addressing the audit findings and expert panel recommendations
  • Senior FAA leaders will meet with Boeing weekly to review their performance metrics, progress, and any challenges they’re facing in implementing the changes
  • They also will conduct monthly reviews to gauge Boeing’s progress

The FAA will continue its enhanced oversight of Boeing and its suppliers. This includes:

  • More safety inspectors in the Boeing and Spirit AeroSystems facilities
  • More conversations with company employees to gauge the effectiveness of changes
  • Additional inspections at critical points of the production process and auditing of the production process
  • Monitoring quality system metrics to identify any areas of concern

Additional actions the FAA has taken as part of its aggressive oversight of Boeing and its suppliers include:

  • Immediately grounded 171 Boeing 737-9 MAX aircraft operated by U.S. airlines or in U.S. territory.
  • Increased onsite safety inspector presence at Boeing’s facility in Renton, Washington, and Spirit AeroSystems’ facility in Wichita, Kansas.
  • Halted production expansion of the Boeing 737 MAX.
  • Administrator Whitaker visited to Boeing’s factory floor in Renton, Washington, to see the 737 production line and hear directly from Boeing engineers, mechanics, and others about quality control processes. He has actively encouraged all whistleblower complaints, and the FAA investigates every single one.
    • Concluded an audit of Boeing’s production line that went above and beyond FAA’s standard inspection process. The FAA identified non-compliance issues in Boeing’s manufacturing process control, parts handling and storage, and product control. Our audit is complete but it is part of an ongoing investigation, and we cannot release further details.
  • The FAA continues to issue airworthiness certificates for every newly produced Boeing 737 MAX.

Original story:
FAA appears poised to grant Boeing extension on safety report; FAA issues denial (Update)

Update #1: The FAA today said it has not granted an extension for Boeing to submit its report. This story will be updated as developments occur.

By the Leeham News Team

May 29, 2024, © Leeham News: The Federal Aviation Administration (FAA) appears poised to give Boeing a 90 day extension on the 90 days required to come up with an actionable plan to improve safety on its production lines, LNA is told.

Then, according to this information, Boeing will be given three years to implement whatever is finally approved by the FAA.

Boeing CEO David Calhoun is scheduled to deliver the 90-day plan to the FAA tomorrow.

LNA reported on April 18, 45 days into the 90-day mandate, that Boeing would unlikely meet the FAA deadline.


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