Dennis Muilenburg, Boeing CEO.
Feb. 9, 2017: Requests for order deferrals are at an historic low but there are still challenges in bridging the production gap between the 777 Classic and 777X, Boeing CEO Dennis Muilenburg said during a Cowen & Co. presentation today.
Deferral requests are at only 2% of the backlog of nearly 6,000 airplanes, compared with an historic rate of about 6%, Muilenburg said.
“There are no particular regional trends,” he said during a phone-in appearance; weather prevented Muilenburg from flying in for the event. “Deferrals remain very low. We have skyline flexibility to move things around.”
At the same time, Muilenburg acknowledged Boeing still faces a challenge of filling the bridge between the 777 Classic and 777X, even at the reduced production rates in place. The rate is now 7/mo, down from 8.3/mo. It goes to 5/mo in August. Actual delivery rate beginning next year through 2019 is 3.5/mo as production of the 777X is feathered in.
Muilenburg identified filling the bridge as a “risk.”
“We still have work to do to fill out the bridge,” he said. The line is virtually sold out this year, but only 90% sold out at the reduce rate next year and in 2019.
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Assessing the MC-21 future
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Introduction
Feb. 9, 2017, © Leeham Co.: Russia’s Irkut designed a mainline jet to compete with the Airbus A320 and Boeing 737 families that, from a passenger experience
Irkut MC-21 at roll-out. Photo via Google images.
viewpoint, is the best in class.
The MC-21 has a wider fuselage than the A320 (which is wider than the 737). Seats and the aisle are the widest in the class. The overhead bin space is plentiful.
But the airplane is hampered by its environment: Russia itself.
Summary
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Posted on February 13, 2017 by Scott Hamilton
Airbus, Boeing, China, Comac, Irkut, Leeham News and Comment, Pratt & Whitney, Premium, United Aircraft
737, A320, Airbus, ARJ-21, Boeing, C919, C929, Irkut, MC-21
Pontifications: Alaska’s A321neo test drive
By Scott Hamilton
Feb. 13, 2017, © Leeham Co.: It was subtle, but it was there: Alaska Airlines will take the Airbus A321neo for a test drive.
This will happen via its new sibling, Virgin America, which has 10 A321neos on order. VA is an exclusive A320 operator. Alaska flies only Boeing
737s. The acquisition of VA by Alaska immediately raised questions whether Alaska will retain the Airbus fleet and orders or phase them out in favor of the 737.
Of more interest to partisans than to me, the question over the future of the Virgin America brand also became a top question.
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17 Comments
Posted on February 13, 2017 by Scott Hamilton
Airbus, Airlines, Alaska Airlines, Boeing
737-10, 737-9, 737-900, 737-900ER, A320, A321NEO, Airbus, Alaska Airlines, Boeing, CFM, Virgin America
Bjorn’s Corner: Aircraft engines in operation, Part 4
By Bjorn Fehrm
February 10, 2017, ©. Leeham Co: We now continue our journey how an airline engine is operated during a typical mission.
Last week we explained basics for engine control and Take-Off flat-rating. We now continue with Climb, Cruise and Max Continuous ratings and why these are important.
Figure 1. Principal picture of a direct drive turbofan. Source: GasTurb.
We also touch on de-rating and Cost Index and how these affect how the engine runs.
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10 Comments
Posted on February 10, 2017 by Bjorn Fehrm
Airbus, Bjorn's Corner, Bombardier, CFM
A320, Airbus, CFM, CSeries, Pratt & Whitney
Deferrals at historic low, say Boeing CEO
Dennis Muilenburg, Boeing CEO.
Feb. 9, 2017: Requests for order deferrals are at an historic low but there are still challenges in bridging the production gap between the 777 Classic and 777X, Boeing CEO Dennis Muilenburg said during a Cowen & Co. presentation today.
Deferral requests are at only 2% of the backlog of nearly 6,000 airplanes, compared with an historic rate of about 6%, Muilenburg said.
“There are no particular regional trends,” he said during a phone-in appearance; weather prevented Muilenburg from flying in for the event. “Deferrals remain very low. We have skyline flexibility to move things around.”
At the same time, Muilenburg acknowledged Boeing still faces a challenge of filling the bridge between the 777 Classic and 777X, even at the reduced production rates in place. The rate is now 7/mo, down from 8.3/mo. It goes to 5/mo in August. Actual delivery rate beginning next year through 2019 is 3.5/mo as production of the 777X is feathered in.
Muilenburg identified filling the bridge as a “risk.”
“We still have work to do to fill out the bridge,” he said. The line is virtually sold out this year, but only 90% sold out at the reduce rate next year and in 2019.
Read more
18 Comments
Posted on February 9, 2017 by Scott Hamilton
Airlines, Boeing
737-10, 777 Classic, 777X, 787, Boeing, Cowen & Co, Dennis Muilenburg, Iran Air, Middle of the Market, MOM, NMA, President Donald Trump
Look for more KC-46A tanker orders soon
Feb. 8, 2017, © Leeham Co.: Boeing last month received a $2.1bn order for 15 more KC-46A tankers from the US Air Force, bringing the total so far to 34.
Look for more orders in the coming months.
Boeing has Letters of Intent for 152 more with delivery dates beginning in 2018, according to the Ascend data base.
Extending the line
The aerial refueling tankers are based on the 767-200ER, which is no longer offered by Boeing in a passenger version.
Boeing expects 400 sales of the tanker over the life of the program. Using the current LOIs as a base, the USAF commitment extends to 2028. At the current production schedule planned, the 767 line could be active until 2042.
But the USAF isn’t the only customer for the 767.
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36 Comments
Posted on February 9, 2017 by Scott Hamilton
air force tanker, Airlines, Boeing
767-200ER, 767-300ER, 767-300ERF, Boeing, FedEx, KC-46A, UPS
Trans-Atlantic for $75, does it work?
By Bjorn Fehrm
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Introduction
February 9, 2017, © Leeham Co.: Norwegian will start trans-Atlantic flying between Edinburgh and New England for $75 one-way in late spring when it gets its Boeing 737 MAX 8.
The introductory price will be $69. CEO Bjorn Kjos says the operating costs of the 737 MAX 8, “which is very low,” will make this level of ticket pricing possible.
We were the first to point out (November 2014 in this article) the re-engined MAX 8 would be a trans-Atlantic enabler at a new cost level. We didn’t put the passenger ticket at $75 at the time. Time to check if it’s possible to make money with such fare prices.
Summary:
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Posted on February 9, 2017 by Bjorn Fehrm
Airlines, Boeing, Premium
737 MAX, 737 MAX 8, Boeing, CFM, LCC Long Haul, Norwegian Air Shuttle
Brazil files WTO complaint against Canada-CSeries deals
“Brazil notified the WTO Secretariat that it had requested WTO dispute consultations with Canada regarding alleged subsidies provided to Canadian aircraft manufacturer Bombardier,” the WTO announced today. Coincidentally, today it was also revealed the federal government will provide C$372m in loans to Bombardier. Most will go toward the Global 7000 corporate jet program but some will go to the CSeries, which competes with Embraer’s EJets.
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12 Comments
Posted on February 8, 2017 by Scott Hamilton
Bombardier, Delta Air Lines, Embraer
Bombardier, CSeries, EJet, Embraer, World Trade Organization, WTO
Norwegian, from regional to mainline competitor
By Bjorn Fehrm
Introduction
February 8, 2017, ©. Leeham Co: When SAS (Scandinavian Airlines Systems) canceled Norwegian Air Shuttle’s (NAS) contract to feed its Norwegian network 2002, it had no idea the former feeder would almost run it out of business 10 years later.
The cancellation forced NAS to change tack. Subcontracting as a feeder to a mainline was no longer possible; SAS was the only mainline in Norway after buying Braathens (NAS’ original contractor). NAS decided to become a Low Cost Carrier (LCC).
Ten years later, Norwegian (as we call NAS from now) had taken over a large part of SAS’ European business. SAS was fighting for its life. Another five years and Norwegian’s expansion on LCC long-haul is forcing IAG (BA, IBERIA, Air Lingus, Vueling), Air France-KLM and Lufthansa to react.
How strong a threat to other LCCs and the majors’ long haul operation is Norwegian? We will answer the questions in a series of future articles. We start with Norwegian’s roots and its development til now. Read more
12 Comments
Posted on February 8, 2017 by Bjorn Fehrm
Airbus, Airlines, Boeing
737 MAX, 787, 787-9, A320NEO, Air France-KLM, Airbus, Boeing, IAG, Lufthansa, Norwegian Air Shuttle
Assessing the future of COMAC programs
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Introduction
Feb. 6, 2017, © Leeham Co.: China’s effort to become a viable commercial aerospace alternative was filled with rocky fits and starts for its two signature airliner programs, the AVIC ARJ-21 and the COMAC C919.
The ARJ-21 regional jet finally entered service after delays of eight years. The C919 target EIS is now 2019, six years after the original date. The first flight hasn’t even taken place.
Chinese officials set a target EIS for the C929 of 2026.
A rough road remains ahead for each program.
Summary
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1 Comment
Posted on February 6, 2017 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, Comac, Premium, United Aircraft
Airbus, ARJ-21, Boeing, Bombardier, C919, C929, Comac, LEAP-X, United Aircraft Corp.
Pontifications: Boeing’s risk if Trump goes wild
By Scott Hamilton
Feb. 6, 2017, © Leeham Co.: Boeing officials must be downing antacids by the bushel about now.
President Donald Trump has the Mexican president pissed off. Trump’s spokesman says the immigration ban (or pause, or suspense, depending on the day it’s described) may be expanded to other “terrorist” nations.
Trump threatens a 45% tariff on Chinese imports and a 25% tariff on Mexican imports.
Why do Boeing officials probably have upset stomachs and flaming heartburn?
Because Boeing has more than 1,200 orders from countries that are in Trump’s crosshairs.
Nearly 770 of them are 737s. More than 300 are 777s. Nearly 170 of them are 787s.
And these are just the identified customers. There’s no telling how many of the 1,101 737s, 16 777s and 76 787s (at Dec. 31) were ordered by Trump’s target and potential target countries.
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43 Comments
Posted on February 6, 2017 by Scott Hamilton
Boeing, China
737, 777, 787, Asia, Boeing, China, Middle East, President Donald Trump
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