Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Bjorn’s Corner: Air Transport’s route to 2050. Part 24. May 30, 2025
- Does an A220-500 need a new wing and engines? Part 3. May 29, 2025
- Boeing’s future depends on FAA approvals May 26, 2025
- Department of Justice, Boeing OK to Non-Prosecution Agreement May 23, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 23. May 23, 2025
Muilenburg’s debut as CEO on Boeing earnings call
July 22, 2015: Dennis Muilenburg made his first appearance today on a Boeing earnings call as president and CEO.
Dennis Muilenburg, president and CEO of The Boeing Co. Photo via Google images.
Jim McNerney, who was chairman and CEO until June when he relinquished the CEO title to Muilenburg, began the call before a transition to Muilenburg for the balance of the call and future calls.
McNerney said Boeing’s growth has been organic and he expected Muilenburg to continue growth and performance of Boeing.
Muilenburg hit the KC-46A $835m (pre-tax) charge at the top, expressing disappointment in the charge and the technical issue with the fuel system that led to it. The first flight test aircraft will return to the air this month, and the second aircraft–the one equipped with the refueling system boom and drogues–will have its first flight “this summer.”
“Notwithstanding the tanker charge,” Boeing delivered a strong quarter and financial performance, Muilenburg said.
Boeing 2Q/1H 2015 earnings
July 22, 2015: Boeing reported its 2Q2015 and 1H2015 earnings today, with higher revenue, $3.3bn in the all-important cash flow and a strong commercial backlog.
The earnings call presentation is here. The earnings call is here at 10:30am EDT.
This is the first earnings call for Dennis Muilenburg, who received the CEO title in July when Jim McNerney was kicked upstairs to non-executive chairman. Muilenburg had been president and COO since December 2013.
Last week, Boeing announced a pre-tax charge against the KC-46A tanker program of more than $800m ($523m after tax). This brings the pre-tax charges to about $1.3bn. Some analysts believe the latest charge was set before Muilenburg became CEO, while other observers believe this could be the first example of Muilenburg willing to take tough decisions that McNerney wasn’t willing to accept when it came to program charges.
Here is the first take from aerospace analysts:
Airbus A380neo not yet a project
July 21, 2015: The London Sunday Times created a stir over the weekend when it headlined an interview with Airbus Commercial CEO Fabrice Bregier that Airbus “commits” to an A380neo project.
Drilling down into the story and checking with Airbus, as well as going back to Bregier interviews at the Paris Air Show and one we did with him at the IATA AGM in early June, it’s clear the Sunday Times was somewhat exuberant in its headline.
Pontifications: Boeing takes another charge on tanker program; What’s next?
By Scott Hamilton
July 20, 2015, © Leeham Co.: Boeing on Friday took another charges against its USAF aerial refueling tanker program, the KC-46A, this time $536m after taxes ($855m before taxes). This brings the charges to date to more than $800m after taxes ($1.3bn before taxes).
So much for my vacation and skipping Pontifications this week.
The new charge is split between Boeing Commercial Airplanes ($513m pre-tax) and
Boeing Defense, Space & Security ($322m pre-tax). This is because the KC-46A is based on the 767-
Japan’s KC-767. What about “lessons learned?” Photo via Google Images.
200ERF and BCA is principally in charge of the development.
Last week, the USAF–before the Boeing announcement–said it still expects the first production tankers to be delivered on time, in 2017, but Boeing Commercial’s recent track record of developing, producing and delivering airplanes on time and on budget leaves a lot to be desired.
Options for Singapore Airlines to operate direct flights to the US.
By Bjorn Fehrm
Subscription required.
July 20, 2015 © Leeham Co. Last week week we wrote about how Singapore Airlines is in talks with Airbus and Boeing to find a suitable solution for its Ultra-Long Haul airplane needs. Now we go deeper into the subject, looking at the background to the need, the aircraft options and their economics.
We also check if the different aircraft options could open the famous Singapore-New York route again, this time with acceptable fuel economics.
Summary:
- We explore SQ’s options for US direct traffic, looking at possible aircraft and their fuel economics.
- The A340-500 flight to New York was stopped because of to high fuel costs. We show what the fuel consumption would have been with the 777-200LR.
- Should Airbus decide to launch the A350-900LR a specially equipped version could re-open the famous route. We show how and with what fuel gains over A340-500 and 777-200LR.
Bjorn’s Corner: hot summer, hot engines
By Bjorn Fehrm
17 July 2015, ©. Leeham Co: It is summer in south of Europe and we have had over 30°C/86°F for weeks. It makes one realize the conditions where the engines have to work over their flat rating point in the Middle East.
Aircraft engines are a bit fidgety. They don’t like temperature although they are made to sustain that their hottest parts, the nozzle and first turbine after the combustor, gets scalded to 1700°C/3,092°F or more.
Go down to the very back end of the engine and we come to where the key engine parameter, EGT (Exhaust Gas Temperature), is measured. It determines a lot of things, among them the time the engine stays on wing. Things are typically 700°C/1,832°F cooler here and this is where a reliable temperature measurement probe can be placed. Based on its values, the total health of the engine’s core is determined. It is also a key input whether the engine shall be throttled back in a hot take-off like in the Middle East.
Airbus in talks with Singapore for ultra-long range airplane; “A350-900LR” likely
We believe Airbus is close to launching an “A350-900LR” (Long Range) in response to talks with Singapore Airlines for a longer-range airplane.
July 14, 2015 © Leeham Co. Singapore Airlines is in talks with Airbus and Boeing about an Ultra-Long Haul airplane that can fly from Singapore to the US non-stop.
The talks were first reported by Bloomberg News June 17, during the Paris Air Show.
Singapore discontinued the flights to Los Angeles and Newark when rising fuel prices made operation of the Airbus A340-500 used on the trips uneconomic.
Boeing currently has one airplane capable of service to Los Angeles, the current generation 777-200LR, which has a standard range of 8,665nm but not to Newark which is 8,300nm great-circle without the unpopular Additional Cargo-bay Tanks (ACT), any wind or longer range alternate would exceed the capabilities of 777-200LR in standard config. Los Angeles is 7,560nm from Singapore and when flying west the extra range in the standard 777-200LR would be needed to combat the prevailing westerly winds on the mission.
The Airbus A350-900 has a range of 7,900nm when transporting the same 301 passengers as 777-200LR. Boeing’s forthcoming 777-8X has a planned range of 9,300nm but it’s entry-into-service isn’t planned until around 2022.
Pontifications: Make a Wish, AA responds
By Scott Hamilton
July 13, 2015: I’m traveling. Pontifications this week and next will be “grabs” from YouTube.
The first is a short video of a young boy with a heart condition who wishes to be a pilot for American Airlines, which is part of the Make a Wish foundation. When AA was informed, see what happened next.
Next, a short video about the Lockheed Constitution, a double-decker piston airplane designed during World War II. The military was the driver of the project but Pan American World Airways was also interested. Only two Constitutions were built.
FedEx orders 50+50 767-300Fs (but no 777Fs)
FedEx today announced an order for 50+50 Boeing 767-300ERFs. We previewed this prospect July 8.
But there were no Boeing 777Fs involved, as we reported there “perhaps” might be. FedEx, which also operates the 777F, deferred orders for 11 of these freighters more than a year ago–in 2011.
33 Comments
Posted on July 21, 2015 by Scott Hamilton
Boeing, Leeham News and Comment
767-300ERF, 777F, Boeing, FedEx