Robert Isom, EVP-COO
Andrew Nocella, SVP Marketing and Planning
We’re at the US Airways Media Day and we’ll provide updates throughout the day.
First up is Doug Parker, CEO of US Airways and the new CEO of American Airlines when the merger is consummated.
Doug Parker:
Boeing kills fish plan: The Spokane Review has this story about Boeing killing a plan to further protect fish in the Puget Sound area. We knew of this effort in December. The proposed rules would require huge water detention ponds at Renton and Everett to retain stormwater runoff to prevent pollution in Lake Washington and Puget Sound waters. The dimensions were so large there was inadequate land available at Renton. At that time the size of the Everett hadn’t been computed.
If the new rules went into effect, we were told Boeing would have likely begun moving work out of Washington, costing jobs.
The Washington Department of Ecology, which was behind the move, is proving more and more schizoid in its approach to the environment. On the one hand, it proposes highly onerous rules such as this and causes headaches to the suburb in which we live over critical areas rules. On the other, it’s poised to approve a permit to another suburb that will allow direct injection of contaminated stormwater runoff into a drinking water aquifer.
This falls into the category of “what are you thinking?”
Spooked about 787 fix: Richard Aboulafia, consultant with The Teal Group who has done work for Boeing in the past (about five years ago), remains spooked about the fix, according to this article. Are our readers? We’ve done two previous polls, one before the Boeing fix was outlined, one immediately after. Now that the FAA approved the fix, we’d like to ask the following again.
There’s a lot of news happening today and tomorrow.
NTSB Hearing: The NTSB hearing on the Japan Air Lines Boeing 787 battery fire is today and tomorrow. This can be followed live (and later archived) here.
Boeing Earnings Call: This is Wednesday, April 24. This can be followed here. Expect a fair amount of discussion about the impact of the 787 battery issues on earnings. Ordinarily we’d have our usual live running coverage but instead we will be at the…
US Airways Media Day: This airline has an annual media day and it was scheduled for today a long time ago. We’ve been a regular at this, and due to the pending American Airlines merger, apparently there is going to be big press demand: they had to move the venue from headquarters to a hotel location in Scottsdale. We’ll have several updates throughout the day.
787 Update: LOT Polish Airlines expects to return its two 787s to service in June; Ethiopian this month; the Japanese airlines could return the airplane to service this month but ANA plans up to 200 test flights first, so this will slip to May and perhaps June. It’s unclear when Japan Air Lines plans a return-to-service (RTS). Qatar Airways wants to RTS this month. United Air Lines appears planning next month.
You can follow the NTSB hearing on the Japan Air Lines battery fire on the web here. It starts at 9am Eastern Time. Mobile phone access is also available.
Boeing’s presence in Seattle: Bill Virgin, a respected local journalist and observer of aerospace and manufacturing, wrote this column for the Tacoma News-Tribune looking at Boeing’s future presence in the Seattle area.
The points Virgin raise are valid, and in total have been discussed for years here. We raised some of these points as far back as April 2009 in a speech to a local economic development group.
Parochially, of course, we want to see Boeing stay here. Putting on our business hat, we can make a solid argument for Boeing’s diversification. We see Charleston becoming to Everett what Hamburg is to Toulouse: a major, major manufacturing center and aerospace cluster.
We are firmly convinced that when the day comes Boeing designs an all-new airplane to replace the 737, South Carolina will be its assembly home and Renton’s facility will close, to be given over to mixed use development along the lines of what’s called Renton Landing. Boeing’s “move to the lake” has been years in the planning and years in the making. We don’t believe it is over.
What about Everett? We see the future of Everett solid for at least a generation and probably a lot longer, at least until the 787 production begins to wind down. Local politicians fear Boeing will assemble the forthcoming 777X somewhere else. We don’t think so. The 777 tooling is here, the skilled workforce is here and it wouldn’t make sense to build a derivative elsewhere, just as it didn’t make sense to build the 737 MAX anywhere but Renton. Furthermore, we firmly believe the 777X will kill off the nearly morbid 747-8I. This will free up space to build the 777X here.
747-8 Future: The Puget Sound Business Journal last week published a long story about the inter-relationship between the 777X and the 747-8I, an its impact on the struggling program. On the same day the story was published (Friday), Boeing announced a production rate cut in the program from 2/mo to 1.75/mo. We had expected a deeper cut. One consultant we spoke with on Friday suggests Boeing will do what it can to keep the 747-8 alive pending recapitalization of the 747 at the USAF–in other words for Air Force One and the Doomsday aircraft. We’ve been saying the former for quite a while but had not thought about the latter. But there are only four aircraft. Still, the prestige of having the 747 as Air Force One is worth a lot.
The PSBJ article is here: PSBJ 747 041913
Japan Awaits Hearings: Japanese regulators are waiting for the Boeing 787/Japan Air Lines hearings by the National Transportation Safety Board this week before deciding whether to approve a return-to-service by the aircraft, according to this news report.
Airport Delays: You can track airport delays resulting from controller layoffs here.
I’m going to exercise my blog-owner prerogative to make a major deviation from the aerospace focus to talk about the Boston Marathon events.
The government response to what happened was superb. There can be no other word for it. There have already been a number of stories about the disaster response planning by Boston and how it provided instantaneous response to the injured. Lives were saved because of the rapid-response.
The ability to identify the suspects—not only in the videos but within hours their names—and then track them down is astounding. Certainly citizen cooperation made this possible. NBC News reported the FBI had about 25,000 hours of video to review provided by security cameras and citizens. How this could have been done in such a short period of time is bewildering. I haven’t seen anything to detail how many hours of video actually was reviewed before the suspects stood out, but according to news reports the key video came from a security camera mounted on the roof of a store.
Video Surveillance
Here is Seattle, there is a debate currently going on about the police erecting video cameras along an area called Alki Beach. Civil libertarians are concerned about invasion of privacy and police misconduct. Given the history of Seattle Police in recent years abusing civil rights, the concerns are particularly on-point here. But the video presence in Boston, contributing to the swift identification of the Marathon Bombers, certainly raises a solid argument for installing these.
There is a national debate over whether law enforcement should be allowed to use drones, or Unmanned Aerial Vehicles. The critics cite the same civil libertarian concerns as they do with the street cameras. While there has been no indication I’ve seen that UAVs were used in Boston, it was clear that helicopters were.
I have a hard time understanding the difference between “plain view” observation by helicopters, cameras or UAVs. UAVs, which are cheaper to buy and cheaper to operate than helicopters, could easily have aided law enforcement as they searched for the Marathon Bombers, vastly increasing their reach. Whether it would have made a difference in faster apprehension (which was pretty fast as it was) will forever be speculative. But “plain view” is “plain view.” UAVs don’t change that.
Government in General
Survivalists and many politicians like to bash government as being Big and Bad. There is plenty to criticize about government, and I’ve been known to do so on more than one occasion. But I served on appointed city boards for eight years and with this experience came both the good and the bad. The good is understanding that, for whatever differences in philosophy that often lead to sometimes bitter debate, those serving in government want to make things better—however “better” is defined by competing interests. The bad comes from the inefficiencies, bureaucracies and sometimes plain incompetence.
Local, State and Federal governments came together in Boston to respond to the initial tragedies. Then they came together to identify the bombers. Then they came together in one of the largest manhunts in American history. Government at its best.
But the very government agencies involved face huge budget cuts because of Sequester and a view by Republicans that all taxes are bad. If nothing demonstrates that taxes are needed to fund government, Boston certainly does.
I’m not a blind-eyed defender of taxes or of irresponsible spending. But will there ever be any event to wake up Washington (DC) that common sense must prevail? Citizens of all stripes and ideologies worked together in Boston. Common sense and common purpose prevailed there. Wouldn’t it be nice if the politicians in Washington acted as well as Boston?
How Alabama won Airbus: Bloomberg News has this story detailing how Alabama persuaded Airbus to located an A320 plant in Mobile, after losing the tanker competition.
ANA to conduct 787 test flights: The Japanese airline, which currently has more Boeing 787s than any other carrier, will conduct up to 200 test flights before returning the 787 to service, according to this Reuters report.
Boeing held a tele-web press conference at 2pm PDT today about the FAA’s approval of the battery fix and authorization to return the 787 to service.
As we prepared to get underway, Boeing clarified some Tweets that referenced 100,000 of engineering work on the battery solutions. At a previous press conference a figure of 200,000 hours was mentioned.
Marc Birtel, a Boeing spokesman, provided this clarification:
The team spent more than 100,000 hours developing test plans, building test rigs, conducting tests and analyzing the results to ensure the proposed solutions met all requirements.
The team spent more than 200,000 engineering hours in all of the work that went into the battery solution.
Mike Sinnett, VP and chief project engineer for the 787 program, provided today’s update. Go below the jump.