Tit for Tat: Airbus announces a big order from LionAir. The next day Boeing announces a big order from RyanAir. Airbus has a big press day for its groundbreaking at Mobile (AL). The next day Boeing announces a $1bn expansion at Charleston.
Lockheed in crosshairs: Embraer is going after Lockheed Martin. Aggressively.
787 Rescheduled: United Airlines put the 787 in its schedule from May 31. The FAA hasn’t cleared the airplane for flight yet, but Boeing has been telling customers to expect the plane’s return to service in May through June.
The Washington State Senate budget adopted last Friday killed funding for the Office of Aerospace, which was created less than a year ago.
The move was driven by the need to find more than $1bn to fund education and the State’s long-running budget shortfalls, brought on by the 2008 global fiscal crisis.
It’s understandable that the Senate, which is controlled by fiscally conservative Republicans and what we call here “Roadkill Democrats” (they’d be called Blue Dog Democrats in Congress), want to make drastic budget changes. The State, which has been controlled by Democrats in the Governor’s Mansion and in both houses of the Legislature, went on a spending binge following the election of Christine Gregoire and Democratic Super Majorities in 2004. The Ds increased spending by 33% on projected 16% increases in revenues. It was wholly irresponsible then and was perpetuated until the fiscal crisis began.
When the current Legislature was being formed, two Roadkill Democrats left their caucus and joined the Republicans in the Senate to form the first GOP control of the Senate since…well, we can’t recall specifically but it may have been around 1996, when we first moved here.
We won’t get into the social cuts of the Republican budget, because that’s not the area we cover in this blog. The move cutting the Office of Aerospace is a big mistake.
The rivalry between Airbus and Boeing intensified in recent weeks with Airbus landing another major order from a previously exclusive Boeing customer, LionAir. Boeing announced another major order just a day later, Ryanair, retaining exclusivity with this customer.
The market share battle between Airbus and Boeing was fierce and prolonged. The introduction of the A320neo family placed more pressure on Boeing, particularly when it became clear Airbus was going to land American Airlines as a major customer for Current Engine Option and the New Engine Option. Boeing, which had been dismissing the neo as a viable option and dithering about whether to proceed with a new design to replace the 737 NG, found its hand forced. Having no other choice, Boeing launched the MAX, a re-engined version of the 737 NG.
With all the recent orders, we’ve done the math and determined market share for the current generation and re-engined types and sub-types. This data is through March 31 and only includes orders that have been listed as firm contracts, not those that have been announced but not yet firmed up.
Sources are Airbus, Boeing and Ascend Worldwide.
Update, 1:30pm PT: The flight test is complete. Boeing issued this statement:
Boeing (NYSE:BA) completed a 787 certification demonstration flight today on line number 86, a Boeing-owned production airplane built for LOT Polish Airlines. Today’s flight marks the final certification test for the new battery system, completing the testing required by the U.S. Federal Aviation Administration (FAA).
Today’s flight departed from Paine Field in Everett, Wash. at 10:39 a.m. Pacific with a crew of 11 onboard, including two representatives from the FAA. The airplane flew for 1 hours and 49 minutes, landing back at Paine Field at 12:28 p.m. Pacific.
The crew reported that the certification demonstration plan was straightforward and the flight was uneventful. The purpose of the flight was to demonstrate that the new battery system performs as intended during normal and non-normal flight conditions.
Boeing will now gather and analyze the data and submit the required materials to the FAA. We expect to deliver all of the materials to the FAA in the coming days. Once we deliver the materials we stand ready to reply to additional requests and continue in dialog with the FAA to ensure we have met all of their expectations.
Original Post:
Boeing scheduled is critical certification flight test for the 787 today.
Boeing’s statement:
Boeing has filed a flight plan to conduct the 787 battery certification demonstration flight today on Line number 86, a Boeing-owned production airplane built for LOT Polish Airlines.
Today’s demonstration flight is the final certification test for the new battery system. The purpose of the test is to demonstrate that the new system performs as intended during normal and non-normal flight conditions.
The flight plan (which is always subject to change) can be viewed via FlightAware, which can also be used to track the airplane’s route, location and progress throughout the flight, at this link: http://flightaware.com/live/flight/BOE272
The flight will take off and land at Paine Field in Everett, Wash. The flight is currently scheduled to depart at approx. 11:00 am Pacific time, but is subject to change. The flight is expected to be approximately 2 hours in length.
We plan to provide updates via Twitter (@BoeingAirplanes). A statement will be distributed to the media via e-mail after the flight is completed.
Separately, Boeing had this to say about advance preparations to return the airplane to service:
We have formed a series of AOG teams to help our customers implement the improvements once certified. One of the teams has already deployed but will not perform battery work until the solutions are certified. Details about the AOG teams are considered proprietary.
Our Aircraft-on-Ground Services team (AOG team) is prepared and equipped to support the implementation of approved modifications to the in-service fleet of 787s. The content of their work packages is driven by our customers’ requests. No work is being done on the battery systems at this time as we are still working through the certification process. AOG teams provide the unique capability for an on-site, comprehensive and integrated modification to airplanes. As always, the safety of those who fly aboard Boeing airplanes is our highest priority.
Reuters quotes Ray LaHood, US Secretary of Transportation (his department oversees the FAA), as saying Boeing has a good solution to the battery issues.
US Export-Import financing is under attack again by Delta Air Lines and Republicans.
We understand why Delta is opposed. It believes that ExIm financing of Boeing aircraft to competitors puts it at an economic disadvantage.
But fees charged by ExIm made financing more costly and “market rate,” a move intended to remove the financing advantages. Some airlines, in fact, chose alternative financing as a result.
Delta claims ExIm hasn’t taken into account the impact on losing American jobs. We find this a stretch, since Boeing out-sources thousands of jobs with its industrial partnerships (particularly on the 787) and supply chain contracts. At one time, we seem to recall Delta out-sourced jobs to non-US locations.
Be that as it may, at least Delta has its self-interest at stake and one can’t truly fault the airline for this. But the Republicans are another matter. Although ExIm finances a variety of US industries, Boeing is the prime beneficiary and some Republicans claim this is nothing more than corporate welfare.
ExIm, which has been around since the Great Depression, provides financing that is similar to European export credit support offer to Airbus customers. If Republicans succeeded in killing ExIm (or if Delta does), then Airbus will have a clear advantage.
This falls into the category of “what are they thinking??”
Separately:
Multiple signs are pointing to the increasing pace for the return to service for the Boeing 787, but a top company official dodged a question yesterday on the timing.
Aviation Week reports that Boeing’s 787 simulators are being fired up again, having been idled for months during the grounding. This comes on the heels this week of a report that ANA is re-training its 787 pilots with an eye toward resuming service in June. There is also a report that Boeing has dispatched to the field engineers ready to begin installing the battery fix once federal approval is received.
But Pat Shanahan, VP of Aircraft Programs, wouldn’t speculate about the timeline about certification.
“Sooner rather than later,” he said during a press gaggle after opening the Everett Delivery Center yesterday. “I know that’s not the answer you wanted to hear. The testing is going very well. The regulators will ultimately determine that timeline. It’s very close.”
Boeing today opened its new, 180,000sf delivery center at Everett Paine Field. The three-gate EDC is three times the size of the previous center that was roughly on the same site (the new EDC parking lot displaced the old center), and it’s a whiz-bang design that has high-tech “signing rooms,” entertainment areas and plenty of conference rooms and work stations.
And it has windows, something the old center basically lacked. The new center has a panoramic view of the KPAE flight line (which is filled with 787s and 747-8s right now).
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Deliveries were often effected at the Future of Flight Museum across the tarmac or at a temporary delivery center at the south end of KPAE.
Pat Shanahan, VP of Aircraft Programs for Boeing, noted that in 2010, Boeing Everett delivered 86 wide-body aircraft, followed by 105 in 2011 and 183 last year (a record). He expects another record to be set this year and still another next year.
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Washington Gov. Jay Inslee, in remarks at the opening, vowed to “win” 777X production for the State at Everett. We asked Shanahan following the ceremony if the Everett facility has room for a seamless transition from the 777 current generation to the 777X; or whether something would have to be moved out of the plant, similar to shifting stuff around at Renton to make room for the 737 MAX; or whether production of one of the aircraft currently assembled at Everett would have to cease to make room. Shanahan, not surprisingly, dodged a direct answer and said only Boeing has “options.”
Boeing’s KC-46A is moving ahead through milestones as summer approaches, despite being a the Sequestration “hit list” of programs that could be curtailed.
The USAF has previously said it wants to do all that it can to protect the program and the contract, seeking to avoid having to renegotiate the contract with Boeing.
Separately: