Leeham News and Analysis
There's more to real news than a news release.
Boeing earnings call may clarify 737RE
Things are moving very rapidly in the American Airlines competition, with the situation changing since Friday. Updates since the article below was published yesterday in Commercial Aviation Online:
- It appears Boeing will clarify (and this time, really) the preferences for the 737 re-engine over a new airplane as early as the July 27 earnings call.
- According to this Wall Street Journal article, Boeing is offering the 737RE to American. As recently as last Friday, we were told the 737RE was not being offered.
| Date: | 18/07/2011 12:13 |
| Source: | Commercial Aviation Online |
| Location: | Seattle |
| By: | Scott Hamilton |
Re-engining the 737 is gaining momentum at Boeing in recent months and is now at a point where it is likely the manufacturer will choose to go this route, according to sources with direct knowledge of the OEM’s thinking.
The sources remain unidentified because they are not authorised to speak about the programme.
A Boeing spokesperson would only say, “The Next-Generation 737 is the better product, is currently being delivered and is making money for customers. We continue to look at our options until we’ve decided what decision is best for our customers.”
A recommendation from Boeing Commercial Airplanes to the board of directors currently is anticipated for the August meeting, although the situation is fluid and timing could change. But sources say Boeing could reveal the “direction” in plans within six to eight weeks from today, after the board meeting.
Boeing’s American dilemma
-
Bloomberg has this story about the competition.
-
Wall Street Journal has this story.
-
Here is a story we did for Commercial Aviation Online on the American Airlines aircraft order situation.
| Date: | 18/07/2011 10:37 |
| Source: | Commercial Aviation Online |
| Location: | Seattle |
| By: | Scott Hamilton |
Boeing has a major dilemma facing it in the hot competition with Airbus for a major order from American Airlines.
The deal could be decided as early as this week, and as of Friday, neither company was confident of the outcome. American wants to replace its fleet of more than 200 ageing Boeing MD80s and the large fleet of Boeing 757s. An order for between 200-250 aircraft is widely expected.
787 deliveries for 2011 shrinking
Boeing is likely to deliver only a handful of 787s this year instead of the 12-20 forecast on the year-end and first quarter earnings calls, say sources with direct knowledge of the situation.
Deliveries could be as few as three and perhaps five, according to these sources. Boeing’s internal forecast is 8-9, and this appears to be the guidance Boeing is preparing to discuss on next week’s earnings calls, but the consensus of those we’ve talked to say three to five.
Wall Street aerospace analysts have listed a range of anticipated deliveries from 7-16, and all expectations are high. Rework for non-conforming issues and results from flight tests are the reasons for the lower delivery number, whatever it turns out to be.
Boeing guidance on 747-8 deliveries for the year is expected to be about 14, within the 12-20 range previously expressed. Sources are saying deliveries could be as few as five.
Countdown to 737RE or NSA: Odds now favor Re-engine
It’s been a slow but steady shift in Boeing’s thinking that became evident during the pre-Paris Air Show briefings: Boeing is warming to the idea of re-engining the 737. According to sources with direct knowledge of the situation, it is likely officials will choose to do so and push out development of the New Small Airplane (NSA), with an EIS for the latter in the early half of the 2020 decade instead of 2019 or 2020 that Boeing has been talking about.
McCain puts Boeing, USAF in his sights for $1bn overrun on four tankers
Well, it’s started. See McCain’s letter to the Department of Defense here.
Market sees 737 sales lagging, but matches 2010–so far
Here is a story we did for Commercial Aviation Online.
| Date: | 12/07/2011 11:40 |
| Source: | Commercial Aviation Online |
| Location: | Seattle |
| By: | Scott Hamilton |
Boeing took a drubbing in the headlines from the Paris Air Show as Airbus racked up more than 600 orders for its A320neo family while there were few announcements for the rival 737.
Many of the neo orders and some of the 737 orders have yet to be converted to firm contracts, largely a formality, but through June, Airbus is ahead of Boeing in this market segment. Boeing reported 141 gross orders and 104 net orders for the 737. Airbus reports 706 gross orders and 618 net orders for its A320 family.
Podcast on Classic piston-liners
Innovation Analysis Group has a fascinating podcast with Carlos Gomez, owner of Florida Air Transport, and a discussion of classic piston-liners, including the DC-6, DC-7 and Lockheed Constellation.