Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Five for Five: Air India crash points to systemic problems at Boeing that CEO Ortberg must fix June 15, 2025
- Airbus sees Boeing as medium-term competitor, with Comac next June 14, 2025
- Boeing bullish on 20-year forecast, despite short-term headwinds June 14, 2025
- Embraer’s 20-year market forecast under 150 seats: fewer turboprops, jets about the same June 14, 2025
- Airbus Canada CEO: Airbus is here to stay in Canada June 14, 2025
Growing Washington Aerospace
We addressed the Governor’s Eastern Washington Aerospace Summit October 7, 2009, in Spokane, outlining a number of opportunities that aerospace in Washington State should pursue to grow.
Here is the press release on this address, and below the jump is a link to our presentation.
Washington Should Look Beyond Tradition to Grow Aerospace
Issaquah, WA, October 7, 2009: Washington State officials should look beyond traditional businesses to grow aerospace opportunities here, said Scott Hamilton, managing director of Leeham Co., in a speech today before the Eastern Washington Governor’s Aerospace Summit in Spokane.
“State officials and stakeholders understandably focus on Boeing and its supporting supplier base when it comes to Washington aerospace,” Hamilton said. “But global aerospace is changing and it is a mistake to maintain this focus. The time has come to dramatically expand thinking to adjust to realities, opportunities and new requirements of commercial and defense aviation and aerospace.”
Boeing: new delay, charge in 747 program
Boeing announced a new delay and a new $1bn charge in its 747-8 program.
First flight has moved from 4Q09 (November) to 1Q10 (probably mid-quarter), or about five months; first delivery of the freighter has moved from 3Q10 (July or August) to 4Q10 (probably very late).
Boeing was very general as to the causes; here is the full press release.
Boeing, Airbus advance
There actually was other news last week besides the corporate food fight over the KC-X tanker involving Boeing and Airbus.
787 Line 2
This article from South Carolina wonders whether the competition between Charleston and Everett is SC Gov. Mark Sanford’s “last stand” to save his job. Sanford, of course, was caught lying to his family and his constituency over where he disappeared (he said initially he was on a hike in the Appalachian mountains; turns out he was in Argentina with his mistress). Republicans and Democrats alike have called on Sanford to resign. He won’t, and the effort to persuade Boeing to locate 787 Line 2 to Charleston may be the Republican governor’s last chance to save his job, the news article speculates.
Northrop wins tanker contract
Update, 9:30 am: We’ve added more information below the jump.
Northrop Grumman won a big KC-10 tanker maintenance contract from the Air Force this week, taking it away from Boeing, which has had it for 10 years. The value is $3.8bn.
Boeing hinted that it might protest the award. Here is the story.
SC’s unemployment problem: $2bn
Following the presentation of the Business Case for Consolidating Line 2 in Everett by the governor to Boeing, a few Republicans, a business association and a few others focused on the fact that Washington isn’t offering new incentives. We discussed why in this posting. The critics of the report also noted that Boeing continues to complain that Washington’s unemployment insurance rates are too high, and a Boeing spokesman also referred to this view when commenting on the report.
A320 upgrades on the way
Airbus has decided to proceed with a winglet program for the A320 family and will decide by the end of 2010 whether to re-engine the family. Also: CFM International is ready to advance its schedule for the LEAP-X program to meet a requirement by China’s Comac for the C919. This also opens the way to potentially re-engine the Boeing 737.
Below are stories we did for Commercial Aviation Online.
Boeing files permits for SC for new assembly building
Boeing has filed for permits in Charleston (SC) to clear more than 80 acres of forest to make way for an assembly site and delivery center, taxiways and related stuff. The building would be 720,000 sq. ft. Boeing wants to begin clearing in November and be done by February. Boeing now owns 240 acres in Charleston, with the recent acquisition of the Vought facility and the previous purchase of 50% of Global Aeronautica there.
Here is the story from the local Post and Courier newspaper. The newspaper has this quote from a Boeing spokesperson:
Boeing spokeswoman Candy Eslinger said today that the permit request is “just a procedural step.”
“It does not mean the company has decided to locate a second line in North Charleston,” she said. “The filing was necessary because the permitting process is very comprehensive and requires a lot of lead time.”
For comparison, the Everett plant is on 98.3 acres and the building is 4.3 million sq feet.
787 Line 2 incentives: WA vs SC
Some media and a few politicians misinterpreted the study released yesterday by Washington State, as well as not having correct what South Carolina is or isn’t doing, to land production Line 2 for the 787.
The misinterpretation comes from headlines and conclusions that Washington “won’t” offer new incentives to Boeing to win Line 2. First, this ignores that new Boeing Commercial Aircraft CEO Jim Albaugh told Gov. Christine Gregoire that Boeing isn’t asking anything of the State–that the decision comes down to what accord might be reached with the IAM to remove the threat of future strikes.
(Boeing’s response to the study also overlooked the fact that Albaugh said the company wasn’t asking for anything.) Read more
Washington State pitches 787 Line 2
Washington State last week made a pitch to the new Boeing Commercial Airplanes CEO James Albaugh for locating the second 787 assembly line in Everett, the home of Boeing’s wide body production.
Charleston (SC) is competing for the line.
The 32 page State white paper provided Albaugh is here. WA787 Sept09