Company Watch - Boeing.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jul 17, 2006

Boeing leads in orders for first half of 2006, Airbus woes mounting. Boeing booked more than four times as many orders as Airbus in the first half of 2006, although Airbus delivered more planes. The poor sales figures add to Airbus's concerns over delivery delays, a class-action lawsuit and reports that a deadly accident at a Russian airport could be linked to faulty brakes made by the company. Jul 11, 2006

Emirates indicated that the airline has no plans at this point to place a Dreamliner order at the show but said it may order other types. There has been some speculation that it may be a customer for the 747-8F because it switched its order for two A380Fs to the passenger version. It currently leases 747-400Fs. Jul 14, 2006

Singapore Airlines is understood at the Farnborough show to be studying the developments as part of its RFP for up to 15 aircraft to replace its A340-500s on the New York-Singapore and Los Angeles-Singapore routes. Jul 16, 2006

Boeing likely to stretch 747-8 Intercontinental to match freighter version. Boeing is close to announcing at the Farnborough show that its 747-8 Intercontinental will have the same fuselage length and wing as the 747-8F. Currently the passenger variant has a 3.6-m. stretch while the freighter is stretched by 5.6 m. Airlines have been pressing for more passenger capacity. The stretch would allow two additional seat rows, and combined with overhead galley cart storage would add an extra 30 seats, bumping the Intercontinental's capacity to 500 versus 550 for the A380 in most customer configurations. Adding the freighter wing also improves the aircraft's residual value. Boeing now is conducting low-speed aerodynamic tests at Qinetiq's wind tunnel at Farnborough. In May, the company announced that high-speed wind tunnel tests have shown an improvement in the 747-8 Intercontinental's range of 300 nm., lifting it to 8,300 nm. Jul 16, 2006

Boeing may give details at the Farnborough show of the significant headway it is making in its attempt to lighten the 777-200LR by about 8 tons to fulfill Qantas's requirement for more range to meet its wish for year-round Sydney-London nonstop capability. Qantas also wants to use the aircraft to open Sydney-New York and Sydney-Dallas services. Jul 16, 2006

Boeing chose its London offices in St James's for Randy Baseler's, vice president of marketing, annual crystal ball gazing on the airliner market for the next 20 years, the telecast seen all over the world. Boeing now projects a need for approximately 27,200 new commercial aircraft (passenger and freighter), doubling the world fleet by 2025. When it comes to very large flying machines he sees a requirement for just 325, somewhat less than the much hyped breakeven number for the Airbus A380. "Improved fuel efficiency and increased range will allow airlines to take more travellers directly where they want to go, when they want to go. New, much quieter airplanes with significantly reduced emissions will permanently change the character of the world airplane fleet." Mr Baseler suggests that over the next 20 years, airlines will take delivery of approximately 3,450 regional jets - 90 seats and below; 16,540 single-aisle aircraft - 100-240 seats; 6,230 twin-aisle airplanes - 200-400 seats; and just 990 airplanes, 747-size or larger. http://www.boeing.com Jul 15, 2006

Boeing could twist the knife into struggling European rival Airbus next week as it is set to dominate Britain's Farnborough air show with a stream of new orders for its 787 Dreamliner and other jets. The timing could not be worse for Airbus, whose five-year reign as the world's leading commercial jet builder looks likely to end after slow sales of its delayed A380 superjumbo and indecision over its mid-sized A350. Jul 13, 2006

Boeing postpones decision to close C-17 line: Boeing will decide in August whether to close its C-17 production line. The company last month offered to guarantee a $220 million price for the plane through June, and officials are considering extending the price through August. Jul 13, 2006

Boeing, in its Current Market Outlook, raised its forecast for 400-seat and larger jets from 900 to 990, although it sees only 325 in the A380 size category, while demand for regional jets of 90 seats and below is now seen at 3,450 units compared to 3,900 in 2005. Single-aisle aircraft seating 100-240 will represent 61% of the delivery pool over the 20-year period at 16,540 units. Twin-aisle aircraft seating 200-400 will account for 6,230 deliveries. Jul 12, 2006

Boeing sees fuel costs driving demand for more aircraft through 2025. Boeing has upped its 20-year forecast of world jet transport demand in its latest Current Market Outlook, released yesterday.The manufacturer now sees a requirement for 27,200 new aircraft valued at more than $2.6 trillion through 2025. Last year it projected a need for 25,700 aircraft worth $2.1 trillion. Jul 12, 2006

Boeing sees, in its Current Market Outlook, airlines in North America will absorb the most aircraft, 9,490, followed by Asia/Pacific carriers with 7,900 and Europe with 6,600. However, in terms of value Asia leads, with its aircraft worth $930 billion followed by North America at $740 billion and Europe at $620 billion. Middle East airlines will acquire 1,110 aircraft valued at $160 billion, Latin American carriers will take 1,680 units worth $110 billion and Africa will get 430 valued at $40 billion. Jul 12, 2006

Boeing sees, in its Current Market Outlook, cargo traffic will rise at a rate of 6.1% per year, according to the forecast. The freighter fleet will double from 1,790 units today to 3,560 in 2025, accompanied by a shift toward widebody freighters. With 1,200 retirements, around 3,000 freighters will be added. Most of these will be converted from passenger and combi aircraft, with 770 new production aircraft. Jul 12, 2006

Boeing sees, in its Current Market Outlook, replacement aircraft will represent an estimated 35% of deliveries, or 9,600 units, over the two decades, an increase of about 1,400 compared to last year's market forecast. Passenger traffic (RPKs) is forecast to grow at 4.9% annually over the period, a slight rise from the 4.8% average annual growth rate for the 1985-2005 period. Traffic growth will create a demand for 17,300 new airplanes. Jul 12, 2006

Boeing customers who want to put a multicolored livery on the engine nacelles of their 787s or add a logo will have to forgo the option or accept a performance penalty. The company announced yesterday that it has developed a method for maintaining laminar flow over more area on the 787 nacelle inlet, "reduc[ing] aircraft drag and fuel consumption." However, "in order to achieve laminar flow over the inlet it is necessary to maintain a very smooth, continuous surface without paint edges, which can occur when paint transitions from one color to another, or as paint details are added." Boeing said that "the design parameter for the nacelles is based on thickness of the paint formulation for a single color." It has chosen gray "to complement the metallic appearance of the nacelle's inlet." The increased drag from additional paint could increase fuel burn by 30,000 gal. per year per airplane. Jul 11, 2006

Boeing has not released June monthly sales figures; however, in the period Jan. 1-July 5 it booked net orders for 480 aircraft, 122 of them occurring since the end of May. Thus it sold more airplanes in the June 1-July 5 period than Airbus has sold since January and has outsold Airbus by better than 4:1 since the year began. The 480 aircraft comprise 374 737s and BBJs, 11 747s, four 767s, 22 777s and 69 787s. Jul 11, 2006

Boeing sold another 25 737s last week to unidentified customers in addition to the 10 ordered by Ryanair. One of the 25 is a BBJ. The company has sold 480 aircraft this year net of seven cancellations, comprising 374 737s, 11 747s, four 767s, 22 777s and 69 787s. Jul 10, 2006

Lawmakers may scrutinize tax status of Boeing fine. Some lawmakers are concerned that Boeing will take a tax deduction for a fine related to ethics violations. The company reached a $615 million settlement on ethics charges. Three Republican senators are asking Attorney General Alberto Gonzales for an analysis of the tax treatment of the settlement. Jul 10, 2006

AWAS and Viva Macau signed a deal for the lease of a 767-200ER and a 767-300. Viva Macau plans to launch its low-fare, long-haul services in the third quarter. Jul 10, 2006

Goodrich said yesterday that it shipped proximity sensors from its Vermont fuel and utility systems facility to Boeing last month for installation on 787s, becoming the first Dreamliner supplier to ship production components. Jul 12, 2006

Lufthansa Cargo looks to modernize as competition heats up. Lufthansa Cargo is evaluating replacement of its 19 MD-11 freighters, which have an average age of eight years, as it looks to brace itself for tough competition in the years ahead. Lufthansa 's Koepfle didn't specify a possible replacement type but admitted, "there is not much choice anyway." The 747-400ERF, 747-8 or 777F are LHC's most realistic options. Koepfle also said the 747 must have a nose door to be considered and that LHC no longer wants a mixed freighter fleet and is not interested in passenger-to-freighter conversions like several of the MD-11Fs it currently operates. He is not interested in the A380F: "So far, only integrators like FedEx have ordered the A380F. Jul 14, 2006

Qatar set to confirm major 777 order. Qatar Airways is expected to confirm at the Farnborough show an order for 20 777-300ER and 777-200LR aircraft at Farnborough today. Show attendees also are expecting Boeing to be able to announce some customers for the 113 737s that are listed as unidentified. It is thought that at least eight customers are involved. So far this year Boeing has sold 374 737s. Jul 16, 2006

Singapore Aircraft Leasing Enterprise, SALE will lease two new 737-800s to Shandong Airlines for 10 years each. Aircraft will be delivered from Boeing in the first half of 2007. It is Shandong's first contract with SALE, which has 30 dash 800s on firm order. Jul 14, 2006

Sunwing Airlines, a charter carrier based at Toronto Pearson, took delivery of a third 737-800 last month. Jul 10, 2006

NTSB uses wreckage of TWA Flight 800 as training tool. Investigators have recovered 94% of the Boeing 747 that was TWA Flight 800. The National Transportation Safety Board now uses the plane, housed in a Long Island hangar, to teach the basics of accident investigation. Jul 10, 2006

PrivatAir signed a contract on July 6 to add a 56-seat 767-300ER to its VIP fleet by the second half of 2007, replacing a BBJ 1. "We want to have a long-haul aircraft available which is able to operate nonstop sectors Geneva-Los Angeles or to Hong Kong," Thomas said. Nevertheless, he is talking with airlines about wet-leasing a 767 in an all-business layout with up to 90 seats, and "we are also speaking with Boeing to evaluate the 787 for our fleet in several years to come." Jul 10, 2006