Company Watch - Boeing.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jul 24, 2006

Aeroflot plans to increase its increase its fleet of nine 767-300ERs and is looking to lease three from ILFC. It would take delivery in the last quarter of this year and the first quarter of 2007. Jul 19, 2006

Airbus, Boeing display different styles at Farnborough. The Farnborough International Airshow reveals how the world's two major airliner manufacturers view themselves and their futures. Airbus was founded just three decades ago and has billed itself as a feisty upstart. Boeing lost the lead in orders to Airbus from 2000 to 2005, but recaptured it this year.

Jul 21, 2006

EADS may have unfair edge in tanker competition, Boeing says. Airbus parent EADS may have an unfair advantage when it competes with Boeing for a contract to supply Air Force refueling tankers, Boeing Chief Executive James McNerney says. McNerney notes EADS has the advantage of not being subject to the same U.S. export controls or business transparency rules because it is based in Europe. Jul 19, 2006

Air Europa takes to Blended Winglets. Aviation Partners Boeing said Air Europa ordered 34 Blended Winglet Systems as buyer-furnished equipment on 737-800s scheduled to deliver between 2007 and 2014 and up to 21 additional shipsets with which to retrofit dash 800s already in service. The Palma de Mallorca-based carrier operates five Blended Winglet-equipped 737-800s. Air Europa's parent, Globalia Mantenimiento Aeronautico, will install the retrofit winglets. Blended Winglets provide block fuel savings of up to 5% depending on route and stage length, resulting in fuel savings for typical 737-700/-800 operators of more than 100,000 gal. per aircraft per year, according to APB. Jul 17, 2006

Aviation Partners Boeing said Air India Charters, a subsidiary of Air India, ordered 18 Blended Winglet shipsets to be installed on its recently ordered 737-800s beginning in October. In addition, it has taken delivery of four new Blended Winglet-equipped 737-800s on lease from ILFC. Jul 18, 2006

Aviation Partners flying high on more winglet sales. Aviation Partners Boeing continues to rack up big sales of its Blended Winglet Systems here. American Airlines ordered an additional 104 757 shipsets, adding to the 20 it ordered last September. Installation will be performed at American's Tulsa MRO base. Jul 20, 2006

Finnair placed seven firm orders plus two options for Aviation Partners Boeing Blended Winglet Systems for 757-200s. Installations, which are likely to be performed by Finnair Technical Services in Helsinki, will begin in October and complete August 2007. Jul 17, 2006

Jet Airways ordered Aviation Partners Boeing Blended Winglet shipsets for 10 737-800s scheduled for delivery through October 2007. Jul 20, 2006

Aviation Partners flying high on more winglet sales. Aviation Partners Boeing continues to rack up big sales of its Blended Winglet Systems here. Southwest Airlines' order for up to 90 737-300 shipsets, Jul 20, 2006

Boeing credits a closer relationship with leasing companies for the recent surge in orders for 737NGs, which top 370 for the year, with the type now outselling the A320. Senior VP-Sales Scott Carson said that the company previously handled leasing companies by region rather than via a single sales executive and "we needed a more coordinated approach." He appointed John Feren to handle all lessors and now Boeing works "hand-in-hand with leasing companies on many campaigns rather than selling them airplanes and walking away. Leasing companies are now coming to us for help in campaigns." Jul 20, 2006

Boeing named SR Technics, Smiths Aerospace and Hamilton Sundstrand as its forst partners in GoldCare, a lifecycle MRO support program for the 787. SR Technics is the first company chosen to provide maintenance, repair and overhaul services for the aircraft including line and base maintenance. Hamilton Sundstrand and Smiths Aerospace, both major systems suppliers on the Dreamliner, are responsible "for ensuring spare parts are available at guaranteed levels of availability, managing the maintenance of parts removed from aircraft and ensuring that equipment reliability is optimized," Boeing said. Jul 20, 2006

Boeing says interest in 747-8 Intercontinental growing. Although Boeing has yet to announce an airline customer, VP-Sales, Marketing and In-Service Support-747 Program Randy Tinseth said interest in the passenger version of the 747-8 is strong and growing. "We lost credibility with the various variants [that we tried to launch] over the last 10 years. Now that we have launched the freighter, airlines are very interested," he said here. One of the first things airlines have told the manufacturer is to return the upper deck staircase to its existing location while retaining the new interior treatments borrowed from the 787. Tinseth said carriers also are working with Boeing on increasing standardization in the cockpit and interior. The company is working with 25 airlines on range/payload trade studies for a possible stretch of the passenger model to a similar length as the freighter. Tinseth said an 8,000-nm. range was a baseline but wind tunnel testing has given the aircraft another 300 nm. "Every two seat rows is a trade for 200-300 nm.," he explained. He and Joe Sutter, father of the 747, agree that the key to the 747-8 is the combination of a "new" re-lofted and twisted wing and GEnx engines. Tinseth noted that the 747-8 Intercontinental will have the same structural weight wing as the freighter. Jul 20, 2006

Boeing To Hit 500 Jet Orders. Boeing is set to tally more than 500 plane orders for the year so far when it updates its online order book later on Thursday, beating industry expectations of a sharp downturn after a record-setting boom last year. Jul 20, 2006

Boeing challenged Airbus's claim that the major market for the 787/A350 is at the 300-seat level. On Monday, Airbus announced it will deliver its 300-seat A350-9 before the smaller dash 8 because "that is where the market is." Bair told media that the majority of Boeing's 405 787 sales are for the 787-8 model; "Our view is that there are 1,000 767s and 700 A310s and A300s to be replaced plus growth in that market size."

Jul 18, 2006

Boeing's 787 on time and on target, dash 10 definitely a go: Bair. The 787 is "on time and on target to meet guarantees," VP and Program Manager Mike Bair said here yesterday. Bair reconfirmed that Boeing is proceeding with the 787-10, telling media that it is a case of "when and not if" the stretch will proceed and "the economics were almost unbelievable." The current design specification for the dash 10 in a typical three-class configuration with eight-across seating is around 300, with trade studies to determine final range/payload. Current range is 7,500 nm. but he suggested it may increase by 200 nm. Bair said Boeing anticipated a revamped A350 and is not sure what impact the enhanced version will have on the 787 program, adding, "clearly they are trying to do something better but we are still vague on what they are doing." That uncertainty is fueled by the lack of hard numbers from Airbus. Bair noted, for instance, that it is quoting the 787-9's range as 8,500 nm. whereas it will be 8,800 nm. He also pointed out that while Airbus says the A350 will have the "widest windows," the 787's windows are much bigger in area. The 787-10 will have the same MTOW and engines as the 787-9. Jul 18, 2006

Boeing exec says orders from U.S. airlines a year away. Large U.S. airlines may place orders for new jets a year from now, according to Boeing executives. Alan Mulally, head of the company's commercial aircraft unit, says carriers want to replace older aircraft with more fuel-efficient planes. Jul 17, 2006

Boeing in talks to sell 1,000 more 787s. Boeing opened the Farnborough Airshow with the stunning news that it is in negotiations with 30 customers for up to 1,000 787s. Commercial Airplanes CEO Alan Mulally delivered "Boeing's good news" just moments before Airbus unveiled its remade A350, the XWB (extra wide body). Mulally said Boeing has a record high backlog that at the end of the first quarter topped $132 billion, more than double what it was just three years ago. The 787 is leading the charge with 28 customers for 403 aircraft. But he was coy on any new assembly line for the type with suppliers ramping up production capability within existing infrastructure. "We have not taken that [second production line] yet," he said. Jul 17, 2006

Boeing's Commercial Airplanes CEO Alan Mulally at the Farnborough Airshow said he would not be drawn into how airline profitability will affect Boeing's sales--which stand at 480 to date--for the balance of this year. The company is hoping that its 747-8 will contribute to sales and that process should start Tuesday with an order for 10 from Emirates. It is understood that airline, which has orders for 45 A380s, is interested in the 747-8 Intercontinental. Emirates is not the only carrier interested. According to Mulally, 25 airlines are working closely with Boeing defining the final configuration of the Intercontinental. He said that the manufacturer is "continuing trade studies" on stretching the Intercontinental to the same length as the freighter and the configuration will be frozen by mid-2007. Jul 17, 2006

Boeing's Commercial Airplanes CEO Alan Mulally was candid at the Farnborough Airshow on some supplier delays and weight issues on the 787 but told media that fixes are in place to address them. "We have never missed a guarantee to a customer," he said. "Everything looks real good." The 787 and 777 account for 61% of Boeing's backlog, with the 737 at 32%, the 747 at 7% and the 767 making up the balance. Mulally declared that the 767 will continue to make a contribution to the backlog for "some time yet." He explained that as demand for 787s outstrips supply, airlines are seeking 767s to fill capacity shortfalls. He added that despite fuel prices, yields and productivity are rising and load factors are at all-time highs as the industry continues to restructure and liberalize. Jul 17, 2006

Boeing's president spoke ahead of the Farnborough Air Show. Britons travelling abroad are likely to be flying in plastic planes in the future, says the chief of Boeing. All 737 planes would be made from non-metal materials, or composites, said president Alan Mulally. Ahead of the Farnborough Air Show, the US plane giant boss said "all future planes will be made out of composites", because it does not corrode. Millions of tourists fly in 737 planes each year. Composites are formed when two or more materials with differing properties are combined. Such materials are already used in items such as tennis rackets and bicycle spokes. The US company's new 787 Dreamliner - which is expected to make its first flight next year - is already being constructed using carbon fibre-reinforced plastic composites. Jul 17, 2006

Future of Boeing C-17 will affect suppliers. A decision to reduce production of the C-17 cargo plane could hurt Boeing suppliers, including three companies in New York. Boeing may ask suppliers to halt production if the Department of Defense does not order more of the planes. Jul 17, 2006

Aviation Capital Group announced that it has acquired three 737-700s and three 737-800s from AeroMexico that it will lease back to that carrier. It will begin taking delivery of the aircraft, originally ordered by AeroMexico, later this year. Jul 18, 2006

Aviation Capital Group identified as customer for 14 737NGs. Aviation Capital Group, a wholly owned subsidiary of Pacific LifeCorp, ordered 14 737-800s worth approximately $987 million at list prices. Subject to market demand, ACG has the right at a future date to substitute 737-700s for the dash 800s. The aircraft were included on the Boeing orders and deliveries website earlier this year attributed to an unidentified customer. CFM valued the engine order at approximately $170 million at list price. Jul 18, 2006

Delta signs LOI for lease of 10 757s from ILFC. Delta Air Lines told the US Bankruptcy Court in New York last week that it has signed a letter of intent with ILFC to lease 10 757-200ERs.The aircraft, powered by Pratt & Whitney PW2037s, will be delivered from July 15 through Nov. 15, 2007, after undergoing C checks and painting, and will be leased for seven years and three months each, according to the filing. The rent figures were not disclosed. ILFC will provide a cash contribution toward the purchase of winglets that will remain installed after each airplane is returned. If approval is granted by the court, which Delta expects to occur by July 27, it said it will sign lease documents before Aug. 4. Jul 17, 2006

Paris-based proposed transatlantic startup Elysair ordered one firm and one option 757-200 Blended Winglet shipsets. Initial installation will take place in November with the second to be installed in early 2007. Elysair intends to launch all-business-class, 100-seat services between Paris Orly and Newark. Jul 18, 2006

Emirates signed a Heads of Agreement at the Farnborough Airshow for 10 of Boeing's new 747-8F aircraft, to be powered by General Electric's GEnx jet engines, in a deal worth $3.3 billion becoming the third customer for the freighter version behind Cargolux and Nippon Cargo Airlines, which launched the program last year with combined firm orders for 18. The engine component of this deal is valued at more than $600 million. The 10 747-8F aircraft, scheduled for delivery from 2010, will support Emirates' long-term growth plans by providing additional capacity and operational flexibility for its air cargo services. Emirates also announced it will add another two 747-400Fs to its leased fleet next year. The freighter orders have led to speculation that the carrier may order the passenger version to replace its order for 18 A340-600HGWs, which is on hold, although it does not operate any 747 passenger aircraft. To date, no airline has ordered the 747-8 Intercontinental. Emirates currently operates nine wide-bodied Boeing 747Fs and Airbus A310Fs, and also has eight 777Fs on its order books. Jul 18, 2006

Emirates Group Chairman and CEO Sheikh Ahmed Al-Maktoum only would say at the Farnborough Airshow that the carrier is "always looking at something new and we are very pleased with our Boeing aircraft we have in service. We will be looking at the 747-8 [Intercontinental]." The airline, which is doubling in size every four years, is targeting the projected 6% annual growth in air cargo. "The 747-8 freighters that we are ordering today will put Emirates in a strong position to tap into the growth of cargo traffic and reinforce Dubai's standing as a growing international hub for air cargo and logistics," it said in a statement. Jul 17, 2006

Lion Air doubles 737 order. Indonesia's Lion Air exercised options on 30 737-900ERs, taking its orders to 60. The additional 30 aircraft will be delivered between 2010 and 2012. First deliveries from the first order placed last year, which launched the aircraft, are set for 2007. Jul 17, 2006

Load Air Cargo ordered two 747-400ERs for delivery in 2009. The recently launched Kuwait-based carrier holds an exclusive license to carry freight to and from Kuwait. Jul 17, 2006

Pegasus Aviation Finance ordered two 787-8s and will take over an existing order for four 787-8s placed by Italy's Blue Panorama in 2004. Pegasus will lease the aircraft to the carrier. Jul 18, 2006

Pratt & Whitney said Evergreen International Aviation will purchase JT9D-7J durability kits for its fleet of JT9D-powered 747s. Agreement is for eight kits and is valued at $9 million with an option to purchase an additional 12 kits worth $16 million. Deliveries will begin this month. Jul 20, 2006

Qatar Behind USD$4.9 Bln Boeing 777 Order. Qatar Airways is the airline behind a USD$4.9 billion order for 20 Boeing 777 long-range planes listed as an unidentified customer on the planemaker's order book, industry sources said on Monday. Boeing released a statement saying a final deal had been signed worth USD$4.9 billion including 14 of the 777-300ER (Extended Range) model and 6 of the 777-200LR (Longer Range), only to later retract the statement. The planemaker has the 20 planes already on its order book as an unidentified customer, sources at the Farnborough Airshow said. Jul 17, 2006

Rockwell Collins also announced the introduction of its CISS-2100 Configurable Integrated Surveillance System combining weather detection, TCAS, Mode S surveillance and terrain awareness and warning functions into a single unit. It will debut on the 787. Jul 18, 2006

Ukraine International Airlines completed the first D check on a 737, the first overhaul of a Western aircraft in a CIS country. UIA was the first CIS carrier to receive JAR 145 approval to perform full maintenance on Western aircraft. Jul 17, 2006

Mba successfully placed for EPIC Trust three 757-200s currently in operation with US Airways with US lessor Aircastle. Jul 17, 2006

Vietnam Airlines said on Tuesday the government has allowed it to plan the purchase of 10 Boeing 787s as part of the carrier's fleet and route expansion. The Thanh Nien (Young People) newspaper quoted a decision by Prime Minister Nguyen as saying the airlines should immediately prepare plans to buy 10 new Boeing 787s, either the 787-9 or 787-10 models. The Prime Minister also requested the carrier to study the Airbus A350 for additional purchases. Vietnam Airlines has said it would need to spend around VND19 trillion dong (USD$1.2 billion) to expand its fleet to 56 aircraft by 2010 from 39 now, including using funds from international bond issues. The unlisted airline expected to own 32 planes of the 56 aircraft in 2010. Jul 18, 2006

WestJet finalized an agreement yesterday with Singapore Aircraft Leasing Enterprise for three 737-700s and one 737-800, with deliveries scheduled for late 2007 and the first half of 2008. The deal also includes options for three more dash 700s and one additional dash 800, which would be delivered in 2009. By the end of 2008, WestJet's fleet will number 76 aircraft. Jul 21, 2006

Comtran has its Stage 4-compliant SuperQ MD-80 on display here. It is partnered with Jet Technologies in the modification program, which permits all MD-80 series aircraft to meet Stage 4 noise requirements in the US and EASA Chapter 4 requirements with approximately a 2-dB margin. The package consists of a jet nozzle that is fully certified by FAA and a cone mixer that is in the STC process, while Pratt & Whitney has supplied an NTO letter for the program, he said. The hushkit does not require any changes to the aircraft flight manual, weight and balance, thrust reverser operation, crew training or maintenance. Added benefits of the package include a 1%-1.5% improvement in SFC, said Kaye, along with a 10 deg. C reduction in EGT that will save $90-$95,000 per year in maintenance costs, according to an independent study commissioned by Comtran. Installation can be done in 4 hr. on wing. "Aircraft come in Stage 3 and fly out Stage 4," he said. Price of the kits is $895,000 per shipset. Comtran and Jet Technologies also are developing a blended winglet that was on the display aircraft. It will be available next year and offers a 4%-4.5% improvement in fuel burn. Close to 1,200 MD-80 family aircraft were built before production ended in 1998. Of these, 1,121 still exist, which further shows that 971 are in service and 150 are stored. Kaye sees a market for the SuperQ program that encompasses virtually all these aircraft. Jul 19, 2006

Goodrich will supply wheels and brakes for Jet Airways' new fleet of 777-300ERs. Deliveries of the 10 firm/10 option aircraft are expected to begin in March. Jul 17, 2006

Indian IT and product engineering company HCL is making its debut at Farnborough this year with the aim of exploiting the significant opportunities it believes exist in the aerospace sector. HCL was born out of India's need to develop its own computer platforms and operating systems dating back to when it was a closed economy and unable to import this type of technology. It undertakes contract work with both Boeing and Airbus, primarily through Tier 1 suppliers, and is the preferred software partner on the 787 flight program. Jul 20, 2006

ILFC boosts Boeing order book. International Lease Finance Corp signed for six 737-800s, two 777-300ERs and two 787s at Farnborough Wednesday. The orders take its commitment to 737s to 420, 777s to 78 and 787s to 22. At the contract signing, Chairman and CEO Steven Udvar-Hazy said these types "reflected the greatest airline demand." ILFC will "shortly announce the placement of the 787s to three new customers," while the 737s and 777s are topping up inventory. The lessor has not specified the model of 787 to be acquired, but Udvar-Hazy appears to be a fan of the 787-10, calling it "a clear winner." He also indicated that ILFC is "working closely" with Boeing both on the 747-8F and on defining the passenger version. "We have been involved in all the 747 models and we launched the 747-400ERF. We are largest owner of widebody aircraft with 300 and the 747 is an integral part of the widebody fleets," he said. Jul 19, 2006

Innovative Solutions & Support announced it has developed a Cockpit/IP Flat Panel Display System for the 737-300/-400/-500, with operating lessor Jet Partners LLC as the launch customer for 30 firm units and 30 options. IS&S President Roman Ptakowski said the Exton, Pa.-based company is in the STC process with FAA and deliveries will occur after the Oct. 1 start of IS&S's next fiscal year. IS&S developed the hardware and software for the retrofit, which includes flat panel displays for primary flight, navigation and engine instruments and replaces 65 traditional components with five LCD display units, two control panels and three data concentrator units, saving about 150 lb. of weight. The changeover can be accomplished with a week's downtime, Ptakowski said, and the company is looking at a price of $380,000 per installation. The 737 Classic program builds on Innovative Solutions & Support's successful retrofit of the 767 on behalf of ABX Air with a flat panel cockpit that sells for $275,000 and requires a downtime of under three days for installation. As Ptakowski noted, the retrofit also makes it possible to equip the aircraft with newer systems such as electronic flight bags, ADS-B and XM or WSI satellite weather radar services. Jul 19, 2006

International Lease Finance selected the GEnx to power up to 24 787s it has ordered. ILFC also ordered six GE90-115B-powered 777-300ERs and two GE90-94B-powered 777-200ERs. GE valued all the engines, including options, at more than $750 million. Delivery of the 777s is scheduled to begin this year with the 787 deliveries to begin in 2010. Jul 18, 2006

Pratt & Whitney said Orenburg Airlines signed a five-year, $10 million exclusive Maintenance Service Agreement for CFM56 maintenance on up to five 737 aircraft. The work will be performed at the Pratt Norway Engine Center. Jul 20, 2006

Snecma is a half-partner with GE in the CFM56 engine family, but Snecma Services and GE Engine Services compete for MRO business with each other and dozens of independent and airline-owned shops. The A320 and 737NG families represent a better opportunity because as Fournereaux said at Farnborough, competition to provide MRO for the CFM56-3 is "horrible," with 40 CFM56 MROs around the world, the majority of them dedicated to the 737 Classic engine. Jul 20, 2006

Snecma Services took a major step toward boosting its presence in the Americas with an agreement in principle to create a CFM56 maintenance facility in Mexico. The joint venture, Snecma America Engine Services, will be owned 51% by Snecma Services and 49% by Turborreactores SA (ITR) and will be located in Queretaro 220 km. northeast of Mexico City. It is scheduled to start operations in late 2007 and will support CFM56-5 and CFM56-7 engines powering the A320 and 737NG families respectively, as well as providing LRU support and on-wing maintenance. Jul 20, 2006

Snecma Morocco Engine Services, a 51:49 joint venture between Snecma Services and Royal Air Maroc, adapted the test cell in its Casablanca facility to handle the CFM56-7 for the 737NG. SMES said it invested more than $3.5 million to upgrade the facility, making it the first engine repair shop for the type in Africa and the southern Mediterranean. Jul 18, 2006