Company Watch - Boeing.

Dec 31, 2006

Boeing Commercial Airplanes CEO Scott Carson told The Seattle Times in a year-end interview that there has been a major sea change in commercial aircraft production, evidenced by both the 787 and the newly unveiled A350 XWB. "There's no way you would ever build another purely aluminum airplane," he told the newspaper. Even a new version of the 737 "will be composite in some form or another." Carson conceded that the manufacturer is "behind schedule in Italy" on 787 production but insisted that "rollout and first flight" still will occur next summer. Dec 26, 2006

Boeing's order book surged again last week with 38 new orders, bringing its 2006 total to 904, with insiders tipping some significant buys next week to round off a bumper year. The new orders were Kenya Airways' three 787-8s, KLM's three 737-800s, Qantas's five 737s, two 737s from Boeing Business Jets and 25 unidentified 737s. Boeing also identified the customers for three previously unidentified 777s as Qatar Airways (two dash 200Fs) and KLM (one dash 300ER). Libya's Buraq Air emerged as a buyer for one 737 and the manufacturer noted that an unidentified customer converted one 777 to two 767s. Its biggest seller for 2006 to date has been the 737 series with 623 orders, while the widebody lineup has accounted for nearly 288 orders led by the 787 with 150 followed by the 747 with 67, the 777 with 61 and the 767 with 10. Dec 26, 2006

Boeing said yesterday that KLM exercised three 737-800 options and ordered a fourth 777-300ER. The narrowbodies, worth $212 million at list prices, will be powered by CFM56-7s and delivered in 2008. The 777, which had been attributed to an unidentified customer on Boeing's website, will be powered by the GE-90. Dec 22, 2006

Lufthansa Technik signed a five-year Total Technical Support contract with French startup Elysair for its 757-200. Elysair will operate all-business-class flights from Paris Orly to Newark starting this month. Dec 22, 2006

Air New Zealand confirmed the purchase of an additional four 787-9s to meet growth plans over the next decade. The order takes the airline's 787 commitment to eight aircraft plus eight options. The order is a firming up of price rights secured when ANZ ordered eight 777s and two 787s along with 42 price rights in 2004. Dec 21, 2006

Boeing's Commercial Aviation Services unit yesterday reached agreement with Messier Services-Asia, SR Technics and Guangzhou Aircraft Maintenance Engineering Co. Ltd. for provision of repair and overhaul services on 777 and 737NG landing gear in the Asia/Pacific region. Messier will perform 777 and 737NG landing gear work while Guangzhou and SR Technics will support just 737NG landing gear. The agreements are part of the Boeing Component Repair Network Service Centre program, which has as its goal to "reduce overall repair costs and manage complex rotable programs by establishing additional MRO support in key global regions." Dec 21, 2006

Commercial Jet of Miami will convert three 737-200 passenger aircraft to freighters for Northern Air Cargo. CJI will use Aeronautical Engineers' STC and also will perform C checks and upgrade avionics. Dec 21, 2006

Meridian Aerospace Group announced the sale of an ex-Delta Air Lines 737-200 from PNC Equipment Finance to Aventura Aviation of New York. Dec 21, 2006

Royal Jordanian opts for 787. Royal Jordanian selected the Boeing787 as the replacement aircraft for its aging A340s. Royal Jordanian President and CEO Samer Majali previously had said that the carrier was considering the 787 as well as the Airbus A350 XWB for its future long-haul fleet. It confirmed yesterday that it is negotiating with Boeing and several leasing companies to introduce four or five 787-8s as a first step. It may increase its commitment depending upon how it opts to replace its A310s, which are due to be phased out from 2011. Dec 21, 2006

Boeing had not announced the TUI order. TUI will operate 56 aircraft next year and expand capacity 27%. It displayed a mockup of TUIfly.com's new all-yellow livery on its website. The new aircraft, which were not identified, will begin delivery in 2010 and will be replacing older leased planes until 2013. TUI still has 24 737s on order with Boeing, bringing its backlog to 65 aircraft. Dec 18, 2006

German tourism giant TUI AG unveiled a comprehensive "action plan" Friday that includes an order for 41 new aircraft from Boeing valued at $3.64 billion, its intention to cut costs next year by [euro]250 million ($330 million)--involving the elimination of 3,600 jobs--and the merger of its airline units under the new TUIfly.com brand. Dec 18, 2006

Editor: Aram Gesar, eMail: [e-mail]

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Dec 18, 2006