Company Watch - Boeing.

Boeing

NATO needs Boeing C-17s, Airbus A-400Ms, official says. The head of the U.S. European Command and the NATO Supreme Allied Commander Europe said NATO needs Boeing's C-17 and Airbus' A-400M aircraft to meet airlift requirements in Afghanistan and sub-Saharan Africa. Marine Corp Gen. James Jones said the alliance might buy or lease aircraft through common funding. Mar 8, 2006

Study supports Boeing, Airbus for tanker contract. A study found commercial transport planes from Airbus and Boeing are cost-effective candidates for conversion into Air Force aerial refueling tankers. The RAND Corp. study found the planes "provide the required refueling capability at the lowest overall cost." Mar 8, 2006

Boeing may convince lawmakers to order more C-17s, executive says. The head of Boeing's defense business said the company may convince lawmakers to increase orders for its C-17 transport plane. The Air Force requested additional planes last week. James Albaugh said he thinks the company will produce more C-17s than the 180 already ordered. "Whatever the customer wants we'll support, and right now we are encouraged by the change in tone up on the Hill," he said. Mar 9, 2006

Boeing insiders suggest that the replacement for the 737 could be a twin-aisle composite aircraft. The company announced last week that it has formed a team headed by Mike Cave, Boeing Commercial Airplanes VP-aircraft programs, to evaluate a new design. Initial research has focused on the 100-200 seat category, but Embraer's 190 and 195 already are strong competitors at the bottom end of that market segment. At the same time, airlines are demanding 220 seaters for some LCC markets, thus the launch of the 737-900ER to match the A321. In the late 1970s and early 1980s, Douglas touted the Advanced Technology Medium Range 175/180-seat aircraft designed to have two aisles with six-across seating in a 173-in. cross-section or seven-across in high-density seating. At the time, the model that became known as the DC-XX and then DC-11 was dropped despite Delta Air Lines' order for 100 when McDonnell Douglas Chairman James McDonnell balked at the financial commitment. Delta ordered 757s instead. Mar 8, 2006

Boeing hopes its 737 successor will fly in the 2012-15 timeframe but is understood to be ramping up efforts to have an aircraft to market before Airbus. Logically, a scaled-down 787 would seem to be the right course. However, features such as lower cabin altitude and higher humidity brought by the composite structure are not as important for short-haul flights, while the 787 engines have not been designed for the high-cycle utilization they would receive in short-haul operations. On the other hand, much of the technology and manufacturing development costs would be written off against the 787 program whereas Airbus has those costs in front of it. The cockpit is expected to be identical to the 787. Mar 8, 2006

Boeing books orders for 26 aircraft in February. Boeing received orders for 25 commercial transports and one BBJ in the period Feb. 1 to March 1 inclusive, bringing year-to-date orders to 65, according to information on the company's website.February orders included three 737s from Alaska Airlines, three from WestJet and 16 from an unidentified customer(s) for a total of 22. Unidentified customer(s) also ordered two 747s and one 767. In February 2005, Boeing booked orders for 30 commercial transports and four BBJs. The commercial portion comprised 14 737s, eight 777s and eight 787s. Commercial transport orders for January-February 2005 totaled 54. Mar 6, 2006

Boeing announced it has reached an agreement to acquire Carmen Systems, a Swedish company that provides crew scheduling and disruption management software for airlines and railroads. Carmen, which employs approximately 300 and also operates in Canada and Australia, will become a Jeppesen subsidiary. Details of the transaction were not provided. "Carmen Systems' crew scheduling and optimization, and disruption and recovery management products complement Jeppesen's existing aviation portfolio, bringing us new capabilities," said Boeing Commercial Aviation Services VP and GM Lou Mancini. Mar 6, 2006

Lightning poses challenge for 787 engineers. The composite airframe Boeing plans to use for its 787 will not conduct lightning away. Engineers are debating ways to protect the jetliner from lightning. Federal Aviation Administration rules say the design must limit the chance of lightning causing a fuel-tank explosion to less than one in a billion. Mar 6, 2006

New business plan, cost cuts, 777 purchase on BA's horizon. British Airways yesterday unveiled its newest two-year business plan aimed at driving down costs and strengthening customer service. The plan takes effect at the end of this month and continues through March 2008, when BA moves into the new Terminal 5 at London Heathrow. The program, the first since Willie Walsh became chief executive in March 2005, includes cost reductions of [pounds sterling]450 million ($781.5 million), of which [pounds sterling]225 million will come in FY07 and a further [pounds sterling]225 million the following year. It also foresees the investment of nearly [pounds sterling]200 million in a new Club World seat, on-demand films in all cabins and its website. Mar 10, 2006

Cathay Pacific's record order for up to 36 777-300ERs to be delivered between 2007 and 2010. During 2005, nine aircraft entered service including the world's first 747-400BCF, for which it has firm orders for five additional and options for a further six. One new 747-400F, one 777-300, three A330-300s and three refitted secondhand 747-400 passenger aircraft joined the fleet, which will total 101 aircraft by September when the airline celebrates its 60th anniversary. Mar 9, 2006

Gol exercised two more options from its order for 101 737-800s, increasing the number of firm orders to 67 from 65 and leaving 34 options. It currently operates 43 737s and will begin taking delivery of its 737NGs this year. By year end it will operate 12 dash 300s, 26 dash 700s and 20 dash 800s. By 2012 it plans a fleet of 90 aircraft comprising 19 dash 700s and 71 dash 800s. Mar 7, 2006

Boeing signed Goodrich Aerostructures Service Center Asia to perform nacelle component MRO services on 737NGs and 777s. GASCA is the fourth member of the airframer's Repair Network Service Center program. Mar 8, 2006

Kenya Airways orders six Dreamliners. Kenya Airways continued its strong association with Boeing by becoming the 28th airline to sign up for the 787 with an order for six dash 8s.The 787s will replace the carrier's six 767s, with two to be delivered in 2010 and four in 2011. Kenya Airways carries more than 2 million passengers annually and has the largest network into Africa. It operates a 21-aircraft fleet comprising mostly 737s, 767s and 777s. Boeing said it has 385 orders and commitments for the Dreamliner. Mar 8, 2006

Pegasus Airlines was identified by Boeing yesterday as the carrier that placed an order for six 737NGs earlier this year. The order is valued at $406.5 million at list prices and includes six options. Deliveries begin in 2008. Pegasus operates a fleet of 14 737s. Mar 10, 2006

Royal Air Maroc took delivery of a new 737-700 last weekend. Mar 7, 2006