Company Watch - Boeing.

Edited by Aram Gesar, [e-mail] For more global news, data, analysis and features, please go to: http://www.AirGuideOnline.com/professional.htm Sep 18, 2006

Aeroflot may double its planned $3bn purchase of 22 long-range airliners, it has said. Aeroflot's board has discussed offers for the Boeing 787 Dreamliner and the Airbus A350 XWB model. Aeroflot's fleet of 90 passenger aircraft, much of which is made up of aging Soviet-designed models, is in serious need of renewal, putting the company under pressure to make up its mind after sitting on the order for a year. The carrier could split the order between the two manufacturers. http://www.aeroflot.ru/eng Sep 17, 2006

Aeroflot announced yesterday that it intends to split its order for 44 250/300-seat aircraft between the 787 and A350 XWB. The number of aircraft is double the original stated requirement. The split order follows what is perceived to be a new balanced approach to Russia's relationship with Boeing and Airbus. Aeroflot had indicated a preference for the 787 prior to the re-launch of the A350 in June and Vneshtorgbank's purchase of 5% of EADS last week. Sep 13, 2006

Hainan Airlines ordered 15 additional 737-800s, completing the distribution of the 150-aircraft order placed by China Aviation Supplies Import and Export Group, Boeing announced yesterday. The 150 737-700s/-800s are worth approximately $10 billion at list prices and will delivered to Air China (25), China Eastern Airlines (20), China Southern Airlines (30), Shandong Airlines (12), Shanghai Airlines (13), Shenzhen Airlines (10), Xiamen Airlines (15) and Hainan (25) between this year and 2010. Sep 15, 2006

Boeing maintained its bullish air cargo outlook, projecting 6.1% annual average worldwide airfreight growth over the next 20 years in its World Air Cargo Forecast 2006/07 released this week. While long-term growth potential is strong, traffic growth last year and in 2006 has been slow. After an explosive 12% surge in 2004, world air cargo traffic expanded only 2% in 2005 and 3.1% in the first half of this year. "Much of this recent deceleration can be attributed to the rise in jet fuel prices since late 2004," Boeing wrote in the forecast, adding that "positive yet hesitant growth characterizes the market for 2006." Rising fuel prices "diverted some traffic that otherwise would have moved by air cargo channels to less expensive maritime trade lanes." Sep 15, 2006

Boeing finalizes Chinese orders. Boeing has finalized orders for 150 airliners from eight Chinese carriers. The orders are worth a total of $10 billion, based on list prices. Sep 15, 2006

Boeing said growth in Asian air cargo markets will exceed previous forecasts, with the domestic Chinese and intra-Asian markets expanding 10.8% and 8.6% per year respectively. Asia also will fuel growth on key trade lanes, it said, predicting that Asia-North America air cargo traffic will average 7.1% annual growth followed by Europe-Asia's 6.9% yearly rise. "More mature markets, such as North America and intra-Europe, will grow more slowly than the world average, as will routes involving Latin America and the Middle East." Overall, Boeing predicts the world freighter fleet will increase to 3,563 from the current 1,789 by 2026, with the greatest growth in widebody freighters such as the 747, 777 and 767. Of the 2,983 freighters predicted to join the fleet, 1,209 will be replacements for retired aircraft and 1,774 for growth. More than 75% will come from passenger/combi-to-freighter modifications, while 766 will be new production freighters. Sep 15, 2006

A Boeing official said yesterday that the manufacturer has had "serious" talks with Emirates and "11 or 12 other" airlines regarding the 787-10, the not-yet-launched stretch version of its next-generation aircraft that would seat more than 300 passengers. Sep 14, 2006

Alan Mulally's departure as president and CEO of Boeing Commercial Airplanes will have minimal impact on operations. Successor Scott Carson is "not quite as rambunctious" as the energetic Mulally but has been with the company for 34 years and brings "continuity" to BCA leadership. "A lot of people will miss Alan because of his personality, but from a business point of view I don't think it will have a great impact," he said. Sep 14, 2006

Boeing said that world air cargo growth is expected to expand at an average annual rate of 6.1 percent during the next two decades, with a three-fold increase in worldwide air freight. The information is included in Boeing's World Air Cargo Forecast 2006/2007, released today at the International Air Cargo Forum and Exposition 2006. Boeing has published the World Air Cargo Forecast, widely acknowledged as the definitive industry forecast of worldwide air cargo traffic growth and freighter aircraft demand, as an individual report since 1986. The new forecast is available here Sep 13, 2006

Boeing expects that the growth of Asian air cargo markets will exceed the expectations of the forecast from two years ago, with the domestic Chinese and intra-Asian markets expanding 10.8 percent and 8.6 percent per year, respectively. In addition, Asia- North America will average 7.1 percent and Europe-Asia will average 6.9 percent. More mature markets, such as North America and intra-Europe, will grow more slowly than the world average, as will routes involving Latin America and the Middle East. Europe-Southwest Asia will experience slightly higher than average growth, at 6.2 percent. Sep 13, 2006

Boeing predicts the world freighter fleet will increase to 3,563 airplanes from 1,789 during the 20-year forecast period, with the greatest growth in wide body freighters such as the Boeing 747, 777 and 767. This category ultimately will represent 64 percent of the fleet, compared to 50 percent today, eventually constituting more than 90 percent of total freighter capacity. Of the 2,983 freighters predicted to join the fleet, 1,209 would be replacements for retired aircraft and 1,774 for growth. More than 75 percent, 2,217 airplanes, will come from passenger/combi-to-freighter modifications, while 766 will be new production freighters. Sep 13, 2006

Boeing provides the most comprehensive freighter solutions to meet varying market demands. Boeing is the only manufacturer to offer a complete line of new freighters to cover the entire market such as the wide body 747, 777 and 767. Boeing freighters offer the lowest trip and ton-mile cost in every freighter size. For example, the new 777 freighter will allow operators to carry 229,000 lbs of payload with the lowest trip cost of any large freighter. In addition, Boeing also offers a wide range of passenger-to-freighter and combi-to-freighter conversions for Douglas and Boeing airplane models, teaming with industry leaders to provide innovative conversion solutions to match virtually any air cargo requirement. Sep 13, 2006

Boeing said yesterday it has sold 30 747-8Fs, including the Atlas order. That total does not include a yet-to-be-finalized order from Emirates announced at the Farnborough Air Show. Sep 13, 2006

Boeing's 747-400 Large Cargo Freighter, the specially modified 747-400 that will transport major assemblies for the 787, took to the air for the first time Saturday. The aircraft left from Taiwan's Taoyuan International Airport for a 2-hr. flight, initiating a test program targeting FAA certification. It is designed to accommodate three times the cargo volume of a standard dash 400 freighter. Boeing decided against contracting out transport of major 787 components and instead will use its own fleet of three 747-400LCFs to ferry assemblies among Japan, Italy, Kansas and South Carolina before flying them to its Everett, Wash., factory. It said the operation will result in savings compared to ocean transport or using a third-party carrier and will allow for more efficient 787 production. Two freighters are slated to enter service in 2007. Evergreen Aviation Technologies is modifying the planes in Taiwan using aircraft Boeing repurchased last year. They are being equipped with extra-large fuselages and "swing tail" doors to allow for easier loading. The modified fuselage will be 18 in. wider than an A380 fuselage and will have a main deck cargo volume of 65,000 cu. ft. Sep 12, 2006

Boeing's border-contract bid hinges on communications network. Boeing's bid for a contract to secure U.S. borders focuses on 300 towers with a network of sensors and radars. The contract, worth about $2.5 billion, will be the Department of Homeland Security's second-largest contract. Boeing is competing against four other defense firms. Sep 11, 2006

Boeing won't get bonuses for Air Force satellite contract. Boeing and the Air Force have agreed the company will forgo bonuses for the Global Positioning System IIF satellite program for the 12-month period ending in September. The program has faced large cost overruns and significant production delays. Sep 11, 2006

Boeing's Carson will not make big changes to commercial business. Scott Carson, the new president of Boeing's Commercial Airplanes unit, played a key role in making the 787 one of the most popular planes ever launched. He says he plans no major changes in how Boeing runs the business and that keeping the 787 program on schedule is his priority. Sep 11, 2006

In the first eight months of 2006, Boeing sold 561 aircraft, the largest single order coming from Southwest Airlines, which booked 79 737-700s in April. It sold 619 aircraft from January through August 2005. Sep 11, 2006

Atlas Air Worldwide Holdings today announced the carrier has ordered 12 747-8 Freighters, making Atlas the North American launch customer for the airplane. At list prices, the order is valued at about $3.4 billion. Atlas will begin taking delivery of the airplanes in 2010 and expects all 12 aircraft to be in service by the end of 2011. "With this order, Atlas Air remains the leader in providing the capacity and operational flexibility required by our air cargo customers using the state-of-the art freighter platform," said William J. Flynn, president and CEO of Atlas Air Worldwide Holdings. Atlas operates the world's largest fleet of Boeing 747 Freighters, with 20 747-400 and 15 747-200 Freighters in service with operators throughout the world. The 747-8F, which has a common pilot type rating and more than 70 percent parts commonality with the 747-400F, assures Atlas a seamless and low-cost introduction of the new airplane into its fleet. Sep 12, 2006

Boeing delivered the first 747-400ERF to China Cargo Airlines, the China Eastern Airlines/China Ocean Shipping Group joint venture. China Cargo's fleet is composed of six MD-11Fs and one leased 747 freighter, and it uses belly space on China Eastern passenger flights. The aircraft delivered to China Cargo will carry a maximum payload of 124 tons and has a maximum range of 4,970 nm. Sep 15, 2006

VP-Marketing-Commercial Airplanes Randy Baseler told reporters during a briefing in Washington that Boeing will launch the dash 10 when a carrier is ready to place an order, which could be forthcoming. "If an airline wants to buy one, we'll go down that path," he said. "It will be delivered no sooner than 2012. We don't have an order yet but have had serious conversations with airlines." Negotiations with Emirates were at an advanced stage as early as March. Baseler added that the company is hoping to secure an order for a passenger version of the 747-8 before year end. He claimed it would have 11% lower per-seat fuel consumption and 4% lower per-seat operating cost than the A380. Also on Boeing's radar is developing a replacement for the 737, which Baseler said will not come to market before "mid-next decade." No design has been determined yet, he said, noting that the manufacturer is conducting a wide-ranging study to determine what would appeal to carriers. Baseler said the more than 560 firm orders booked through the first eight months of 2006 "have exceeded our expectations." Sep 14, 2006

Army selects six companies for satellite contracts. Boeing and General Dynamics are among six companies chosen to compete for work on the Army's $5 billion Worldwide Satellite Systems contract. Each company will offer turnkey commercial satellite terminals and systems to run the terminals. Sep 11, 2006

Goodrich gets C-17 maintenance pact. Goodrich Corp. will provide landing-gear maintenance for the Air Force's C-17 aircraft. The contract, awarded by Boeing, is expected to generate up to $38 million in revenue over three years. Sep 11, 2006

An order for six Dreamliners from Monarch Airlines highlighted an August during which Boeing sold 30 aircraft, a steep drop from the 90 ordered in August 2005 but higher than the 22 orders posted by competitor Airbus during the month. Sep 11, 2006

Pemco Aviation Group signed an agreement yesterday with ILFC for one passenger-to-freighter 737-300 conversion for delivery later this year, with options for three more conversions in 2007. Sep 12, 2006

Boeing sold eight 737NGs to Shanghai Airlines and 10 to SpiceJet, including five dash 900ERs. Unidentified customers placed orders for two 737-800s and two 787-8s and Boeing Business Jet took one 787-8 and one 737-900BBJ. Sep 11, 2006

Skymark Airlines is set to join the 787 club, according to sources at the Japanese carrier. Skymark, which operates five 767-300ERs, has advised Japan's Ministry of Land, Infrastructure and Transport that it will add four 787s between 2010 and 2012. It operates a 10-times-daily shuttle service from Tokyo Haneda to Sapporo and Fukuoka in addition to four-times-daily flights to Kobe and twice-daily service to Naha. It is expected to be granted additional slots at HND when the fourth runway is opened in 2009. Sep 11, 2006

Honeywell was selected by Singapore Airlines to provide next-generation weather radar for the carrier's 19 new 777-300ERs, with deliveries of its RDR-4000 windshear/weather radar system beginning this month. Sep 11, 2006