Company Watch - Boeing.

Dec 11, 2006

EU Backs Airbus In Boeing Spat. The European Union on Wednesday renewed its support for Airbus in a row over state subsidies with US rival Boeing. Dec 6, 2006

The Airbus A350 will be 60% composite, including the fuselage skin, while the fuselage frames will be aluminum. This represents an about-face for the company, which previously had said that Boeing's decision to make the 787 fuselage out of composite material left it vulnerable to damage on the ramp. Gallois said Airbus felt it was "mandatory" to increase the use of composites to achieve the desired weight and fuel efficiency. However, the additional composites also are driving production cost of the program higher, he said. Gallois added that the A350's development is "predicated on" the Power8 restructuring plan to be unveiled next year. Power8 aims to cut Airbus's costs by [euro]2 billion annually from 2010 and produce [euro]5 billion in cumulative cash savings by the same year Dec 5, 2006

US National Transportation Safety Board Chairman Mark Rosenker said airlines should voluntarily begin incorporating a 15% safety factor when calculating stopping distances on icy or wet runways. He added that thrust reversers should not be counted on by pilots to bring planes to a safe stop in poor conditions. US FAA is likely to implement an official rule change regarding calculation of stopping distances but has not done so yet. A Southwest Airlines 737-700 overran a runway at Chicago Midway a year ago today and ended up on a street corner beyond the airport perimeter where it hit two cars, killing a six-year-old child riding in one of them. An NTSB hearing over the summer scrutinized the pilots' decision to land in wintry conditions and how they calculated landing distance. Dec 8, 2006

Boeing currently has orders and commitments from 37 customers for 458 aircraft, of which 435 are firm from 35 customers. Bair noted recent orders for VIP airlines and joked that the 787 is turning out to be "a must have for the world's billionaires." Dec 7, 2006

Boeing said the 787 will have 2%-3% lower cash operating costs than originally promised, largely owing to better-than-expected maintenance costs. "When we started, we were offering an airplane that had 8%-10% better operating economics than the 767 and to beat that by 30% is a pretty good outcome," he said. Maintenance costs will be 30% less than with the 767. Dec 7, 2006

Boeing's 787 is still overweight, although not the 5,000 lb. disclosed a month ago, but the company is confident it will "meet all commitments on weight," 787 VP and GM Mike Bair said yesterday during a call with reporters. An example of significant savings is a redesigned seat track that will remove several hundred pounds, he said. Dec 7, 2006

Boeing sold a combined three 787s, plus two options, yesterday to Arkia Israeli Airlines parent Nakash Group of America and business aviation firm PrviatAir of Switzerland. Nakash's order for two dash 9s and two options is worth $336 million at list prices and scheduled for delivery in 2012. It did not announce an engine choice for the aircraft, which will be used on routes to North America and the Far East. Arkia operates one 757-200, two 757-300s, four ATR 72-500s and five Dash 7s. PrivatAir's order had been listed on Boeing's website under an unidentified BBJ customer. It also did not announce an engine choice. Dec 6, 2006

Delta To Sell 38 Boeings, Orders 10 More. Delta Air Lines said on Thursday it will sell 38 Boeing planes after delivery as part of its bankruptcy, but that it will order 10 more planes and convert an existing order of five planes to longer-range aircraft to match its restructuring plans. Dec 7, 2006

Boeing confirmed this week that UK tour operator First Choice Airways ordered an additional two 787-8s for delivery in 2011. First Choice, the European launch customer for the 787, placed its first order for six in July 2004. It now has eight on firm order, with the first set to enter service in 2009. "This follow-on order from our European launch customer...speaks volumes about their belief in the exceptional benefits the 787 will bring to their passengers," Commercial Airplanes VP-Sales-Europe, Russia and Central Asia Marlin Dailey said. Dec 8, 2006

Continental Airlines converted 12 737NG orders to orders for the 737-900ER, raising its firm commitment for the new variant to 24. It has 60 737s on order with an option to convert more to the dash 900ER, which can fly up to 3,200 nm., or 500 nm. farther than the dash 900. It made the initial 12-aircraft conversion four months ago, becoming the first US carrier to order the type. Dec 6, 2006

Delta Air Lines agrees to sell 38 737-800s to lessors on delivery, orders 10 dash 700s. Delta reached aircraft purchase and sale agreements with Boeing and two aircraft lessors yesterday as part of an effort to right-size its fleet to emerge from bankruptcy as a standalone carrier with a heavy emphasis on international services. Dec 8, 2006

Delta Air Lines has agreed to sell 15 Boeing 737-800 aircraft to Aviation Capital Group, the leasing company of Pacific LifeCorp., and 23 planes to Babcock & Brown Aviation Finance. Dec 7, 2006

Delta Air Lines said that it would order 10 Boeing 737-700 aircraft and convert five firm orders for 777-200ERs to longer-range 777-200LRs. Dec 7, 2006

CAE signed contracts for three full flight simulators: A 777-300ER and an A330/A340 for Jet Airways and a 777-300ER for Air Canada. Both contracts include a suite of Simfinity training devices. The AC contract includes an option to provide a second 777 simulator. CAE valued the orders at list prices, including some buyer-furnished equipment, at C$51 million ($45 million). Dec 7, 2006

Lufthansa first to order 747-8I with 20 firm, 20 options; also orders seven A340-600s. Lufthansa's board yesterday approved orders for 20 747-8 Intercontinentals--the first of the variant to be sold by Boeing--plus 20 options and seven A340-600s, a total investment in long-haul planes valued at nearly $7 billion. Dec 7, 2006

Lufthansa[sup.1]s Boeing 747-8Is will be delivered from 2010 to 2013 while the A340-600s will begin delivering in 2008. "With aircraft types in the 747 series from Boeing on the one hand, and others from the A330/A340/A380 family from Airbus on the other, Lufthansa is ideally equipped to strengthen and expand its leading position in intercontinental traffic," LH Executive Board Chairman Wolfgang Mayrhuber said. Lufthansa, by modernizing the fleet, the new aircraft will bring further gains in efficiency as well as reduce fuel and operating costs. Both aircraft types are sustainable investments in ecological efficiency. Dec 7, 2006

The Lufthansa order for the 747-8 passenger version may come as a surprise to some given the German involvement in the A380 program. However, many in Germany are incensed by the blame game that has resulted from A380 production problems and suggestions that all German A380 work will be transferred to France. LH, a longtime Boeing and McDonnell Douglas customer, traditionally has striven to split its airplane orders and signaled its continued support for Airbus with the A340-600 order. The airline, which said yesterday that it expects to take delivery of its first A380 in 2009, also is considered a leading contender to be the launch customer for the A350 XWB. Dec 7, 2006

Lufthansa Orders Airbus, Boeing Jets. Lufthansa said it is ordering Airbus and Boeing aircraft worth about USD$6.9 billion at list prices as it expands and modernizes its fleet. Dec 6, 2006

Lufthansa's Boeing 747-8I order clearly was a big win for Boeing. Commercial Airplanes President and CEO Scott Carson said LH "will play a critical role in helping us shape the future of the 747. We are thrilled." Added Mayrhuber: "The 747-8 underlines our strategy of graded market-specific services and capacity expansion. It fits perfectly in our intercontinental fleet structure and slots neatly capacitywise between the A380 with around 550 seats and the A340-600 with around 300 seats." Dec 7, 2006

Lufthansa said the 20 Boeing 747-8Is will be powered by GE GEnx-2B67 engines. "When those engines became available, the 747-8 started to make economic sense," Nico Buchholz, LH senior VP-corporate fleet, said yesterday during a press conference in Seattle. GE said the firm order for 80 GEnx engines is valued at more than $950 million. Dec 7, 2006

Southwest Airlines President Colleen Barrett said the LCC wants to buy more aircraft even though it has 37 737-700s on order for delivery next year. "We're still out there looking for aircraft at the right price," she said. While most US carriers have minimized capacity growth this year, a confident SWA will up ASMs by 10% this quarter. Dec 7, 2006 Editor: Aram Gesar, eMail: [e-mail]

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Nov 13, 2006