Company Watch - Boeing.

Dec 18, 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

Kenya Airways boosted its 787-8 commitment with an additional three firm orders announced over the weekend. It now has orders for nine firm aircraft plus four options, up from the six firm and six options placed in March. It will take first delivery in October 2010, with the balance of the order arriving through late 2012. Dec 17, 2006

SALE owns 63 aircraft and manages another 14 on behalf of third parties. It has firm orders for 28 and options or purchase rights on an additional 20, Bank of China said. The fleet has an average age of 3.5 years and is 70% comprised of 737s and A320s. It has $3.1 billion in assets and $2.28 billion in debt. CEO Robert Martin will continue to direct SALE, while Bank of China will appoint directors to the board. The leasing company said it will maintain its Singapore headquarters and operate as a standalone unit within BOC. "Everyone at SALE looks forward to working with customers, suppliers and all other business partners as the company moves into a new and exciting phase in its development," it said. Dec 17, 2006

SALE took delivery of the first of 30 737NGs last month. The dash 800, ordered in May 2005, will enter service with Kenya Airways. Delivery of the entire order will continue through 2010. Dec 17, 2006

LAN Airlines this week took delivery of its fourth 767-300 passenger aircraft this year and said it will be used on flights to and from the US, Mexico, Tahiti and the Caribbean. It also operates nine 767-300 freighters. Dec 15, 2006

Air Seychelles selected the GEnx to power the two 787-8s it leased from ILFC in April for delivery in 2010. The deal includes a 10-year OnPoint Solutions agreement worth more than $25 million. Dec 14, 2006

Judge reduces lawyers' fees in Boeing shareholder suit. A state court judge in Chicago reduced fees requested by plaintiff lawyers in a shareholder suit against Boeing. The judge noted that the settlement benefits shareholders but called the amount of time attorneys submitted for billing "excessive and unrealistic." Dec 14, 2006

Boeing said that Air France Industries has adopted the Boeing Airplane Health Management system, which will provide real-time maintenance information on AF's 42 777s (plus 13 to be delivered) and 21 747-400s. Dec 14, 2006

Authorities, air carriers differ on enforcing rudder rules. The U.S. government, having tightened rules on rudder performance on Boeing 737 jets after two accidents, wants to tighten monitoring to ensure compliance. Boeing and the airlines, however, argue that the existing level of oversight is adequate. Airlines support extra monitoring for planes fitted with advanced recorder technology on the assembly line but oppose expensive recorder retrofits for the rest of their fleets. "In view of these ongoing measures, we believe the proposal is unnecessary to ensure the safety of Boeing 737 rudder control systems," ATA officials said in a report this month. Dec 13, 2006

Boeing, Airlines Resist FAA 737 Rudder Plan. Boeing and airlines are resisting a US government proposal to require closer monitoring of rudder performance on 737 aircraft, years after two crashes prompted a design change and other measures. Dec 13, 2006

Boeing's soon-toopen showroom for buyers of its 787 is as far removed from an automobile showroom as the Dreamliner is from the family car. But the experience of going to an auto dealership, kicking a few tires, sitting behind the wheel, deciding what cool options to get, is not unlike what 787 customers will experience when it is time to decide on the cabin features of their new $140 million airplane. That's how Boeing's Patty Rhodes describes the concept of the Dreamliner Gallery. She led the team that developed the 54,000-square-foot facility about a mile north of the Everett plant where the first 787 will be assembled starting next year. Among her previous assignments at Boeing was 747-400X program manager in 1998. Dec 13, 2006

Boeing has won 435 firm orders from 35 customers for the 787, which is scheduled to enter airline service in May 2008 with All Nippon Airways of Japan. So far, only a few of those customers have decided on cabin configuration. The Dreamliner Gallery will open for customers in late January. Dec 13, 2006

Precision Conversions will provide seven full Boeing 757-200PCF conversions that will be leased by VarigLog. SkyWorks Capital of Connecticut is managing the deal. The first aircraft will be delivered in January. Dec 13, 2006

Austrian Airlines plans a simplified medium-haul fleet. Currently it operates 10 Boeing 737NGs and 20 Airbus A320 family aircraft. "The plan [for a simple medium-haul fleet] will strongly depend on our talks with aircraft manufacturers and leasing companies," Oetsch said. He emphasized that the airline's focus is on improving passenger service. As an example, he noted that it will remove one seat row on each of its Fokker F100s to "add 15 cm. more legroom for our business class passengers." Dec 12, 2006

Austrian Airlines seeks to revitalize unprofitable long-haul services. Austrian Airlines Group CEO Alfred Oetsch confirmed during the Star Alliance meeting last week in Istanbul that none of the carrier's long-haul routes are profitable The carrier has simplified its fleet and plans to operate only Boeing 777-200s and 767-300ERs on long-haul routes. It is taking delivery this month of its fourth 777-200. Along with its six 767-300ERs. Dec 12, 2006

U.S. sees window for solving subsidy dispute. The U.S. and EC could negotiate a solution to the dispute over aircraft subsidies before before a World Trade Organization panel issues a decision on the issue. John Veroneau, the deputy U.S. trade representative, says the U.S. is willing to negotiate with the EC or have officials from Boeing and Airbus discuss the matter directly. Dec 12, 2006

Midwest Airlines signed an agreement Friday to acquire two MD-80s that will be used to expand long-haul flying from its Milwaukee hub. "The acquisition of these aircraft provides new opportunities for Midwest and its customers," said Senior VP and CMO Scott Dickson. The aircraft will be placed into service in the first half of 2007, with routes and schedules to be announced at a later date. Midwest currently operates a fleet of 11 MD-80s and 25 717s. With its wholly owned subsidiary Midwest Connect, it provides service to 47 cities. Dec 11, 2006

SIA's Chew maintains interest in transpacific but not 747-8. Singapore Airlines CEO Chew Choon Seng said in Istanbul that the recently announced bid for Qantas might be a wakeup call for Australian officials who favor protecting the flag carrier to the detriment of SIA's wish to operate a transpacific service from Australia. Chew said he did not share Lufthansa's enthusiasm for the new Boeing 747-8 Intercontinental and was happy to continue to wait for the A380. LH ordered 20 of the type last week, plus 20 options. Dec 11, 2006

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

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Dec 11, 2006