Airbus and Boeing products running behind schedule

[BigDUSA 71]

Maybe they were concentrating too much on trying to cosh the opposition. I find it interesting that one of the biggest arguments against the A380 was that it was only suitable for hub-to-hub operations. It's early days yet, but the Emirates experience at Manchester (so far) seems to be making a bit of a nonsense of that particular argument.

 

If what you say is true? Then why isn't the A380 selling like hot cakes?

[CheshireTom 1,377]

If what you say is true? Then why isn't the A380 selling like hot cakes?

 

How long has it been on the Manchester route?

[TheFiend 1,181]

How long has it been on the Manchester route?

 

September last year, and there is a lot of speculation about another A380 diagram on the evening flight.... It goes to show how successful the A380 is for airlines. Looking forward to my next trip..... A380 MAN-DXB-BKK-DXB-MAN!!!

[TheFiend 1,181]

Airbus's good start to the year continues...

 

Continuing market success for Airbus’ efficient long-range A330 Family

24 January 2011 Press Release

 

GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric [NYSE: GE], has signed a firm order for 12 additional long-range A330-300 aircraft. This new order brings the total number of A330s ordered by GECAS to 32.

 

“This order adds to our existing portfolio of A330 aircraft,” said Norman C. T. Liu, GECAS President and CEO. “A key part of our strategy is to expand our wide-body product offerings to satisfy customer demand.”

 

"This repeat order from GECAS underscores the ongoing popularity of the A330, and highlights the strong market demand for the A330-300 in particular" said John Leahy, Airbus Chief Operating Officer, Customers. "The unbeatable economic efficiency and proven passenger appeal of this aircraft make it the perfect choice in today's market for medium capacity routes."

 

Airbus aircraft share a unique cockpit and operational commonality, allowing airlines to use the same pool of pilots, cabin crews and maintenance engineers, bringing operational flexibility and resulting in significant cost savings.

 

With a true wide-body fuselage allowing very high comfort standards, the A330-300 is able to accommodate seat and class configurations to suit diverse customer requirements. It has a range of up to 5,600 nm / 10,400 km with a typical 300 passenger load. Highly efficient and optimised for the medium – to long range market, the A330-300 offers the best balance between range and cost. The A330-300 remains the most economic means of flying 300 or so passengers on medium range routes in true long haul comfort. Orders for the aircraft stand at more than 480.

 

The A330 Family, which spans 200 to 400 seats for the passenger variants, also includes Freighter, VIP, and Military Transport/Tanker variants, has now attracted more than 1,100 orders

 

This order will most likely be because of continuing delays with the 7LATE7!!!

[Samsonite 181]

Jan. 25, 2011 Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s.

 

Jan. 19, 2011 Boeing, American Airlines Complete Contract for Two 777-300ERs.

 

Jan. 4, 2011 CIT, Boeing Announce Order for 38 Next-Generation 737 Airplanes.

[CheshireTom 1,377]

Jan. 25, 2011 Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s.

 

Jan. 19, 2011 Boeing, American Airlines Complete Contract for Two 777-300ERs.

 

Jan. 4, 2011 CIT, Boeing Announce Order for 38 Next-Generation 737 Airplanes.

 

I can't see the CIT booking for 38 737s on the Boeing summary. Were they part of last year's orders tally?

[CheshireTom 1,377]

Airbus's good start to the year continues...

 

 

 

This order will most likely be because of continuing delays with the 7LATE7!!!

 

Thomas Cook has also got an order in for a dozen A320 family aircraft.

[BigDUSA 71]

Jan. 25 (Bloomberg) -- Boeing Co. ended 2010 with delays for its two marquee jets, upheaval in its $35 billion tanker bid and a canceled defense contract. The same year, the shares almost doubled the gain in the Dow Jones Industrial Average.

 

Even with a likely drop in quarterly profit tomorrow, investors are looking past setbacks on the 787 Dreamliner and 747-8 and positioning themselves to benefit from the planes’ entry into service, said David Rowlett, an analyst at T. Rowe Price Group Inc., which owns 7.1 million Boeing shares.

 

Boeing’s outlook is “very positive” once deliveries begin for the 787, now more than three years behind schedule, he said. Demand for the 737 and 777, which produce most of the company’s commercial-jet revenue, has been so strong that Chicago-based Boeing plans to boost output through 2013 to record levels.

 

“People generally want to own the stock,” Rowlett said in an interview. “The 787 situation has been no doubt frustrating, but investors don’t want to hold grudges about past mistakes too long when a stock offers enough upside going forward.”

 

Adjusted fourth-quarter earnings may be $1.11 a share, down from $1.79 a year earlier, the average of 22 estimates compiled by Bloomberg. Full-year net income probably more than doubled to $2.99 billion, based on analysts’ projections, as improved production helped Boeing avoid financial charges for its delays.

 

Boeing fell 49 cents to $72.24 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have jumped 25 percent in the past 12 months, and their 21 percent climb in 2010 beat the Dow’s 11 percent.

 

Dreamliner Focus

 

While the latest variant of Boeing’s 747 jumbo jet also is running a year and a half late, attention among analysts and within the industry has focused on the Dreamliner, the first jetliner built chiefly from plastic composites. It is Boeing’s best-selling new aircraft, with 847 advance orders.

 

“You’ve got a large, troubled development program that’s the primary concern, and it’s a big overhang on the stock,” Rowlett said. “At some point the 787 will get delivered and production will ramp up. Investors want to be there when that happens. That’s what keeps them interested.”

 

Boeing offers the industry’s best potential gains in 2011, provided the 787 arrives as promised, said Ken Herbert of Wedbush Securities in San Francisco, who is among 20 analysts who recommend buying the stock. Eight say hold and two say sell.

 

After the first delivery of each new model in the past two decades, Boeing outperformed the Standard & Poor’s 500 Index by an average of 8.1 percent three months later, Herbert said in an interview. Boeing’s advantage rose to 14 percent a year after each new jet’s debut.

 

Scarcity Value

 

“Scarcity value” also compels investors to stick with Boeing, Herbert and Rowlett said.

 

Only a handful of U.S. aerospace companies have a market value topping $10 billion, including Boeing, Precision Castparts Corp. and Goodrich Corp. That means options are limited for funds that invest only in large companies and want to buy aerospace shares, Rowlett said. The S&P 500 Aerospace & Defense Index has risen 20 percent in the past 12 months.

 

“We are approaching an up cycle, and if you want to get in the middle of that, now’s the right time to do it,” said Clay Jones, chief executive officer of cockpit-controls maker Rockwell Collins Inc., a Boeing supplier.

 

In October, Boeing said 2010 earnings would more than double to as much as $4 a share on sales that may reach $65.5 billion. Boeing’s orders more than tripled in 2010, swelling its backlog to 7 1/2 years, as demand recovered from the recession.

 

Aerospace Cycle

 

“If Boeing can, for once, avoid further problems on the 787 and enjoy the fruits of this aerospace cycle, that’s what investors are buying into,” Rob Stallard, an RBC Capital Markets analyst in New York who recommends buying the stock, said in an interview.

 

Challenges remain for Boeing, which faces a “difficult” time with its defense business as the U.S. government scales back spending, Douglas Harned, a Sanford C. Bernstein & Co. analyst in New York, wrote in a note yesterday. He rates the shares as “market perform.”

 

The Air Force still hasn’t decided between Boeing and European Aeronautic, Defence & Space Co. for its new aerial tanker, and the Senate Armed Services Committee plans a Jan. 27 hearing into the service’s inadvertent disclosure of each rival’s bid data late last year.

 

The Department of Homeland Security canceled Boeing’s SBInet “virtual fence” program for the U.S.-Mexico border, and lawmakers said in a Jan. 12 report that Boeing’s battlefield communications system for the Army is expensive and unreliable.

 

New Timetable

 

Shareholders got better news on Jan. 18, when Boeing unveiled the new timetable for the Dreamliner’s first delivery after a Nov. 9 fire grounded the six-plane test fleet and forced engineering changes.

 

The latest reverse shouldn’t hurt 2010 earnings, Boeing said. The stock rose 3.4 percent amid investors’ relief that the latest delay only amounted to a six-month postponement, to the third quarter. The original target was May 2008.

 

“The 787 has been a wild card for many of us for a long time,” said Jones, the Rockwell Collins CEO. “Ultimately the plane will be built, and when it does, it will be a positive to the company and will relieve the negative burden that has weighed on it. As you get toward the finish line, it boosts investor confidence.”

QUOTE

[TheFiend 1,181]

Jan. 25, 2011 Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s.

 

Jan. 19, 2011 Boeing, American Airlines Complete Contract for Two 777-300ERs.

 

Jan. 4, 2011 CIT, Boeing Announce Order for 38 Next-Generation 737 Airplanes.

 

Only 2 widebody orders for Boeing, yet the Boeing fanboys are bragging about it!!!

 

The 737 is the only Boeing aircraft that is selling well.

[TheFiend 1,181]

Thomas Cook has also got an order in for a dozen A320 family aircraft.

 

And they are planning all future orders to be Airbus...

[jacko 8,813]

A 747 had to turn around back to Bangkok recently, I wonder if Quantas will blame RR again?

[Samsonite 181]

A 747 had to turn around back to Bangkok recently, I wonder if Quantas will blame RR again?

Qantas has had a long string of problems since they started outsourcing some of their maintenance a few years ago. It is all about the airlines trying to save money by cutting corners on repairs.

Here is an interesting take of the problem:

 

http://www.flightglobal.com/blogs/flightbl...ry-24---fr.html

[Samsonite 181]

A 747 had to turn around back to Bangkok recently, I wonder if Quantas will blame RR again?

Qantas has had a long string of problems since they started outsourcing some of their maintenance a few years ago. It is all about the airlines trying to save money by cutting corners on repairs.

Here is an interesting take of the problem:

 

http://www.flightglobal.com/blogs/flightbl...ry-24---fr.html

[jacko 8,813]

Qantas has had a long string of problems since they started outsourcing some of their maintenance a few years ago. It is all about the airlines trying to save money by cutting corners on repairs.

Here is an interesting take of the problem:

 

http://www.flightglobal.com/blogs/flightbl...ry-24---fr.html

I believe Indonesia was a location of some of that maintenance outsourcing.

Not exactly a country with a great safety record.

 

Edit. I was misled by mention of Indonesia on another forum, when in actuality it was Malaysia, Qantas were considering outsourcing maintenance to.

Edited January 27, 2011 by jacko

[Samsonite 181]

I believe Indonesia was a location of some of that maintenance outsourcing.

Not exactly a country with a great safety record.

Yep. Garuda Indonesia Airways has a very poor record. Weren't they blacklisted from the EU for awhile?

[jacko 8,813]

Yep. Garuda Indonesia Airways has a very poor record. Weren't they blacklisted from the EU for awhile?

yes...

The European Union banned all Indonesian-registered aircraft from flying over its airspace in June 2007, acting on a report from the International Civil Aviation Organization which criticised the country's safety standards.

Garuda removed from the list July 2009.

 

At the time the banned list included all 51 carriers from Indonesia, I guess they got so much better that Quantas, an airline with a prior enviable saftety record, decided they were ok now.

[CheshireTom 1,377]

yes...

The European Union banned all Indonesian-registered aircraft from flying over its airspace in June 2007, acting on a report from the International Civil Aviation Organization which criticised the country's safety standards.

Garuda removed from the list July 2009.

 

At the time the banned list included all 51 carriers from Indonesia, I guess they got so much better that Quantas, an airline with a prior enviable saftety record, decided they were ok now.

 

Which QANTAS aircraft are maintained in Indonesia?

[BigDUSA 71]

By Julie Johnsson, Tribune reporter

 

January 27, 2011

 

Boeing Co. expects to deliver at least 25 of its delay-prone 787 Dreamliner and 747-8 jumbo jets this year, but it doesn't anticipate that the planes will give any near-term lift to its financial results.

 

Production cost overruns and penalty payments to pacify airline customers mean Boeing won't make money off those deliveries, executives said during a quarterly earnings call Wednesday, acknowledging concern about the overall profitability of the best-selling Dreamliner.

 

But first, the Chicago-based aerospace manufacturer will have to complete flight testing on both jets and hope that it won't suffer other setbacks that will push the initial 747-8 delivery past its midsummer target or cause the 787 to miss its third-quarter launch date, announced earlier this month.

 

The 787, running years behind schedule and plagued by design, production and software glitches, has been a drag on Boeing's earnings in recent years and is expected to continue to affect results through 2011. Boeing has kept design work on the plane's 787-9 derivative in-house, reverting to a more traditional approach that places less responsibility with suppliers, executives said.

 

The missed deadlines and three-year delay will cause the inventory of completed 787-8s to bulge to about $12 billion by year's end.

 

Workers are completing the 31st Dreamliner, Boeing CEO Jim McNerney said. But Boeing still needs to address problems with the first 20 to 25 Dreamliners, ranging from software that caused the plane's power system to fail during an onboard fire in November to condensation buildup that causes a phenomenon known as "rain in the plane."

 

The company's elaborate supply chain is finally getting in gear, McNerney said, and 787 components recently shipped to its Everett, Wash., factory require less input from Boeing's machinists.

 

As first reported by the Tribune, Boeing plans to provide its first customers with planes completed later in the production schedule that already have many of the design fixes that were unearthed during testing.

 

Boeing said it would deliver 25 to 40 of the 787 and 747-8 aircraft this year, with the total evenly divided between the two programs. Since plane-makers receive the bulk of aircraft payments once planes arrive, the deliveries would propel full-year 2011 revenues to $68 billion to $71 billion. Even so, Boeing anticipates its net income would decline to $3.80 to $4 per share.

 

Shareholders weren't thrilled at the news. Boeing's shares ended Wednesday at $70.02, down 3 percent.

 

Boeing reported a fourth-quarter profit of $1.2 billion, or $1.56 per share, on revenue of $16.6 billion, besting the $1.11-per-share results analysts had projected. Net income for the full year was $3.3 billion, or $4.45 per share, on revenue of $64.3 billion.

 

jjohnsson@tribune.com

QUOTE

[joekicker 53]

Another icon goes down:

 

Following a weak fourth quarter earnings report and an even weaker outlook on profits for 2011, Boeing Co. (NYSE: BA) CEO Jim McNerney said on the company’s conference call that Boeing could replace its best-selling 737 aircraft, rather than update the plane. The new plane would be available in 2020. Does anyone believe that?

 

,

Edited January 27, 2011 by joekicker

[Samsonite 181]

Another icon goes down:

 

Following a weak fourth quarter earnings report and an even weaker outlook on profits for 2011, Boeing Co. (NYSE: BA) CEO Jim McNerney said on the company’s conference call that Boeing could replace its best-selling 737 aircraft, rather than update the plane. The new plane would be available in 2020. Does anyone believe that?

 

No. The final decision, one way or the other, hasn't been made.

 

"Jim McNerney, chairman and chief executive, said Boeing was "leaning" toward a 737 replacement rather than updating the plane with new engines..."

[joekicker 53]

"Jim McNerney, chairman and chief executive, said Boeing was "leaning" toward a 737 replacement rather than updating the plane with new engines..."

 

Yes, isn't that the worst of both worlds? I'm sure would-be plane buyers are thrilled to know that Boeing MIGHT make more 737s or MIGHT make a whole new airplane and throw 737s under the bus. Very clear. A visionary, decision-making company you feel very confident about doing business with.

 

.

[Samsonite 181]

Yes, isn't that the worst of both worlds? I'm sure would-be plane buyers are thrilled to know that Boeing MIGHT make more 737s or MIGHT make a whole new airplane and throw 737s under the bus. Very clear. A visionary, decision-making company you feel very confident about doing business with.

I just finished reading the latest press on the subject and it definitely looks like Boeing is leaning towards a "clean sheet" replacement for the 737, but not before 2020. It would appear their priorities, at the moment, are the 787-8, 787-9, 787-10 (a stretch of the -9), some enhancements to their already extremely successful 777-300ER and then, finally, a 737 replacement.

 

Boeing CEO Jim McNerney gave them an out with this statement, "... think what we're learning today about what our customers need and what technologies we have available to us, we are leaning toward development in the 2020 timeframe, but we're going to confirm that as we go through it this year, reserving the option - if we're wrong - as we go through the analysis to re-engine. But I don't think it's going to go that way."

Edited January 28, 2011 by Samsonite

[joekicker 53]

But I don't think it's going to go that way."

 

Or maybe it will.

 

Who cares, really? I'm a CEO and I get a $22 million handshake either way.

 

.

[BigDUSA 71]

Yes, isn't that the worst of both worlds? I'm sure would-be plane buyers are thrilled to know that Boeing MIGHT make more 737s or MIGHT make a whole new airplane and throw 737s under the bus. Very clear. A visionary, decision-making company you feel very confident about doing business with.

 

The ad slogan "new and improved" comes to mind. Companies world wide have moved billions of products based on that slogan.

[Yzi 72]

"sad and very late" would suit boeing 787 best.