Boeing posts 4Q net income of $1.3 billion

Even amidst an economic downturn where airlines were cash-strapped to purchase new aircraft, cut routes, and even park airplanes, and with a new administration seeking to curtail the unchecked defense budget of the past administration, Boeing still managed to post a modest gain during the fourth quarter of 2009.  Net income for 4Q 2009 totaled $1.3 billion, a significant change compared to last year's 4Q "loss" of $86 million.  Revenue in the 4Q also rose to $17.9 billion from $12.7 billion.  Total revenue for all of 2009 was $68.3 billion, compared to last year's total of $60.9 billion.  The official earnings report is provided in the link below.

Boeing 2009 Earings Report

Preview of Pentagon's 2011 Defense budget

Reuters was able to obtain a draft document for the D.O.D.'s fiscal 2011 defense budget, which will be officially released February 1st.  Here's how the new budget will affect Boeing:

* Termination of C-17 Globemaster III production line
* $2.5 billion in additional funding for EA-18G Growler
* At least five additional orders for F/A-18E/F fighter
* Additional orders for CH-47 Chinook to replace aircraft lost in battle
* Additional orders for AH-64 Apache to replace aircraft lost in battle
* Cancellation of Army's Future Combat Systems
* Scaling back on missile defense programs

News Link

747-8F completes final gauntlet test

Over the weekend, final gauntlet testing was completed on the first 747-8 Freighter.  Lasting approximately 40 hours, the 747 flight test team tested all of the aircraft's systems, hardware, and software.  This sets the stage for determining the airframe's readiness for first flight.

Ethiopan Airlines orders 737-800's

On Thursday, January 21, Ethiopian Airlines placed an order for ten 737-800 Next Generation aircraft.  The order is valued at around $767 million.  The airline's fleet consists solely of Boeing aircraft, which includes the 777-200LR and the highly anticipated 787.

Photo Credit / CC BY-NC-SA 2.0

40th anniversary of 747

Today marks the 40th anniversary of the 747's entry into commercial service.  Well, technically, it's not until tomorrow.  On January 22, 1970, at around 2AM EST, the first 747-100 (operated by Pan American World Airways), made its historic flight from New York to London carrying 362 passengers onboard.  40 years later, over 1,400 various models of 747 aircraft have been flown and are still continuing to fly with over 95 airlines.  It has performed roughly 17 million flights, flown around 42 billion nautical miles, and carried more than half of the world's air freight.  The legacy of the 747 will continue this year with the expected first flight of the 747-8 Freighter and the 747-8 Intercontinental (scheduled to fly in 2011).  Below is a little table I created which gives a brief history of the 747 family.

     Model             First Flight      In Service      Launch Customer
747-100/SR/B         2/9/69          1/21/70              Pan Am
747-200                10/11/70           6/71                   KLM
747-200F              11/30/71        4/19/72             Lufthansa
747-200C               3/23/73            5/73            World Airways
747SP                     7/4/75          4/25/76              Pan Am
747-200M             11/18/74         3/7/75              Air Canada
747-300M              2/14/83            3/83                 Swissair
747-300/SR           10/5/82          3/28/83              Swissair
747-400                 4/29/88           2/9/89             Northwest
747-400M              6/30/89            9/89                   KLM
747-400D               3/18/91           10/91          Japan Air Lines
747-400F                5/4/93         11/17/93             Cargolux
747-400ER             7/31/02         11/7/02               Qantas
747-400ERF              9/02              10/02              Air France
747-8F                     ??/10                ??                   Cargolux
747-8I                      ??/11                ??                  Lufthansa

Photo Credit / CC BY-NC-ND 2.0

Japan Airlines files for Bankruptcy

Today, Japan Airlines (Asia's biggest airline) filed for bankruptcy protection due to debts totaling more than $25 billion and years of mismanagement.  JAL's planes will keep flying however, thanks to a 600 billion Yen government bailout.  Much like the struggling car companies over here in the U.S., JAL will receive financial support from the Japanese government (a portion of the money will be provided courtesy of Japanese taxpayers, of course), along with cutting as much as a third of JAL's current workforce and slashing 1/5 of its international routes.  Looking to establish a foothold into Japan's highly lucrative but rigid aviation sector, Delta and American Airlines have offered equity and investments to the once-mighty carrier.  It'll be interesting to see what becomes of JAL once the complexities of the bankruptcy filing have been sorted out (JAL/Delta or JAL/American partnership, perhaps?).

News Link

Photo Credit / CC BY-NC-ND 2.0

India interested in Boeing tanker?

On Monday, India submitted a request for information from Boeing for a potential acquisition of 6 aerial refueling tankers.  My guess is that it will be some variant of the 767 Tanker that Boeing has already delivered to Italy and Japan.  India looks to be a cash cow for the major defense industries as the country continues to update its aging Air Force inventory.  In addition to the info request for the Tanker, they have also made preliminary moves into acquiring 10 Boeing C-17 Globemaster III airlifters.  They are also looking to purchase combat aircraft that could potentially be worth billions.  Already there are 6 companies (including Boeing) that are vying to capture this lucrative defense contract.

News Link

Boeing launches website for KC-X Tanker Contest

Boeing just recently launched a public website that will highlight issues regarding the U.S. Air Force's KC-X Tanker Replacement Competition.  It just got started, but I assume that it will be updated with any new developments regarding the competition (the Air Force is expected to release their final request for proposals soon) as well as Boeing's proposed entry into the competition, which will be based on a modified 767 aircraft.  There's a quick two minute video on the website talking about Boeing's proposed tanker.

The Real American Tankers

Boeing F-15 Silent Eagle makes steady progress

The prototype F-15 Silent Eagle, a variant of the venerable F-15E Strike Eagle fighter that has stealth components incorporated into its design, has been steadily making progress.  In August and September of 2009, F15E1 (a standard F-15E test aircraft loaned to Boeing by the U.S. Air Force) went through radar-cross-section (RCS) trials to ascertain its stealth characteristics.  Various coatings were applied on the aircraft in order to determine what would provide the desired RCS design numbers.  First flight is expected for July 2010.  Another test (slated to occur around July-August 2010) will demonstrate the Silent Eagle's ability of safely firing an air-to-air missile from the conformal fuel tanks.  These conformal tanks are unique in that they can be outfitted with weapons bays for carrying missiles and air-to-ground weapons.  In other words, the aircraft can carry its weapons internally within the tanks instead of externally on weapons pylons under the wing, thus significantly reducing the aircraft's RCS.  This is similar to the F-22 Raptor and its ability to store its weapons within the fuselage.  Potential customers for the F-15 Silent Eagle include current F-15 operators who are looking to replace their fleet of older F-15's as well as those looking for a less expensive alternative to an all-stealth fighter like the F-35 Joint Strike Fighter.  Such countries include South Korea, Israel, Singapore, and Saudi Arabia.

News Link

747-8 ready to begin flight testing

It looks like the 747-8 flight test program is ready to begin flight testing sometime in late January.  Two of the flight test aircraft (RC521 & RC501) are now on the flight line and are being subjected to rigorous system checks and "flight-line gauntlet" trials.  Once these are complete, the path will be clear for the 747-8's inaugural first flight.  There is a 3rd test aircraft (RC522), which is currently undergoing design verification tests of the lower lobe and main deck cargo doors.

787 Dreamliner achives Initial Airworthiness

Today the 787 Dreamliner passed a significant milestone when it completed initial airworthiness testing.  This means that additional members from the flight test crew will be allowed onboard the aircraft during flight tests.  It also means that more aircraft can now take part in the flight test program, which is what Boeing intends to do with the four additional 787's it has in various stages of production.  They will go alongside the 2 existing 787's (ZA001 & ZA002) that are already performing flight tests.  The flight test program has already completed 15 flights with a total flight time of 60 hours.  They have taken the 787 to an altitude of 30,000 ft. and a speed of Mach 0.65.  Future tests will involve taking the 787 to an altitude and speed of 40,000 ft. and Mach 0.85, respectively.  And even further down the road will be tests that will take the aircraft to well beyond its expected operating conditions.

News Link

4th 747 Dreamlifter makes inagural flight

Today in Taipei, Taiwan, the 4th & final Dreamlifter successfully completed its inaugural flight, with a total flight time of 3 hours, 39 minutes.  The Dreamlifter is a specially modified 747-400 and is used for transport of the large composite barrel sections of the Dreamliner.  The modification of the 747-400 was performed at Evergreen Aviation Technologies Corp. in Taipei.  The 4th Dreamlifter aircraft is expected to enter service in February 2010.

Photo Credit / CC BY-NC-ND 2.0

2nd 787 returns to Everett to clear debris in fuel tank

The 2nd Dreamliner to ever take the skies (ZA002) flew back to Everett yesterday after debris was discovered inside its fuel tanks.  Flight testing for this aircraft cannot resume until the tanks are cleared of the foreign particulate matter.  This return flight to Everett is only the aircraft's 2nd flight since its inaugural first flight on Dec. 22nd.  In contrast, the 1st Dreamliner (ZA001) has been performing continuous around-the-clock flight testing.  This is not the only hiccup that has affected ZA002.  During its first flight, the support strut for the landing gear did not deploy properly, so the aircraft had to land with the landing gear doors wide open.  But neither the fuel tank debris or the landing gear issue was the reason why ZA002 has remained on the ground.  Rather, the plan was to intentionally keep the aircraft grounded so it can undergo ground tests as well as have new instrumentation installed.

News Link

C-17's bring relief supplies and volunteers to Haiti

In the aftermath of the recent 7.0 magnitude earthquake that devastated Haiti on January 12th, the U.S. Air Force Air Mobility Command has deployed Boeing C-17's to the Caribbean island to help bring relief supplies and humanitarian aid workers.  In addition, Boeing is donating $50,000 to the worldwide relief efforts.  If you would like to donate, CNN has compiled a links list of organizations who are currently assisting in relief efforts.  I believe these organizations are highly reputable, and you can be rest-assured that your donation will go to where it's needed most.

News Link

Organizations for Haiti Relief

Can't be in front of a computer?  Have a cell phone that can text?  Then simply text the word Haiti to the number 90999.  You'll automatically donate $10 to Red Cross Haiti Relief efforts.  The $10 will be applied on your next cell phone bill.  Simple and easy, plus it'll make you feel all good inside.

Boeing delivers 4th KC-767 Tanker to Japan

Last Friday, Boeing handed over the 4th & final KC-767 Tanker to the Japan Ministry of Defense, on schedule and within budget.  The first three tankers were delivered in February 2008, March 2008, and March 2009.  The KC-767 Tanker for the Japan Air Self-Defense Force, based on the 767-200ER platform, is a convertible freighter variant, meaning that it can carry cargo or passengers along with its primary role as an aerial refueling tanker.  The KC-767 Tanker Japanese tanker is slightly different than the proposed KC-767 tanker being offered by Boeing for the U.S. Air Force's Tanker Replacement program.

News Link

Photo Credit / CC BY-NC-SA 2.0

Airbus A400M project in jeopardy

According to Thomas Enders, CEO of Airbus, there is a 50-50 chance that the A400 military transporter may be scrapped unless the European nations that placed orders for the aircraft (Britain, France, Germany, Spain, Luxembourg, Belgium, & Turkey) agree to share the cost of several billion euros in additional development costs.  The 7 nations have until a self-imposed deadline of January 31st to come to a decision on the additional financing and a new delivery schedule for the A400M.  If the project is abandoned, as much as 40,000 jobs in Europe could be affected, a significant economic impact which I am certain is being thoroughly considered by the 7 countries, especially amidst the global economic crisis.  But one man's loss is another man's gain: if the A400M is indeed canceled, then Europe could potentially turn to alternative aircraft (Boeing's C-17 Globemaster III perhaps) to replace their aging transport fleet.

News Link

787 Dreamliner family

I thought I'd take a couple minutes and list the differences between the various models of the Dreamliner family.  Not listed is the 787-10 model, which would effectively have been a replacement for Boeing's 777 family.  Boeing is mulling over whether or not to bring the 787-10 to market, and has also recently reconsidered the market viability of the 787-3.

787-3
Seating:  290~330 passengers
Range:  2,500~3,050 nautical miles
Cross Section:  226 in.
Wing Span:  170 ft.
Length:  186 ft.
Height:  56 ft.
Cruise Speed:  Mach 0.85
Max Takeoff Weight:  364,000 lbs.
Total Cargo Volume:  4,400 cu. ft.

787-8
Seating:  210~250 passengers
Range:  7,650~8,200 nautical miles
Cross Section:  226 in.
Wing Span:  197 ft.
Length:  186 ft.
Height:  56 ft.
Cruise Speed:  Mach 0.85
Max Takeoff Weight:  484,000 lbs.
Total Cargo Volume:  4,400 cu. ft.

787-9
Seating:  250~290 passengers
Range:  8,000~8,500 nautical miles
Cross Section:  226 in.
Wing Span:  208 ft.
Length:  206 ft.
Height:  56 ft.
Cruise Speed:  Mach 0.85
Max Takeoff Weight:  540,000 lbs.
Total Cargo Volume:  5,400 cu. ft.

Boeing reconsiders "market viability" of 787-3

The 787-3 was to be a short-range derivative of the Dreamliner platform, and would be able to carry between 290-330 passengers.  Originally, the only two customers who ordered the 787-3 were All Nippon Airways with 28 orders and Japan Airlines with 13 orders.  JAL had converted its 787-3 orders to the standard and longer range 787-8 model, which can seat roughly 250 passengers.  But now ANA has also decided to convert its 787-3 orders to the 787-8.  With the 787-3 having no customers, Boeing is reconsidering the market demand for that aircraft, which could mean scrapping the aircraft altogether.

News Link

Boeing IDS to be reshuffled and renamed BDS

The defense side of Boeing, known as Integrated Defense Systems (IDS) will be undergoing organizational and operational changes in order to reposition itself to capture new revenue streams.  The new unit will be renamed Boeing Defense, Space & Security (BDS).  The changes were announced by Dennis Muilenberg, president and CEO of the new BDS unit, at a Boeing Leadership meeting in Indian Wells, CA.  This is a response to the fact that defense budgets will either level off or more likely shrink in the coming years because of the new administration's shifting priorities.  As such, Boeing will have to transform itself from being just a conventional defense unit providing military aircraft and weaponry.  Some of the new markets Boeing hopes to capture with this realignment include: cyber security, unmanned systems, energy, intelligence, C4ISR, and logistics.

News Link

Boeing's 2009 orders & deliveries final numbers

Here are the numbers for Boeing's Commercial Airplane Division:

          Gross Orders          Net Orders          Deliveries          Backlog
737           197                       178                     372               2,076
747             5                           2                        8                  108
767             7                           2                       13                  59
777            30                         19                       88                 281
787            24                        -59                       --                  851

Once again, the 737 was the big money-maker for Boeing, in terms of both deliveries and orders, with the twin-aisle 777 coming in 2nd.  I was surprised to see some 767 numbers in here.  This is probably for those airlines who obtained a 767 as a stopgap solution until they can get their hands on the 787.  Just a quick note: the net orders column takes into account order cancellations, with the 787 taking the biggest hit (though I believe this is attributable to the weakened global economy and cash-strapped airlines rather than any negative impression of the aircraft itself).  The final analysis?  2009 was definitely a challenging year for Boeing's commercial division.  Hopefully 2010 will be much better, especially with little signs here and there indicating that the global economy is improving (albeit slowly) and the expected delivery of both the 787 and 747-8 in the 4th quarter.  We'll see what the future holds, but right now I expect 2010 to be a rebound year for Boeing.  The stock price seems to agree with me on this conclusion.  Here are some more noteworthy points below for 2009:

* 481 aircraft delivered (met company goal of 480-485 deliveries)
* Aircraft backlog of 3,375
* 263 gross and 142 net commercial orders
* 3,000th delivery of Next-Generation 737
* First 777 Freighter delivered to launch customer Air France
* 1,400th delivery of 747
* 40th anniversary of 747 family
* First flight of 787 Dreamliner on Dec. 15th
* First delivery of 787 in 4th quarter 2010
* First delivery of 747-8 Freighter in 4th quarter 2010
* First delivery of 747-8 Intercontinental in 4th quarter 2011

Boeing Orders and Deliveries Website

India submits request for C-17's

Good gravy.  It seems as if the international community just can't get enough of the C-17 Globemaster III.  Following on the heels of the U.A.E.'s purchase of the venerable cargo airlifter, India's Ministry of Defence (MOD) has submitted a request to the U.S. government for the acquisition of 10 C-17's.  The C-17's will eventually replace the Indian Air Force's airlift fleet of Russian AN-32 and IL-76 aircraft.  Last year at Aero India 2009, the C-17 performed demonstration flights for members of the MOD and the Indian Air Force.  It appears that they were quite impressed by the capabilities of the C-17 during those flights, enough so that they've decided to acquire them.

News Link

U.A.E. C-17 purchase a done deal!

The U.A.E.'s bid to modernize its strategic airlift capabilities became official today when it was announced that they had signed a contract with Boeing for the purchase of 6 C-17 Globemaster III cargo aircraft (earlier I had posted that only 4 would be purchased).  4 of the C-17's will be delivered in 2011, and the remaining two in 2012.  The contract also includes provisions for support and maintenance of the U.A.E.'s new C-17 fleet.  The U.A.E. joins a family of international customers who currently operate the C-17, which includes Qatar, the UK, Canada, Australia, and NATO.

News Link

News Link 2

Photo Credit / CC BY-ND 2.0

UAE to purchase four C-17's???

The D.O.D. last week notified Congress about a planned purchase of 4 C-17 Globemaster III cargo aircraft by the United Arab Emirates.  The contract will be worth around $500 million.  The U.A.E. plans to use these C-17's for its own domestic needs as well as to provide support for NATO operations in Afghanistan.  This is great news for the C-17 production line if these international purchases can help to pad their order book.

News Link

U.S. Air Force places order for C-40C

The U.S. Air Force has agreed to purchase a C-40C aircraft from Boeing.  The contract is valued at $89.6 million.  Based on the Next Generation 737 platform, the C-40C is primarily used to transport Congressional delegations, but is also used for transport of domestic and foreign government dignitaries.  Congress just better not use this new plane for "business" trips to Las Vegas or Tahiti.

Photo Credit / CC BY-NC-ND 2.0

DIRECTV 12 satellite alive and healthy

On Dec. 28th at 4:22 pm, at the Baikonur Cosmodrome in Kazakhstan, a Boeing 702 commercial satellite (DIRECTV 12), made a successful launch on-board a Proton Breeze M rocket.  Nine hours later, the satellite began transmitting its first signals to ground-based stations.  After on-orbit testing is completed, control of the satellite will be handed over to DIRECTV, which is scheduled for sometime around early 2010.  DIRECTV 12 will be used to expand DIRECTV's HDTV programming to customers in the U.S., Alaska, and Hawaii.  Can't go wrong with more HD programming, especially when you combine HD with NFL Sunday Ticket and NBA League Pass.  Ultimate sweetness!  DIRECTV 12 is the 10th satellite that Boeing has built for the popular satellite dish provider, and the 22nd Boeing 702 satellite to fly in space.

News Link

Air Austral orders two 737-800's

Air Austral, based on the French Island of St. Denis, Reunion, has placed an order for two Next Generation 737-800 aircraft.  The two aircraft will replace a pair of 737 Classic aircraft in Air Austral's fleet.  The order is worth about $152 million at list prices.

News Link

Photo Credit / CC BY-NC-SA 2.0