Airbus eats crow after WTO deems Launch Aid to be illegal

The long running trade dispute between the European Union and the U.S. over illegal trade subsidies given to Airbus (called "Launch Aid") reached a significant milestone yesterday. The World Trade Organization (WTO) ruled that Launch Aid constituted an illegal subsidy, and must be stopped immediately within 90 days.  Launch Aid helped to fund most of Airbus' airplane programs, most notably the development of the super-jumbo A380.  That was deemed to be an illegal subsidy, although similar aid for the A350 (a direct competitor to Boeing's 787 and 777) was ruled to be a legal subsidy.  Check out the case scorecard link below for a list of Airbus programs and related infrastructure for which illegal subsidies were provided.  As to what this means now for the upcoming U.S. Air Force Tanker replacement contest remains to be seen, since Airbus' offering is based on a A330 platform (which was deemed to have received illegal subsidies during its development).  An expected decision on a countersuit against Boeing claiming that it also received illegal subsidies from state governments and the Pentagon is expected to come July 16th.

WTO Case Scorecard

News Link

Can 787 survive a crash landing?

Interesting read from the Seattle times that discusses the 787's survivability during a crash landing.  Because the 787 is comprised largely of composite materials (specifically carbon fiber infused with an epoxy resin), it won't behave like a traditional aluminum aircraft.  There was some initial concern that the 787 structure would shatter into pieces (like a ceramic bowl dropped on the ground) during a crash, whereas an aluminum airframe would bend but remain intact.  Currently the FAA is getting close to certifying the 787 Dreamliner as safe for air travel, so it appears Boeing has figured out how to make the aircraft crashworthy.  But there are some who still remain unconvinced...

News Link

Air China to purchase 20 737-800 aircraft

On Friday, June 25th, Air China announced that it would purchase 20 Next-Generation 737-800 aircraft for around $1.4 billion.  The aircraft will be delivered between 2013-2015, and will be used to help boost Air China's fleet capacity.

787 Dreamliner testing resumes

Last Sunday, June 27th, Boeing resumed flight testing on its 787 Dreamliners after a manufacturing flaw had been discovered on the horizontal tails of two aircraft.  This had led to the suspension of all Dreamliner flight testing while Boeing engineers inspected the problem on all finished and in-production aircraft.  Once the safety inspections were completed and passed, flight testing resumed with ZA003 returning to Seattle from Arizona (where it had remained grounded since June 22nd) while ZA002 completed a roundtrip from Boeing Field to Moses Lake in central Washington.  The horizontal tails are manufactured by 787 partner Alenia, which is based in Italy.

Boeing signs contracts with Russia for 737s & titanium

On Thursday, June 24th, Boeing signed several agreements with Russian-based companies: a 50 aircraft 737 Next-Generation order by Rostechnologii for modernizing the Russian government's aircraft fleet, a purchase agreement for titanium forgings and other supplies with VSMPO-AVISMA for the 787, 777, and 737, and a technology collaboration program between Boeing and its Russian partners called the Skolkovo project.

Boeing to bid on presidential helicopter fleet contract

Today Boeing will announce that they will throw their hat in the ring for the revived controversial presidential helicopter replacement program.  The first program had been thoroughly criticized by President Obama as a prime example of wasteful military spending and poor management, with the cost having doubled from $6 billion to around $13 billion.  In this new go-around, the Pentagon hopes to keep the price for 28 new helicopters firmly around $6-10 billion.  Boeing's plan is to purchase the rights to produce a version of the AW101 (a midsize helicopter) from AgustaWestland, a European company that had partnered with Lockheed Martin for the original contract.  Lockheed will actually reenter the contest again, although this time they will team up with Sikorsky and offer a helicopter based on Sikorsky's H-92 medium-lift aircraft.  Boeing will have a slight advantage since the AW101 had been chosen as the ideal platform during the original program, since it is larger than the Sikorsky craft and can carry more passengers with fewer modifications.  The new rotorcraft are not expected to be ferrying presidents and his/her aides before 2017.  They are also expected to have extra protective measures from terrorist threats, including chemical, biological, and nuclear attacks,

News Link

Boeing will unlikely produce 787-3 variant

Jim Albaugh, head of Boeing's Commercial Airplanes Division, was quoted as saying that he'd "be really surprised" if the 787-3 would ever be built.  The 787-3 was originally envisioned as a short-distance version of the Dreamliner, able to carry as much as 330 passengers to as far as 3,050 nautical miles.  In contrast, the 787-8 (which is currently in production) can carry up to 250 passengers to as far as 8,200 nautical miles.  Launch customer All Nippon Airways had originally placed an order for the -3 variant, but had recently changed it in favor of the -8.  This left the proposed 787-3 model with no firm orders and little to no interest from other potential customers.

News Link