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?).

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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