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Name: BOEING
7JetSet7 Code: TBC
Status: Operational
Region: NORTH AMERICA
City: SEATTLE
Country: USA
Employees 100500
Web: boeing.com
Email:
Telephone: +1 (206) 655-2121
Fax:
Sita:
Background
(definitions)

Click below for data links:
TBC-1958-10 - PAN AM 707
TBC-1959-02 - QAN 707-138
TBC-1959-04 - 707 INTERCONTINENTAL
TBC-2007-01 2006 JET ORDERS
TBC-2008-04 ORDERS-A
TBC-2008-04 ORDERS-B
TBC-2008-08 MPL PILOTS
TBC-2008-11 APL VALUES
TBC-2009-01 2008 DELIVERIES
TBC-2009-01 2008 DELIVERIES
TBC-2009-01 2009 ORDERS
TBC-2009-012008 SALES
TBC-2009-08 NEW CFM56-7B
TBC-2009-11 CHINA RUSSIA JET APL S-A
TBC-2009-11 CHINA RUSSIAN JET APLS-B
TBC-2009-11 Everett Assy
TBC-2009-11 JET APL CARGO CONVERSIONS-A
TBC-2009-11 JET APL CARGO CONVERSIONS-B
TBC-2009-11 JET APL CARGO CONVERSIONS-C
TBC-2009-11 JET APL CARGO CONVERSIONS-D
TBC-2009-11 NARROW BODY JET APL SPECS-A
TBC-2009-11 NARROW BODY JET APL SPECS-B
TBC-2009-11 NEXT-GEN WIDE BODY JET APL SPECS-A
TBC-2009-11 NEXT-GEN WIDE BODY JET APL SPECS-B
TBC-2009-11 RUSSIAN JET APLS
TBC-2009-11 SC ASSY-A
TBC-2009-11 ULTRA WIDE BODY JET APLS-A
TBC-2009-11 ULTRA WIDE BODY JET APLS-B
TBC-2009-11 WIDE BODY JET APL SPECS-A
TBC-2009-11 WIDE BODY JET APL SPECS-B
TBC-2009-12 747-8I KAL Order
TBC-2009-12 787 CHIEF TEST PILOT
TBC-2009-12 787 CHMN COMMENT
TBC-2009-12 787 NEWS-A
TBC-2009-12 787 NEWS-B
TBC-2009-12 787 T O-A
TBC-2009-12 787 T O-B
TBC-2009-12 787 T O-C
TBC-2009-12 787 T O-D
TBC-2009-12 787 T O-E
TBC-2009-12 787 TEAM
TBC-2009-12 787 WA APL
TBC-2009-12 EFB
TBC-2009-12 SOUTH CAROLINA-A
TBC-2009-12 SOUTH CAROLINA-B
TBC-2010-01 2009 APLS DLVRY
TBC-2010-01 747-A
TBC-2010-01 747-B
TBC-2010-01 747-C
TBC-2010-01 747-D
TBC-2010-01 747-E
TBC-2010-01 747-F
TBC-2010-01 747-G
TBC-2010-01 747-H
TBC-2010-01 747-I
TBC-2010-01 747-J
TBC-2010-01 747-K
TBC-2010-01 747-L
TBC-2010-01 747-M
TBC-2010-01 747-N
TBC-2010-01 747-O
TBC-2010-01 787
TBC-2010-01 787-A
TBC-2010-01 787-B
TBC-2010-01 787-C
TBC-2010-01 787-D
TBC-2010-01 787-E
TBC-2010-01 SC PLANT FINANCE
TBC-2010-02 747-8F-A
TBC-2010-02 747-8F-B
TBC-2010-02 747-8F-C
TBC-2010-02 747-8F-D
TBC-2010-02 747-8F-E
TBC-2010-02 747-8F-F
TBC-2010-06-PILOT NEEDS-A
TBC-2010-06-PILOT NEEDS-B
TBC-2011-01-2010 EDS VS TBC
TBC-2011-01-ETH MEDICAL DONATION
TBC-2011-02-A
TBC-2011-02-B
TBC-2011-02-C
TBC-2011-02-WORLD APL LEASING-A
TBC-2011-02-WORLD APL LEASING-B
TBC-2011-02-WORLD APL LEASING-C
TBC-2011-02-WORLD APL LEASING-D
TBC-2011-02-WORLD APL LEASING-E
TBC-2011-02-WORLD APL LEASING-F
TBC-2011-02-WORLD APL LEASING-G
TBC-2011-03 - 747-8I 1ST FLT - MT BAKER
TBC-2011-03-CHAIRMANS MESSAGE
TBC-2011-05-747-8I-1ST FLT
TBC-2011-07-RE ENGINE 737-A
TBC-2011-07-RE ENGINE 737-B
TBC-2011-07-RE ENGINE 737-C
TBC-2011-07-RECORD ORDER-A
TBC-2011-07-RECORD ORDER-B
TBC-2011-07-RECORD ORDER-C
TBC-2011-07-RECORD ORDER-D
TBC-2011-08-1ST ANA 787 ROLLED OUT
TBC-2011-08-STEPHEN UDVAR-HAZY QUOTE
TBC-2011-08-T O-OK
TBC-2011-09-787 DELIVERY
TBC-2011-09-ANA 787 DELIVERY
TBC-2011-10 787 DELIVERY - A
TBC-2011-10 787 DELIVERY - B
TBC-2011-10 787 DELIVERY - C
TBC-2011-10 787 DELIVERY - D
TBC-2011-10-ANA 787 DELIVERY
TBC-2011-11 - BIGGEST AND BIGGER
TBC-2011-11 - LION AIR 737 ORDER
TBC-2011-11- LARGEST ORDERS - A
TBC-2011-11-LARGEST ORDERS - B
TBC-2011-11-RECORD 777 ORDER
TBC-2011-12 - 737 MAX -A
TBC-2011-12 - 737 MAX -B
TBC-2012-01 COMPANY REPORT 2011
TBC-2012-01-BOEING VS AIRBUS-A
TBC-2012-01-BOEING VS AIRBUS-B
TBC-2012-01-RECORD JET ORDER A
TBC-2012-01-RECORD JET ORDER B
TBC-2012-02-777-300ER INTERIOR-A
TBC-2012-02-PRESIDENTS VISIT
TBC-2012-03 737 MAX WINGLET
TBC-2012-03 - 1000TH 777-A
TBC-2012-03-1000TH 777
TBC-2012-03-A - JAL 787 DELIVERY
TBC-2012-03-B - JAL 787 DELIVERY
TBC-2012-03-C - JAL 787 DELIVERY
TBC-2012-03-D - JAL 787 DELIVERY
TBC-2012-03-E-COMAC AGREEMENT
TBC-2012-04-777-FUTURE - A
TBC-2012-04-777-FUTURE - B
TBC-2012-04-777-FUTURE - C
TBC-2012-04-777-FUTURE - D
TBC-2012-04-777-FUTURE - E
TBC-2012-05 747-8I
TBC-2012-05 747-8I-A
TBC-2012-05 747-8I-B
TBC-2012-05 747-8I-C
TBC-2012-08 ETHIOPIAN 787 DELIVERY
TBC-2012-12 - YEARS ORDERS AND DELIVERIES
TBC-2013-01 - 787 GROUNDED-A
TBC-2013-01 - 787 GROUNDED-B
TBC-2013-01 - 787 GROUNDED-C
TBC-2013-01 - 787 GROUNDED-D
TBC-2013-01 - 787 GROUNDED-E
TBC-2013-01 - 787 GROUNDED-F
TBC-2013-01 - 787 GROUNDED-G
TBC-2013-01 - 787 GROUNDED-H
TBC-2013-01 - 787 GROUNDED-I
TBC-2013-01 - 787 GROUNDED-J
TBC-2013-01 - 787 GROUNDED-K
TBC-2013-03 - 787 OK-A
TBC-2013-03 - RYR 737 ORDER-A
TBC-2013-03 - RYR-737 ORDER-B
TBC-2013-04 - NEW DELIVERY CTR
TBC-2013-05 - 777-300ER ORDER MAP
TBC-2013-05 - 777X PROGRESS-A
TBC-2013-05 - 777X PROGRESS-B
TBC-2013-05 - 777X UPDATE
TBC-2013-05 - BOEING 787 FLIGHT TRACKER
TBC-2013-06 - 787-10 LAUNCH
TBC-2013-06 - AIRPLANE DELIVERIES
TBC-2013-08 - 747-8 OPERATORS
TBC-2013-08 - 787-9 ROLLOUT
TBC-2013-09 - 1ST 787-9 FLIGHT-A
TBC-2013-09 - 1ST 787-9 FLIGHT-B
TBC-2013-10 - 737 MAX 7 8 9
TBC-2013-11 - 3RD 787-9 TEST FLIGHT
TBC-2013-11 - 777-X GAMBLE
TBC-2013-11 - 777X LAUNCH
TBC-2014-01 - 2013 DELIVERY RECORD-A
TBC-2014-01 - 2013 DELIVERY RECORD-B
TBC-2014-01 - 2013 DELIVERY RECORD-C
TBC-2014-01 - BIGGEST 2014 NEWS
TBC-2014-01 - GO SEAHAWKS-A
TBC-2014-01 - GO SEAHAWKS-B
TBC-2014-01 - GO SEAHAWKS-C
TBC-2014-01 - GO SEAHAWKS-D
TBC-2014-01 747-8 FLY BY
TBC-2014-02 - 1ST SLK 737-800
TBC-2014-02-777X WING-A
TBC-2014-02-777X WING-B
TBC-2014-04-ANZ 787-9 ROLLOUT
TBC-2014-04-CUSTOMER SUPPORT CRISIS-A
TBC-2014-04-CUSTOMER SUPPORT CRISIS-B
TBC-2014-04-CUSTOMER SUPPORT CRISIS-C
TBC-2014-04-CUSTOMER SUPPORT CRISIS-D
TBC-2014-04-ENGINEERING CRISIS-A
TBC-2014-04-ENGINEERING CRISIS-B
TBC-2014-04-ENGINEERING CRISIS-C
TBC-2014-04-ENGINEERING CRISIS-D
TBC-2014-05-EVERETT WIDE-BODY CAPITAL
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-A
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-B
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-C
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-D
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-E
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-F
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-G
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-H
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-I
TBC-2014-05-EVERETT WIDE-BODY CAPITAL-J
TBC-2014-06-NTSB ASIANA 777 CRASH-A
TBC-2014-06-NTSB ASIANA 777 CRASH-B
TBC-2014-07 - 787-10 TO NORTH CHARLESTON-A
TBC-2014-07 - 787-10 TO NORTH CHARLESTON-B
TBC-2014-07 - BOEING EDGE
TBC-2014-07-737 MAX 8 200 SEATSseats
TBC-2014-07-BOEING AHM CHECK UP
TBC-2014-07-FARNBOROUGH-A
TBC-2014-07-FARNBOROUGH-B
TBC-2014-07-FARNBOROUGH-C
TBC-2014-07-FARNBOROUGH-D
TBC-2014-09 - 2,000 DEFENSE JOBS EXODUS-A
TBC-2014-09 - 2,000 DEFENSE JOBS EXODUS-B
TBC-2014-09 - 2,000 DEFENSE JOBS EXODUS-C
TBC-2014-09 - 2,000 DEFENSE JOBS EXODUS-D
TBC-2014-09 - 737 MAX 200 ORDER-A
TBC-2014-09 - 737-MAX 200 ORDER-B
TBC-2014-09 - 737-MAX 200 ORDER-C
TBC-2014-09 - 747-8F GOOD NEWS
TBC-2014-09 - JET AIRPLANE REVENUE
TBC-2014-09 - JET AIRPLANE REVENUE GROWTH
TBC-2014-09 - SPACE TRAVEL-A
TBC-2014-09 - SPACE TRAVEL-B
TBC-2014-09 - SPACE TRAVEL-C
TBC-2014-09 - UPDATE TOP 100 AEROSPACE REPORT
TBC-2014-09 - UPDATE TOP 100 AEROSPACE-A
TBC-2014-09 - UPDATE TOP 100 AEROSPACE-B
TBC-2014-09 - UPDATE TOP 100 AEROSPACE-CTOP
TBC-2014-10 - 737 RAMP UP-A
TBC-2014-10 - 737 RAMP UP-B
TBC-2014-10 - 737 RAMP UP-C
TBC-2014-10 - ASA 737-900ER ORDER-A
TBC-2014-10 - ASA 737-900ER ORDER-B
TBC-2014-10 - MD-11 FAREWELL-A
TBC-2014-10 - MD-11 FAREWELL-B
TBC-2014-10 - MD-11 FAREWELL-C
TBC-2014-10 - MD-11 FAREWELL-D
TBC-2014-10 - MD-11 FAREWELL-E
TBC-2014-10 - MD-11 FAREWELL-F
TBC-2014-10 - MD-11 FAREWELL-G
TBC-2014-10 - MD-11 FAREWELL-H
TBC-2014-10 - MD-11 FAREWELL-I
TBC-2014-10 - MD-11 FAREWELL-J
TBC-2014-10 - MD-11 FAREWELL-K
TBC-2014-10 - MD-11 FAREWELL-L
TBC-2014-10 - PANASONIC LOW PROFILE ANTENNA
TBC-2014-10 - USF KC-46 (767-200ER) TANKER UPDATE-A
TBC-2014-10 - USF KC-46 TANKER UPDATE-A
TBC-2014-10 - USF KC-46 TANKER UPDATE-B
TBC-2014-11 - DAL AIRBUS ORDER-A
TBC-2014-11 - DAL AIRBUS ORDER-B
TBC-2014-11 - DAL AIRBUS ORDER-C
TBC-2014-12-ECODEMONSTRATOR 757 AND 787 TEST
TBC-2015-01 - 2014 JET RECORDS-A
TBC-2015-01 - 2014 JET RECORDS-B
TBC-2015-01 - 2014 JET RECORDS-C
TBC-2015-01 - 2014 JET RECORDS-D
TBC-2015-01 - 2014 JET RECORDS-E
TBC-2015-01 - 2014 RECORD PROFITS-B
TBC-2015-01 - 2014 RECORD PROFITS-C
TBC-2015-01 - 2014 WASHINGTON STATE JOBS
TBC-2015-01 - STOCK 2014 AND AIRFORCE 1-A
TBC-2015-01 - STOCK 2014 AND AIRFORCE 1-B
TBC-2015-01 - STOCK 2014 AND AIRFORCE 1-C
TBC-2015-02 - 777 LINE
TBC-2015-02 - 787 ELECTRONIC LOGBOOK INTRO
TBC-2015-02 - STEALTH BOMBER-A
TBC-2015-02 - STEALTH BOMBER-B
TBC-2015-02 - STEALTH BOMBER-C
TBC-2015-03 - 9th GPS IIF IN ORBIT.jpg
TBC-2015-03 - JET AVIATION STATUS-A.jpg
TBC-2015-03 - JET AVIATION STATUS-B.jpg
TBC-2015-04 - 737 Plant Retool-A.jpg
TBC-2015-04 - 737 Plant Retool-B.jpg
TBC-2015-04 - 737 Plant Retool-C.jpg
TBC-2015-04 - 737 Plant Retool-D.jpg
TBC-2015-04 - 737 Plant Retool-E.jpg
TBC-2015-04 - 737 Plant Retool-F.jpg
TBC-2015-04 - 737 Plant Retool-G.jpg
TBC-2015-04 - 737 Plant Retool-H.jpg
TBC-2015-05 - Post Certification Mission.jpg
TBC-2015-06 - 737 MAX Assy Start-A.jpg
TBC-2015-06 - 737 MAX Assy Start-B.jpg
TBC-2015-06 - 777 to 777X Transition-A.jpg
TBC-2015-06 - 777 to 777X Transition-B.jpg
TBC-2015-06 - 777 to 777X Transition-C.jpg
TBC-2015-06 - 777 to 777X Transition-D.jpg
TBC-2015-06 - AerCap 100 737 MAX - A.jpg
TBC-2015-06 - AerCap 100 737 MAX - B.jpg
TBC-2015-06 - Boeing CEO Appointment.jpg
TBC-2015-07 - 747 Seahawks-A.jpg
TBC-2015-07 - 747 Seahawks-B.jpg
TBC-2015-07 - 747 Seahawks-C.jpg
TBC-2015-07 - 747 Seahawks-D.jpg
TBC-2015-07 - VIE 787-9 Near Washington DC.jpg
TBC-2015-07 - XS-1 Hypersonic Spcecraft.jpg
TBC-2015-08 - 1st 727 Last Flight.jpg
TBC-2015-08 - ETH 787 Fire Report-A.jpg
TBC-2015-08 - ETH 787 Fire Report-B.jpg
TBC-2015-09 - 1st KC-46A Tanker Flight.jpg
TBC-2015-09 - 737 MAX Final Assembly-A.jpg
TBC-2015-09 - 737 MAX Final Assembly-B.jpg
TBC-2015-09 - 737 MAX Final Assembly-C.jpg
TBC-2015-09 - 737 MAX Final Assembly-D.jpg
TBC-2015-09 - 767 Work Increase-A.jpg
TBC-2015-09 - 767 Work Increase-B.jpg
TBC-2015-09 - 777X Contract-A.jpg
TBC-2015-09 - 777X Contract-B.jpg
TBC-2015-09 - ANA R2-D2 787-9-A.jpg
TBC-2015-09 - ANA R2-D2 787-9-B.jpg
TBC-2015-09 - ANA R2-D2 787-9-C.jpg
TBC-2015-09 - ANA R2-D2 787-9-D.jpg
TBC-2015-09 - ANA Star Wars 767 777 787.jpg
TBC-2015-09 - Cathay 70th 777.jpg
TBC-2015-09 - CHINA 737 Center-A.jpg
TBC-2015-09 - CHINA 737 Center-B.jpg
TBC-2015-09 - CHINA 737 Center-C.jpg
TBC-2015-09 - Chinese President Boeing Visit.jpg
TBC-2015-12 - 100th 787 at S Carolina.jpg
TBC-2015-12 - 737 Max 8 Rollout.jpg
TBC-2015-12 - 737 MAX 8 Rollout.jpg
TBC-2015-12 - Biofuel at Sea-Tac-A.jpg
TBC-2015-12 - Biofuel at Sea-Tac-B.jpg
TBC-2015-Performance -A.jpg
TBC-2015-Performance -B.jpg
TBC-2015-Yr - Boeing vs Airbus-A.jpg
TBC-2015-Yr - Boeing vs Airbus-B.jpg
TBC-2016-01 - 737 MAX 1st Flight-A.jpg
TBC-2016-01 - 737 MAX 1st Flight-B.jpg
TBC-2016-01 - 737 MAX 8 1st Flight.jpg
TBC-2016-01 - Gloomy Outlook-A.jpg
TBC-2016-01 - Gloomy Outlook-B.jpg
TBC-2016-01 -SPEEA Kumbaya.jpg
TBC-2016-02 - 1st Presidential 787.jpg
TBC-2016-02 - 787 Assembly Everett.jpg
TBC-2016-03 - 787-10 Japan Start.jpg
TBC-2016-03 - Executive Moves-A.jpg
TBC-2016-03 - Executive Moves-B.jpg
TBC-2016-04 - 787 Engine AD-A.jpg
TBC-2016-04 - 787 Engine AD-B.jpg
TBC-2016-04 - 787 Engine AD-C.jpg
TBC-2016-04 - Financial Status-A.jpg
TBC-2016-04 - Financial Status-B.jpg
TBC-2016-04 - LIFT 737 MAX Seating.jpg
TBC-2016-05 - 777 Demolition.jpg
TBC-2016-05 - 777X Composite Wing Center Open.jpg
TBC-2016-05 - Tax Break Savings.jpg
TBC-2016-05 - Time to Visit England UK.jpg
TBC-2016-07 - 100 Years-A.jpg
TBC-2016-07 - 100 Years-B.jpg
TBC-2016-07 - Boeing 100 Years Strong.jpg
TBC-2016-07 - Boeing Founders Day Centennial.jpg
TBC-2016-07 - Centennial 7s-A.jpg
TBC-2016-07 - Centennial 7s-B.jpg
TBC-2016-09 - 1st P-8 - X.jpg
TBC-2016-09 - 1st P-8 - Z.jpg
TBC-2016-09 - 777X Touchscreen.jpg
TBC-2016-09 - Boeing 100-A.jpg
TBC-2016-09 - Boeing 100-B.jpg
TBC-2016-09 - Boeing 100-C.jpg
TBC-2016-09 - Happy 747 Anniversary.jpg
TBC-2016-10 - 1st 787-10 N Charleston.jpg
TBC-2016-12 - 787 Parts Source.jpg
TBC-2017-01 - ABS 2A 702 satellite.jpg
TBC-2017-01 - S Carolina Facility.jpg
TBC-2017-03 737-9 Rollout.jpg
TBC-737 MAX 9 - 1st Flight.jpg
TBC-777X Flight Deck - 2017-11-A.jpg
TBC-777X Flight Deck - 2017-11-B.jpg
TBC-LOGO 2012-04

Jet airplane manufacturer.

Address:
P O Box 3707
Seattle, WA 98124-2207, USA

USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.

OCTOBER 1958: SPECIALLY TRAINED FOR SERVICE ON JETS WERE PAN AMERICAN WORLD AIRWAYS FLIGHT ATTENDANTS (CA) WHO POSED WITH 1 OF THE 5 ORIGINAL BOEING 707S DELIVERED TO PAN AM IN 1958. POWERED BY PRATT & WHITNEY (PRW) (JT3-C6) ENGINES, THE PAN AM 707 INAUGURATED REGULAR SCHEDULED SERVICE ON OCTOBER 26TH, 1958 (SERVICE THAT CONTINUED UNINTERRUPTED ACROSS THE ATLANTIC TO SUCH DESTINATIONS AS PARIS, LONDON, AND ROME). AT THAT TIME PAN AM JETLINERS FLEW TO SOME 93 USA AND INTERNATIONAL DESTINATIONS AROUND THE WORLD.

SEE ATTACHED - - "TBC-1958-10 - PAN AM 707."

FEBRUARY 1959: AIR TRANSPORT WORLD (ATW) READER, DAVID GREGOR SENT THIS GREAT SHOT OF THE ROLL OUT OF QANTAS 707-138 (VH-EBA) IN FEBRUARY 1959. AT THIS TIME IT WAS 1 OF 3 707-138S STILL AROUND. READER DAVID GREGOR BEGAN AS AN ENGINEER (MT) AT QANTAS IN JANUARY 1964, 6 MONTHS BEFORE THE LAST 2 707-138S WERE DELIVERED. HE WAS PART OF THE RESTORATION TEAM. THE AIRPLANE WAS RESTORED IN ENGLAND, UK, AND IN 2006 IT WAS FLOWN TO SYDNEY VIA THE USA. AT THAT TIME, IT WAS THE OLDEST AIRWORTHY COMMERCIAL JET. IT NOW RESIDES AT THE QANTAS (QAN) FOUNDER MUSEUM AT LONGREACH, QUEENSLAND, AUSTRALIA.

QANTAS (QAN) WAS THE 1ST AIRLINE OUTSIDE OF THE USA TO BUY THE BOEING 707, AND 13 WERE BUILT FOR (QAN). THE AIRPLANE SHOWN IN THE ATTACHED PICTURE - - "TBC-1959-02 - QANTAS 707-138" WAS THE 29TH BOEING 707 BUILT. THIS 707 WAS RESTORED BY THE (QFM) RESTORATION PROJECT, A GROUP CONSISTING OF CURRENT AND RETIRED (QAN) STAFF. (QAN)'S 1ST 707-138 ENTERED SERVICE ON THE SYDNEY - SAN FRANCISCO ROUTE ON JULY 29, 1959.

THE LAST 707-138 BUILT (VH-EBM) IS OWNED AND OPERATED BY ACTOR JOHN TRAVOLTA AND IS PAINTED IN ITS LAST (QAN) COLORS, REGISTERED (N707JT).

APRIL 1959: IN 1959, NORTHEAST AIRLINES OPERATED ITS 1ST PURE JET SERVICE USING BOEING 707 "INTERCONTINENTAL" JET LINERS. NORTHEAST WAS THE 1ST AIRLINE TO FLY THESE HIGH SPEED JET AIRPLANES BETWEEN MIAMI AND NEW YORK AND HAD THE DISTINCTION OF BEING 1 OF THE 1ST AIRLINES IN THE USA TO OFFER PURE JET SERVICE.

SEE ATTACHED - - "TBC-1959-04 - 707 INTERCONTINENTAL."

JULY 1998: FOLLOWING USA PRESIDENT BILL CLINTON'S VISIT TO CHINA, THERE WAS AN ANNOUNCEMENT OF A BOEING (TBC) ORDER (TBC) OF $3.4 BILLION, 10 ORDERS 737-NG'S AND 1 747-400.

OCTOBER 2001: $1.6 BILLION 30 ORDERS (FEBRUARY 2002) 737'S: 4 737-700'S FOR CHINA EASTERN AIRLINES (CEA); 1 737-700 & 2 737-800'S FOR SHANGHAI AIRLINES (SHA); 3 737-800'S FOR HAINAN AIRLINES (HNA); & 20 737-800'S FOR CHINA SOUTHERN AIRLINES (GUN).

June 2004: Memo of Understanding (MOU) 60 orders 7E7-8's for operations by China Southern Airlines (GUN); Air China (BEJ); China Eastern Airlines (CEA); & Hainan Airlines (HNA); with commitments also expected for Shanghai Airlines (SHA) and Xiamen Airlines (XIA).

November 2005: Boeing (TBC)'s big weekend in Dubai was boosted by reports that the Chinese government would buy 70 737s as part of an effort to mitigate its expected $200 billion trade surplus with the USA. The $4 billion deal reportedly was the largest in Chinese aviation history.

China signed a deal for 70 737-700/800s for delivery between 2006 and 2008. The airplanes being destined for: Air China (BEJ), China Southern Airlines (GUN), China Eastern Airlines (CEA), Shanghai Airlines (SHA), Xiamen Airlines (XIA), Shandong Airlines (SHG), Hainan Airlines (HNA) & Shenzhen Airlines (SHZ).

August 2006: Boeing (TBC) named Nagpur in central India as the location of a new Maintenance Repair & Overhaul (MRO) facility intended to address growing demand for maintenance services in India.
(TBC)'s commitment to invest up to $100 million in the facility was part of Air India (AIN)'s order for 68 airplanes, which was finalized in January.

September 2006: Boeing (TBC) named Scott Carson President & (CEO) of Boeing Commercial Airplanes (TBC), succeeding Alan Mulally, who left (TBC) after 37 years to take over the top spot at the troubled Ford Motor Company. Mulally led the development of the 777 and was named President of (TBC) in 1998. He added the (CEO) title in 2001.

Carson, 60, is a 34-year veteran of (TBC) and served as VP Sales for (TBC), where he is credited with reinvigorating (TBC)'s flagging sales effort, leading to record airplane orders last year. He also served as (CFO) of (TBC).

(TBC) also named James Jamieson, 58, to the new position of (COO) at (TBC). He currently serves as Senior VP Engineering, Operations & Technology at the parent company. He is a 30-year Boeing (TBC) veteran with a broad background in Boeing Commercial Airplane Manufacturing, including serving as Senior VP Airplane Programs.

An order for 6 787 Dreamliners from Monarch Airlines (MON) highlighted an August during which (TBC) sold 30 airplanes, a steep drop from the 90 ordered in August 2005, but higher than the 22 orders posted by competitor Airbus (EDS) during the month. In addition to the (MON) order, (TBC) sold 8 737NGs to Shanghai Airlines (SHA) and 10 to SpiceJet (ROJ), including 5 737-900ERs. Boeing Business Jet (BBJ) took 1 787-8 and 1 737-900BBJ.

(TBC)'s 747-400F Large Cargo Freighter, the specially modified 747-400 that will transport major assemblies for the 787, took to the air for the 1st time. It is designed to accommodate 3x- the cargo volume of a standard 747-400F. Evergreen (EVR) Aviation Technologies is modifying the 747-400Fs in Taiwan, using airplanes (TBC) repurchased last year. They are being equipped with extra-large fuselages and "swing tail" doors to allow for easier loading. The modified fuselage will be 18 inch wider than an A380 fuselage and will have a main deck cargo volume of 65,000 cu ft.

Hainan Airlines (HNA) ordered 15 additional 737-800s, completing the distribution of the 150-airplane 737-700/737-800 order placed by China Aviation Supplies Import and the Export Group (CSC). The 150 737-700/737-800s are worth approximately $10 billion at list prices and will delivered to Air China (BEJ) (25), China Eastern Airlines (CEA) (20), China Southern Airlines (GUN) (30), Shandong Airlines (SHG) (12), Shanghai Airlines (SHA) (13), Shenzhen Airlines (SHZ) (10), Xiamen Airlines (XIA) (15) and Hainan (HNA) (25) between this year and 2010.

October 2006: Boeing (TBC)'s Web-based Maintenance Performance Toolbox will be used by Skymark Airlines (SKM) of Japan for its 3 737NGs.

(TBC) announced the establishment of a joint venture (JV) Maintenance Repair & Overhaul (MRO) facility in Shanghai, as it intensifies focus on the growing Chinese market.

November 2006: Boeing (TBC) named Lianne Stein as its Berlin-based VP Boeing International, replacing the retired Horst Teltschik. (TBC) named Doug Knight VP Human Resources (HR) for Boeing Commercial Airplanes. He currently is VP & Assistant General Counsel at (TBC)'s corporate headquarters in Chicago. (TBC) named Commercial Airplanes VP Business Strategy & Marketing Nicole Piasecki as the new VP Boeing International & President of Boeing Japan.

(TBC) announced the delivery of the 1st of 4 777-200ERs to Thai Airways (TII), which will take an additional 2 next year.

(TBC) has received orders and commitments for 455 787 airplanes from 36 customers, making the 787 the best-selling airplane in history at this point in its development, and surpassing the 737NG's sales success at a comparable stage "by a factor of 2."

Boeing (TBC) delivered to Air China (BEJ) a 737-800 adorned with an official "Beijing 2008 Olympics" livery, marking the 150th Boeing plane delivered to (BEJ).

Aeromexico (AMX) announced firm orders for 2 787-8s and 10 737-700s. The combined value of the 12 airplanes is >$830 million. The 787s, to be delivered in 2011, are in addition to 3 (AMX) plans to lease from (ILFC) (ILF). The 737-700s, scheduled for delivery starting in early 2010, are in addition to 6 737NGs it ordered last winter. (AMX) said the 787s and 2 recently leased 777-200ERs will be used on routes to Europe, South America and Asia, replacing 767s coming off leases. "The speed and flight deck commonality of the 787 and the 777 will allow (AMX) to adjust its long-distance routes, such as between Mexico and Japan, according to capacity demands," (CEO) Andres Conesa said.

FedEx Express (FED) cancelled its $2.3 billion order for 10 A380Fs and placed an order for 15 777Fs with 15 options, becoming the 1st airline to cancel an A380 order and dealing a serious blow to beleaguered Airbus (EDS). (FED) said it could not wait for (EDS) to work through A380 production delays. "Global demand for air cargo and express services continues to grow rapidly and (FED) has made significant investments in our network to meet customers' needs and fulfill our business objectives. Therefore, it was necessary and prudent for us to acquire the 777F," (FED) Chairman, President & (CEO) Frederick Smith said. "The availability and delivery timing of this airplane, coupled with its attractive payload range and economics, make this choice the best decision for (FED)."

Freight tonne kms (FTK)s are forecast to increase +6% annually, over the same period by (EDS), against (TBC)'s +6.1% prediction, generating the need for 3,580 freighter deliveries, of which 800 (22%) will be factory-built. The rest will come from converted passenger models. "Most significantly, the [2006 - 2025] period will be marked by an increasing demand for new, more fuel-efficient airliners to help address airline operating costs, as well as environmental concerns." "This factor will lead to a higher replacement rate of >12,000 airplanes."

Air Berlin (BER) said that it intends to buy 60 737-800s and revealed that dba (DBA), which it agreed to acquire in August, placed an order earlier this year for 15 737-700s. (TBC) said the combined value of the 75 airplanes is $5.1 billion and noted that (BER) also has 10 unfilled 737-700s from a (DBA) order announced in 2005. Overall, (BER) expects to take delivery of 85 737NGs valued at $5.7 billion from November 2007 through 2014. (TBC) said it is "in the process of finalizing the order for the 60" 737-800s.

Singapore Airlines (SIA) took delivery of the 1st 2 of 19 777-300ERs. (SIA) accepted the airplanes, which feature a radical cabin upgrade, in Seattle, and will take delivery of another 4 by December 31. While the 777-300ERs are slated to replace 747-400s not replaced by the A380, (SIA) (CEO) Chew Choon Seng revealed possible interest in the 777-200LR.

(SIA) conducted a comprehensive fleet review earlier this year that resulted in additional orders for 20 787s and 9 A380s and a letter of intent (LOI) for the yet-to-be-launched A350 XWB.

December 2006: Lufthansa (DLH)'s board approved orders for 20 747-8I Intercontinentals (the 1st of the variant to be sold by (TBC) plus 20 options, and 7 A340-600s), a total investment in long-haul planes valued at nearly $7 billion. The 747-8Is will be delivered from 2010 to 2013. The order for the 747-8I passenger version may come as a surprise to some, given the German involvement in the A380 program. However, many in Germany are incensed by the blame game that has resulted from A380 production problems and suggestions that all German A380 work will be transferred to France. (DLH), a long time Boeing (TBC) and McDonnell Douglas customer, traditionally has striven to split its airplane orders. But this 747-8I order clearly was a big win for Boeing (TBC). (GE) said the firm order for 80 (GEnx) engines is valued at >$950 million.

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

Boeing (TBC) named Stan Deal as VP-Asia/Pacific Sales for Boeing Commercial Airplanes, and VP-China Sales Rob Laird as VP-Greater China Sales. Tom Downey was named Senior VP Communications.

$2 billion, 10 orders C-17s transport airplanes for US Air Force (USF), adds to the 180 C-17 airplanes bought by (USF), and extends production through October 2009.

January 2007: Boeing (TBC) earned +$2.2 billion in 2006, down -14% from +$2.57 billion in 2005, as earnings were hurt by 1-time charges. Total company revenue for 2006 was $61.53 billion, up +14.8% over 2005.

(TBC) booked 1,044 net commercial airplane orders in 2006, paced by a record 729 net orders for 737s, surpassing its 2005 record of 1,002 total orders. (TBC) delivered 398 commercial airplanes for the year, a +37% boost over 2005 and its highest total since 2001, led by 302 737 deliveries.

(TBC) appears assured of topping rival Airbus (EDS) in airplane orders for the 1st time since 2000. "Beyond the order totals, we are very excited about the breadth and depth of our 2006 order book," Carson said. (TBC) said it took 157 orders last year for 787s, 76 for 777s, 10 for 767s and 72 for 747s, the highest total for the 747 program since 1990. Its backlog was up +35.7% from a year earlier to 2,455 airplanes.

(TBC) said that GE Commercial Aviation Services (GECAS) (GEF) booked a 39-airplane order in 2006 valued at $5.34 billion, comprising 7 777-300ERs, 8 777Fs and 24 737-800s. The order boosts (GEF)'s 2006 order book with (TBC) to 69.

February 2007: Boeing (TBC) reported 2006 net income of +$2.22 billion, narrowed from +$2.57 billion in the prior year, but pointed to a doubling of 4th-quarter net income to +$969 million and a +33.2% surge in annual revenue for its Commercial Airplanes unit to $28.47 billion. Total company revenue for 2006 was +$61.53 billion, up +14.8% over +$53.62 billion in 2005.

Chairman, President & (CEO) Jim McNerney pointed out that 2006 revenue, cash flow and airplane backlog, were all records.

Boeing Commercial Airplanes (BCA)'s operating income for 2006 was +$2.73 billion, nearly double operating earnings of +$1.43 billion the prior year, driven by a record 1,044 net commercial airplane orders that pushed the unit's backlog at year end, to $250 billion, up +22% year-over-year.

Rockwell Collins was selected by (TBC) to provide the avionics system for the 747-8I Intercontinental and 747-8F freighter. The deal includes the entire suite of flight deck displays as well as autopilot, communication, navigation, surveillance, maintenance, emergency and data management systems.

United Parcel Services (UPS) announced its $3.8 billion, 27 orders (2009) 767-300ERFs, which (UPS) says are necessary to keep pace with international traffic demand and for fleet renewal. (UPS) was the launch customer for the 1st 767F freighter in 1995. The 767-300ERF can carry 24 containers on its upper deck and 7 in the lower cargo compartments, according to (UPS). It has a maximum payload of 132,200 lbs and a range of 3,000 nm.

Azerbaijan Airlines (AHY) ordered 2 737-900ERs and 3 787-8 Dreamliners, valued at $609 million. (AHY) is the 1st airline from the former Soviet Union to order either type.

(TBC) announced 787 deals with both Air New Zealand (ANZ) and (LOT) Polish Airlines. (ANZ) finalized its order for +4 additional 787-9s, which brings its commitment to the type to 8 firm, plus 12 price rights. Delivery of the new orders, valued at $700 million at list price, is scheduled for 2011 to 2013. Meanwhile, (LOT) raised its 787 commitment to 8 with an order for +1e additional airplane. (LOT) will be the 787's 1st European operator when it takes 1st delivery next year.

March 2007: Boeing (TBC) named Integrated Defense Systems (IDS) VP Europe Ian Thomas as VP Boeing International and President of Boeing India, succeeding Anil Shrikhande, who is moving to (IDS). Boeing (TBC) named 787 Program (CFO) Craig Saddler as President of Boeing Australia.

Singapore Technologies Aerospace and Boeing (TBC) announced that ST Aero's ST Aviation Services Company (SASCO) was selected to perform "certain passenger-to-freighter conversions" under the 767-300 (TBC) Converted Freighter program, with (ANA) as its 1st customer. (ANA) launched the 767-300BCF program in 2005. (SASCO) will perform conversions on 5 firm airplanes with 2 options. The initial (ANA) commitment was for 3 firm and 4 options. (SASCO) is the 2nd conversion center chosen by (TBC) for the 767-300 after Aeronavali (ARP) of Italy.

(TBC) said it reached agreement with express cargo operator (DHL) on an order for 6 767-300ERF freighters valued at $894 million. It chose (GE) (CF6-80C2B7F)s valued at >$120 million to power the airplanes.

(TBC) now has sold, net of cancellations, 112 airplanes this year comprising 9 737s, 2 747s, 36 767s, 23 777s and 42 787s. Orders for the 787 have passed the 500 mark with 513 sold (490 under contract and 23 pending signature).

April 2007: Boeing Commercial Aviation Services (BCAS) said it signed Spirit AeroSystems, the former Boeing Wichita, to repair and overhaul nacelles for 777s and 737NGs as part of the Boeing Component Repair & Leasing Services Network Service Center program.

Japan Airlines (JAL)/(JAS) ordered +5 additional 787-8s, bringing its total to 35 and pushing Boeing (TBC)'s total Dreamliner sales >500 if new orders from unidentified customers are included. (JAL)/(JAS) placed an order for 30 787s in December 2004, 9 months after Boeing launched the program. (TBC) said that it has sold 514 787 Dreamliners to 43 customers, meaning 23 new orders from 4 customers including (JAL)/(JAS).

Boeing (TBC) said that (JAL)/(JAS) will install Class 3, Electronic Flight Bags (EFB) on 2 new 777s to be delivered this year. The (EFB)s are the 1st ordered by (JAL)/(JAS), which operates 38 777s and has +8 more on order.

Virgin Atlantic Airways (VAA) placed 5 orders 787-9s Dreamliners, plus options for an additional 8 and purchase rights on another 20. The (VAA) order is worth approximately $2.8 billion at list prices, or up to $8 billion if all options and purchase rights are exercised.

(S7) Airlines (SBR) placed an order for 10 737-800s with options for +10 more, worth $705 million at list prices.

The (TUI) Group (TUG), the German tourism company that owns 6 airlines, placed firm orders for 11 787-8s and 50 737NGs collectively valued at $4.7 billion. The airplanes will be operated by Netherlands' Arkefly (HOL), Belgium's Jetairfly (TUB), UK's Thomsonfly (TFY), Germany's TUIfly (HAP)/(HLX) and Scandinavia's TUIfly Nordic (NOQ).

Boeing (TBC) said it is working to create a training program that will allow TUI (TUG) pilots (FC) to transition from 737s to 787s "so that cross-training costs are minimized and fleet efficiency is maximized."

The 737-900ER, launched by a 2005 order from Lion Air (MLI), received type certification April 20. >100 have been ordered so far, (TBC) said. Approved to carry up to 220Y passengers in a single-class configuration, the type features an extra pair of exit doors, a flat aft-pressure bulkhead that increases volume, a 2-position tail skid, strengthened wings to accommodate the 13,500-lbs Maximum Take Off Weight (MTOW) increase, auxiliary fuel tanks that boost range to 3,200 nm and other enhancements.

(TBC) added 88 new orders to its book this month, bringing its year-to-date total to 407. New commitments include the 15 787 Dreamliners ordered by (S7) Airlines (SBR), 62 737s for unidentified customers and 11 777s, also for unidentified customers. (S7) (SBR)'s orders bring the number of announced firm orders for the 787 Dreamliner to 607 from 45 airlines and leasing companies.

June 2007: TIMCO Aviation Services (ASC)'s Brice Manufacturing subsidiary was selected by Boeing (TBC) as the exclusive supplier of courier seats for new 747-8F and 777F freighters.

Despite the fact that its initial order lapsed last November, and it signed on for 22 A350 XWBs in the interim, Aeroflot (ARO) opted to join the rush to order the 787 Dreamliner, with a commitment to (TBC) for a reported 22 airplanes. The 787 order book now stands at 584 firm and 45 pending contract signings.

(TBC) said the 1st 777F is scheduled for delivery to Air France (AFA) in the 2008 4th quarter. (TBC) currently has 71 orders from 11 customers for the airplane, which is based on the 777-200LR.

Heading into the start of the Paris Air Show, (TBC) is well on its way to topping Airbus (EDS) in airplane sales for the 2nd straight year. (TBC) has compiled 429 net orders to date, compared to 201 for its European rival. Airbus (EDS) President & (CEO) Louis Gallois conceded that (EDS), beset by serious financial problems and in the early stages of its "Power8" restructuring program, is no longer attempting to outsell (TBC). "Our target is to be the best company, not the biggest, and I think that is a change from the past."

(TBC)'s orders comprise 192 737s, 136 787s, 60 777s, 36 767s and 5 747s. (EDS)'s orders, as of May 31, comprise 152 A320 family airplanes, 33 A330s, 10 A340s, 4 A380s and 2 A350s. (TBC) last year netted 1,044 orders compared to 790 for (EDS).

As the Paris Air Show continued, (ILFC) (ILF) became the largest 787 Dreamliner customer, announcing an order for an additional 52 Dreamliners to bring its total on order to 74. (ILFC) also signed for 10 more 737NGs and 1 777-300ER. Collective value is $8.8 billion. (ILF) Chairman & (CEO) Steven Udvar-Hazy said the airplane is "what the world needs tomorrow" and his company will "announce new customers for the 787 in the next couple of months." He said its current orders are "only the beginning." This recent commitment takes total signed firm orders for the 787 Dreamliner to 634. Boeing (TBC) now has firm orders, options and proposals with potential customers for >2,000, according to 787 Program Manager Mike Bair. On the 787-10, Bair said he is confident (TBC) can reach its range target of similar to or >than the 777-200ER.

(TBC) is delighted with sales progress for the 747-8, according to Chairman, President & (CEO) Jim McNerney, who said, "we have more orders [87] than we thought," and that Lufthansa (DLH)'s order for 20 passenger models "has obviously helped" the program. Randy Tinseth VP Marketing highlighted that the 747 has outsold the A380 since that airplane was launched in 2000. "We have 52% of the market and 90% since the 747-8 was launched," he said.

July 2007: Air-Berlin (BER), Qantas (QAN), (CIT) Aerospace (TCI), and Kuwaiti lessor (ALAFCO) (AVF) helped Boeing (TBC) celebrate the 7-8-7 (date), 787 unveiling in Seattle while the manufacturer promised further improvements to the record-setting airplane. (QAN) ordered an additional 20 787s and (BER) committed to 25 and (AVF) ordered 10. In addition, (TCI) doubled its order to 10 and Qatar Airways (QTA) is the customer for 30 previously unidentified airplanes. The (QAN) order made (QAN) the 787's No 1 airline customer with 65 orders. Overall, the number of orders for the long-haul 787 Dreamliner has risen to 742, comprising 677 firm and 65 yet to be inked. Options and price rights lift the total to 1,082. 787 Program VP & General Manager Mike Bair said that while aluminum technology has matured after decades of refinement, composites like those used on the 787 are relatively new, and significant weight gains already are presenting themselves.

(LAN) Airlines 32/10 orders (2/11) 787s including 6 leased, spending about $3.2 billion (the largest investment in (LAN)'s history).

Boeing (TBC)'s 2007 order book stood at a net 698 following orders for 777s from Air New Zealand (ANZ) and Cathay Pacific Airways (CAT) added recently. As of July 31, Airbus (EDS) trailed by just 10 net orders with 688.

August 2007: The Rolls-Royce (RR) (Trent 1000) launch engine for the 787 received its joint airworthiness certification from Europe's (EASA) and the USA (FAA), becoming the 1st engine to be validated concurrently under new regulatory procedures.

Boeing (TBC) enjoyed a strong week with orders from Air New Zealand (ANZ), WestJet (WJI), and Ukraine's AeroSvit Airlines (UKA). (ANZ) is continuing to orchestrate the replacement of its 747-400s, placing a firm order for 4 777-300ERs plus 3 options. The deal represents the conversion of price rights that were part of (ANZ)'s 2004 order for up to 52 long-haul airplanes. The 4 new 777-300ERs, to be powered by (GE90-115BL)s, are worth an estimated $1.1 billion at list prices and will, according to (CEO) Rob Fyfe, "help us build on the great success we've had with our 777-200ERs." (ANZ) currently operates 8 777-200ERs, 8 747-400s and 5 767-300ERs. It has 8 787-9s plus 8 options on order. (ANZ) said it plans to operate an all-777 and 787 long-haul fleet by "around" 2012.

(TBC) listed 65 new orders on its website, including the 20 737-700s ordered by (WJI). An additional 7 737-800s were signed for by AeroSvit (UKA), which also took 7 options. The firm airplane orders are valued at $523 million. It is (UKA)'s 1st direct purchase from (TBC) since its founding in 1994, (TBC) said. (TBC)'s order list also included 22 737s, 2 747s, 13 777s and 1 BBJ 787 listed with customers unidentified.

Boeing (TBC) will supply GoldCare lifecycle support services to Rolls-Royce (RRC) for the UK company's (Trent 1000) engine TotalCare program. The agreement covers repair and overhaul for 787 "underwing rotable airplane components, as an option for (RRC) (Trent 1000) TotalCare service agreements." The (Trent 1000) is the launch engine for the 787.

September 2007: Boeing (TBC) pushed back the 787's 1st flight from this month to between mid-November and mid-December, citing incomplete work by some suppliers, manufacturing documentation issues, a global fastener shortage and delays in completing flight control system software.

The 1st 777 was delivered 11 months after 1st flight. With "24/7" flight testing, that will be "basically [like] running an airline," the revised 787 schedule calls for as little as 5 months between 1st flight and 1st delivery. Production of the 1st 787 also has been slowed by Honeywell (SGC), which is taking longer than anticipated to complete "coding of flight control system software," Bair said, adding that both companies "have added resources" to get "the last of the coding done."

(TBC) said (SGC) joined its Integrated Materials Management initiative under which (TBC) and suppliers maintain an airline's inventory of spare parts. "It would have been a miracle for Boeing (TBC) to have flown the 787 on time," Emirates (EAD) President Tim Clark said, adding that the delay would not be a factor in (EAD)'s evaluation of the 787 and A350 for an order for 100 airplanes. Clark said the 787 will be "1 of the finest airplanes ever built," adding, "If you think about it, there is just so much new technology in the 787; it is no surprise at all there is a short delay, and the supply chain has let Boeing (TBC) down."

Aeroflot (ARO) said it finalized an order for 22 787-8s valued at $3.6 billion following shareholder approval of the transaction.

October 2007: Air New Zealand (ANZ), Boeing (TBC), and Rolls-Royce (RRC) signed a Memo of Understanding (MOU) to conduct jointly what they claimed will be the 1st trial of a commercial 747 operated with bio-fuel. The test flight will take place in late 2008 or early 2009 using an (ANZ) 747-400. The airplane will not carry passengers and only 1 engine will run on the blended biofuel/kerosene mix. While the flight may use bio-fuel, sourced from around the globe, (ANZ) (CEO) Rob Fyfe told media that (ANZ) is "keen to encourage research into alternative fuels in New Zealand." (TBC) President - Australia & South Pacific Region Craig Saddler said that the company is "now exploring 2nd-generation bio-fuel feed stocks, and processes that have the potential to reduce greenhouse gases throughout their entire life cycle." It is understood that one possible source for the bio-fuel is New Zealand's Aquaflow Bionomic Corporation, which conducted the 1st biodiesel tests last year.

Virgin Atlantic Airways (VAA) plans to conduct a 747 bio-fuel test flight next year, parent (VAA) Group Chairman Richard Branson said. He said that (VAA) will "early next year fly 1 of our 747s without passengers with [an alternative fuel] we have developed." No other details were revealed. (VAA) has said in the past, that it is working with (TBC) and (GEC) to develop bio-fuels. (ANZ), (TBC) and Rolls-Royce (RRC), signed a Memo of Understanding (MOU) last month to conduct jointly what they claimed will be the 1st trial of a commercial 747 operated with bio-fuel, with the test flight taking place in late 2008 or early 2009 using an (ANZ) 747-400. The airplane will not carry passengers, and only 1 engine will run on the blended bio-fuel/kerosene mix.

Boeing Shanghai Aviation Service Company (BSASC), a Joint Venture (JV) launched last year by (TBC), Shanghai Airlines (SHA), and Shanghai Airport Group, expects its hangar at Pudong to be operational in 2009, (TBC) (CEO) Timothy Premselaar said. The hangar will be constructed in 2 phases. At the conclusion of the 1st in April 2009, it will hold 2 747s or 2 777s, and by 2010, its capacity is expected to double. (BSASC) said the hangar will be engaged mainly in airplane reconfiguration. (CAAC) (CAC) Chief Aviation Expert, Yu Zhenfa has said that approximately three-quarters of the freighters in China have been reconfigured from passenger airplanes.

November 2007: (LAN) Airlines finalized its July order for 32 787s, with 26 purchased directly from (TBC) and +6 leased from (ILFC) (ILF). (TBC) said (LAN) also has committed to acquiring 4 777F freighters, 2 from the manufacturer and 2 from (GECAS) (GEF). The purchased 787s are a mix of 787-8s and 787-9s, and are valued at around $4.5 billion at list prices, while those leased from (ILF) will be 787-9s. The 777Fs are valued at approximately $250 million apiece.

Cathay Pacific Airways (CAT) placed an order for 10 747-8F freighters and +7 777-300ERs, collectively valued at $5.2 billion. (CAT) already had 19 777-300ERs on order and has committed to leasing +4 more of the type through a 3rd party, making it Asia's largest 777-300ER customer. (CAT) becomes the 8th airline to order the 747-8F; (TBC) said it now has firm orders for 73 of the type. (CAT) currently operates 19 747F freighters, a combination of 747-200Fs, 747-400Fs, and 747-400BCFs. The 747-8Fs will replace 7 747-200Fs, that will be phased out. (CAT) has 6 additional 747-400ERFs and +2 747-400BCFs on order. The 777-300ERs ordered will be powered by (GE90-115B)s, while the 747-8Fs will use (GEnx-2B67)s. "These orders highlight our long-term confidence in the future of both the cargo and passenger markets in Hong Kong, and confirm our commitment to developing our home city as 1 of the world's premier aviation hubs," (CAT) (CEO) Tony Tyler said. "We are very excited about the 747-8F freighter, which provides the highest payload of any commercial freighter. More importantly, this is a highly fuel-efficient airplane, which consumes -22% less fuel per revenue payload tonne than a 747-200F and -12% less than a 747-400F. Similarly, the 777-300ER is -22% more fuel-efficient than a 747-400 per payload tonne." He added that efficiency is critical in "environmentally sensitive times, and when fuel prices are at record highs."

(CAT) received its 1st 777-300ER in September and plans to use the type to operate nonstop routes to North America and Europe. The 747-8F "offers +16% more revenue cargo volume than the 747-400F, with slightly greater range, accommodating +4 main-deck pallets and +3 lower-hold pallets," (TBC) said.

Airbus (EDS) won the lion's share of the largest airplane order in commercial aviation history as Emirates (EAD) announced its selection of the European manufacturer's A350 XWB over the 787, on the opening day of the 10th Dubai Air Show. (EAD) ordered 70 A350s plus 50 options, along with 11 A380s and 12 777-300ERs, all of which are valued at a combined $34.9 billion at list prices. (EAD) now has 246 airplanes on order. (TBC), according to (EAD), was unable to offer the 787-10 that (EAD) wanted. (EAD) Group Chairman Sheikh Ahmed bin Saeed Al Maktoum said that "the A350 was the most suitable airplane for (EAD)'s requirement." (TBC) President Scott Carson was "delighted" with the 777-300ER orders, which when delivered, will make (EAD) the world's largest operator of the type. It has 53 in its fleet and 57 on order. Missing from the mega order was (EAD)'s much-discussed potential buy of 20 747-8Is for Dubai - USA West Coast operations.

Qatar Airways (QTA) gave (TBC) a boost on the 1st day of the Dubai Air Show as it formalized commitments for up to 60 787s and 32 777s worth $13.5 billion. (CEO) Akbar Al Baker lauded the 777, describing it as the backbone of (QTA)'s long-haul fleet going forward, and said the 787 delay is "insignificant compared to the A380 delays." (QTA)'s Boeing (TBC) commitment comprises 14 777-300ERs, 6 777-200LRs, 7 777-200Fs, and 30 787-8s, with options for 5 777s and 30 787-9s. The 777 component initially was revealed in June 2006, and the 787 order was placed this spring. (QTA) also has committed to 80 A350 XWBs. (QTA) selected the (GEnx) engine for the 787-8s. Al Baker said that (QTA)'s "growth plans are on track with load factor +8% ahead of the business plan." He added that (QTA)'s Doha airport is the 4th-largest in the Middle East and will be No 3 by the end of next year. He also noted that the emirate has the world's highest per capita income. The 777-300ERs will replace (QTA)'s A340-600s. The 777-200Fs will lead its plan to develop Doha into a cargo hub.

Royal Jordanian (RJA) followed through on its commitment to increase its 787 fleet, converting the 2 options it held with (TBC), and announcing a lease deal with (CIT) Aerospace (TCI) for +2 787s.

(TBC) has calculated that air travel growth in the Middle East is outstripping the rest of the world to the tune of +12% per year for the past 5 years. VP Marketing Randy Tinseth predicted that airlines in the region will need 1,160 airplanes worth $190 billion in the next 20 years, with +18% in the 747-8/A380 category. He said the company forecasts that 52% of the fleet will be twin-aisle jets and 56% will be for expansion, with the balance for fleet replacement. To handle the increases, he said, "the 10 leading airports in the region are investing $33.7 billion in new airport capacity by 2012, that will provide for an additional +318 million passengers" per year.

December 2007: Boeing (TBC) booked 95 new orders this month, taking its year-to-date tally to a record net 1,144. Qantas (QAN) firmed up its order for 20 787-9s, and (TBC) booked Boeing (TBC) Business Jet commitments for 1 737 and 1 787-8. There were 73 airplanes ordered by unidentified buyers comprising 68 737s, 4 777s and 1 787. The firming of the (QAN) 787 order takes orders for that type to 783, with 56 yet to be inked for a total of 839. (TBC)'s net orders this year are made up of 649 737s, 16 747s, 36 767s, 129 777s and 314 787s.

Babcock & Brown Aircraft Management (BBB) placed an order with (TBC) for 20 737-800s valued at $1.5 billion. The (BBB) order brings the lessor's total 737NG fleet to >125. "(BBB) has experienced great success in placing the (TBC) Next-Generation 737 with airline operators around the world," President Steven Zissis said.

(CIT) Aerospace (TCI) signed contracts with Ryanair (RYR) for the purchase of 15 737-800s. (TCI) said it will take delivery of the 737-800s it is buying from (RYR) in 2008, and 2009. "All airplanes are committed to future leases." "The addition of these airplanes will help (TCI) continue to meet customer demand for the 737-800." (TCI) owns or finances a fleet of >300 airplanes, including 41 737NGs. It has an additional 10 737NGs on order with (TBC) for delivery in 2010 and 2011. (TBC) said it has sold >4,300 737NGs to 109 customers.

(TCI) ordered 5 737NGs just 2 days after announcing a deal to purchase 15 737-800s from (RYR). The airplanes are worth around $311 million at list prices, and will be delivered in 2011, along with the last of the 10 737 NGs previously ordered by (TCI).

(GE) Commercial Aviation Services (GECAS) (GEF) announced that it has ordered 53 737-800s and 2 777-300ERs collectively valued at $4.5 billion. The massive order includes an exercise of existing options. "This additional order with (TBC) will allow (GEF) to help our customers around the world benefit from leading-edge operational efficiency," President & (CEO) Henry Hubschman said. "(GEF), already the world's largest owner of 737s, continues to add to its portfolio with 309 total Next Generation 737 orders," (TBC) President & (CEO) Scott Carson said. He noted that (TBC) has received 129 orders for 777s so far in 2007.

(AWAS) (AWW), a Dublin-based airplane leasing company, ordered 31 737-800s, worth $2.3 billion at list prices. Following its recent acquisition of Pegasus Aviation Finance, (AWW) is now among the largest airplane leasing companies in the world. (AWW) owns and manages 315 airplanes and serves approximately 129 airline customers around the world. This new order brings the total (TBC) orders for the year to 1,177. Of those, 682 are 737s. To date, 109 customers have placed orders for >4,300 Next-Generation 737s. Unfilled orders for the Next-Generation 737 exceed >1,800 airplanes, worth >$130 billion at list prices.

(TBC) said that it is "set to begin full production" of 777F freighters, noting that its engineers "have completed >90% of the design work for the new cargo airplane." "The 1st 777F freighter will be delivered to launch customer Air France (AFA) in the 4th quarter of 2008." (TBC) is touting the 777F as the longest-range, highest-capacity "twin-engine cargo airplane." To date, (TBC) has sold 82 777Fs to 11 customers, which accounts for 20% of the backlog for all 777 variants. The 777F's basic design is based on that of the 777-200LR. (TBC) said the airplane will feature "an enhanced, lightweight cargo handling system with built-in test equipment, that continually monitors the operational health of the system," as well as "a maneuver load alleviation system to help distribute the load on the airplane in flight." The airplane will have a range of 4,885 nm with a full payload and "general cargo market densities." It will have a maximum takeoff weight of 766,000 lb and a revenue payload capability of >226,000 lb. It marks the 6th version of the 777. (TBC) has received >1,030 orders for all versions from 53 customers.

(TBC)'s order book was boosted by orders for 2 777-200LRs for Delta Air Lines (DAL), 3 unidentified 787s, 31 737NGs for (AWAS) (AWW) and 31 737-800s for Qantas (QAN). The 737 orders were announced previously but now have been booked. These orders bring (TBC)'s 2007 gross to 1,223, with the net figure at 1,213. It said the (QAN) order was valued at $2.3 billion at list prices. (QAN) has ordered 51 airplanes from (TBC) this year.

The (TBC) 707, its 1st jet-powered commercial airplane, is celebrating the 50th birthday of its maiden flight: Boeing (TBC) launched the 1st production 707 on December 20, 1957 from Renton Municipal Airport near Seattle, Washington, USA. The 1st flight lasted only 7 minutes, due to poor weather conditions. The 2nd flight, which happened on the same day, lasted 71 minutes. Pan Am (PAA) was the 1st airline to take delivery of the 1st version of the 707 (707-120). The 707 was powered by “early” Pratt & Whitney (PRW) turbojet engines, and was considered to be “barely” able to cross the Atlantic Ocean, because of their limited range. Nevertheless, (PAA) used the 707-120 to transport passengers between New York and Paris, France. The 1st commercial flight of a 707 took off on October 26, 1958. Later 707 models, including the 707-320, came as early as 1959, and were able to fly non-stop from Seattle to Rome, Italy. A total of 878 707 planes were built. The productions stop came in 1978. According to Boeing (TBC), about 130 707s are still in service today. Most of them are used as freighters as well as corporate transport planes, (TBC) said.

January 2008: Boeing (TBC) recorded a bumper year in 2007 with a +84% increase in net income to +$4.1 billion on revenues that rose +8% to $66.4 billion, as backlog reached a record $327 billion, up +31% on the previous year.

(TBC) booked 520 gross orders during the quarter and a record 1,423 during the year. Contractual backlog rose to a record $255 billion, increasing +46% in 2007 to >7 times (TBC)'s annual revenues.

Boeing (TBC) won a US Air Force (USF) contract, valued up to $1.3 billion, to enhance the C-17 cargo airplane fleet, according to the Defense Department.

Boeing (TBC) finalized Dubai Aerospace Enterprise (DAZ)'s 100-airplane order valued at $10.9 billion, and also officially completed a $2 billion order for 12 787-8s from Vietnam Airlines (VIE) and Vietnam Aircraft Leasing Company, pushing its total 2007 commercial airplane orders to well >1,300, a single-year record. (TBC) and (DAZ) had signed a letter of intent (LOI) for the order, which includes 70 737NGs, at the Dubai Air Show. The Vietnam (VIE)/(VALC) order, which was announced previously, pushes total 787 orders to 802.

(TBC) said it delivered 112 airplanes in the 2007 4th quarter led by 80 737NGs and 25 777s, bringing its total deliveries for the year to 441, led by 330 737NGs and 83 777s. As for orders, (TBC) said on December 18, that it had booked 1,213 for the year, but that did not include the (DAZ) or Vietnam (VIE)/VALC commitments. (TBC) also announced/finalized orders with Gol (GOT) and British Airways (BAB). The record year tops 2006.

A later report stated Boeing (TBC) smashed its previous commercial airplane sales record in 2007, with 80 customers placing orders net of cancellations for 1,413 airplanes. (TBC) topped the 1,000-order mark for the 3rd consecutive year, after posting 1,005 orders in 2005 and 1,044 in 2006. It set sales records for the 787 and 737, while the 747, 777 and 767 programs also passed order milestones. The 2007 orders take Boeing (TBC)'s backlog to >3,400.

The 737 program had the bumper year, setting a 3rd consecutive annual record with net orders for 846, breaking the previous tallies of 729 net orders in 2006, and 569 in 2005. The 737, originally launched in 1965 to compete with the more established Caravelle, DC-9 and BAC 1-11 programs, passed the 7,000 total order mark last year. Underscoring the longevity of the design, (TBC) delivered the 1st 737-700ER to (ANA) and the 1st 737-900ER to Lion Air (MLI) last year.

The 787 Dreamliner program enjoyed another record-setting year with 369 orders received in 2007 for the next-generation airplane. Total 787 Dreamliner orders now stand at 817.

The 777 posted the 2nd-strongest sales year in the program's history with 141 net orders, lifting total sales for the type above the 1,000 mark. The 747 finished the year with 21 net orders: 20 freighters and 1 (VIP) to push total sales past 1,500. The 767 program had 36 net orders, boosting total sales >1,000.

Boeing (TBC) freighters enjoyed a 3rd consecutive record sales year, with 83 gross orders for cargo airplanes in 2007, up from 81 in 2006 and 74 in 2005. Notable was (UPS)'s order for 27 767-300Fs.

February 2008: Boeing (TBC) is upbeat on its progress with what it terms "2nd-generation" biofuels and believes regular commercial services could be operating within 5 years. Head of Environmental Strategy Bill Glover said that in the past 2 years he "changed from being a skeptic to an enthusiastic supporter of sustainable biofuels," adding, "It will take time to collect the data and get confidence [in the fuel], but an airplane powered by a biofuel blend, could be flying as early as 5 years' time. Within 10 years, we can have a significant impact on the market and on the carbon footprint of aviation." Feasibility studies will begin this month with Virgin Atlantic Airways (VAA) and (GE), while Air New Zealand (ANZ) and Rolls-Royce (RR) come on board later this year. Glover said there has been substantial progress over the past 18 months. He explained that the industry cannot use what he termed "1st-generation" biofuels such as ethanol, because of the low energy content, but that newer products do meet specifications. The new fuel must be interchangeable with current jet fuel, he said. It "must act like the fuel already being used and meet all the technical specifications." Glover noted that "2nd-generation" biofuels were "designed to avoid the problems of 1st-generation fuels that replaced grain stocks, used large quantities of water or required vast areas of agricultural land." He said the industry could grow the entire feedstock for the current aviation fleet in an area the size of Belgium.

March 2008: Boeing (TBC) delivered its 700th 777, a 777-300ER leased by Cathay Pacific Airways (CAT) from (ILFC) (ILF). (ILF) has ordered 79 777s since 1992 and has +5 scheduled for delivery. (CAT) operates 24 777s, with 23 additional 777-300ERs to come.

Boeing (TBC)'s Airplane Health Monitoring (AHM) software was ordered by Qantas (QAN) for its fleet of 30 747-400s to better evaluate in-flight data and manage unscheduled maintenance events. (QAN) also will use (AHM) for its 65 787s. >44% of the world's 777 and 747-400 fleets are covered by (AHM) technology.

(GMG) Airlines, a private Bangladeshi airline launched in 1998, and Israeli flag carrier El Al (ELA) announced orders for long-haul Boeing (TBC) airplanes. (GMG) announced that it will purchase 3 787-9s and 3 777-300ERs. (GMG) (CEO) Shahab Sattar revealed the order to several media outlets. He told "Agence France Presse (AFP)" in Dhaka that the deal with (TBC) has been "finalized" and that (GMG) is "now fine-tuning some details with our financiers.

(ELA) announced that it has finalized its decision to purchase 4 777-200ERs. Delivery is scheduled for 2012 (3) and 2013 (1) and the airplanes will seat 279 and be powered by (Trent 800)s, according to "Reuters," which reported that the order was signed. It can be converted to 777-300ERs.

Malaysia Airlines (MAS) announced an order for 35 737-800s and 20 options. The narrow body order is worth $4.2 billion at list prices assuming all options will be exercised. Delivery will begin in September 2010, "when the weakness of the global economy should be less of a concern," (MAS) Managing Director & (CEO) Idris Jala said. They will replace 737-400s. (MAS) said it can swap 737-800s for 737-900s if it chooses. "We will likely partially purchase the 737-800 on our own, and partially lease them, as that would give us the flexibility to manage our balance sheet and financing commitments, and to sell some of them, when the time is right," Jala said.

April 2008: The Iraqi government (IRQ) signed an agreement for the purchase of 10 787s and 30 737NGs.

(GE) Aviation (GEC) won USA (FAA) (GEnx-1B) engine authority for the 787.

May 2008: Boeing (TBC) finalized and revealed details of the Iraqi government's order for 30 737-800s +10 options and said it is in the process of finalizing an order for 10 787s, calling the airplanes purchase agreements "the 1st step in re-establishing that country's scheduled commercial aviation operations."

(TBC) unveiled its 1st 777F freighter. It is destined for launch customer Air France (AFA). The 777F is the only freighter that offers cargo interlining with the 747F freighter series, and it burns -41% less fuel than a 747-200F.

June 2008: Biman Bangladesh Airlines (BNG) placed an order for 4 737-800s valued at about $320 million plus 2 options, bringing to 12 the number of Boeing (TBC) airplanes it has ordered this year as it attempts to modernize its aging fleet.

July 2008: Etihad Airways (EHD) announced a blockbuster fleet modernization and expansion program with firm orders with Boeing (TBC) for 35 787s and 10 777-300ERs worth $9 billion at list prices, plus options for another 25 787s and 10 777s and purchase rights for +10 787 Dreamliners and 5 777s. Deliveries will begin in 2011 and be completed in 2020. Deliveries of the 777s will start in 2011 and deliveries of the 787s in 2015. The 777s will be powered by (GE90)s, while negotiations are still ongoing for the engines of the 787s.

The Air China (BEJ) Board approved the purchase of 45 airplanes from (TBC) at a list price of $6.3 billion. (BEJ) will buy 30 737S and 15 777s, with delivery expected in stages from early 2011 to 2015. The purchase will increase (BEJ)'s fleet capacity by +35%.

Malaysia Airlines (MAS) placed an order for 35 737-800s valued at >$2.6 billion. Aviation Capital Group (CGP) announced an order for 15 737-700s valued at >$930 million.

FlyDubai (FDB), a startup Low Cost Carrier (LCC) owned by the Dubai government, that plans to launch service in mid-2009, placed a firm order for 50 737-800s valued at $3.74 billion. (FDB) also will lease 4 737-800s from Babcock & Brown (BBB).

August 2008: Alteon Pilot Training parent, Boeing (TBC) plans to decide on its Multi-crew pilot license (MPL) future after completion of a beta test program in November.

SEE ATTACHED ARTICLE - - "TBC-MPL PILOTS-AUG08."

British Airways (BAB) placed an order for 2 777-300ERs valued at $529 million and agreed to lease +4 from (GECAS) (GEF), Boeing (TBC) said. Including the latest 2, (GEF) has ordered 25 777s (a combination of freighters and 777-300ERs) since 2006. (BAB) also secured 4 777-300ER options directly with Boeing (TBC).

Azerbaijan Airlines (AHY) ordered 2 737-900ERs and 2 767-300ERs collectively valued at $449 million.

September 2008: Saga Airlines (SGZ), an Istanbul-based charter and wet-lease (ACMI) carrier, ordered 2 737-800s worth $149 million at list prices. It currently operates 4 737s.

October 2008: Boeing (TBC) Shanghai Aviation Services, a joint venture among Boeing (TBC), Shanghai Airport Authorities and Shanghai Airlines (SHA), won USA (FAA) repair station certification to provide Maintenance Repair & Overhaul (MRO) to Chinese airlines, as well as regional and international carriers.

Under USA FAR Part 145, Boeing Shanghai will conduct heavy maintenance on 737s and expects to expand offerings to twin-aisle airplanes beginning with the 767-300 and eventually to handle passenger-to-freighter conversions. The facility also conducts nondestructive testing (NDT) and other maintenance services. The approval is significant considering there are >235 737NGs flying in East Asia and >260 on order.

American Airlines (AAL) placed a firm order for 42 787-9s valued at >$8 billion with 1st delivery scheduled for September 2012, a move it said signals its continued focus on the future even as it navigates current economic difficulties. (AAL) also has options for +58 more 787-9 Dreamliners.

November 2008: News Item A-1: See video "TBC-Air Force One 747 Tour"

News Item A-2: The world's 1st commercial aviation test flight powered by a sustainable 2nd-generation biofuel will take place on December 3 on an Air New Zealand (ANZ) 747-400 with a jatropha blend powering one of the Rolls-Royce (RRC) (RB211) engines. The flight is a joint initiative among (ANZ), Boeing (TBC), Rolls (RRC) and (UOP), a Honeywell (SGC) company. The jatropha-based fuel, a 50/50 blend with Jet A1, has been certified as suitable by Rolls (RRC). The jatropha crude oil was converted successfully to biojet fuel using "proprietary" (UOP) fuel processing technology, "marking the world's first large-scale production run of a commercially viable and sustainable biofuel for aviation use," according to the companies. In a statement, Rolls (RRC) fuels specialist Chris Lewis said testing "showed the final blend has excellent properties meeting, and in many cases exceeding, the stringent technical requirements for fuels used in civil and defense airplanes. The blended fuel therefore meets the essential requirement of being a 'drop-in' fuel, meaning its properties will be virtually indistinguishable from conventional Jet A1 fuel." The jatropha oil comes from southeastern Africa (Malawi, Mozambique, and Tanzania) and India. It was sourced from seeds grown on environmentally sustainable farms. The jatropha plant produces seeds containing inedible lipid oil used to produce the fuel. It can grow across a range of difficult conditions, including arid and otherwise nonarable areas.

The partners have insisted that any environmentally sustainable fuel must meet social, technical, and commercial criteria. They enlisted Terasol Energy to certify independently that the fuel met those standards.

SEE ATTACHED - - "TBC-APL VALUES-NOV08" which details current and projected values of 747-400s (built in 2000), 777-300s (built in 2000) and 777-300ERs (built in 2004).

Boeing (TBC) said it will deliver the 1st 777F to Air France (AFA) in the 2009 1st quarter, rather than the current quarter, as a result of the recently concluded machinists strike, according to press reports.

For recent significant progress in China, see "CCC - COMMERCIAL CORPORATION OF CHINA."

December 2008: Continental Airlines (CAL) announced plans for a biofuel demonstration flight on January 7 in conjunction with Boeing (TBC), (CFM) International, and Honeywell (SGC), the 1st of its kind by a USA airline. A 737-800 carrying no passengers "will be powered by a special fuel blend, including components derived from algae and jatropha plants," (CAL) said, calling the fuel sources "sustainable, second-generation that don't impact food crops or water resources, and don't contribute to deforestation." Sapphire Energy will provide the algae-based fuel and Terrasol will supply the jatropha-derived fuel. The fuel used in 1 of the 737's 2 (CFM56-7B) engines will be a blend of 50% traditional jet fuel and 50% biofuel. "This flight represents another step in (CAL)'s commitment to reducing carbon emissions and identifying sustainable, long-term fuel solutions for the aviation industry," Chairman & (CEO) Larry Kellner said.

Japan Airlines (JAL) said that it will operate a 747-300 test flight from Tokyo Haneda on January 30 in conjunction with Boeing (TBC), Pratt & Whitney (PWC) and Honeywell (SGC). It will use biofuel primarily derived from camelina plants. A blend of 50% biofuel and 50% traditional jet fuel will be tested in 1 of the airplane's 4 (JT9D) engines. The biofuel will be a mixture of 3 2nd-generation feedstocks: Camelina (84%), jatropha (under 16%) and algae (under 1%). The flight will be the 1st using fuel derived from camelina and the 1st to use a combination of 3 feedstocks. It also will be the 1st biofuel test flight on an airplane powered by Pratt & Whitney (PRW) engines. It will last about 1 hour. (JAL) Environmental Affairs VP Yasunori Abe said, "In the air, we will check the engine's performance during normal and nonnormal flight operations, which will include quick accelerations and decelerations and engine shutdown and restart."

There were 1,256 civil airplanes in operation in China as of October, according to "Xinhua." "Since the second half of this year, the global economic crisis has had an increasingly negative effect on the development of the civil aviation industry," the (CAC) said.

China Southern Airlines (GUN) and China Eastern Airlines (CEA) announced last month that they had started to ground airplanes and cut flights. Domestic passenger traffic has dropped steadily throughout the 2nd half of 2008, and China's major airlines are expected to post full-year losses.

USA Aerospace Industries Association President & (CEO) Marion Blakey, said the (CAC) statement was another sign that "the international market is volatile." She added, however, that next-generation airplanes will give airlines "a competitive edge that I don't think the Chinese will be willing to give up."

The (CAC) also said it would lower fees on airlines to help ease carriers' financial burden.

(TBC) announced a deal with Southwest Airlines (SWA) to serve as lead integrator for (SWA)'s 737-300/-700 flight deck upgrade to incorporate performance-based navigation capabilities. The contract includes design, installation and integration of hardware and software from multiple suppliers, as well as flight testing and certification. The integration program calls for 737-300 modification with avionics supplied by (GE) Aviation (GEC), Honeywell (SGC) and Rockwell Collins. (GE) Aviation (GEC) said it won a $40 million deal with (SWA) to provide its SDS-6000 large area display suite. Systems will be installed on up to 150 airplanes. 1st production deliveries are slated for early 2011.

(TBC) won approval from the USA (FAA) for its scheduled maintenance program defining tasks and intervals that operators will use to upkeep the 787 properly. Approval is one of the many requirements needed to certificate the airplane.

Airbus (EDS) is well ahead of Boeing (TBC) in the 2008 orders race. Through November 30 it had booked 878 gross orders comprising 540 A320 family airplanes, 140 A330s, 3 A340s, 186 A350s and 9 A380s. It logged 122 cancellations for a net of 756.

Through December 2, Boeing (TBC) logged 646 gross orders comprising 483 737s, 4 747s, 28 767s, 52 777s, and 79 787s. 6 cancellations reduced the net to 640.

Later, (TBC) garnered orders for 15 787s and 2 777s. The commitments lifted (TBC)'s 2008 gross order total to 663, including 94 787s and 54 777s. Net orders of 657 airplanes include 93 787s.

January 2009: As a not so happy new year message, the Boeing Company (TBC) announces it will lay off -4,500 workers (-7% of current 63,500) from its Commercial Airplane division, with 60-day notices being sent out the end of next month.

A year that featured soaring fuel prices, a slumping global economy and a 58-day machinist (MT) strike ended with 662 net commercial airplane orders for (TBC), a steep drop from the record 1,413 garnered in 2007. The 662 orders is the 8th-highest annual total on record for (TBC). The 737NG again was (TBC)'s most popular model with 484 net orders. (TBC) sold 93 787s, "primarily [to] Middle East customers," as well as 54 777s, 28 767-300ERs and three 747-8Is. The backlog now is >3,700 airplanes. (TBC) also completed 26 freighter conversions during 2008, including the 1st 767BCF.

Deliveries, hampered by the strike, fell to 375 for the year from 441 in 2007.

SEE ATTACHED - - "TBC-EDS-2008 DELIVERIES."

In 2008, (TBC) delivered 290 737NGs, 14 747s, 10 767s and 61 777s. 4th-quarter deliveries plummeted to 50 from 112 in the year-ago quarter.

(TBC)'s 2008 net profit plunged -34% to $2.7 billion from $4.1 billion in the prior year owing to the now-settled machinists' strike, lower airplane deliveries and development delays in airplane programs, leading the company to announce that it will cut -5,500 additional jobs this year. (TBC), which posted a rare quarterly net loss in the 4th quarter of -$56 million compared to a +$1.03 billion profit in the year-ago quarter, already had said it would cut -4,500 workers in 2009, bringing total planned cuts to -10,000.

FedEx (FED) exercised options on 15 777Fs valued at $3.75 billion, bringing its firm backlog for the type to 30, and took options on an additional 15. (FED) originally ordered 15 777Fs plus 15 options in November 2006, when it cancelled an order for 10 A380Fs owing to Airbus (EDS) production delays on the now-suspended large freighter program. Deliveries of the newly ordered airplanes are slated for 2013 through 2018.

Boeing (TBC) now has firm orders for 88 777Fs, for which (FED) is the largest single customer. (FED) plans to use the airplanes for direct long-haul flights between major markets in the USA, Europe and Asia.

(TBC)'s 787 backlog now stands at 895 from 58 customers. Overall, it has taken 914 gross orders for the 787 Dreamliner. In addition to the (SBR) cancellation, Xiamen Airlines (XIA) in 2006 replaced an order for 3 787s with an order for 7 737-800s and Azerbaijan Airlines (AZB) replaced 1 787 with 1 767-300ER last summer.

For dismal January airplane sales - - SEE ATTACHED - - "TBC-NEWS-2009-01."

February 2009: Mohammad "Mo" Yahyavi, was assigned VP & General Manager 747 Program replacing Ross Bogue. SEE ATTACHED - - "TBC-747-LDR-2009-03."

AirFrance (AFA) took delivery of its 1st 777F. (AFA), which placed the launch order for the new factory-built freighter in May 2005, progressively will replace its 5 747-400ERFs and 4 747-400BCFs with 777Fs. Based on the 777-200LR platform, the (GE90-110B1L)-powered 777F has a Maximum TakeOff Weight (MTOW) of 766,000 lb/347,450 kg. Its range is 4,880 nm/9,038 km with a full payload of 226,700 lb. A total of 73 777Fs have been ordered by 12 customers.

March 2009: (TBC) booked 3 commercial airplane orders for 1 777 for Air New Zealand (ANZ).

Click Mexicana (AEB) will lease 25 717-2BLs, ex-Midwest Airlines (MWX), from Boeing Capital Corporation (TBC). Delivery will begin this month and the airplanes will replace (AEB)'s F 100s. The 717s will seat 20C in business class and 84Y in economy. The contract includes provision of training for flight crew (FC), cabin staff (CA) and maintenance technicians (MT), as well as spare parts, by Boeing (TBC)'s Commercial Aviation Services division.

April 2009: AirFrance (AFA) will take delivery of its 54th 777. The airplane is the 777th 777 produced by Boeing (TBC) and will be the 1st (AFA) airplane to feature its new livery.

The USA Export-Import Bank announced approval of some $1.08 billion in financing to support the delivery of up to 30 737-900ERs to Indonesia's Lion Air (MLI). The financing comprises $238 million in a 1st stage and a non-binding preliminary commitment of $841 million. Ex-Im Bank said the transactions were its 1st in support of the 737-900ER.

A consortium of Hollywood movie stars has confirmed an order for a single Boeing 787 which it plans to use as a flying restaurant. The airplane, dubbed the “Dreamdiner” (SEE PHOTO - - "TBC-DreamDiner-Config/Interior"), will be based at Los Angeles International Airport and will make daily 2-hour flights along the coast of California while (VIP) diners/passengers enjoy cordon bleu cuisine during the flight.

The consortium of movie stars operates under the name In-flight Movie Stars (I M Stars) and includes well-known aviation enthusiasts Harrison Ford, John Travolta and Tom Cruise. I M Stars is keen to emulate the success of other Hollywood-born franchises such as the Planet Hollywood and Hard Rock Café chains, as well as tapping into the super rich Hollywood community at whom the unique dining experience is aimed. The airplane will be configured to seat 50 diners in one sitting, all of whom will enjoy the Michelin Star culinary offerings of French chef Monsieur Fou d’Avril. Delivery of the DreamDiner is scheduled for 1st April 2011.

May 2009: Air New Zealand (ANZ) revealed the results of its December 29, 747-400 bio-fuel test flight, saying that data gathered from the 2-hour flight show that a 50/50 blend of jatropha-based fuel and standard jet fuel could reduce fuel burn by -1.2% and carbon dioxide emissions by -60% to -75% on an average 12-hour 747 flight. (ANZ) earlier had stated that there were no operational problems during the test flight from Auckland that used the fuel blend to power one of the airplane's Rolls-Royce (RRC) (RB211)s. But it said its analysis of scientific data gathered during the flight revealed a performance that was "better than we expected." Extrapolating data from the flight, (ANZ) believes a 12-hour 747 flight powered by the fuel blend would yield fuel savings of -1.43 tons and a CO2 emissions reduction of -4.5 tons compared to a similar flight powered today by traditional jet fuel. The test flight was operated in conjunction with Boeing (TBC), Rolls-Royce (RRC) and Honeywell (SGC).

Despite the strong results, (ANZ) General Manager Operations & Chief Pilot Dave Morgan cautioned that there is no imminent "silver bullet" regarding bio-fuel and that there may be too much "hype." He explained that the test flight was just part of a long process: "The reason we did the flight was to make a contribution to the database in order to [make progress toward getting] this fuel certified. In the short term, it's really about getting a 2nd-generation bio-fuel certified. In the long term, we believe it could be a fuel alternative for (ANZ)."

(ANZ) has a goal of using 10% alternative fuel (covering all fuel needs, including ground operations) by 2013. Morgan said jatropha may not be the most ideal feedstock for (ANZ) because it cannot grow in New Zealand.

June 2009: Boeing (TBC) and (GE) Aviation (GEC) said they have "jointly developed a simpler method to implement condition-based maintenance systems on airplanes." Called Open System Architecture for Condition-Based Maintenance (OSA)-(CBM), the system will provide "a 10-fold increase in real time performance making it practical for embedded health monitoring of airplane systems," (GE) Aviation (GEC) President Avionics John Armendarez said.

July 2009: (ANA) raised its firm 787 commitment to 55 airplanes from 50.

"The Financial Times" reported that (ANA) said it switched a commitment for 5 767-300ERs to the 787. (ANA) had 10 767-300ERs on order. This latest filing indicated it had 5 and 55 787s. The move makes (ANA) the world's largest airline customer for the 787.

(TBC) said that it has reached agreement to purchase Vought Aircraft Industries' facility in North Charleston, South Carolina, that builds the 787's aft fuselage sections.

SunExpress (SNS) ordered 6 737-800s worth $460 million at list prices. Tassili Airlines (DTH) ordered 4 737-800s.

Boeing (TBC) said Air China (BEJ) selected its Airplane Health Management system to cover 117 737NGs in service and on order.

Copa Airlines (COP) signed up for +13 additional 737-800s, an order worth approximately $1 billion at list prices. The (COP) commitment also includes 8 options and brings to 27 the number of 737NGs (COP) has on firm order. Delivery of the 13 new airplanes is scheduled to run from 2012 into 2015, with the 8 options available between 2015 and 2017. The airplanes will be outfitted with Boeing (TBC)'s Sky Interior, designed to mimic the more modern cabin of the 787.

Ethiopian Airlines (ETH) said it placed an order for 5 777-200LRs from Boeing (TBC), a move it called "unprecedented," while Turkish Airlines (THY) added +8 777-300ERs to its order book. (ETH) said it also has 10 787s on order.

(TBC) did confirm (THY)'s purchase. The 7 new 777-300ERs are valued at $1.9 billion at list prices and are in addition to the 5 (THY) ordered in the spring.

August 2009: Boeing (TBC) renamed its training organization, formerly called Alteon, "Boeing Training & Flight Services." "The new name reflects the organization's expanded capabilities. With the addition of Flight Services, the organization's expertise now includes customized flight and dispatch documentation, airplane performance data, operational consulting and safety analysis."

Boeing (TBC) commenced flight testing of a 737-900ER fitted with a modified engine nozzle in preparation for the arrival of the upgraded (CFM56-7B) "Evolution" engine next year.

SEE - - "GEF-NEW CFM56-7B-AUG09."

September 2009: Beset by continuing problems with the 787 program, Boeing Commercial Airplanes (TBC) President & (CEO) Scott Carson announced that he will retire from the company at year end. He will be succeeded effective immediately by Boeing Integrated Defense Systems (IDS) President & (CEO) Jim Albaugh.

Turkmenistan Airlines (TUE) placed an order for 3 737-700s worth approximately $192 million at list prices. (TUE) currently operates 717s, 737 Classics and NGs, 757s and 1 767. In March 2008, it ordered 2 737-900ERs and 1 737-700, and it signed up for 1 777 2 months earlier. It now has ordered 21 airplanes from (TBC) in total, with 15 (7 717-200s, 1 737-300, 1 737-700, 2 737-800s, 3 757-200s and 1 767-300ER delivered.

October 2009: Boeing (TBC), the Shanghai Airport Authority, and Shanghai Airlines (SHA) opened a new 2-bay, airplane maintenance hangar at Shanghai Pudong to be used by their Boeing Shanghai Aviation Services, Maintenance Repair & Overhaul (MRO) joint venture (JV).

(SWA) placed into revenue service a "green plane" (a retrofitted 737-700 with a new interior featuring lighter, "eco-friendly" seat and carpet materials) for a 6-month trial and projected that the airplane could yield 10,000 gallons in fuel savings per year. Chairman, President & (CEO) Gary Kelly said the 4-year-old airplane now is -519 lbs lighter than a standard (SWA) 737-700 and offers -5 lbs of savings per seat. The interior modifications, done in conjunction with (TBC), could produce a per-airplane, per-year cost savings of -$20,000 if implemented widely across the fleet. A decision on further retrofits will come following the trial.

2 new seat cover products are being tested. On 1 side of the aisle, seats are covered with e-Leather, made of recycled raw materials. On the other side, seats are covered with (IZIT) Leather, a fully synthetic material. All seats are filled with a lighter foam produced by Garnier PURtec. The floor is covered with InterfaceFLOR carpet, made from recycled carpet and installed in sections rather than in 1 full piece, allowing (SWA) to replace damaged sections rather than the whole carpet. (TBC) Managing Director Environmental Strategy Billy Glover, in Dallas for the airplane's unveiling, said the interior took 4 years to develop. Reducing aviation's environmental impact "starts with little details like carpets and seatbacks," he said.

(TBC) announced that it will place a 2nd 787 final assembly line (FAL) in North Charleston, South Carolina, rather than near Seattle, which Boeing Commercial Airplanes President & (CEO) Jim Albaugh said would allow (TBC) "to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica (GA)," adding in a not-so-veiled jab at the International Association of Machinists (IAM) & Aerospace Workers that (TBC) is "taking prudent steps to protect the interests of our customers as we introduce the 787-9 and ramp up overall production to 10 twin-aisle 787 jets per month."

November 2009: SEE ATTACHED - - "TBC-2009-11 SC ASSY/EVERETT ASSY."

Boeing (TBC) broke ground on a 2nd 787 final assembly line (FAL) site in North Charleston, South Carolina. It is expected to be completed by mid-2011 and is being built with the capacity to support production of 3 787 Dreamliners per month. The (FAL) is expected to add about +1,000 jobs to the Boeing Charleston facility, which will have the capability to support the testing and delivery of airplanes as well.

FOR CURRENT STATUS OF WORLD JET AIRPLANE PROGRAMS, SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLES - - "TBC-2009-11 NARROW BODY JET APL SPECS-A/B; WIDE BODY JET APL SPECS-A/B; NEXT-GEN WIDE BODY JET APLS-A/B; CHINA/RUSSIA JET APLS-A/B; RUSSIAN JET APLS; ULTRA WIDE BODY JET APLS-A/B; JET APL CARGO CONVERSIONS-A/B/C/D.

December 2009: Esterline CMC Electronics has developed a new 10.4 inch Class 2 PilotView Electronic Flight Bag (EFB) for 737s to be available in the 3rd quarter 2010 for production and for retrofit - - SEE ATTACHED - - "TBC-2009-12 EFB."

(TBC) said it has acquired Alenia North America's half of Global Aeronautica, a South Carolina fuselage sub-assembly facility for Boeing (TBC)'s 787 Dreamliner, and is now the sole owner of that entity. Alenia North America is a subsidiary of Italy's Alenia Aeronautica, a Finmeccanica company.

Operationally, (TBC) will integrate the Global Aeronautica facility with the rest of (TBC)'s organization in North Charleston, South Carolina.

Global Aeronautica's integration entails the joining of the mid-fuselage sections, the installation and testing of associated elements, and the application of surface finishes to >60% of the 787's fuselage. Global Aeronautica sits adjacent to the (TBC) Charleston site and shares a 240-acre (97-hectare) campus.

Aeronautical Engineers announced it has become a Boeing (TBC) Licensed Third Party Supplemental Type Certificate (STC) Provider for the 737-200SF, 737-300SF and the 737-400SF passenger-to-freighter conversions.

Korean Air (KAL) boosted the 747-8I passenger program with a Memo of Understanding (MOU) for 5 orders worth $1.5 billion at list prices (approximately $800 million purchase price after discounts). (KAL)'s aerospace manufacturing business builds parts of the 747-8's wing structure, including the jet airplane's raked wingtips, its wingtip extensions and the flap track fairing.

SEE ATTACHED "SEATTLE TIMES" ARTICLE IN "TBC-2009-12 (KAL) Order."

1st 747-8F freighter rolls out, destined for 1st delivery to Cargolux (CLX) in 4th quarter SEE ATTACHED PHOTO - - "TBC-747-8F 2009-12."

I attended the 787 Dreamliner 1st flight, taking off on December 15 at Paine Field, Everett, Washington.

SEE ATTACHED PHOTOS - - "TBC-2009-12 787 T O-A/B/C/D/E."

The 2nd 787 airplane in (ANA) livery and powered by (Trent 1000) engines made its 1st flight on December 22nd.

(ANA) agreed to order 5 767-300ERs for delivery in 2010 to 2011 and 5 777-200ERs for delivery in 2012 to 2013.

(TBC)'s latest orders and deliveries update also included an order for 2 737s from Air Austral (AUX) and 1 (VIP) order for a 777. Air Austral (AUX) made an order for 2 737-800s, which are worth $152 million at list prices and will replace 1 737-300 and 1 737-500.

Through December 22, (TBC) sold 259 gross airplanes comprising 193 737s, 5 747s, 7 767s, 30 777s and 24 787s. Customers canceled 118 airplanes, however, reducing the net to 141 (174 737s, 4 747s, 2 767s, 20 777s and -59 787s).

January 2010: Boeing (TBC), Etihad Airways (EHD), Honeywell (SGC)'s (UOP) subsidiary and the Masdar Institute of Science and Technology (an Abu Dhabi-based research and graduate program partnered with the Massachusetts Institute of Technology (MIT)) announced an agreement to establish a major initiative dedicated to developing "sustainable energy solutions." The Sustainable Bioenergy Research Project (SBRP) will use integrated saltwater agricultural systems to support the development and commercialization of biofuel sources for aviation and co-products.

Masdar will host the (SBRP) and provide laboratory and demonstration facilities in and near Masdar City, which aims to be the world's 1st zero-carbon city. "Together with the Abu Dhabi government, Etihad Airways (EHD) and other industry leaders, we are forging our energy future by developing a renewable fuel supply now, not when fossil fuels are depleted," Boeing Commercial Airplanes (TBC) President & (CEO) Jim Albaugh said. (UOP) VP & General Manager Renewable Energy & Chemicals Jennifer Holmgren said the (SBRP) "is a unique opportunity to showcase the viability of a geographically optimized solution and the availability of solutions that produce high-quality, green transportation fuels."

The partnership said saltwater will be used "to create an aquaculture-based seafood farming system in parallel with the growth of mangrove forests and salicornia, a plant that thrives in salty conditions." The "closed-loop" 2-sq-km system will produce an "affordable, nutrient-rich" fertilizer that will aid in the production of biomass that can be used to create aviation biofuel and other products. "Developing low-cost, nonpetroleum fertilizers is 1 of the keys to achieving genuine carbon emissions reductions from any biofuel source," the group said.

(TBC) announced a -50.9% drop in full-year profit to +$1.31 billion and a -$583 million operating loss at Boeing Commercial Airplanes (BCA).

(TBC) delivered 481 commercial airplanes in 2009, in line with its guidance and up from 375 in 2008 (a total impacted by a 2-month machinists strike) and 441 in 2007. Orders plummeted, however, "as air travel and freight declined and carriers worldwide experienced severe economic challenges," (TBC) said. It recorded 263 gross orders last year and 142 net compared to a net of 662 in 2008 and the record 1,413 in 2007. Deliveries in 2009 comprised 372 737s, 8 747s, 13 767s, and 88 777s. Gross orders comprised 197 737s, 5 747s, 7 767s, 30 777s and 24 787s. Net orders comprised 178 737s, 2 747s, 2 767s, 19 777s and -59 787s. Boeing's commercial backlog totals 3,375 airplanes including 851 787s. In the 4th quarter, it delivered 122 commercial airplanes (92 737s, 2 747s, 3 767s and 25 777s). It said it will issue 2010 delivery guidance when it releases its year-end financial results on January 27.

See attached photos of the 2nd 787 airplane - - "TBC-2010-01 787-A/B/C/D."

(TBC) took orders for 4 737s from an unidentified customer during the week ended December 31 and also recorded cancellations of commitments for 2 747s and 1 777. (TBC) had a full-year gross order total of 263 airplanes (197 737s, 5 747s, 7 767s, 30 777s and 24 787s) and a net total of 142 airplanes (178 737s, 2 747s, 2 767s, 19 777s and -59 787s). The 121 cancellations comprised 19 737s, 3 747s, 5 767s, 11 777s and 83 787s.

(TBC) Chairman & (CEO) Jim McNerney said that "re-engining the 737 is under active consideration" with customers "anxious for us to make a move" on a more efficient narrow body.

Regarding the company's 2009 results, which included Commercial Airplanes swinging to an operating loss of -$583 million from a +$1.19 billion operating profit in 2008, McNerney said there was "no question" the 747-8 program delay and "the 787 side-of-body issue significantly affected our financial performance." He said the 787 flight test program is "moving along as expected" and (TBC) soon will be "deep into a rigorous flight testing regime."

Commercial Airplanes' delivery guidance for 2010 is 460 to 465 airplanes, slightly below the 481 delivered last year. The unit's 2009 revenue rose +20.5% to $34.1 billion but is expected to drop to $31 to $32 billion this year.

Company-wide full-year operating profit in 2009 was down -46.9% to +$2.1 billion. 4th-quarter net income was +$1.27 billion, reversed from a -$86 million loss in the prior-year period.

40TH YEAR ANNIVERSARY! - - SEE ATTACHED - - "TBC-2010-01 747-A/B/C/D/E/F/G/H/I/J/K/L/M/N/O."

February 2010: The 747-8F freighter flew its 1st flight on February 8th, taking off from Paine Field in Everett, Washington, at around 12:40 pm local time, following a nearly 3-hour weather delay and landing at the same airport at 4:18 pm, marking the start of flight testing for the latest derivative of Boeing (TBC)'s successful wide body program. The flight occurred after 2 delays to the 747-8F program owing largely to overtaxed engineering and 1 day short of the 41st anniversary of the historic 1st flight of the 747-100. All indications were that the flight was successful. (TBC) said the 1st flight of the 747-8I Intercontinental, the passenger version, will occur later this year.

The 1st 747-8F is destined for launch customer Cargolux (CLX), with delivery scheduled for the 4th quarter. It is 1 of 9 customers that have ordered a combined 76 747-8Fs. (TBC) also has sold 32 747-8Is, the latest ordered by Korean Air (KAL).

The (GEnx)-powered 747-8F at 76.3 m is 5.6 m longer than the 747-400F freighter and is designed to be +17% more fuel efficient. According to (TBC), the stretch provides +16% more revenue cargo volume, translating to 4 additional main-deck and 3 more lower-hold pallets.

Among the dignitaries on hand at Paine Field to observe the flight was Joe Sutter, the legendary lead engineer for the original 747. "It's amazing to me that this program has lasted 41 years," he said on a (TBC) webcast following the landing. The longevity "says the basic design was right then and it's still right now." Sutter noted that he always believed the 747 was an ideal cargo airplane and was confident the freighter version of the 747-100 would be successful even if the passenger version was not. He remembered that he resisted entreaties by airlines to design the groundbreaking airplane, in 1969 by far the largest ever built, as a narrow double-decker rather than a wide body. "If we had gone with the double-decker, neither the freighter nor the passenger versions would have lasted 41 years," he said.

SEE ATTACHED PHOTOS - - "TBC-2010-02 747-8F-A/B/C/D/E/F."

A Singapore Airlines (SIA) 747-400 completed the 5th Asia Pacific Initiative to Reduce Emissions (ASPIRE) demonstration flight and the 1st multi-sector flight in the program, flying a Los Angeles - Tokyo Narita - Singapore (SIN) routing and achieving about a -5% to -6% fuel/carbon dioxide emissions savings compared to a usual (SIA) flight on the route.

(SIA) said total fuel savings were calculated at 10,868 kg while CO2 reduction was -33,769 kg, both exceeding the goals for the flight. Flight time was lowered by about 30 minutes. The flight was achieved through a collaboration among (SIA), the USA (FAA), the Japan Civil Aviation Bureau, and the Civil Aviation Authority of Singapore, which Monday became the 5th air services provider to enlist as an (ASPIRE) signatory.

(SIA) Senior VP Flight Operations Gerard Yeap explained that the 747-400 operated a "red carpet flight" in which every conceivable measure was taken to allow it to fly as efficiently as possible. "Look at it as an aspiration of what we'd like to achieve in a green flight," he said. "It shows it can be done."

Ground electrical supply was used instead of the Auxiliary Power Unit (APU) to power the airplane at all 3 airports. The amount of fuel on board "was fine-tuned half-an-hour before flight, ensuring a better match with the actual airplane takeoff weight," (SIA) said. The 747-400 was allowed to make an "unrestricted climb" following takeoff and used a continuous descent approach at (SIN). (SIA) said that "the bulk of the fuel savings came from using a User Preferred Route (UPR) generated from the flight planning system Lido/Flight from Lufthansa (DLH) Systems." Yeap explained, "Based on the latest weather at hand, the (UPR) is the most efficient route for the airplane to fly compared to an existing predetermined route."

The 747-400 used the FreeFlight module of the Lido/Flight solution, which Lufthansa (DLH) Systems noted "opens up almost unlimited options to calculate the most-efficient routing," adding that the system uses a "highly complex procedure of calculating the most efficient trajectory in terms of distance, flight altitude, wind direction and speed."

Yeap said FreeFlight meant the airplane was "not bound by traditional airways [nor] ground-based routes." He said he hoped the success of the (ASPIRE) flights will encourage governments, airports and air service providers to invest in modernizing infrastructure. "Many airports in use today were designed in the days of the 707 and meanwhile airplane technology has advanced by leaps and bounds," he said. "There are regions in the world where, for one 1-hour flight, you have to do 10 heading changes." Relying more on satellite-based navigation and using the procedures employed in the (ASPIRE) flights "easily" could increase system efficiency significantly, he declared.

Boeing (TBC) is considering a near-term performance improvement package for the 777-300ER that could result in a -4% decrease in fuel burn. VP Marketing Randy Tinseth said that the +4% gain would come from a range of aerodynamic improvements related to the fuselage and wing. He added that (TBC) will consider more significant changes before the A350-1000's Entry Into Service (EIS) in 2016. "This may be a new wing and engine combination and possibly a slight stretch," he said.

(TBC) last month created a 777 Advanced Product Development team to study the future options for the airplane. Lars Anderson, former head of the 777 program, came out of retirement to join the team.

Turkish Airlines (THY) continued its ambitious fleet renewal and announced a commitment for 10 737-800s and 10 737-900ERs (plus 15 options). The firm Boeing (TBC) narrow bodies are scheduled for delivery in 2011 to 2014 and the 15 options, which may be 737-800s or 737-900ERs, would be available in 2013 to 2015 if converted. The airplanes will be fitted with (TBC)'s "Sky Interior" cabin.

March 2010: Boeing Commercial Airplanes (BCA) President & (CEO), Jim Albaugh believes China will become a significant competitor in civil airplane manufacturing, but he does not expect COMAC (CCC)'s C919 to achieve a major sales presence outside the country. "It will probably be a good airplane. Will that be the airplane that they market outside China? Probably not," Albaugh told media this week at Boeing (TBC) offices in Arlington, Virginia, adding, "But the airplane after that and the one after that . . . We have to look at China as a real competitor for years to come."

He added, "The Chinese are where Airbus (EDS) was 25 to 30 years ago. The Chinese government has said they are going to make a significant investment in commercial aerospace . . . They are going to put the best and brightest on the program." Albaugh, who joined (BCA) from the Boeing company (TBC)'s Space & Defense business units, pointed out that "only three countries have put a human into low Earth orbit and one of them is China. If they can do that, they can do just about anything they want to do." At the same time, he made it clear that (TBC) intends to fight hard for a share of the airliner market in China. "It's a big market - - about 200 airplanes a year for a lot of years. Clearly the C919 will command part of that. We want to make sure that we continue to be a major player there," he said.

China is not the only rising aerospace power, he noted. "We're not in a duopoly anymore. You project out 10 to 15 years, and we are competing against the Brazilians, the Russians, the Canadians, the Chinese and the Japanese and we're not just competing against five companies, we're competing against five countries. We have to make moves now to ensure we are competitive 5, 10, 15 years from now."

That reality dovetails with (TBC)'s decision to open a 787 assembly line outside Washington state, where it sustained a damaging two-month strike in 2008. "We have customers that expect us to deliver our product when we say we are going to deliver that product and we can't afford to have a labor stoppage every time we have a labor negotiation. We need to have alternatives in the event we can't deliver the product out of Puget Sound." He also thinks (TBC) needs to be "more competitive in Puget Sound . . . We need to be more productive, we need to be more efficient."

Atlas Air (TLS) said it reached an agreement with Boeing (TBC) to take over operation of (TBC)'s four 747-400F Dreamlifter freighters "toward the latter part of this year." (TBC) uses the Dreamlifters to ferry major assemblies for production of 787s. Atlas (TLS) and (TBC) signed a nine-year contract under which (TLS) will operate the four Dreamlifters to support the 787 supply chain. Atlas (TLS) said it "will receive contractually determined revenues for the operation of the Dreamlifter airplanes, with Boeing (TBC) assuming responsibility for certain direct costs, including fuel." (TBC) will maintain ownership of the airplanes.

Boeing (TBC) announced that Air China (BEJ) and Air China Cargo (CAO) will expand their use of the Airplane Health Management (AHM) system for in-flight monitoring of 777s and 747-400s. The new contract adds 42 in-service and on-order airplanes to the 117 737s already covered. (BEJ) currently operates 10 777-200s and 10 747-400s while (CAO) flies seven 747-400Fs. (BEJ) was (TBC)'s first Chinese (AHM) customer.

Boeing (TBC) said British Airways (BAB) selected its Airplane Health Management (AHM) system to cover 777s, 747-400s and future 787s.

Somon Air (SML) placed an order for two 737-900ERs worth $163 million at list prices. The order represents (SML)'s first direct order from the manufacturer (TBC). (TBC) also has sold 25 787-8s to United Airlines (UAL), 10 737-800s to Ethiopian Airlines (ETH) and 20 more 737s to an unidentified customer.

(BER) announced the cancellation of 10 firm 787 Dreamliner orders worth a combined $1.7 billion at list prices, along with five options, "to account for a change in market conditions and in order to meet . . . specific operative requirements."

(BER) still has 15 787 Dreamliners and five options remaining from its 2007 order. The cancellations represent the first for the program since TUI Travel (TUG) eliminated 10 of its 23 787 orders last fall. Boeing (TBC) sold 25 787s to United Airlines (UAL) last month but suffered 83 cancellations in 2009 compared to just 24 commitments.

Air Berlin (BER) (CFO), Ulf Huttmeyer stressed that the cancellation was "mutually agreed" with Boeing (TBC) in a "partnership spirit." He said the airline still "believes in the future of the 787" and that the move "means a significant reduction of its financial obligations due to lower and much more distributed investment profile." (BER) also deferred the delivery of nine 737s from 2010 to 2011 to 2015. It expects to take its first 787 in November 2015.
(CEO), Joachim Hunold said that (BER) is focusing on its European growth, perhaps a harbinger of a reduction in its long-haul investment.

Boeing (TBC) said it will "accelerate planned rate increases" on both the 777 and 747-8 in response to increasing demand "in the recovering airplane market." The 777 monthly build rate will climb to seven from five in mid-2011, about six months earlier than had been planned. The 747 program's planned production rate increase to two per month (from 1.5) will move from mid-2013 to mid-2012.

April 2010: (BCA) booked 100 gross orders in the quarter, led by 75 737NGs, against 17 cancellations. That marked a big improvement over the 2009 first quarter, when 28 gross orders were exceeded by 32 787 cancellations. It maintained its outlook of delivering 460 to 465 airplanes this year.

May 2010: Boeing (TBC), along with Honeywell's (SGC) (UOP), United Technologies, and (AECOM), will work with Air China (BEJ) and PetroChina in a collaborative effort to establish a sustainable aviation biofuel industry in China as part of a broader sustainable aviation biofuel agreement between China's National Energy Administration and the USA Trade and Development Agency.

The strategic effort, which will promote the commercialization of aviation biofuels in China through the USA - China Energy Cooperation Program, is slated to begin in June and will look at all phases of sustainable aviation biofuel development including agronomy, energy inputs and outputs, life cycle emissions analysis, infrastructure and government policy support.

Air China (BEJ), PetroChina, Boeing (TBC) and Honeywell (SGC)'s (UOP) have agreed to conduct an inaugural flight using Honeywell (SGC) Green Jet Fuel, which already has been used for biofuel demonstration flights with Air New Zealand (ANZ), Continental Airlines (CAL), Japan Airlines (JAL), and (KLM) Royal Dutch Airlines.

The USA (FAA) announced one of its largest-ever contract awards, earmarking up to $4.4 billion for early-stage implementation of the NextGen air traffic control (ATC) system. The 10-year contracts with Boeing (TBC), General Dynamics Corporation and (ITT) Corporation include large-scale demonstration projects to show how Ground Proximity System (GPS) navigation will be integrated with the current radar-based system, plus advanced weather imaging technology for pilots (FC) and controllers.

(TBC) announced that it conducted initial engine starts on the 1st (GE) (GEnx)-powered 787. The airplane, (ZA005), is the 5th 787 off the line. 1st flight is expected later in the quarter. The 1st 4 787 Dreamliners are powered by Rolls-Royce (RRC) (Trent 1000)s.

June 2010: USA (FAA) Administrator, Randy Babbitt announced that the (FAA) has awarded $125 million to five companies to "develop and demonstrate technologies that will reduce commercial jet fuel consumption, emissions and noise."

The five-year contracts are part of the (FAA)'s Continuous Lower Energy, Emissions and Noise program, or (CLEEN). The five companies:- Boeing (TBC), GE Aviation (GEC), Honeywell (SGC), Pratt & Whitney (PWC), and Rolls-Royce-North America (RRC), each will match the agency's investment dollar-for-dollar, bringing the total (CLEEN) investment to $250 million.

Babbitt acknowledged that commercial aviation has made "phenomenal progress" over the last decade in becoming more environmentally efficient but said the industry must "do more" to address "a national crisis with our environment that extends well beyond aviation. The (FAA) is going to push as hard as humanly possible to improve aviation's environmental efficiency."

He said technology developed through (CLEEN) "could be introduced into the commercial airplane fleet beginning in 2015. The goals of these research and demonstration efforts include: A reduction in fuel burn by -33%, a reduction of nitrogen oxide emissions by -60% and a reduction in cumulative airplane noise levels by 32 decibels. As early as 2015, you and I could be flying on quieter, cleaner, more efficient airplanes that are operating on alternative fuel."

Boeing (TBC) said it will receive $25 million from the (FAA) and contribute another $25 million to "conduct flight demonstrations of emergent airframe and engine technologies that have the potential of reducing greenhouse gas emissions and community noise." The technologies include adaptive wing trailing edges and ceramic matrix composite acoustic engine nozzles, (TBC) said, adding that they will be flight tested aboard a 737 in 2012 and "a yet-to-be-determined twin-aisle airplane in 2013."

(GEC) said the combined (CLEEN) investment of itself and the (FAA) will be "up to $66 million." (GEC) added that the contract "will help fund (development of the) TAPS II combustor, open rotor and Flight Management System-Air Traffic Management (FMS-ATM) technologies." (GEC) will work with Lockheed Martin, AirDat and Alaska Airlines (ASA) to develop and demonstrate the technologies.

Honeywell (SGC) said it will use the contract money "to develop mature technology for fuel burn reduction and test aviation biofuels for use in Honeywell (SGC) turbine engines." It will use its (TECH7000) turbofan test engine as the basis for its research and work in conjunction with its (UOP) business.

Pratt & Whitney (PRW) said it will develop and demonstrate "low noise, highly efficient fans" and "low-emissions combustors" as part of the (CLEEN) program.

The USA (FAA) awarded Boeing (TBC) a $1.7 billion research and development support contract associated with the (FAA)'s planned transition from ground-based radar to a satellite-based NextGen Air Traffic Control (ATC) system. The contract has a five-year base with additional options for another five years. Under terms of the deal, Boeing (TBC) will "perform work that will demonstrate NextGen procedures in real time on a large scale within the current air traffic (ATC) system."

Focus areas include air traffic (ATC) management modeling and simulation and the full integration of ground and airborne technologies and operations across all vehicle types, including commercial and military airplanes, general aviation, unmanned aerial systems and rotor craft. "By applying fully integrated solutions ( from concept development to full-scale flight demonstrations) our team is ready to assist the government in developing and testing advanced air traffic management concepts that will improve safety, reliability and efficiency," Boeing VP Defense & Government Services, Greg Deiter said.

Boeing (TBC) said Jade Cargo (JDC) selected its "Airplane Health Management" system to cover its fleet of six 747-400F freighters. (JDC) will incorporate all three modules of the solution, which assists airlines in managing unscheduled maintenance events, consisting of Real-Time Fault Management, Performance Monitoring and Custom Alerting & Analysis.

The 747-8F achieved 1st flight in February and 1st delivery to launch customer Cargolux (CLX) is scheduled for the 4th quarter. (TBC) also said that it has started fuselage assembly of the 1st 747-8I Intercontinental, the passenger version that is slated for 1st delivery in late 2011.

The 747-8F flight-test program will comprise 3,700 hours of total ground and air testing. The (GEnx)-powered 747-8F at 76.3 m is 5.6 m longer than the 747-400F freighter and is designed to be +17% more fuel efficient. According to (TBC), the stretch provides +16% more revenue cargo volume, translating to four additional main-deck and three more lower-hold pallets.

(TBC) has 109 orders for the 747-8 comprising 33 for the 747-8I and 76 for the 747-8F.

Boeing (TBC) announced a further bump to the 737NG production rate, to 35 per month in early 2012, up from 31.5 currently. Last month, (TBC) said it would boost 737NG production to 34 per month beginning in early 2012. "Our customers continue to show their preference for the Next-Generation 737 by exercising order options as well as by placing new orders," said Boeing Commercial Airplanes President & (CEO), Jim Albaugh.

Boeing (TBC) has tallied 76 737NG orders this year. Albaugh said the production increase is not expected to have a material impact on 2010 financial results.

July 2010: Emirates Airline (EAD) kicked off the Farnborough International Airshow with an order for 30 777-300ERs valued at $9.41 billion, while stating that it hoped to have an answer from Boeing (TBC) by October on its request for an upgraded model of the twinjet. (EAD), the world's largest 777 operator with a fleet of 86 in service, has another 16 777-300ERs on order and is the only airline to operate every variant.

"Since we took delivery of our first 777 14 years ago, the airplane's reliability, performance and operating economics have firmly established it as the backbone of our fleet," said (EAD) Group Chairman & Chief Executive, Ahmed bin Saeed Al Maktoum.

(EAD) President, Tim Clark said that (EAD) has had one round of discussions with Boeing (TBC) on its “777 wish list” and he expects a response by October. He said this order has no provision for the 777-300ERs to be swapped for the upgraded model when it comes. The cornerstone of (EAD)’s requirements is a 50-tonne payload capability to Los Angeles, whereas currently it achieves 34 to 35 tonnes to San Francisco. Clark was upbeat on the ability of Boeing (TBC)’s 777 management team, now headed by its former Chief, Lars Anderson to deliver on (EAD)'s requirements. “If anyone can do it, Lars can,” he said. Anderson, who had retired, was lured back last year by Albaugh. “We know what we want; we will wait and see whether a hybrid will do the job,” Clark said. That hybrid may be a mix of more thrust, composite wing and a slight stretch, he explained.

GE Aviation (GEC) valued the engine share of Emirates (EAD)’s order for 30 (GE90-115B)-powered 777-300ERs at $2 billion. The engine selection includes a 12-year "OnPoint solution" services agreement worth $1 billion, (GEC) said.

LAN Cargo (LCO) has become the 12th operator to join Boeing (TBC)’s 777 component services program, a venture established by (TBC) and Air France Industries (AFI)/(KLM) Engineering & Maintenance. The program provides 24-hour access to inventory, including avionics, actuators and precision mechanical assemblies. (LCO) took delivery of its first 777F freighter in 2009 and currently operates two of the type. A third is scheduled to be added to the airline’s fleet in 2012.

According to Boeing (TBC), Air France Industries (AFI) and (KLM) Engineering & Maintenance support more than 1,230 airplanes
operated by 150 carriers.

The 787-9 will seat 250-290 passengers, +16% more than the 787-8, and will have a range of 8,000 to 8,500 nm. At 206 ft, it will be 20 ft longer than the 787-8, with 1,000 cu ft more cargo volume. Both 787 Dreamliners feature wingspans of 197 ft, a height of 56 ft and a cruise speed of Mach 0.85.

August 2010: Boeing [TBC] announced that it has opened a new intelligence collaboration and data analysis center in Northern Virginia to enable the creation and testing of new concepts to counter increasingly sophisticated, global threats to USA security.

September 2010: The Boeing Company and Space Adventures Ltd have established a memorandum of agreement regarding the marketing of anticipated transportation services to destinations in low Earth orbit (LEO) on Boeing commercial crew spacecraft.

Under this agreement, Space Adventures will market passenger seats on commercial flights aboard the Boeing Crew Space Transportation-100 (CST-100) spacecraft to (LEO). Potential customers for excess seating capacity include private individuals, companies, non-governmental organizations, and USA federal agencies other than (NASA). Boeing plans to use the CST-100 to provide crew transportation to the International Space Station (ISS) and future commercial (LEO) platforms. “By combining our talents, we can better offer safe, affordable transportation to commercial spaceflight customers,” said Brewster Shaw, VP & General Manager of Boeing’s Space Exploration division. “To date, all commercial flights for private spaceflight participants to the (ISS) have been contracted by Space Adventures. If (NASA) and the international partners continue to accommodate commercial spaceflight participants on (ISS), this agreement will be in concert with the (NASA) administrator’s stated intent to promote space commerce in low Earth orbit.”

Boeing (TBC) and Space Adventures have not yet set a price per seat for spaceflight participants, but will do so when full-scale development is under way. (TBC) continues to advance its design for the CST-100 spacecraft under (NASA)’s Commercial Crew Development Space Act Agreement. The spacecraft, which can carry seven people, will be able to fly on multiple launch vehicles and is expected to be operational by 2015. “We are excited about the potential to offer flights on Boeing’s spacecraft,” said Eric Anderson, co-founder and Chairman of Space Adventures. “With our customer experience and Boeing (TBC)’s heritage in human spaceflight, our goal is not only to benefit the individuals who fly to space, but also to help make the resources of space available to the commercial sector by bringing the value from space back to Earth.”

Space Adventures has successfully contracted and flown seven spaceflight participants on eight missions to the International Space Station. Space Adventures, headquartered in Vienna, Virginia, is the only company that provides orbital spaceflight opportunities to the world marketplace. The company offers a spectrum of programming that ranges from terrestrial weightless flights to orbital missions, flights to the edge of space, and a historic return to the Moon. Space Adventures’ clients have spent over >2,000 hours in space, traveling over 35 million miles.

Boeing (TBC) signed an agreement with Qantas Airways (QAN) to perform landing gear exchange, repair and overhaul services for (QAN)'s six 747-400ERs. (QAN) will be the launch customer for (TBC)'s 747-400ER Landing Gear Overhaul and Exchange Program.

Boeing (TBC) announced it has begun assembly of the 1,000th 767, a 767-300ER, at its Everett factory. Mechanics (MT) have loaded the wing spar into the assembly tool, it said. "This is an important milestone for the 767, which has continued to evolve and improve since entering service nearly 30 years ago," 767 Program VP & General Manager, Kim Pastega said. "The 767 is a high-performing twin-aisle airplane that delivers nearly 99% dispatch reliability every day for more than >90 operators around the world."

The 767-300ER is scheduled for delivery to (ANA) in February 2011. (ANA) has taken delivery of a total 89 767s; its first order for the type came in 1979. According to its website, (ANA) first introduced the 767 in June 1983.

Boeing (TBC)’s Shanghai-based maintenance, repair and overhaul (MRO) joint venture (JV) has signed a memorandum of understanding (MOU) with Boeing Commercial Airplanes to become a supplier of Fleet Management and "GoldCare" (MRO) services. The agreement, which still needs to be finalized, covers line and base maintenance, component management, engineering and planning, as well as other services, says Boeing Shanghai Aviation Services Company Ltd.

Boeing Shanghai is a four-year-old joint venture of (TBC), Shanghai Airport Authorities and Shanghai Airlines (SHA), that focuses on 737s and 767s, but the announcement that the facility will provide GoldCare (MRO) services seems to indicate that the facility plans to add the 787 to its capabilities list. GoldCare is the aftermarket support program (TBC) developed specifically for the 787. As previously reported, (TBC) plans to expand GoldCare to other airplane types, but currently the program still is limited to the 787. Chinese carriers have 57 787s on order, and several carriers in the Asia-Pacific region are in line to be early operators of the airplane, including launch customer, All Nippon Airways (ANA). (TBC) is building a global network of GoldCare providers to support the 787. “It is important to get additional (MRO) facilities lined up prior to the delivery of airplanes,” says a (TBC) spokesman. “As the world economy and aviation sector recover, Boeing Shanghai, through this new agreement, will be well-positioned to support the expanding (TBC) fleet through the airplane life cycle with comprehensive fleet management services,” says Bernard Hensey, (CEO) of Boeing Shanghai. The (MRO) has authority from the (FAA), (EASA) and Thailand for all levels of 737NG and 767 base maintenance. It has customers in Europe, the USA and China.

Russian Technologies signed a firm order for 50 737NGs valued at $3.7 billion at list prices plus 35 options. The state-owned company plans to lease the airplanes to Aeroflot (ARO). Boeing (TBC) said the 737NGs will be delivered starting in 2013 with (ARO) receiving the 35th airplane in the order in 2016. A company spokesperson said the order is the same as the 50 Boeing airplanes USA President, Barack Obama announced Russia had agreed to purchase during Russian President, Dmitry Medvedev's June visit to Washington.

Boeing Commercial Airplanes President & (CEO) Jim Albaugh and Russian Technologies Director General, Sergei Chemezov signed the order agreement in Sochi. Chemezov said the airplanes "will help the Russian airline industry and Russian airlines to [be] more competitive on the global market."

Boeing (TBC) said its 737NG production rate will increase to 38 per month in the second quarter of 2013, up from 31.5 currently, and a planned increase to 35 per month in early 2012. "Increasing production is in response to customer demand for this airplane," Commercial Airplanes President & (CEO), Jim Albaugh said.

(TBC) said "key factors" driving the rate increase decision "include (TBC)'s current backlog of more than >2,000 Next-Generation 737s, current options that customers are expected to exercise and ongoing sales campaigns."

(TBC) said the first 747-8F Freighter will not be delivered to launch customer Cargolux (CLX) until "mid-year 2011," marking the third delay for the troubled program.

October 2010: Boeing (TBC) said it delivered three 767s and 21 777s, for year-to-date totals of nine and 56, respectively. Comparatively, in the third quarter of 2009, (TBC) delivered four 767s and 19 777s.

Last month, (TBC) announced it would increase the production rate of its 737NGs to 38 per month in the second quarter of 2013, up from its current production rate of 31.5 per month.

Boeing (TBC) has introduced stage one of its mid-life update for the 737 Next Generation family with the delivery of the first airplane equipped with the new “Sky” cabin interior to Flydubai (FDB). (FDB) is the launch customer for the new cabin architecture, which features revised lighting, larger stow bins and sculpted sidewalls and window reveals. The upgrade is being followed by a performance improvement package that will deliver a -2% reduction in fuel burn reduction through an aerodynamic clean-up, and revised (CFM56-7B) Evolution powerplant. (TBC) says that this package will begin certification testing soon, and will be fully in service by early 2012. “The package will make the airplane a full +7% more efficient than the first Next-Generation 737 delivered,” said (TBC).

The new cabin’s larger stow bins incorporate an assist mechanism that gives easy access and allows them to pivot upwards providing greater headroom around the aisle seats, says (TBC). Mood-lighting is a feature of the new interior, and customers have a choice of schemes. Brighter light-emitting diode technology is employed to replace incandescent signage, attendant and halogen reading lights.

Flydubai (FDB) will put the new 737-800 into service in November
and will receive +3 Sky Interior-equipped airplanes this year. (CEO) Ghaith Al Ghaith said the airline is “very proud to be the 1st to offer an enhanced on board experience” with the new cabin. (FDB) is the 1st of 5 airlines that will receive 737s with the new interior this year. In total, (TBC) holds orders for over >1,200 Sky Interior-equipped 737s from 46 customers.

Boeing (TBC) said that Russian state corporation Rostechnology finalized a previously announced order for 50 737NGs with purchase rights for an additional 35 valued at $3.7 billion. The order, signed two months ago is for 15 737-700s, 25 737-800s and 10 737-900ERs.

Rostechnology intends to lease the airplanes to Russian airlines. Its 737s will be delivered with the "Boeing Sky" Interior. In addition to the new design, (TBC) also announced a performance improvement package offering a -2% reduction in fuel consumption through various airframe and engine improvements.

Boeing (TBC) delivered to Qatar Airways (QTA) its 12th 777-3DZER (extended range) (38247, A7-BAQ). The new airplane was used in support of humanitarian efforts to deliver relief supplies to flood victims in Pakistan.

November 2010: The USA (FAA) awarded its largest Voluntary Airport Low Emission (VALE) grant for an $18.3 million project at Seattle-Tacoma International airport to improve air quality and reduce the use of conventional fuels at the airport. With the (VALE) grant, Sea-Tac (SEA) will install a centralized pre-conditioned air plant that will enable airplanes arriving at gates to shut off their Auxiliary Power Units (APU)s and connect to a cleaner central heating and cooling system, greatly reducing airplane emissions on the ground.

(FAA) Administrator, Randy Babbitt announced the grant during a press conference in Seattle, where he highlighted environmental efforts under way at Sea-Tac and by the Alaska Air (ASA) Group as examples of the kind of innovative work being done in the aviation community. “The (FAA) is encouraging airlines and airports to find creative ways to reduce aviation’s impact on the environment,” Babbitt said. “NextGen technology will also help aviation go even greener by significantly reducing the amount of fuel burned during air travel.”

The entire project is estimated to cost just over >$33 million. The $18.3 million grant funding will cover the first phase, which will include 53 of Sea-Tac's 81 gates. Phase one construction is expected to begin shortly and be completed by the end of 2011, with the entire program finished by the end of 2012. Remaining costs will be paid through Airport Development Funds, which come directly from fees charged to airlines.

Once installed, CO2 emissions are expected to be reduced by more than >-50,000 tonnes, with airlines saving up to -5 million gallons of fuel and -$10 million in fuel costs per year. The CO2 savings are equivalent to taking 8,700 cars off the road. The project is expected to create 120 jobs. Since the first (VALE) grant award in 2005, the (FAA) has funded 40 projects totaling $83 million.

Babbitt also discussed the innovative program underway in the Sea-Tac area known as "Greener Skies over Seattle." The project began in early 2009 with Alaska Airlines (ASA), the Port of Seattle and Boeing (TBC) using NextGen satellite-based technologies to provide more direct and optimized descent paths to landing.

Confronted with the emergence of COMAC (CCC)'s C919, which just received 100 C919 orders at Zhuhai, Wyse said she is confident about Boeing (TBC)’s prospect in the Chinese market. “We fully respect China’s intention to enter the single-aisle airplane market and welcome this competition…[which has been] really powerful for our industry as it continues to cause people to invest in their products and make the products more efficient,” she noted.

Boeing (TBC) and Air China (BEJ) said that the initial release of (TBC)’s Airplane Health Management (AHM) system is now active on 40 airplanes in the airline’s Next-Generation 737 fleet, providing information on the condition of airplanes during flight operations.

(TBC) said it has begun certification testing for a package of 737NG performance improvements intended to reduce fuel consumption by -2%. Testing is being conducted on a 737-800 painted in the new United Airlines (UAL) 737-800 that completed its first test flight. One percent (-1%) of the savings comes from a package of aerodynamic improvements to the airframe and -1% through the (CFM56-7BE) engine enhancement program offering Low Pressure Turbine (LPT) and High Pressure Turbine (HPT) modifications. Other changes will cause the engine to run cooler leading to up to a -4% reduction in maintenance costs.

900th 777 delivered to Ethiopian Airlines (ETH).

Copa Airlines (COP) signed an agreement to acquire as many as 32 more 737-800s in what (COP) is describing as the largest new airplane order in its history. (COP) says the order, which includes (CFM56-7BE) engines and 787-style “modern” interiors—is valued at about $2.6 billion at Boeing (TBC) list prices, but is not saying what it actually is paying. The order includes 10 options, although (COP) clearly plans to exercise them.

In the past two years, (COP) has bought 37 737-800s from Boeing (TBC) and signed leasing agreements for an additional 10. By the end of this year, (COP)’s fleet will grow to 63 airplanes, 37 of which will be 737 Next Generation airplanes. With this order, (COP) could take delivery of an additional 68 in the next seven years, including 22 that would be delivered in 2011 and 2012. (COP) usually uses Export-Import Bank financing for deliveries.

Copa Holdings, the parent of Copa Airlines (COP) and the newly re-branded Copa Airlines Colombia (REU), recently reported a 19.5% operating margin and a +$63.9 million profit for the third quarter. That’s up +5.4% points and 48.2%, respectively, year-over-year. It expects capacity to increase +17 to +19% in 2011, with the introduction of 10 higher-gauge 737-800s accounting for about a third of that increase; the other contributors will be new service, more frequencies and a longer average stage length. Most of the 2011 expansion coincides with the completion of a new terminal in May at Tocumen International Airport in Panama City, which (COP) promotes as the “best connecting point for intra-Latin America travel.”

December 2010: Boeing (TBC) and Fujitsu have established a strategic alliance in which the companies will develop a service to enable greater efficiency in airplane maintenance operations. The partnership will employ unique tools such as Radio Frequency Identification Devices (RFID) and Contact Memory Buttons (CMB) to allow airline customers to use these technologies without needing to retrofit their own fleets. The alliance aims to assist airlines to reduce costs by reducing inventory and manual data entry errors without having to create new processes.

Boeing (TBC) and Fujitsu are partnering to offer comprehensive automated identification technology (AIT) packages for retrofit on commercial airplanes — any manufacturer and any type. The first application should launch in the second quarter of 2012. This could have a major impact on the aftermarket, and very few people in the industry saw this coming. (TBC) originally planned to include radio frequency identification (RFID) on its first 787, as did Airbus on its A380, but neither effort, despite their early collaboration, worked as originally envisioned.

Boeing (TBC) is introducing a new subscription-based "In-Flight Optimization Services" harnessing (NASA) (NAS) technology and existing equipment to offer airlines fuel savings and increased environmental efficiency. "Direct Routes" and "Wind Updates" are designed to be implemented within current air traffic and airline operating procedures using current communication channels. “The new suite of products provides live actionable, flight-specific advisories and is available for the full fleet, not just Boeing (TBC) airplanes, and importantly, it works within the current air traffic system and airline procedures.”

"Direct Routes" provides up-to-the-minute information to airlines and flight crews (FC)s, enabling adjustments en route to account for weather and air traffic control (ATC) status. The savings are significant. Initial (TBC) projections show that Direct Routes can save more than >40,000 minutes of flight time per year for a medium-size USA airline.

The systems are based on (NASA) (NAS)’s "Direct-To" software that was developed in the late 1990s. The program brings together weather, winds, airplane performance, airline model, the user’s business objectives, traffic sequence, flow and airspace constraints and advises the airline operations center of any (ATC)-approvable efficiency opportunities. “To increase the likelihood of air traffic controller approval and to keep workload to a minimum, the advisories are pre-checked for traffic conflicts, wind conditions, established airspace constraints and other factors,” says Lewis. (TBC) has collaborated with (NASA) (NAS), Continental Airlines (CAL), and Southwest Airlines (SWA) in the development of Direct Routes to ensure operational viability and assess the benefits, and has shared details of the project and its findings with the (FAA).

(TBC)’s other In-Flight Optimization Services offering, "Wind Updates," increases fuel efficiency and improves airplane performance by sending datalink messages directly to the flight deck with real-time, flight-customized wind information. “These messages enable the airplane's flight management computer (FMC) to recalculate flight control inputs based on more accurate and precise information,” Lewis says. “Currently, if flight crews (FC)s obtain wind data prior to departure, that data can be as much as 12 to 20 hours old as a flight approaches its destination. Inaccurate and limited weather data can prevent airplanes from operating at optimum speeds, altitudes and trajectories. Wind Updates delivers a fleet wide solution using existing on board equipment and requiring minimal investment." (TBC) projects potential savings of -100 to -200 lbs or more fuel for the descent portion of a typical single-aisle airplane flight and is conducting operational trials with (KLM) Royal Dutch Airlines and Alaska Airlines (ASA). Both services will be available beginning in 2011.

Boeing (TBC) announced its production rate for the 777 program will increase to 8.3 airplanes per month in the first quarter 2013. This is the second production increase announced for the program this year. In March, the 777 program announced it would increase production from five to seven.

Continental Airlines (CAL) took delivery of a 737-800 fitted with Boeing (TBC)’s new "Sky Interior," becoming the first North American carrier to receive the improved cabin. (TBC) said the December 29 flight completed 13 deliveries of the new 737 interior to the first five launch customers. The airplane also marks a new record for 737 yearly deliveries of 376. The previous record was 372 deliveries in 2009.

January 2011: Boeing (TBC) again has partnered with Qatar Airways (QTA) and the non-profit global health and disaster relief organization: "AmeriCares" to deliver a second consignment of relief supplies to areas in Pakistan that are still recovering from the massive floods that ravaged the country in August. The 1st shipment was delivered in September 2010. A consignment of about 35,000 pounds/15.8 metric tonnes of medical supplies was loaded into the cargo hold of the new 777-300ER (extended range) delivered to (QTA). (QTA) subsequently will ship the relief goods from Doha, Qatar to Pakistan. “This is the 2nd time in 4 months that (TBC) has partnered with (QTA) and AmeriCares to help the people in Pakistan where the need is still great,” said Liz Warman Director of Global Corporate Citizenship Northwest Region, Boeing. “Providing timely medical care is critical; though the floods have receded, the after effects such as sickness and disease continue to affect the people in these disaster zones.”

Over the years, (TBC) and airline partners as well as non-profit partners in the Humanitarian Delivery Flights (HDF) program have collaborated on many humanitarian missions and the 777-300ER was used on a number of those missions.

For the 2nd time in <2 months, Boeing (TBC), Ethiopian Airlines (ETH) and Seattle Anesthesia Outreach (SAO) have partnered to deliver medical equipment to Black Lion Hospital, Ethiopia’s largest hospital. The 1st consignment was delivered in December 2010. Approximately 2,700 pounds/1.2 metric tons of medical supplies were loaded into the cargo hold of a new 777-200LR (longer range) delivered to (ETH) on January 26. Some of the supplies, such as electrical converters and other power items, supplement the anesthesia equipment transported in December. “Through collaborative efforts such as this, Boeing (TBC) is able to help bring relief to people around the world. Black Lion Hospital provides free medical care to the poor and this equipment will improve capabilities there,” said Liz Warman Director of Boeing Global Corporate Citizenship for the Northwest region.

The supplies will prove vital when a group of 28 Seattle doctors, nurses and technicians travel to Ethiopia next month as part of ongoing humanitarian support to that region. Since 1992, (TBC) and airline partners, as well as non-profit partners in the Humanitarian Delivery Flights (HDF) program have collaborated on many humanitarian missions. (ETH) is committed to support worthy social activities, which are designed to help build sustainable livelihoods for individuals and the community. SEE ATTACHED - - "TBC-2011-01-ETH."

(CIT) Aerospace (TCI) ordered 38 737s comprising 15 737-900ERs and 23 737-800s with purchase rights for +7 additional 737NGs. It is the largest order placed by a leasing company for the 737-900ER and the largest order placed by (TCI) for (TBC) airplanes. Deliveries run into 2017. With this new order, (TCI) has an order book of 111 airplanes, of which 58 are Boeing (TBC); it has 140 (TBC) airplanes in its portfolio.

Boeing (TBC) delivered 462 commercial airplanes in 2010 led by a record 376 737s, in line with guidance of approximately 460 full-year deliveries but down -4% from 481 airplanes delivered in 2009. Net orders for 2010 totaled 530, a more than threefold increase >142 in 2009, a gain (TBC) attributed to "carriers transition[ing] from economic recovery to expansion."

Beyond the 737s, 2010 deliveries comprised 74 777s and 12 767s. It took in 486 net 737 orders, 46 net 777 orders and 3 net 767 orders. 787 orders registered a net negative of -4 owing to 41 cancellations outpacing 37 new orders. 2009 net orders comprised 178 737s, 2 747s, 2 767s, 19 777s, and 59 787s. (TBC) 's total commercial backlog stood at 3,443 units as of December 31.

FOR 2010 TOTAL ORDERS & DELIVERIES - AIRBUS (EDS) VS BOEING (TBC) - - SEE ATTACHED - - "TBC-2011-01-2010 EDS VS TBC."

Final assembly started on the 1,000th Boeing (TBC) 767 airplane. Workers marked the milestone with a celebration at the Everett, Washington factory. The 1,000th airplane – a 767-300ER (extended range) passenger model for (ANA) All Nippon Airways – is the last 767 to complete final assembly in its current home. Beginning with line number 1001 – also a 767-300ER for (ANA) – all future 767s will complete that step in a new, smaller bay where production is scheduled to increase in 2011.

The 1,000th airplane is scheduled for delivery next month. (ANA), a long-time Boeing (TBC) customer, has taken delivery of 89 767s since placing its 1st order in 1979.

When this 1,000th 767 rolls off the assembly line, it will mark the end of an era. 3 decades after it was introduced, the 767 has just +50 more commercial deliveries scheduled, and production is being moved to allow for a new 787 assembly line. Unless the Air Force picks the 767 as its next-generation refueling tanker, the venerable wide body will cease production within <2 years.

February 2011: Boeing Commercial Airplanes President & (CEO) Jim Albaugh conceded that the 787 program's global outsourcing backfired. "We spent a lot more money in trying to recover [the program] than we ever would have spent if we'd tried to keep the key technologies closer to home," Albaugh told the audience. The outsourcing strategy was put place in 2003 by then-Boeing (TBC) Chairman & (CEO) Harry Stonecipher (ex-McDonnell Douglas, Long Beach).

(TBC) has been forced to compensate, support or buy out the partners it brought in to share the cost of the 787's development, and now bears the brunt of additional costs due to the program's repeated delays. Some Wall Street analysts estimate those added costs to be between $12 billion and $18 billion. (TBC) originally planned to invest $5 billion in the program, claimed "The Seattle Times."

Air France Industries (AFI)/(KLM) Engineering & Maintenance (E&M) signed an agreement with Air New Zealand (ANZ) expanding its 777 Component Services Program (CSP) to cover support for common parts for (ANZ)’s 777-300ERs. The (CSP) previously covered only its 777-200ER fleet. The 777 (CSP) program is offered jointly by Boeing (TBC) and (AFI)/(KLM) (E&M).

The roll-out ceremony for the passenger version of the 747-8I (RC001) was on February 13th – a perfect Valentine’s gift for all those airline geeks out there. The 747-8F Freighter has been conducting flight tests, but this will be the 1st 747-8 that will carry passengers. The 1st airplane will be delivered to a private buyer.
SEE ATTACHED - - "TBC-2011-01-A/B/C." SEE ALSO - -
http://seattletimes.nwsource.com/html/businesstechnology/2014534661_boeing21.html

March 2011: SEE ATTACHED BOEING CHAIRMAN'S MESSAGE - - "TBC-2011-02-CHAIRMANS MESSAGE."

Boeing (TBC) announced that the company and its employees will contribute $2 million to assist with recovery efforts in the aftermath of the devastating earthquake and tsunami in Japan. The funds will come from The Boeing Company Charitable Trust and employee contributions. (TBC) is in discussions with relief agencies and other groups to determine how the company’s portion of the contribution can best be used to support recovery efforts. Contributions from (TBC)’s USA-based and international employees will go directly to the American Red Cross relief efforts.

(TBC) said (UAL)'s 777 fleet will be modified with a Performance Improvement Package (PIP) that will result in greater fuel efficiency and reduced emissions. According to (TBC), The (PIP) involves a software change "to enable a drooped aileron, a ram air system improvement and the installation of improved wing vortex generators." The (PIP), to be installed on 52 (UAL) 777s, is expected to "reduce fuel spending per airplane by -$200,000 annually (assuming $100 per barrel crude oil prices)." Continental Airlines (CAL), which merged with (UAL) last year, was among the 1st airlines to sign up for the package, agreeing to outfit 20 777s in 2007.

(TAM) (TPR) placed an order for +2 additional 777-300ERs, valued by Boeing (TBC) at $568 million at current list prices, bringing the total number of 777s (TPR) has on order to 12. (TPR) is in the process of merging with (LAN) Airlines under the LATAM Airlines Group.

At the Hong Kong Airshow, Hong Kong Airlines (CRY) signed a Memo of Understanding (MOU) for 32 787 Dreamliners and 6 777F freighters at list price of $8.5 billion, with discounts about $7.85 billion. Will include 30 787-9s for 250 - 290 passengers and 2 787-8 VIP airplanes. Brings total 787s sold up to a total 875 airplanes.

Air China (BEJ) became the 3rd customer for the 747-8I passenger airplane with 5 orders.

Korean Airlines (KAL) announced an order for +2 new 747-8F Freighters. The order value is $639 million at Boeing (TBC) list prices. In December 2009, (KAL) became the 1st airline to order both the passenger and freighter versions of the 747-8. With this order, (KAL) has 5 747-8I Intercontinentals and 7 747-8F Freighters on order. The 747-8F Freighter offers a range of 4,390 nautical miles/8,130 km and a maximum structural payload capacity of 154 tons/140 tonnes. It also offers an additional +4,221 cubic feet/+120 m3 and +16% more revenue cargo volume than the 747-400F Freighter.

(KAL) currently operates a total 27 Boeing freighter airplanes and will become 1 of 2 airlines to operate both the 747-8F Freighter and the 777F Freighter.

Boeing (TBC) and (GE) Capital Aviation Services (GEF) finalized an order for 10 (GE90-115B)-powered 777-300ERs valued at approximately $2.8 billion at list prices. (GEF) has ordered 53 777s, including 41 777-300ERs.

April 2011: In line with previous statements, (TBC) expects to deliver 25 to 40 787s and 747-8s this year, split roughly evenly, with the 1st 787 arriving during the 3rd quarter and the 1st 747-8 around mid-year. For the full year, it expects to deliver 485 to 500 airplanes, with (BCA) achieving a 7.5% to 8.5% operating margin. (BCA)'s total backlog was valued at $263 billion.

Boeing (TBC) announced it is in “advanced discussions with multiple customers” regarding its GoldCare life cycle support offering for 737NGs. (TBC) recently revealed that it is offering GoldCare for the 737NG in addition to the 787 operators and is considering extending it to older models. "We've designed GoldCare to bring value to our Next-Generation 737 customers by boosting airplane reliability, which will reduce cost and improve efficiency throughout the airplane's life cycle," said Boeing Commercial Airplanes VP Fleet Management Jay Maloney. The solution has been selected by (TUI) Travel (TUG) to support its fleet of 13 787s.

Boeing (TBC) and Turkish Airlines (THY) have announced that (THY) has exercised options for 15 Next-Generation 737s. The order, comprised of 10 737-800s and 5 737-900ERs, has an average list-price value of >$1.2 billion.

(TBC) has received orders from 14 customers for a total of 305 737-900ERs, the newest member of the 737 family. The higher capacity, longer-range derivative of the 737-900 was launched in July 2005. The 737-900ER offers -6% lower operating costs per trip and -4% lower operating costs per seat mile than competing models.

(TBC) will deliver all of (THY)'s new Next-Generation 737s with the innovative Boeing Sky Interior.

Boeing (TBC) said it delivered 104 commercial airplanes in the 1st quarter, slightly behind the 108 delivered in the 2010 March quarter. Leading the way were 87 737NG deliveries, +1 more than was delivered in the year-ago quarter.

Deliveries of 777s dropped from 19 in the 2010 1st quarter to 13 in this year's 1st 3 months. (TBC) delivered 4 767s during the period, +1 more than was delivered in the prior-year quarter. Boeing (TBC) is projecting 485 to 500 commercial airplane deliveries this year, which would exceed the 462 airplanes it delivered in 2010.

May 2011: Boeing (TBC) and Alaska Airlines (ASA) are working together to develop a "Component Management Optimization Program" under which (ASA) has agreed to use its fleet and Seattle-based Maintenance Repair & Overhaul (MRO) organization to "develop, test and validate" Radio Frequency Identification Devices (RFID) and "Contact Memory Button" (CMB) technology that can be used to track parts information such as serial numbers, manufacturing date and maintenance history. (TBC), in partnership with Fujitsu, will provide automated identification technology devices, device readers, software applications and system integration service.

Rolls-Royce (RRC) announced that the (Trent 1000) for the 787 received 330-minutes, Extended Twin-engine OPerationS (ETOPS) approval from the USA (FAA). "(ETOPS) approval marks a major milestone for the (Trent 1000) program," Program Director, Simon Carlisle said, adding, "We now look forward to supporting Boeing (TBC)'s own (ETOPS) program." The (Trent 1000) recently passed 2,800 hours of flight testing.

Boeing (TBC) said it rolled out the 1st 777 to be produced since it raised the production rate for the type from 5 to 7 per month. The 777F will be delivered to FedEx Express (FED) in June. (TBC) plans a further increase to 8.3 airplanes a month beginning in the 1st quarter 2013. "This rate increase reflects the strong demand," said Boeing 777 VP & General Manager, Larry Loftis. "It continues to be the clear leader in the 300 to 400 passenger seat market."

The rate previously reached the 7-per-month mark in July 1997 to February 1998; August 1998 to October 1999, and November 2006 to May 2010. (TBC) said it "incorporated lessons learned" from the previous increases and, this time around, reduced production flow from 52 to 49 days from start to finish. "Days of flow were removed in wing spar, service-ready wing and final body join areas," said Boeing (TBC). "The flow reduction is attributed to increased productivity in those areas." Loftis added, "We are experiencing some of the all-time-best metrics."

The 1st 2 Boeing (TBC) KC-767 advanced aerial refueling tankers for the Italian Air Force (ItAF) (IDM) formally entered into service during a public ceremony near Rome. The (ItAF) accepted delivery of the 2 KC-767A tankers on December 29 and March 10. Italian crews then flew the airplanes from Boeing’s tanker modification facility in Wichita, Kansas to the Italian air base at Pratica di Mare.

Boeing (TBC) announced the 1st 5 customers for 747-8I Intercontinental (VIP) airplanes will have the option to use loaned (GEnx-2B) engines that will be replaced with the latest production-configuration (GEnx) engines upon completion of the airplanes’ interiors. Called the (GE) "Pusher Program," Boeing (TBC) will use (GEnx) engines from flight test airplanes or the lease pool to ferry the 747-8I Intercontinental (VIP)s to the completion center of the customer’s choice.

“At Boeing Business Jets, we work very closely with our customers to ensure we’re providing the products and services that best fit their needs,” said Captain Steve Taylor Boeing Business Jets President.
“In the case of the 747-8I Intercontinental (VIP), where the interior completion is expected to take 18 to 24 months, our customers asked us to defer installation of the (GEnx-2B) engines until just prior to putting the airplanes in service. We worked with our partners at (GE) to develop this great solution for our customers,” said Taylor.

The (GE) Pusher Program will enable customers to not worry about engine maintenance while the airplane sits in completion. Customers will receive brand new engines that will include any performance improvements that (GE) has incorporated into the production (GEnx-2B) engine configuration at the time of engine delivery. “Customers will save money on the normal engine maintenance costs that they normally need to perform as the interior completion work is performed, and they will receive new (GEnx-2B) engines that have the latest technology,” said Bill Fitzgerald VP & General Manager of (GE)’s (GEnx) Program.

The engine program is being offered for the 1st 5 747-8I Intercontinental VIPs only. Boeing Business Jets and (GE) are considering expanding the program to other (VIP) airplanes in the future. The 1st of the 5 747-8I Intercontinental (VIP)s is scheduled for delivery in the 4th quarter of 2011.

(AAL) received its 1st Next-Generation 737-800 featuring the all-new Boeing Sky Interior (BSI). The new airplane marks a major milestone in (AAL)’s commitment to improving and modernizing the customer experience through the execution of its fleet renewal plan.

The Boeing Sky Interior is designed to increase customer comfort onboard and is an important part of (AAL)’s ongoing initiative to modernize the look-and-feel of its 737 fleet interiors. The 737-800 (BSI) airplanes are a strategic part of (AAL)’s commitment to invest in products and services that make the travel experience more contemporary and innovative for customers.

Between 2007 and 2011, (AAL) invested >$5.5 billion in new airplanes and on board and facility enhancement projects to improve the customer experience.

The new 737-800 (BSI) interior offers several unique features, including larger overhead bins (modeled after the 787 Dreamliner’s pivoting bins) that pivot down and out. The innovative design allows the bins to hold +48 more bags than standard overhead bins and +4 more than current non-(BSI) airplanes with larger bins. Sculpted sidewalls provide customers with a contemporary feeling of spaciousness and updated window reveals make the windows appear larger. Brighter and longer-lasting Light Emitting Diode (LED) lighting can be programmed to create different effects during the flight such as a soft blue sky overhead. Intuitive placement of switches and call buttons and improved sound quality are innovative features that will enhance the customer experience. Additionally, the new 737s offer 16F First Class seats and 144Y in Economy Class for a total of 160 seats on each airplane.

As part of its fleet renewal plan, (AAL) began taking delivery of new 737-800s without (BSI) in April 2009. (AAL) received 31 737-800s in 2009, 45 in 2010 and plans to receive 15 in 2011, 28 in 2012 and 11 in 2013.

To provide consistency within the travel experience and further elevate customer comfort on board, (AAL) is updating its existing fleet of 737s to match the new deliveries without the (BSI) feature. The interior renovations include the installation of new customized First (F) and Economy Class (Y) seats, new cabin interiors, updated in-flight entertainment (IFE) systems and bigger overhead bins to provide more storage throughout the airplanes. (AAL) is also updating the interior of its 757 fleet, which will include a new look-and-feel throughout the cabin. Both projects are being handled in-house by (AAL) employees at (AAL)’s Maintenance & Engineering base located in Tulsa, Oklahoma.

Watch a video of American Airlines effort to upgrade the interiors of their Next-Generation 737 fleet at: http://www.boeing.com/Features/2010/06/bca_american_airlines_06_28_10.html

June 2011: Boeing (TBC) opened its new 787 final assembly building in South Carolina even as it fights to be allowed to operate the facility. The new building features 642,720 sq ft of covered space. (TBC) plans to build 3 787s monthly at the facility at full production, complimenting 787 Dreamliner production in Everett.

There are currently 232 C-17s in service worldwide — 22 with international customers. The US Air Force (USF), including active Guard and Reserve units, has 210. Other international customers include the Qatar Amiri Flight (QAT), the UK Royal Air Force (RRR), the Canadian Department of Defense (DND), the Royal Australian Air Force (RAA), the (UAE) Air Force (UAF), the Indian Air Force (IDF) and the 12-member Strategic Airlift Capability initiative of (NATO) plus the Partnership for Peace nations.

The C-17 is the only airplane capable of performing all the airlift requirements — strategic and tactical, military and humanitarian, brigade airdrop and aeromedical evacuation — using either standard runways or short, austere airfields. The C-17 can transport large payloads across vast ranges without refueling and operate in extremely hot and cold climates. With a full payload of 170,000 pounds, a C-17 can fly 2,400 nautical miles and land in 3,000 feet or less.

As a member of the worldwide C-17 “virtual fleet,” C-17s are supported through Boeing (TBC)’s C-17 Globemaster III Sustainment Partnership, a proven multinational Performance-Based Logistics program. Through the virtual fleet concept, C-17 customers receive comprehensive worldwide logistics support (spares, support equipment, Tech Orders, sustaining Engineering, and on-site field teams) through use of shared resources across the entire fleet. This highly successful program ensures high levels of mission readiness by providing all C-17 customers — regardless of fleet size — cost-effective access to an extensive support program.

Boeing (TBC) said it will boost the production rate for the 737NG to 42 per month in the 1st half of 2014, up from 31.5 currently, and planned increases to 35 per month in early 2012 and 38 monthly in the 2013 2nd quarter.

(TBC) noted it will "build on average 2 737s each workday and nearly 500 airplanes each year" from 2014. Airbus (EDS) announced last month it will raise the monthly production rate of its A320 family to 42 airplanes beginning in the 2012 4th quarter.

The USA (FAA) proposed a $1.05 million civil penalty against Boeing (TBC) "for allegedly failing to correct a known problem in production and installation of the central passenger oxygen system in" 777s. The (FAA) said it based the proposed fine "on inspections of 9 newly assembled airplanes between April and October 2010. Inspectors discovered that spacers in the oxygen delivery system distribution tubing on the airplane were not installed correctly. Improper installation could result in the system not supplying oxygen to passengers should depressurization occur."

The 737-800, and a twin-aisle airplane to be identified later this year, will serve as the flight test component for the (FAA) Continuous Lower Energy Emissions Noise (CLEEN) program – along with other technologies developed by (TBC) and other industry partners.

With an (AAL) Engineering team, Boeing (TBC) is finalizing plans for installing the initial technology applications aboard the 1st plane. Some of the technologies that will be flown in 2012 include adaptable trailing edge technology that reduces noise and emissions during all phases of flight including take-off, cruise and landing, and a variable area fan nozzle that reduces community noise and enables advanced engine efficiency technologies. Boeing (TBC) will also include regenerative fuel cells for on-board power.

(TBC)'s 747-8F freighter landed at the Paris Air Show on Monday (the opening day) after crossing the Atlantic Ocean partially powered by biofuel. Boeing pilots (FC) Captain Keith Otsuka and Captain Rick Braun and Cargolux (CLX) Captain Sten Rossby flew the 747-8F with each of its (GE) (GEnx-2B) engines powered by a blend of 15% camelina-based biofuel and 85% traditional kerosene fuel (Jet-A).

The 747-8F arrived at Le Bourget Airport Monday at 5 pm local time after a 4,335 nm/8,029 km trip. Camelina, the plant source used to create the biofuel, was grown in Montana and processed by Honeywell (SGC)'s (UOP). The 747-8F was on static display at the air show on Tuesday and Wednesday. It leaves Wednesday evening to fly to launch customer Cargolux (CLX)'s headquarters at Luxembourg for a 2-day visit.

The 747-8I (RC001) also made its Paris Air Show debut and was piloted
by Captain Steve Taylor President of Boeing Business Jets (BBJ), alongside (BBJ) Chief Pilot Captain Rene Gonzalez, 747 Chief Pilot Captain Mark Feuerstein, and 747 Engineering Test Pilot Captain Kirk Vining.

On the 1st day of the Paris Air Show, (TBC) announced orders and commitments for 56 airplanes worth about $11 billion. On the 2nd day, (TBC) announced 3 orders for 33 planes worth $4.3 billion at list prices: Aeroflot (ARO) ordered 8 777-300ERs worth $2.3 billion; Norwegian (NWG) ordered 15 737-800s worth $1.2 billion, and Malaysian Airlines (MAS) ordered 10 737-800s worth $800 million.

Hong Kong Airlines (CRY) signed orders for 15 747-8I passenger jets at the Paris Air Show.

China's (HNA) Group has ordered 38 Boeing passenger airplanes for its unit Hong Kong Airlines (CRY). The Memorandum of Understanding with Boeing (TBC) comprises 30 787-9s, 6 777F Freighters, and 2 787-8s in (VIP) configuration, said (HNA). "We have been waiting for the 787 for a long while, and we are very happy to finally order this airplane," said Adam Tan, a director of the (HNA) Group and Chairman of (HNA) Industrial Holding.

He added that the group, which also owns Hainan Airlines (HNA), China's 4th largest carrier and biggest privately owned airline, hopes to develop Hong Kong Airlines (CRY) into a much bigger player in its market, where it competes with the island's flag carrier Cathay Pacific (CAT).

"There are plenty of routes that are not served and we think that we can grow those. We also believe that there is growing demand for Hong Kong as a hub, and Hong Kong Airlines (CRY) will be able to contribute to that," said Tan. Hainan Airlines (HNA), he added, could eventually take some of the 787s that the Group has ordered if there is demand for the airplane type.

"This order is intended for Hong Kong and the airplanes will be based here, but they could be operated by (HNA) if we can work that out," he said. (HNA), he added, will continue to grow despite the competition from the 3 government-owned majors, Air China (BEJ), China Southern Airlines (GUN) and China Eastern Airlines (CEA).

"We are looking to add to our market share. It is not about taking market from those 3 but also about creating a new market and growing with the higher demand in China, he said.

Boeing (TBC) announced an agreement at the Paris Air Show that (GE) Capital Aviation Services (GECAS) (GEF) will purchase 2 747-8F Freighters and 8 777-300ERs (extended range). The 747-8F Freighter is a new model for the (GEF) portfolio of airplanes. The 747-8F Freighters will be powered with (GE)’s (GEnx-2B) engines.

(TBC) announced at the Paris Air Show that Air Lease Corporation (ALE) will purchase up to 33 airplanes. The agreement calls for 14 firm orders and 4 options for Next-Generation 737-800s, as well as 5 777-300ERs (Extended Range) and 4 787-9 Dreamliners. (ALE) also agrees to exercise options on 6 airplanes from last year’s 60 737-800 order. The 5 (GE90-115B)-powered 777-300ER airplanes will begin delivery in 2013.

(TBC) and Qatar Airways (QTA) announced an order for 6 777-300ERs (Extended Range) airplanes at the international 2011 Paris Air Show. The order is valued at $1.7 billion at list prices.

At the Paris Air Show, UTAir (TYU) announced orders for 33 737-800s and 7 737-900ERs. They will replace (TYU)'s older 737s and 757s.

Boeing (TBC) is advancing toward a mid-decade series of incremental improvements to the 777 airplane (dubbed the 777+) which include the possibility of increasing the wingspan of 777, said VP of Boeing Commercial Airplanes Business Development Nicole Piasecki.

Among other possible improvements are flightdeck upgrades, similar to those on the 747-8, adding additional avionics capability for the flight crew (FC) without changing the display area.

(TBC) has revealed it is examining near- and long-term 777 improvements, including conceptual studies for airplanes it has dubbed the 777-8X and 777-9X, intended as a possible response to the updated A350-1000.

The conceptual Boeing 787-10X, a stretch of the 787-9 due for entry into service in 2013, will have seating for 320 passengers and a range capability of 6,900 nm/12,600 km, said Boeing Commercial Airplanes VP Business Development Nicole Piasecki.

The airplane would be roughly +15% bigger than the 62.8 m/206 ft-long 787-9, and would have a maximum take-off weight almost equivalent to the 787-9's at 251,000 kg/553,000 lb with similar structures, along with notional 76,000lb thrust/338 kN from twin General Electric (GE) (GEnx) or Rolls-Royce (RRC) (Trent 1000) engines.

July 2011: Boeing (TBC) engineers and technicians prepared Space Shuttle Atlantis and its payload for the program’s final mission, which launched from the Kennedy Space Center on July 8. “Our teams are especially proud of the work Boeing (TBC) has done to help prepare the payload for Atlantis‘ final journey,” said Mike Kinslow Mission STS-135 Payload Flow Manager for Boeing. “We’ve remained focused on a safe, successful mission.”

Boeing’s Checkout, Assembly and Payload Processing Services team prepared the payload, including the Raffaello Multi-Purpose Logistics Module (MPLM), which is filled with supplies and spare parts designed to sustain International Space Station (ISS) operations for several years. In addition, a Lightweight Multi-Purpose Carrier, included in the payload bay, will return a failed ammonia pump for troubleshooting by Boeing. In preparing and processing the payload for launch, Boeing technicians and engineers modified 6 resupply stowage racks and the (MPLM) structure to carry additional cargo. Boeing added an aft end cone stowage frame to the (MPLM) to accommodate an additional +400 pounds of stowage.

Boeing also developed and stowed upgraded waste-treatment tanks called the Advanced Recycle Filter Tank Assembly (ARFTA). The current tanks had to regularly be returned to Earth on the space shuttle for refurbishment. The new (AFRTA) tanks do not require refurbishment and can be emptied by the crew.

During its 32 missions, Atlantis deployed 14 satellites, docked with the Mir space station 7 times and docked with the (ISS) 11 times. It was the 4th orbiter built as part of the shuttle program, which became a Boeing program in 1996 when the company purchased Rockwell International’s aerospace and defense assets. Boeing also provided design support and assisted (NASA) and United Space Alliance, the space shuttle prime operations contractor, with ensuring the space shuttle was safe to fly for this final mission.

“The shuttle is an amazing vehicle that has helped Boeing to attract, develop and retain an incredible workforce in Florida, Texas, California and elsewhere. They are the foundation of success for this remarkable program,” said John Mulholland Boeing VP & Program Manager of the Space Shuttle program. “There are very few programs that have spanned the amount of time that this one has, and it’s amazing how many people have stuck with it — in some cases, for their entire careers.”

Boeing is transitioning many members of its experienced shuttle workforce to the (ISS) and Commercial Crew Transportation System programs, as well as to preparations for (NASA)’s future heavy-lift rocket. Boeing is (NASA)’s prime contractor for the (ISS) and continues to work on a variety of projects to upgrade and enhance its capabilities.

See attached Space Shuttle flight deck:
http://360vr.com/2011/06/22-discovery-flight-deck-opf_6236/index.html

Boeing (TBC) marked the 15th anniversary of its Boeing Business Jets (BJC) division with the delivery of a 737 BBJ to Deer Jet Airlines (DER) of Beijing. This is the 3rd of 4 BBJs for (DER).

While representatives from Deer Jet (DER) were in Seattle to take delivery of their new 737 BBJ, they joined dozens of current and former (BJC) employees to celebrate the program’s 15-year anniversary. Zhang Zhi President of Deer Jet Airlines (DER), said the proven success of the 737 BBJ is why his company is adding another one.

The 747-8 VIP is regarded as the most expensive private jet at $295 million (price does not include the interior modification). This jet, which has 4,786 square feet of cabin space, is the newest member of the 747 family and replaces the 747-400. Boeing Business Jets (BJC) has sold 9 747-8 VIPs since May 2006 and will start delivering them next year. While the interior is intended to look less like a plane and more like home, (BJC) does not furnish the jets (customers must hire interior designers, which can easily add millions of dollars in additional cost), said (BJC) spokesman, Bernard Choi. He said the jet probably will not enter service until after 2012, because the interior has to be put in.
SEE ATTACHED - - "TBC-747-8 VIP-2011-07."

Boeing (TBC) opened a new paint hangar near its Renton facility that it said will help it increase 737NG production capacity. (TBC) plans to boost the production rate for the 737NG to 42 per month in the 1st half of 2014, up from 31.5 currently and planned increases to 35 per month in early 2012 and 38 monthly in the 2013 2nd quarter. (TBC) has noted it will "build on average 2 737s each workday and nearly 500 airplanes each year" from 2014.

"We identified this paint hangar as a key piece of infrastructure to support our future plans for increased 737 production several years ago," said Boeing VP & General Manager 737 Program Beverly Wyse. "We have a measured approach to meeting rate increases on the program." (TBC) noted that a 737-700 for Southwest Airlines (SWA) was completed at the hangar this month. The facility is actually a refurbishment of a Boeing (TBC) paint hangar built in the late 1950s at the start of the 707 program and later used to paint 727s and 757s until 1994.

(TBC)'s commercial airplane deliveries through the 1st 6 months of 2011 kept pace with 2010 deliveries, with (TBC) delivering 222 airplanes in the 2011 1st half led by 181 737NGs, the exact number of total and 737 deliveries made in the 2010 1st half. It delivered 9 767s through June 30, up from 6 of the type delivered in the 1st 6 months of 2010. 1st-half deliveries of 777s totaled 32, down from 35 in the year-ago period.

2nd-quarter deliveries totaled 118 airplanes, up slightly from 114 delivered in the 2010 June quarter, led by 94 737NGs, -1 fewer than was delivered in the 2010 2nd quarter. (TBC) said its full-year 2011 delivery guidance remains unchanged at 460 to 465 airplanes.

American Airlines (AAL) made 1 of the largest airplane order announcements in commercial aviation history, signing up for 130 A320 family airplanes, 130 re-engined A320neos, 100 (CFM56-7B)-powered 737NGs and also committing to order 100 of a new variant 737 with (CFM) (Leap-X) engines. Boeing (TBC) and Airbus (EDS) will help finance the airplanes, (AAL) said.

(AAL) did not announce an engine selection between the (Leap-X) and Pratt & Whitney (P&W)'s (PW1100G) for the A320neos. In addition to the firm order for 100 current version 737NGs, (AAL) took 40 options. Boeing (TBC) and (AAL) said that they will "work to finalize" the order for 100 of the apparently re-engined 737. (TBC) noted that in addition to 100 airplanes to be ordered, (AAL) will take 60 options on the new variant.

(AAL) said it will begin taking delivery of the newly ordered airplanes in 2013, with the last of the 460 total airplanes committed to arriving in 2022. In a letter to employees, (AAL) Chairman & (CEO) Gerard Arpey said the orders "are supported by approximately $13 billion of committed financing (loans) from the manufacturers through lease transactions on the 1st 230 airplanes that will help maximize our balance sheet flexibility and reduce risk." He added, "The transactions we have been able to structure, represent an opportunity that is virtually unprecedented in our industry's history. We are putting our partners' capital (more capital than we would otherwise be able to raise effectively on our own) to work for (AAL)."

(TBC)'s decision to move forward with an apparent 737NG re-engining (after many months of reluctance by its top executives) is not hard to understand, say analysts who cite, among other drivers, the increasing "pressure" felt by (TBC) from rival Airbus (EDS)'s recent success with the re-engined A320neo.

New York-based, Bernstein Research said that (TBC) "faced strong pressure in the 737 negotiations with (AAL), given aggressive A320 marketing by (EDS) with the A320neo and financing support as part of a deal." Bernstein and Buckingham Research both believe a 737 re-engining decision is a positive for (EDS) as well as (TBC), although negative for Bombardier, Embraer, China's (COMAC) (CCC) and Russia's (UAC) (SSJ). "With (TBC) and (EDS) re-engining, we would see little room for other players at the 130-seat level, preserving the familiar duopoly," Bernstein stated.

Insiders at (TBC) also suggest that the move to re-engine the 737 reflects continuing issues with the 787 ramp-up.

The 460 airplanes ordered by (AAL) will replace (AAL)'s 271 MD-80s and 124 757s. (AAL) already has 152 737-800s in its fleet with a further 54 on order prior to the latest announcement.

Buckingham said that "a re-engined 737 is winning the internal debate at (TBC)." It said there was an immediate need to "focus resources on a 777 upgrade/replacement" to counter the recently revamped A350-1000, rather than launch an all-new 737 replacement.

Time did not appear to be on (TBC)'s side. "Many airlines don't appear to be willing to wait until 2019 for a new airplane," Buckingham explained. The firm felt that a re-engined 737 "is likely the only compromise that can be reached between Boeing Commercial Airplanes, Boeing Corporate and Boeing's Board of Directors."

Bernstein has long held the view that despite (TBC)'s insistence that it was leaning toward an all-new airplane for Entry Into Service (EIS) in 2019 - 2020, it would be forced into re-engining as the only reasonable course. Once (EDS) made its decision to launch the A320neo in December 2010, (TBC) no longer had a choice. That is particularly been the recent case with the A320neo already obtaining >1,100 commitments.

Bernstein said that, in addition to (AAL), Delta Air Lines (DAL) has been putting pressure on (TBC) to respond to the A320neo with a re-engined 737.

At last month's Paris Air Show, a (TBC) executive confided that while many Asian and Chinese airlines were bullish on an all-new 160 - 230 seat twin-aisle solution to replace the 737, the idea was gaining little traction in the USA. Air Lease Corporation (ALE) Chairman & (CEO) Steven Udvar-Hazy said that he "had a bias to an all-new family" and, "as a passenger," he favored the twin-aisle option. He said that he wanted the airplane to "be sized between 160 and 230 seats," adding, "The 737 replacement is the highest priority for Boeing (TBC)." Udvar-Hazy said he was ready to place an order for an all-new airplane which he termed it as being the "797!"

Boeing (TBC) has conceded that its experience with new technology and supply chain problems on the 787 put a damper on its ability to assure customers of a timely delivery for an all-new 737 replacement it had been pushing. Boeing Commercial Airplanes (CEO) Jim Albaugh told media that a quickening need for more fuel efficiency forced its 737 re-engining decision.

In a special report, the Sydney-based, Centre of Asia Pacific Aviation (CAPA) quoted Albaugh as saying, “Customers wanted certainty in deliveries, something that it has not been able to deliver with the 787 because of the new technology being offered and supply chain problems.” (CAPA) noted that “Boeing (TBC)'s distractions from the 787 and 747-8 program have seemingly kept it from making a decision for at least a year. At Farnborough [in July 2010], (TBC) said it would make a decision by the end of 2010, but that was delayed amid more wide body production disarray. (TBC) has continually pushed back the announcement towards the end of this year.”

According to (CAPA), Barclays Capital estimated research & development (R&D) cost for the re-engined 737 at between $2 billion - $2.5 billion. It noted that at least another $1 billion was needed to meet USA (FAA) standards. (CAPA) said that Boeing (TBC)'s decision finally brings clarity to Embraer (EMB), which has been waiting for (TBC) to make up its mind on a narrow body replacement.

The order will “give (AAL) the youngest fleet in the USA within 5 years and provides the largest flexibility possible for accelerating fleet replacement, or even growing its fleet, while lowering costs and improving the revenue-generating power of its network.” The (AAL) order is expected to open a floodgate of orders for the A320neo and re-engined 737, with some estimates suggesting production rates of 60 a month for each design by the middle of the decade.

(TBC) plans to boost the production rate for the 737NG to 42 per month in the 1st half of 2014, up from 31.5 currently and planned increases to 35 per month in early 2012 and 38 monthly in the 2013 2nd quarter. Airbus (EDS) is increasing its A320-family airplanes production rate to 42 per month by the end of 2012, but no decision on rate changes has been made past that date. (CAPA) predicted that Southwest Airlines (SWA) will move quickly to place an order for the re-engined 737.

(TBC) Chairman, President & (CEO) Jim McNerney said (TBC)'s decision to re-engine the 737NG instead of developing and producing an all-new airplane was reached after months of careful consideration leading to the conclusion that there was much less risk in re-engining.

The comments to analysts and reporters came while discussing (TBC)'s +$941 million second-quarter profit, up +19.6% year-over-year. Airlines wanted the "greater certainty" of a re-engined 737NG with Entry Into Service (EIS) by mid-decade rather than waiting for an all-new airplane by 2019 or 2020, he explained.

The re-engined 737NG "will be the most fuel efficient airplane in its segment," McNerney said, adding that a "conservative" estimate is for the updated 737NG (powered by (CFM) International (Leap-X) engines) to provide a +10% to +12% fuel efficiency gain over current model 737NGs. "Over the next several weeks, we will work to finalize the configuration in anticipation of a fall launch, pending approval of the [Boeing (TBC)] board of directors," he stated.

The (TBC) (CEO) sought to counter the impression that (TBC) was hastily pushed into re-engining the 737NG to win a portion of the (AAL) order. "We have been studying the re-engine option to the same degree that we've been studying a new airplane option. This is not something we came up with at the last minute. Admittedly, our view of the marketplace changed in the last few months."

The changed view, he noted, includes "robust demand" among airlines for a re-engined narrow body and concerns, particularly internally at Boeing (TBC), that building the production system for an all-new airplane would be challenging and risky. In recent weeks, (TBC) has "been somewhat more mindful about [the challenge of] getting a massive production system up and running by 2019 than we were at the start of the process," McNerney said.

It is true, however, that (TBC) executives repeatedly indicated their preference for an all-new airplane over the past year. Their main caution, though, did revolve around production system concerns, particularly in light of the many supply chain issues that have hampered the 787 program.

McNerney said that a big factor weighing against the all-new airplane was "not having all the answers we wanted on a production system." A re-engining is a "low risk, low capital way to access this market demand" for a fuel efficient, narrow body airplane, he commented.

Boeing (TBC) Corporate President & (CFO) James Bell, who expressed skepticism about a re-engining in the past, said, "Obviously, a derivative airplane is associated with a lot less risk than an all-new airplane."

SEE ATTACHED "SEATTLE TIMES" REPORT - - "TBC-2011-07-RE ENGINED 737-A/B/C" AND "FLIGHT INTERNATIONAL" ARTICLES - - "TBC-2011-07-A/B/C/D."

August 2011: Boeing (TBC)’s 747-8F freighter was awarded (FAA) and (EASA) certification, paving the way for delivery of the 1st airplane to launch customer Cargolux (CLX) early next month.

The (FAA) granted (TBC) an Amended Type Certificate (ATC) and an Amended Production Certificate (APC), while (EASA) also granted the company an (ATC) for the airplane. The (ATC) certifies that the 747-8F design is compliant with all aviation regulatory requirements and will produce a safe and reliable airplane. The (APC) validates that the 747 production system can reliably produce airplanes that will conform to the airplane's design. (EASA) and the (FAA) each accept the other’s oversight of Boeing (TBC) production certificates as sufficient for their regulations.

Production and development issues have several times delayed the 747-8F; (CLX) was originally scheduled to get its 1st 747-8F in the 3rd quarter of 2009.

A (TBC) spokesman said that through the end of the year, (TBC) expects to deliver between 25 and 30 747-8Fs and 787s (which has also suffered production-related delays). He did not specify the mix, but said delivery numbers would be slightly weighted towards the 747.

The 747-8F is 250 ft, 2 inches/76.3 m long, making it 18 ft, 4 inches /5.6 m longer than the 747-400F. The stretch provides customers with +16% more revenue cargo volume.

Japan Airlines (JAL)/(JAS) will expand its Boeing (TBC) Airplane Health Management (AHM) coverage to its future 787 fleet. (AHM) is a software system that monitors, collects and analyzes airplane data to give airplane customers valuable, real-time maintenance information. This information allows (JAL)/(JAS) to initiate the needed maintenance immediately upon arrival at the airport gate.

(JAL)/(JAS) has 35 787 airplanes on order, and has licensed (AHM) for these airplanes in addition to its existing fleet of 46 777 airplanes.
“The (AHM) program has been helping (JAL)/(JAS) optimize the reliability of our fleet of 777s, and it will greatly support a successful introduction of the 787 into the family,” said Nobuhiro Sato Executive Officer Engineering & Maintenance, (JAL)/(JAS). “On-time performance is very important to passengers and our goal is to continue providing our customers a positive experience.”

(JAL)/(JAS) was a developmental partner for the original (AHM) development effort and has used the service continuously since 2005. (JAL)/(JAS) will use the (AHM) Real Time Fault Management Module on their 777 and 787 airplanes to communicate in-flight information to ground stations for diagnosis and quick operational decisions by scanning troubleshooting and historical repair data. (JAL)/(JAS), recognized in the last 2 consecutive years as the most punctual major global airline, uses the system’s output to organize any needed maintenance operations and put the right people, parts and equipment in the right place at the right time for faster turnaround.

“Delivering real-time decision support information that improves airplane performance has proven to be very valuable to our customers,” said Per Noren VP Information Services for Boeing Commercial Aviation Services (TBC).

(AHM) is easily accessed through the MyBoeingFleet.com portal. Alerts and notifications are delivered to airline personnel through a variety of communication methods including internet, personal digital assistants (PDA)s, e-mail and mobile devices. (AHM) is a key component in the larger Boeing (TBC) vision of helping customers succeed by transforming data into information they can use in real time to operate as efficiently as possible.

Boeing (TBC) rolled out the first 787 that will enter service with All Nippon Airways (ANA). The airplane is slated to be delivered to (ANA) in September following certification. It is the eighth 787 built by (TBC) and sports a livery that (ANA) said reflects core elements of its service brand—"innovation, uniqueness and the inspiration of Japan." The livery will be applied to the first two 787s put into service. SEE ATTACHED - - "TBC-2011-08-1ST 787 ROLLED OUT."

(TBC) has delivered the 100th 737-800NG outfitted with the Boeing Sky Interior to (GOL) Airlines (GOT) (the world’s 3rd largest low-cost carrier (LCC) 737 airline). The 737-800NG was also delivered with the certified performance improvement engines, marking the 1st airline in Latin America to receive the improved engines.

The 777-300ER is the world’s largest long-range twin-engine jetliner, capable of carrying 365 passengers up to 7,930 nautical miles/14,685 kilometers. To date, 34 customers around the world have ordered >500 777-300ERs.

Boeing (TBC) and Delta Air Lines (DAL) confirmed an order for 100 737-900ERs valued at >$8.5 billion at list prices. It is part of (DAL)'s fleet renewal effort to replace its aging, less efficient domestic airplanes. (DAL) selected (CFM56-7BE) engines to power the airplanes in an order valued at approximately $2.2 billion at list prices.

(DAL) said it will begin taking deliveries of the airplanes in the 2nd half of 2013, with 12 airplanes in 2013, 19 airplanes per year in 2014 through 2017, and the remaining 12 airplanes in 2018. Each airplane has committed long-term financing. “The size and timing of the order will allow (DAL) to maintain its annual capital expenditure run rate between $1.2 billion and $1.4 billion over the next 3 years and will not impact the company's $1.2 billion of capital expenditures projected for 2011,” (DAL) said. "The 737-900ER is the perfect airplane to replace the older, less efficient airplanes in our single-aisle fleet," said (DAL) President Ed Bastian.

"Reliability and fuel efficiency are direct contributors to our financial performance. The 737-900ER will provide us a reliable airplane with the lowest fuel burn in our domestic fleet."

The deal—to replace (DAL)’s 175 DC-9-50s/MD80/90s, 172 757-200s, 16 757-300s and some earlier model A320s—was all about pricing and financing.

At the end of 2010, the average age of (DAL)’s operational fleet was 15.1 years. Its DC-9-50s average 33 years and its MD-88s 20.6 years. (DAL)’s current generation narrow body fleet is made up of 83 737-700/800s and 120 A319/A320s.

(DAL) has been looking at fleet rationalization options since its merger with Northwest Airlines (NWA) in 2009, and stepped up the pace earlier this year. (DAL) follows American Airlines (AAL) as a launch customer for the 737 re-engine, which will carry the simpler 787 style designation of 737-7, 737-8, 737-9.

Boeing (TBC) received the formal award of the joint (FAA) and European Aviation Safety Agency (EASA) Type Certification of the Rolls-Royce (RRC) (Trent 1000)-powered 787-8 Dreamliner. Delivery will take place in the last week of next month to All Nippon Airways (ANA).

The Boeing Company (TBC)’s board of directors has approved the launch of the new engine variant of the market-leading 737, based on order commitments for 496 airplanes from five airlines and a strong business case. “The re-engined 737 will allow (TBC) to continue to deliver the most fuel efficient, most capable airplane with the lowest operating costs in the single-aisle market,” said Boeing Commercial Airplanes President & (CEO) Jim Albaugh.

SEE ATTACHED - - "TBC-737-800-RE ENGINE-2011-08."

The new 737 family will be powered by (CFM) International (LEAP-1B) engines optimized for the 737. It will have the lowest operating costs in the single-aisle segment with a -7% advantage over the competition. Deliveries are scheduled to begin in 2017.

When compared to a fleet of 100 of today’s most fuel-efficient airplanes, this new model will emit -277,000 fewer tons of CO2 and save nearly -175 million pounds of fuel per year, which translates into -$85 million in cost savings. The airplane’s fuel burn is expected to be -16% lower than our competitor’s current offering and -4% lower than their future offering. The 737 family has won orders for more than >9,000 airplanes.

(TBC) has named Bob Feldmann VP & General Manager of the new engine 737 family. With 35 years of aerospace experience, Feldmann most recently led the Surveillance & Engagement division within Boeing Military Aircraft, a unit of Boeing Defense, Space & Security that includes several commercial derivative programs based on the 737 platform. He has been instrumental in leading the successful development of complex programs such as the EA-18G Growler and the P-8A Poseidon.

Michael Teal has been named VP Chief Project Engineer & Deputy Program Manager. Teal’s most recent role was VP & Chief Project Engineer on the 747-8 program, where he was instrumental in managing the 747-8’s configuration and integration, performance, safety, test and certification.

Boeing (TBC) has unveiled the "737 MAX," the name of the new engine variant of the market-leading 737 which has just been launched. The new family of airplanes (737 MAX 7, 737 MAX 8 and 737 MAX 9) builds on the strengths of the Next-Generation 737.

SEE ATTACHED - - "TBC-737 MAX 7 8 9 - 2011-08."

“The 737 MAX offers airlines the right solution and the best choice for creating the most successful future with improved profitability,” said Nicole Piasecki VP Business Development & Strategic Integration. “The 737 MAX will deliver maximum efficiency, maximum reliability and the Boeing Sky Interior will continue to offer maximum passenger comfort. We call it the 737 MAX because it optimizes everything we and our customers have learned about designing, building, maintaining and operating the world’s best single-aisle airplane.”

The 737 MAX will build upon the Next-Generation 737's highest reliability performance of any airplane in the world (99.7% on-time departure rate).

The 737 MAX will deliver passenger appeal through the new 737 Boeing Sky Interior. The powerful appeal of the new interior comes from the most spacious cabin headroom, overhead bins that disappear into the ceiling yet carry more bags and (LED) lighting that brings any color into the cabin.

More information about the 737 MAX is available at: http://www.newairplane.com/ and in this video:

September 2011: Sir Richard Branson, Virgin Atlantic Airways (VAA) hopes to launch a vessel into space within the next 12 months, kicking off an era of commercial space travel. “The mother ship is finished. The rocket tests are going extremely well, and so I think that we’re now on track for a launch within 12 months of today,” he told television's (CNN)’s Piers Morgan this month. “This could be the beginning of a whole new era of space travel, which will be commercial space travel.”

His company, Virgin Galactic (VGA), hopes to one day send people into space and launch satellites for a fraction of the cost of government-run programs, as well as eventually offering high-speed intercontinental flights. “About an hour between Los Angeles and London is not completely out of the question,” Branson said, adding that it will likely take many years before the company can offer such a service.

In the meantime, Virgin (VAA) has sold some 430 tickets for space travel (at $200,000 a pop) for an estimated $86 million. “It’s not a cheap thing to build a spaceship company and it’s been fantastic to have people all over the world sign up,” Branson said.

The company plans to begin by taking tourists on sub orbital flights before eventually soaring higher. Branson has said in the past he hopes to one day build a hotel in space.

A number of private companies are rushing to fill the gap left by (NASA), which ended its 30-year shuttle program in July with the completion of the final "Atlantis" mission to the International Space Station (ISS). Earlier this year, the USA Space Agency distributed nearly $270 million in seed money to 4 companies (Boeing (TBC), SpaceX, Sierra Nevada and Blue Origin) to boost their bids to be 1st in the new space era.

The USA should make the creation of a next-generation air traffic management system a rallying project that maintains the country’s position as a global leader in the aerospace industry, Boeing Commercial Airplanes (BCA) President & (CEO) Jim Albaugh said. Speaking at the Aero Club in Washington DC, Albaugh said he feared the USA aerospace industry faced “an intellectual disarmament” as its skilled workforce retired, became unemployed, or moved to other countries that offered better job incentives. He said there were now many examples of where industry design and development capability had been lost because of long gaps between new airplanes being produced.

“I think we risk breaking the continuum of capability that took us a long time to build. If you lose some element of that continuum you are no longer a viable airplane contractor for the long term,” Albaugh said. “One of the reasons we had issues with the 787 was because we had not done a development program for 15 years (since the 777) and we paid a very heavy price for that.”

Albaugh said that turning NextGen into a major USA aerospace project (something that creates the Internet highway system of the sky) would dramatically improve air transportation and make airlines +15% more efficient. “We need to think big and we need to think bold,” Albaugh said.

NextGen was mentioned in President Barack Obama’s speech to Congress this month when he unveiled his proposed America Jobs Act. Obama wants an extra $1 billion allocated to NextGen to fast-track the program because he sees it as a jobs program that will also stimulate economic growth.

Boeing (TBC)’s stated 2017 Entry Into Service (EIS) for the 737 Max is a "worst case” scenario and it fully expects to better it. It is also understood from insiders that the baseline airplane being offered to airlines will be improved significantly as a variety of technologies are proven.

Last June, (TBC) and American Airlines (AAL) announced a partnership to bring an "evolutionary ecoDemonstrator Program" to reality in 2012.
An (AAL) 737-800 will be used to flight test and accelerate the market readiness of emerging technologies, as well as being a test-bed for the (FAA) Continuous Lower Energy Emissions Noise (CLEEN) program.

Some of the technologies that will be flown in 2012 include adaptable trailing edge technology that reduces noise and emissions during all phases of flight including take-off, cruise and landing, and a variable area fan nozzle that reduces community noise and enables advanced engine efficiency technologies.

According to a source in Dubai, (TBC) is looking at raked wingtips to replace blended winglets for a longer-range model.

The Asia/Pacific region will require hundreds of thousands of new commercial airline pilots (FC) and technicians (MT) over the next 20 years to support airline fleet modernization and the rapid growth of air travel, according to Boeing (TBC)’s "2011 Pilot & Technician Outlook." The report called for 182,300 new pilots (FC) and 247,400 new technicians (MT) in the Asia/Pacific region through 2030.

The greatest need is in China, which will require 72,700 pilots (FC) and 108,300 technicians (MT) over the next 20 years, said Boeing Training & Flight Services Chief Commercial Officer (CCO) Roei Ganzarski. “The demand for aviation personnel is evident today. In Asia, we’re already beginning to see some delays and operational disruptions due to a shortage of pilots (FC),” Ganzarski said. “To ensure the success of our industry as travel demands grows, it is critical that we continue to foster a talent pipeline of capable and well-trained aviation personnel. As an industry, we must make a concentrated effort to get younger generations excited about careers in aviation. We are competing for talent with alluring hi-tech companies and we need to do a better job showcasing our industry as a global, technological, multi-faceted environment, where individuals from all backgrounds and disciplines can make a significant impact," Ganzarski said.

(TBC) forecasts global demand for >23,000 airplanes in the 737's market segment over the next 20 years at a value of nearly $2 trillion.

Boeing (TBC) unveiled an immersive virtual model of the 737, generated from >20,000 high-resolution photographs. The "737 Explained" is built on the "Windows Azure" platform and allows 360-degree tours of the airplane and the ability to view every component down to the landing gear, engine components and individual rivets. “We were looking for a new way to communicate the essence of the 737,” Boeing Marketing Director Diana Klug said. “737 Explained is one of the best marketing tools I’ve seen because it allows us to show prospective customers the new features and improvements without bringing them to an airport.”

The model is stored on Microsoft’s cloud-based servers, allowing prospective customers and Boeing (TBC) representatives to access the display anywhere, on multiple device types.

Boeing (TBC) has rolled out its 1st 747-8I Intercontinental from its paint facility in Everett, Washington state, for launch customer Lufthansa (LH). After completing ground tests, the 747-8I will begin initial test flights in November. It is scheduled to go into service next spring with the registration (D-ABYA), (DLH) said.

The 747-8I is 6 m longer than the 747-400 and, at 76.3 m, is the world’s longest passenger jet. (DLH) said it has ordered 20 747-8s, which are due for delivery from the beginning of 2012 through mid-2015; it also has options for a further 20 airplanes.

Boeing (TBC) has sold 9 747-8Is as (VIP) transports, mostly to Middle East Gulf States, while Korean Air (KAL) has ordered 5. +2 more airplanes were sold to an undisclosed customer. Air China (BEJ) has also committed to 5 and there is an undisclosed customer that has indicated an order for 15. Total commitments for the passenger version, including options, stand at 76.

Flight International Editor's Comment on 787 Delivery:
"Delivery of the 1st Boeing 787 Dreamliner to (ANA) on September 26 marks the latest chapter in the story of a remarkable airplane. The fastest-selling new airliner of all time, it ended up being 3 and a half years late to the market. Its innovative composite design was a radical departure, but a complex supply chain almost led to disaster for the manufacturer."

Boeing (TBC) celebrated the delivery of the 1st 787 Dreamliner on Monday, September 26th to launch customer All Nippon Airways (ANA) during a ceremony adjacent to the factory where the airplane was assembled. >500 employees representing the 787 program walked alongside the all-new jetliner to present it to (ANA) executives as a crowd of thousands looked on.

SEE ATTACHED PHOTO (IN THE RAIN) - - "TBC-2011-09-ANA 787 DELIVERY":

The (AFA) - (KLM) Group stated it plans to order 25 787-9s and 25 A350-900s. List-price value of the Boeing (TBC) order is $5.5 billion which Avitas assumes discounts will bring it to around $3.2 billion. List-price of the Airbus (EDS) order is $6.7 billion with the Avitas estimate as $3.2 billion.

Delivery of the wide body airplanes will begin in 2016. There are also options for 60 airplanes; with expectations to take at least 23 of these by 2024.

Boeing (TBC)'s 747-8F freighter program was dealt another blow when Atlas Air Worldwide Holdings (AAWH) canceled 3 of the 12 747-8Fs it had on order, citing "lengthy delays and performance considerations."

Coming on the heels of Cargolux's (CLX) surprising decision to decline delivery of the 1st 2 747-8Fs the (AAWH) move raises more questions about the airplanes's operating performance. A (CLX) executive said the 747-8F had an "overall performance shortfall," but there has been wide speculation that Qatar Airways (QTA), which holds a 35% stake in (CLX), played a strong role in the delivery deferral, in part to express its dissatisfaction with (TBC) over 787 delays.

But (AAWH) has long been eager to take delivery of its 747-8Fs and place them into wet-lease (ACMI) services. The termination of its 1st 3 747-8Fs lends credence to the notion that the airplane (or, at least, the early-build units) fall short of promised performance metrics.

However, Cathay Pacific Airways (CAT) said it is "satisfied" with the 747-8F and will accept its 1st of the type next month. (CAT) is due to receive 5 747-8Fs this year, 4 of which are on the flight line at (TBC) facilities in Everett, Washington, and 5 next year. (CAT) has options for a further +10.

(AAWH) said it now expects to receive 3 747-8Fs in 2011, 4 in 2012 and 2 in 2013. The 1st 5 already have been placed under long-term wet-lease (ACMI) contracts with British Airways (BAB) (3) and Panalpina (2). (AAWH) President & (CEO) William Flynn stated, "As prudent asset managers, terminating the 1st 3 airplanes was the right decision for our fleet, our customers and our stockholders. We expect the remaining 747-8Fs in our order to be better-performing airplanes than those we have terminated."

By the end of 2013, (AAWH)'s cargo fleet is expected to comprise 9 747-8Fs and 24 747-400Fs. It plans to retire its last 5 747-200Fs by mid-2012.

October 2011: Boeing (TBC) has reported 3rd-quarter net income of +$1.1 billion, or $1.46 per share, on revenue of $17.7 billion but concedes lower deliveries of 787s and 747-8s.

As expected by analysts, (TBC) also announced the accounting block for the 787 will be 1,100 airplanes, based on 821 firm orders and approximately 200 options. This accounting block is 4x- higher than its last 4 airplane programs and reflects both the higher development costs and greater sales.

(TBC) Chairman, President & CEO Jim McNerney said that "strong operational performance drove double-digit margins (9.7% operating margin) in both of our major businesses and produced an outstanding quarter. We also strengthened our foundation for accelerated growth by completing development and certification of the 787-8 Dreamliner and 747-8F freighter, launching the new 737 MAX, and continuing our disciplined ramp-up in commercial airplane production rates.”

Boeing Commercial Airplanes' (BCA) deliveries guidance is now 480, down from between 485 and 495, on lower planned deliveries on development programs. This was explained by a lower “combined 15 to 20 787 and 747-8 units, from 25 to 30 units.”

(TBC) clarified the numbers by saying that “approximately 2-thirds of the development programs deliveries are anticipated to be 747-8s.” This means (TBC) will deliver between 5 and 6 787s this year, which was forecast by New York-based Bernstein Research.

(BCA) booked 255 net orders during the quarter and 426 during the 1st 9 months of 2011, while backlog remains robust with >3,500 airplanes valued at $273 billion.

(TBC) increased its 2011 earnings per share guidance to between $4.30 and $4.40 per share, up from between $3.90 and $4.10 per share.

Total company 2011 revenue is expected to be between $68 billion and $70 billion.

“Our improved outlook for earnings reflects confidence in our market positions, and our team's relentless focus on productivity and disciplined execution," McNerney said.

Boeing (TBC) announced a research task order award from the USA Federal Aviation Administration (FAA) to maximize performance-based navigation capabilities across the United States. The "FAA" initiated a $3.1 million task order for "Greener Skies Initiative 2." The Boeing (TBC) team will evaluate current precision navigation procedures and analyse new procedures to advance the use of flight deck and air traffic control capabilities in the national airspace system for an improved air traffic management (ATM) system.

The Initiative builds on the success of the Greener Skies Over Seattle project, which demonstrated Alaska Airlines (ASA)'s ability to cut fuel burn and reduce emissions by -35% compared to a conventional landing using precision navigation called Required Navigation Performance (RNP).

"The Greener Skies 2 initiative represents another critical milestone as Boeing (TBC) helps to drive implementation of NextGen, the (FAA)'s program to transform the national airspace system," said Neil Planzer, VP Air Traffic Management, Boeing Flight Services. "This research and development initiative supports Boeing (TBC)'s strategic focus on maximising the capabilities of (TBC) airplanes and implement (RNP) globally."

(RNP) is a (GPS)-based navigation technology that enables airplanes to fly precise and predefined paths to closely spaced parallel runways. The result is more efficient departure, en-route and approach profiles and a reduction in fuel usage, emissions and noise. The research will help create new procedures in flight deck and air traffic control ground-based systems, which will lead to new reduced separation criteria and increased safety margins.

The procedures will be tested at Seattle-Tacoma International Airport and Seattle's Boeing Field for future implementation at capacity-constrained airports across the USA.

The contract is a task order award under the (FAA)'s Systems Engineering 2020 (SE-2020) contract. Boeing (TBC) will lead an industry consortium consisting of SE-2020 team members Adacel, Airbus (EDS), Cessna and Honeywell (SGC). Boeing's Air Traffic Management team draws on expertise from across Boeing, including Commercial Airplanes, Flight Services, including Boeing subsidiary, Jeppesen, Boeing Research & Technology, and Boeing Defense, Space & Security.

Boeing (TBC), Alaska Airlines (ASA), the Port of Seattle and the (FAA) began the Greener Skies partnership in 2009. In 2010, the (FAA) approved Greener Skies as an official (FAA) project.

Boeing (TBC) is taking over one of (NASA)’s old space shuttle hangars to build a new capsule that (TBC) hopes will lift astronauts to orbit in 4 or 5 years. >100 Boeing (TBC), (NASA) and state and federal officials gathered in the massive empty hangar (Orbiting Processing Facility No 3) for the announcement of the 1st-of-its-kind agreement allowing a private company to take over the government property.

The aerospace company expects to create 550 high-tech jobs at Kennedy Space Center over the next 4 years, 140 of them by the end of next year. That’s <10% of the approximately 6,000 shuttle jobs lost in Florida over the past several years, but Governor Rick Scott and other lawmakers at the ceremony said they expect additional hirings by the commercial space industry.

(NASA) is counting on companies like (TBC), Space Exploration Technologies Corporation and others to ferry cargo and astronauts to and from the International Space Station (ISS) in 3 to 5 years. Until then, the space agency will continue to shell out tens of millions of dollars per seat on Russian Soyuz spacecraft. The Soyuz is the only way to get astronauts to and from the space station, ever since Atlantis returned from the final shuttle flight in July. A Soyuz rocket failure in August highlighted the risk of relying on just 1 type of craft.

During the hour long ceremony, lawmakers said the commercial industry is America’s last hope, anytime soon, for USA astronauts to fly on USA spaceships from USA soil.

The Obama Administration requested $850 million in (NASA)’s 2012 budget for the commercial space effort. The House slashed that to $312 million, but the Senate got it to $500 million, a reasonable figure given the nation’s current economic situation, said Senator Bill Nelson, a Florida Democrat and a 1-time space shuttle flier.

Boeing (TBC) expects to start removing shuttle platforms and modifying the hangar to suit its own purposes in the next few months.
John Mulholland VP & Program Manager of Commercial Programs for (TBC), said it will be sad to see all the shuttle equipment go. “The shuttle’s such an iconic vehicle. These marvelous buildings have a lot of memory,” said Mulholland, a former shuttle manager. “But you’ve always got to be looking forward. So while the shuttle is remarkable, we’re looking forward to the next phase of space exploration.”

(TBC) wants to ferry astronauts not only to the International Space Station, but to a commercial scientific outpost planned for orbit by Bigelow Aerospace. Each capsule will hold 7 people. A test flight is planned by 2015.

The agreement calls for (TBC) to use the hangar for 15 years, with an option to renew for another 5. Then it will be up to (TBC) to demolish the building, on (NASA)’s get-rid-of list. (TBC) is not paying (NASA) any rent, officials stressed, but rather will cover all operation costs and utilities.

The hangar is 197 feet/60 meters long, 1,650 feet/500 meters wide and 95 feet/30 meters high. It was last used to ready the shuttle Discovery for its final launch earlier this year.

(NASA) wants to turn the space center (long a government-only location) into a multi-user spaceport. Other buildings are also up for grabs. Space Florida, a state agency, is working on more deals.

Tourists, meanwhile, are about to gain entree into areas that were once strictly off limits.

The Vehicle Assembly Building (where fuel tanks and booster rockets were attached to space shuttles) will open its doors to public bus tours for the 1st time since 1978.

Throughout the ceremony, (NASA) officials and others stressed that Kennedy Space Center is not going out of business. “Ladies and gentlemen, the dream is alive,” Nelson told the crowd.

(NASA) relinquished its shuttle fleet to concentrate on new rockets and spacecraft that will be able to carry astronauts beyond low Earth orbit. An asteroid is the 1st stop. Mars is the prize.

A Boeing (TBC)-led team delivered the 1st Peace Eye 737 Airborne Early Warning and Control (AEW&C) airplane to the Republic of Korea Air Force (ROKAF) (KAF).

The 737 was delivered during a ceremony attended by officials from the (ROKAF), the Defense Acquisition Program Administration (DAPA), the South Korean and USA governments, industry partners and Boeing (TBC) at (ROKAF) Base Gimhae, the main operating base for the Peace Eye fleet.

"Peace Eye increases South Korea's self-defense capacity with powerful airborne-surveillance and battle-management capabilities that will help enhance the security of the Korean peninsula," said Randy Price Peace Eye Program Manager for (TBC). "Working closely with the (ROKAF), (DAPA), the USA government and our Korean industry partners was key to making today's milestone a reality."

Three additional Peace Eye airplanes are being modified by Korean Aerospace Industries in Sacheon, Korea, and will be delivered to the (ROKAF) in 2012.

The Peace Eye program includes 4 737 (AEW&C) airplanes plus ground support segments for mission crew training, mission support and system maintenance. 737 (AEW&C) airplanes also are in production for the governments of Australia and Turkey.

Based on the Boeing Next-Generation 737-700 commercial airplane, the 737 (AEW&C) airplane is designed to provide airborne battle-management capability with an advanced multirole electronically scanned radar and 10 mission crew consoles that are able to track airborne and maritime targets simultaneously. The mission crew can direct offensive and defensive forces while maintaining continuous surveillance of the operational area.

Boeing (TBC) opened a new service center in Beijing to provide enhanced product support to China’s growing commercial aviation industry. “We are bringing Boeing’s world-class airplane services and support closer to our China customers, providing them a competitive edge in their markets,” said Lou Mancini Senior VP Commercial Aviation Services.

The new Boeing China Service Center comprises highly qualified pilots (FC) and experts in flight operations, spare parts and maintenance engineering who are dedicated full-time to serving airlines in China. With Beijing-based experts who are fluent in Chinese and knowledgeable about customers’ concerns and issues, the team will enhance (TBC)’s day-to-day support of >800 (TBC) airplanes currently in service in China.

The Boeing China Service Center also will work closely with the Boeing engineering teams in Seattle, Washington, and Long Beach, California, on unique customer requirements and to develop products and services to further the reliability, efficiency and safety of the Chinese commercial airline fleet. “The center is another important step in the overall partnership of Boeing with China,” said Boeing China President Marc Allen. “Having a support center in China will help us bridge language and time-of-day barriers.”

Boeing projects that China’s demand for air travel will grow at an annual rate of +7.6% during the next 20 years, creating the need for >5,000 new airplanes by 2030.

Boeing (TBC) offers the industry’s broadest range of aviation services. The Boeing China Service Center is part of Boeing Fleet Services, which aligns with customers’ Engineering & Maintenance functions. Fleet Services supports airplanes by providing product support engineering and maintenance, aircraft-on-ground (AOG) services, passenger-to-freighter conversions, modifications and performance upgrades, and airline fleet management.

Ethiopian Airlines (ETH) announced an order for 4 777F Freighters, making (ETH) the 1st African carrier to order the twin-engine freighter. The order is valued at approximately $1.1 billion at list prices.

“As the largest African cargo carrier operating in some of the fastest growing trade lanes of the world – between Africa and Europe, Middle East and Asia – the new 777F Freighter fleet will significantly enhance our tonnage and range capabilities,” said Tewolde Gebremariam (CEO) of (ETH). “The proven operational and economical efficiency of these airplanes will reposition (ETH) Cargo in a stronger place to continue winning in this hypercompetitive market.”

The 777F Freighter, the world’s longest-range twin-engine freighter, is based on the technologically advanced 777-200LR (Longer Range) passenger airplane and can fly 4,900 nautical miles/9,070 km with a full payload of 225,200 pounds/102 metric tons. With high-cargo density and 10-foot/3.1-meter interior height capability, the 777 Freighter provides a cargo capacity normally associated with larger airplanes and features the lowest trip cost of any large freighter.

Arik Air (AKI) announced a deal for 2 Boeing 747-8I Intercontinental airplanes, valued at $635 million, making (AKI) the 1st African carrier to order the long-haul airplane.

Boeing (TBC) delivered the 1st 747-8F freighter to Cargolux (CV) on October 12 at a ceremony in Everett, Washington, USA, that took place several weeks later than planned. Though it is the launch customer for the airplane, (CLX) last month declined to accept delivery, citing performance shortfalls. "I'm happy to announce that we've resolved the contractual issues that delayed the 1st delivery of our new 747-8F freighter last month," (TBC) VP Marketing Randy Tinseth said in a post on his blog. He noted that Cargolux (CLX) will take delivery of its 2nd 747-8F on October 13. "Even though we had to wait a bit longer than expected, it doesn't make these deliveries any less sweet," Tinseth wrote. (CLX) has a total of 13 747-8Fs on order.

2 Russian carriers (Ural Airlines (URL) and Kuban Airlines (KIL) announced they will stop using Soviet Union-era airplanes on regular flights.

Ekaterinburg-based (URL) said it removed a Tupolev Tu-154M from its fleet after its last flight from Yamburg (Western Siberia) to Ekaterinburg. When (URL) was launched in 1993, it had 11 Tu-154Bs; in 1994 it bought +4 more Tu-154Ms. As of this month, (URL) operated 3 Tu-154Ms that were allowed to fly to Europe.

According to (CEO) Sergey Skuratov, (URL) is planning to sell its 3 Tu-154Ms. In November 2006, (URL) took delivery of its 1st A320, which started its fleet renewal program. Now (URL) operates 13 A320s and 5 A321s. In 2012, (URL) is planning to acquire +4 more A321s.

Krasnodar-based (KIL) said it will use 8 Yakovlev Yak-42s only on charter flights and as reserve airplanes during its upcoming winter schedule. After the Yak Service Yak-42 crash last September 7 in Yaroslavl, media reports and some experts in Russia blamed old Soviet-made airplanes for being unsafe.

Russian Flight Safety Foundation International Chairman, Evgeniy Shaposhnikov objected to these conclusions. He noted that during the last 20 years, Russia has lost 50 airplanes. While 44 were Soviet-built airplanes, he said technical defects were responsible for just 16% of the accidents.

The main reason (URL) and (KIL) are retiring the Soviet-era airplanes is their low fuel efficiency. Also, (KIL) is consolidating with Low Cost Carrier (LCC) Sky Express (SEX), optimizing its route network and canceling several destinations in its winter schedule. The combined carrier (KIL)/(SEX) now owns 3 A319s and 5 737s.

The replacement of Soviet-era airplanes began in the Russian market in 2005 - 2006. Through their renewal program, the biggest Russian carriers (such as Aeroflot (ARO), (S7) Airlines (SBR) and Rossiya (SDM)) have already removed the older airplanes from their fleets. However, UTair (TYU), the 4th-biggest Russian carrier, still operates 21 Tu-154s; UTair-Express has 28 Tu-134s and 25 Antonov An-24s.

Air China (BEJ), Boeing (TBC) plus Chinese and USA aviation energy partners conducted China’s 1st sustainable biofuel flight, a 2-hour maintained flight in a 747-400 from Beijing Capital International Airport using biofuel sourced in China.

PetroChina, working with Honeywell (SGC)’s (UOP), sourced and refined the China-grown, jatropha-based biofuel aboard the 747, which was powered by Pratt & Whitney (PRW) engines. China National Aviation Fuel blended the biofuel with traditional jet fuel and also provided airplane fueling support.

Air China (BEJ) and Boeing (TBC) are working on plants for an international flight between the USA and China fueled by sustainable biofuel.

Boeing (TBC) and Emirates Airline (EAD) have joined with non-profit organizations to transport relief supplies using a newly delivered 777-300ER to victims of the civil war in Somalia.

(TBC) has begun building the 1st 737NextGens at a rate of 35 airplanes month, up from 31.5 airplanes a month, to meet demand.
The 737 production rate will increase to 38 a month in the 2nd quarter of 2013 and to 42 a month in the 1st half of 2014, (TBC) said.

(TBC) has sold 9,134 737s of all 737 models up to September 30 and has delivered 6,919 up to the same date.

Recently it was revealed that China Eastern Airlines (CEA) canceled its order for 24 787s and placed a new order for 45 737s.

To prepare for the rate increases, (TBC) said it has improved production processes, increased capacity through investments in a new wings system installation line in its Renton, Washington, factory, and made the site footprint more efficient by moving some production areas, expanding others and decommissioning outdated equipment.

United Airlines (UAL) announced that Boeing (TBC) has completed the final assembly of (UAL)'s first 787 Dreamliner, finishing the 1st major step in the 787's production. (UAL) will be the 1st North American carrier to take a 787 delivery, with plans to introduce the 1st of 50 787 Dreamliners into revenue service in 2012.

Boeing (TBC) has surpassed 300 deliveries of the 777-300ER airplane type, with an October 21 delivery to Biman Bangladesh (BNG). It is the 1st direct Boeing (TBC) order from (BNG). The 777-300ER has received 543 orders as of September 30.

November 2011: Boeing (TBC) announced it is working with Hawaii BioEnergy to find renewable energy sources for creating aviation fuel.
Under terms of a collaboration agreement, the 2 companies will identify various crops, including sorghum and eucalyptus, as potential sources that can be grown locally and converted to jet fuel. The partnership will also assess new supporting technologies for aviation biofuel production.

"As an Asia Pacific gateway and leading tourism destination, Hawaii can play a meaningful role in helping aviation reduce carbon emissions, while increasing regional energy resources," said Boeing Commercial Airplanes VP Environment & Aviation Policy Billy Glover. "This collaborative effort will allow us to examine potential local options, while protecting the beauty and culture these islands have to offer."

The Boeing (TBC) 777 program is implementing 10 initiatives that will eliminate 5.5 million pounds CO2 emitted and 300,000 gallons of jet fuel used annually during the 777 delivery process. The 1st customer to benefit from all 10 of the initiatives is Air New Zealand (ANZ), which took delivery of a 777-300ER (extended range) jetliner on November 7. “(ANZ) is excited to participate,” said Duncan Mairs (ANZ)’s Technical Manager currently based in Seattle overseeing (ANZ)’s 777-300ER deliveries. “We have a wide range of environmental initiatives under way across the business. Being able to find ways to lessen the environmental impact of building an airplane is another excellent step on our journey to becoming the world’s most environmentally sustainable airline,” he said.

During the 20-day paint and delivery process, Boeing (TBC) workers incorporated new processes including reducing the number of times potable water and hydraulic filters are changed, using chromate-free primer in the painting process, and enhancing recycling and use of electric carts instead of gas-powered vehicles. Watch a video to see the energy-saving ideas in action:

http://bcove.me/gcdn6c0v.

“A team of employees identified redundancies in testing,” said Jeff Klemann VP Everett Delivery Center. “One idea was to eliminate engine-run tests already performed by (GE), the 777's engine manufacturer. This will result in a reduction of -1.4 million pounds of CO2 in 2012 as well as less community noise and emissions.” The team also improved flight planning efficiency for pre-delivery test flights. Reducing fuel loads reduces airplane weight, which improves fuel economy. By careful pre-planning, flight crews (FC) also are able to reduce flight times. The flight-planning initiatives will save a total of -193,155 gallons of jet fuel annually.

The chrome-free primer used on the recently delivered (ANZ) jet reduces the environmental impact of the paint and reduces potential health and safety risks during painting. It also eliminates the need for special handling of paint waste and clean-up, and designated off-site disposal areas. These advantages also provide benefit when the airplane is prepared for repainting. 9 of the environmental initiatives are now implemented on all 777 airplanes delivered. Use of chrome-free primer is optional. (ANZ) will use chrome-free primer on future 777-300ER deliveries.

Boeing (TBC) Executive VP Corporate President & (CFO) James Bell has announced plans to retire from (TBC), effective April 1, 2012. (TBC) Corporate Controller & VP Finance, Greg Smith has been selected to succeed Bell, effective February 1, 2012, (TBC) said, noting the 2 “will work together over the coming months to ensure a smooth transition.” Diana Sands VP Investor Relations & Financial Planning & Analysis, has been appointed Corporate Controller, also effective February 1, 2012.

Boeing (TBC) has opened its new South Carolina Delivery Center in North Charleston, South Carolina. The 58,000 sq-ft facility includes 3 floors of offices, conference rooms and food operations. On the 2nd floor, 2 passenger boarding bridges provide airplane access to customers, the 1st bridges to be used at a Boeing (TBC) delivery center. The facility will ramp up to produce 3 787s per month by the end of 2013.

Cathay Pacific Airways (CAT) took its 1st 747-8F freighter delivery, making it the 1st carrier in the Asia/Pacific region to operate the 747-8F. 8 customers have ordered a total of 75 747-8F freighters.

The 737 MAX program has selected a 68-inch fan diameter for the optimized engine design that will provide the lowest fuel burn and operating costs in the single-aisle market. The 737 MAX continues to receive overwhelming acceptance from customers with >600 order commitments received to date from 8 airlines, up from 496 airplanes from 5 airlines when the program launched in August.

(CFM) International said that Boeing (TBC) has selected its (Leap-1B) engine as the “exclusive powerplant” for its new family of re-engined 737 MAX airplanes.

At the end of this month, Boeing (tbc) announced it plans to build the new 737 MAX at its Renton, Washington site. (TBC) saidys it has received >700 commitments for the 737 Max, which is expected to enter service in 2017.

Aviation Capital Group (CGP) announced an intent to order 35 Boeing (TBC) 737 MAX airplanes, and a firm order for 20 737-800 NextGens.

(CGP) is the 1st leasing company to commit to the 737 MAX. (CGP) Group Managing Director & (CEO) Stephen Hannahs called the 737 “1 of the prime building blocks of our portfolio strategy,” and said the new 737NG and 737 MAX airplanes will “continue our long-standing strategy of providing our customers the most fuel efficient, most capable airplanes with the lowest operating costs."

With this announcement, (CGP) has ordered or committed to a total of 151 Boeing (TBC) airplanes made up of 111 Next-Generation 737s, 35 737 MAXs and 5 787 Dreamliners. This includes 15 737NGs for which (CGP) acquired delivery positions from another airline in 2006.

Boeing (TBC) celebrated the delivery flight of the 1st 747-8F Freighter for Atlas Air Worldwide Holdings (AAWH). The delivery is the 1st of 9 747-8F Freighters Atlas Air (TLS) has on order. (TLS)’s 49% subsidiary, Global Supply Systems (GSS), will operate the new freighter for British Airways World Cargo (BAB) through a 5-year wet-lease agreement.

As part of the lease agreement for 3 747-8F Freighters with (GSS), British Airways World Cargo (BAB) will utilize the airplanes on long-haul routes to cargo hubs in Asia, Africa, India, and the USA.

At the Dubai Air Show, Emirates Airline (EAD) announced a huge order (with deliveries starting in 2015) for 50/20 777-300ERs with a face value of $26 billion. (EAD) already has 95 777s in service and has +40 more on order. Boeing (TBC) said the deal is the largest single airplane order in dollar terms in its history. (TBC) said this accord with (EAD) has contributed to the best year yet for the 777, surpassing 2005's record 154 orders. (TBC) is currently preparing to start assembling wings for the 1,000th jet to be delivered to (EAD) next March.

(EAD) President Tim Clark confirmed that its order for up to 70 777-300ERs was an insurance against late deliveries of the Airbus A350. “We do not want to be caught out with a capacity shortfall,” he said.

Clark also said he was bullish on Boeing (TBC)’s plans for further development of the 777. “It is looking very good. Mind you, it is one thing to talk about what you can do, and another to guarantee it,” Clark said at the Dubai Airshow.

(TBC) is reserved on details of 777 development, but analysts have said a composite wing is a certainty, along with weight reduction of up to 20,000 lbs. “(TBC) has learned a lot from the 787 program, which will be incorporated into the next upgrade of the 777,” one analyst said.

The 777 is Boeing (TBC)'s most profitable program. (TBC) rolls out 7 per month and expects to raise production levels to 8.3 a month soon.

Lion Air (MLI) has signed an intent to buy 201 737 Maxs and 29 Next-Generation 737-900ERS in a $21.7 billion deal that is Boeing (TBC)’s largest ever in dollar value. Purchase rights for a further 150 airplanes were included in the deal. The agreement, announced in Bali, Indonesia, was made in the presence of USA President Barack Obama. Boeing (TBC) put the list price of the (MLI) deal at $21.7 billion. The 150-airplane purchase rights, if exercised, is valued at $14 billion.

"The 737 MAX will be the future of Lion Air (MLI)," (MLI) President Director Rusdi Kirana said. "The highly efficient, technologically advanced airplane will help (MLI) continue to bring low fares and allow us to open new destinations because of the longer range of the airplane."

To date, the 737 MAX has commitments for >700 airplanes, while 737NGs have won orders for >6,000 airplanes.

(MLI), Indonesia's largest private airline, operates or has on order a total of 178 737NGs.

See video "707 Barrel Roll OVER LAKE WASHINGTON 1955" - -

December 2011: Pratt & Whitney (P&W), which said it sees its future inextricably linked to the development of alternative fuel sources, has participated in the publishing of “The Path to Fuel Readiness," along with the rest of the Commercial Aviation Alternative Fuels Initiative (CAAFI) R&D committee made up of representatives from the (FAA), (GEC), (P&W) and Boeing (TBC).

(P&W) Manager Advanced Technology, Stephen Kramer told attendees at the (CAAFI) Expo in Washington that the document was prepared following a meeting of the (R&D) team in February, when “confusion” and “lack of direction” was among audience feedback on what was needed for the certification step.

(GE) Aviation (GEC)’s (GEnx-1B) engine, which powers the 787, has been given the (FAA) 330-minute extended-range, twin-engine operations (ETOPS) approval.

The (FAA) approval confirms the engine has demonstrated the reliability to conduct (ETOPS) flights up to 330 minutes flying time from a primary or alternate airport, (GE) said.

The approval process included a 3,000-cycle ground endurance test in April. The 1st (GEnx-2B)-powered 747-8F was delivered to Cargolux (CLX) in October. +5 (GEnx-2B)-powered 747-8Fs have since been delivered.

Boeing (TBC) finalized an order with Air Lease Corporation (ALE) for 4 787-9s. (ALE) also exercised options for 4 737-800 NextGens. The order, worth >$1.2 billion, marks the completion of an agreement announced during the Paris Air Show in June.

The airplanes join the 74 737-800s and 5 777-300ERs that (ALE) has on order.

According to Boeing (TBC), the order increases the number of 787-9s on order to 270 airplanes from customers located all over the world. The 787 family has a total of 825 orders.

Boeing (TBC) has rolled out its 1st 737NG at the production rate of 35 airplanes a month and is on track to deliver the airplane to launch customer Norwegian Air Shuttle (NWG) in January.

To prepare for the 737 rate increases, (TBC) said it has made production processes more efficient, increased production capacity with capital investments, made the site footprint more efficient and decommissioned outdated equipment.

According to (TBC), it will increase the 737 rate to 38 airplanes a month in the second quarter of 2013 and to 42 airplanes a month in the 1st half of 2014.

Etihad Airways (EHD) has ordered 10 787-9s, making it the largest 787 Dreamliner airline customer. (EHD) also committed to 2 777F freighters. Deliveries of the 787s are scheduled for between late 2014 and 2019.

The 12 additional airplanes (including the 777Fs) are valued at $2.8 billion at list prices and lifts (EHD)’s firm orders for 787s to 41 and 777s to 12. (EHD)'s fleet currently includes 8 777-300ERs and 1 777F. “Our decision to expand our 787 Dreamliner fleet is testimony to Etihad (EHD)'s commitment to operating 1 of the youngest and most fuel-efficient fleets in the skies,” said (CEO) James Hogan. "It also reflects our confidence in the 787's ability to have a significant impact on our operating efficiencies and the passenger experience we can offer onboard this revolutionary airplane.”

(EHD) placed an initial order for 35 firm 787 Dreamliners with options and purchase rights for a further 25 at the Farnborough Airshow in 2008 as a part of a deal for up to 205 wide body and narrow body airplanes. Earlier this year, (EHD) swapped 4 firm 787s due for delivery in 2019 for 3 777s.

Southwest Airlines (SWA) ordered 208 new 737 airplanes with a value of nearly $19 billion. (SWA) placed a firm order for 150 of the 737 MAX, a new version of Boeing (TBC)'s most popular airplane with more fuel-efficient (CFM) International (Leap-1B) engines. The (CFMI) order value is $4.7 billion at list prices. (SWA) also ordered 58 Next-Generation 737s.

This order makes (SWA) the 737 MAX launch customer. The 737 MAX 1st delivery will be in 2017.

Boeing (TBC) said this represented its largest-ever firm order (both in terms of units and value) and provided a major boost to the 737 MAX program. Boeing Commercial Airplanes President & (CEO) Jim Albaugh said that (SWA) Executive VP & (COO) Mike Van de Ven negotiated long and hard and he got (SWA) a very good deal. Mike Van de Ven said the 737 MAX is "tailor-made" for (SWA)'s network, and insisted (SWA) didn't choose Boeing simply for leagy reasons. (SWA) is the world's largest 737 operator with a fleet of 559 and was the launch customer for the 737-300, the 737-500 and the 737-700 versions. He continued "We did do comparisons between the 737 MAX and the A320neo" and emphasized that the 737 MAX came out as a clear winner for (SWA)'s needs. He added "Overall, we expect the superior economics of our fleet modernization plan to meet our 15% pretax return requirement and provide substantial flexibility to manage our growth in a variety of economic conditions over the next decade."

(SWA) said the 737 MAX will reduce fuel burn and carbon dioxide emissions "by an additional 10% to 11% over today's most fuel efficient single aisle airplane." (SWA) claimed the 737 MAX will have a "+7% advantage over its competition."

(SWA) has bought more 737s than any other airline. (TBC) says (SWA), which flies more USA passengers than any other carrier, is the 1st customer to complete an order for the 737 MAX. Including this order, Boeing (TBC) now has orders or commitments from 13 customers for >948 of the new model.

Last month, Lion Air (MLI) committed to pay $21.7 billion for 230 737s. (MLI) also has options for +150 more planes, valued at $14 billion, bringing the deal's total potential value to $35 billion. But the Lion Air (MLI) deal is not a certainty; it still has to complete the order. In other words, until now, all customer agreements have only been regarded as "commitments" rather than "firm orders." Also in November, Emirates Airline (EAD) ordered $18 billion worth of 777s.

Both deals came shortly after Boeing (TBC) finally began delivering its 2 newest planes, the next-generation 787 and the latest version of the iconic 747.

Boeing (TBC) produces about one 737 every day in Renton, Washington. It is raising that to 42 per month in 2014. Boeing (TBC) shares rose 66 cents to $71.56 in pre-market trading.

SEE ATTACHED "DOMINIC GATES SEATTLE TIMES" ARTICLE - - "TBC-2011-12 - 737 MAX - A/B."

Boeing (TBC) said its 777 twin-engined wide body jet has received Federal Aviation Administration (FAA) approval for Extended Twin-engine OPerationS (ETOPS) flights up to 330 minutes away from the nearest available airport. This authorization can be useful to airlines flying across remote regions such as over the south Pacific, over the North Pole, and from Australia/New Zealand (Oceania) to South America and southern Africa. It allows qualifying airlines to fly more direct routes, reducing both fuel burn and travel time.

The authorization allows 777 customers who purchase or already operate 777-300ER (extended range), 777-200LR (longer range), 777F, and 777-200ER models equipped with General Electric engines to fly up to 330 minutes from an alternate airport. (FAA) approval for the 777-200ER equipped with Rolls-Royce (RRC) and Pratt & Whitney (PRW) engines is expected to follow over the next few months.

“Boeing twin-engine jets have flown >7 million (ETOPS) flights since 1985, and >120 Boeing operators fly >50,000 (ETOPS) flights each month,” said Larry Loftis VP & General Manager 777 Program. “This is the logical continuation of the Boeing philosophy of point-to-point service. Passengers want to minimize their overall travel time. This is one more step in that direction.”

Previously, the furthest this jet was allowed to fly from the nearest airport was 207 minutes. The (ETOPS) time extension is introduced in 2 stages: Airlines must 1st operate the planes safely for a year at up to 240 minutes away from the nearest airport before they can move up to 330 minutes.

Earlier this month, Air New Zealand (ANZ) became the 1st airline to fly a 240-minute (ETOPS) flight from Los Angeles to Auckland, NZ.

The 330-minute (ETOPS) certification follows test flights to establish the reliability of the airplane, which can safely operate with just one engine for that extended period. Any airline wishing to fly such flights requires its own (FAA) approval, showing that its training and processes are appropriate and that it has installed additional fire suppression equipment.

An increasing number of operators already are providing (ETOPS) service to their passengers. For example, 93% of 777, 50% of 767, and 33% of 757 operators fly (ETOPS) routes. 2-engine (ETOPS) routes are >60 minutes from an alternate airport.

The 777 fleet has flown >2 million (ETOPS) flights since its debut in June 1995. 53 777 operators fly >22,000 (ETOPS) flights per month.

The first Japan Airlines (JAL) 787-8 Dreamliner rolled out of Boeing (TBC)’s paint hangar in Everett, Washington. The 787-8 will be used for (JAL)’s new Tokyo Narita - Boston route and will be delivered early next year. The airplane's livery features the iconic new brand mark on its tail. (JAL) (which placed the original 787 Dreamliner order in 2004 with a 2008 expected delivery date) has 35 787-8s on order.

This month, the 787 set new records for both speed and distance for the airplane's weight class. “The 6th 787, (ZA006), powered by General Electric (GEnx) engines, departed from Boeing Field in Seattle at 11:02 am December 6 and set the distance record for its class (440,000 - 550,000 lbs) with a 10,710 n mile/19,835 km flight to Dhaka, Bangladesh, with credit for 10,337 n mile/19,144 km. This record had previously been held by the Airbus A330 based on a 9,127 n mile/16,903 km flight in 2002,” Boeing (TBC) said.

“Following an approximately 2-hour stop for refueling in Dhaka, the 787 returned to Seattle on a 9,734 n mile/18,027 km flight. It landed at 5:29 am December 8, setting a new record for speed around the world (eastbound) with a total trip time of 42 hours and 27 minutes,” Boeing said. There was no previous around-the-world speed record for this weight class.

"Speed and distance capabilities are fundamental to the value the 787 brings to the market," said 787 Program VP & General Manager Scott Fancher.

Transaero (TRX) completed the 787 successful year with 4 787 orders to replace its 767s on both domestic and international routes.

USA civil airplane sales will total $49.68 billion in 2011, up +3.1% year-over-year, and rise another +4.1% in 2012 to $51.71 billion, the USA Aerospace Industries Association (AIA) said in releasing its annual forecast.

Civil sales are buttressing a USA aerospace manufacturing sector that expects reduced sales next year in other sectors, including defense and space, (AIA) President & (CEO) Marion Blakey said. The USA aerospace industry will have total sales of $218.08 billion in 2011, the 8th straight year of growth, she noted. But (AIA) predicted the streak will end in 2012, for which total sales are expected to dip slightly to $217.65 billion.

"Despite significant headwinds, the USA aerospace industry fared well this year," Blakey said in a luncheon address in Washington. "Despite the economy, we're holding steady." She said the rise in civil airplane sales is driven by growing commercial air traffic and higher fuel prices that are leading airlines to place orders for more efficient equipment.

According to the (AIA), Boeing (TBC)'s commercial backlog as of December 31 will stand at 3,520 airplanes valued at $282.88 billion, up +6.5% from $265.55 billion at the end of 2010 but still -4.5% below a peak of $296.22 billion as of December 31, 2008. Non-USA orders account for 71.6% of the current backlog in terms of units and 76.7% in terms of value.

January 2012: Boeing (TBC) posted 2011 net income of +$4.02 billion, up +21.5% over a net profit of +$3.31 billion in 2010, as the company's Boeing Commercial Airplanes (BCA) unit increased revenue +13.6% year-over-year to $36.17 billion.

"With a record backlog and intense focus on productivity, we are well positioned to deliver growth and increased competitiveness," Chairman, President & (CEO) Jim McNerney said. He added that 1 of the manufacturer's main priorities for 2012 is to "continue with disciplined increases in production rates for our commercial airplane customers."

Boeing (TBC) is now building 2.5 787s per month, which will ramp up to 3.5 in the 2012 2nd quarter and to 10 by the end of 2013. "We will exit [2012] with a pretty good production flow going" on the 787 Dreamliner program, he said. "As each month passes, my confidence does grow. But these ramp-ups are always difficult." The company recently raised its 737NG production rate to 35 per month.

McNerney said that "air transportation remained noticeably resilient" last year in the face of a sluggish global economy, although he noted that air cargo traffic was flat year-over-year in 2011 and trending down toward the end of the year.

Boeing (TBC) delivered 477 commercial airplanes in 2011, up +3% from 462 in 2010. Boeing Commercial Airplane (BCA)'s 2011 operating income was $3.5 billion, up +16% over 2010.

Boeing (TBC)'s overall 2011 revenue rose +6.9% year-over-year to $68.74 billion. Expenses increased by +7.8% to $55.87 billion and operating profit was +$5.85 billion, up +17.5%. (BCA)'s 2011 commercial deliveries were led by 372 737NGs and also included 73 777s.

McNerney said Boeing (TBC) plans to firm >1,000 "commitments" for the re-engined 737 MAX this year, adding that airlines' interest in the airplane "validates" (BCA)'s decision to re-engine the narrow body.

"We should have a pretty good order year" in 2012, he said, noting that orders likely will be led by 737 MAX finalizations. "But we also see robust activity across our other products," he added.

Boeing (TBC) delivered 477 commercial airplanes in 2011 and ended the year with 805 net orders and a backlog of 3,771 unfilled commercial orders. The net orders represented a +52% increase over 530 in 2010, a gain (TBC) attributed to 200 record-setting orders for the 777.

SEE ATTACHED "SEATTLE TIMES" ARTICLE - - "TBC-2012-01-BOEING VS AIRBUS-A/B."

(TBC) said the launch of the 737 MAX spurred deals that resulted in >1,000 orders and commitments from 15 customers. “As our current commitments become firm orders and we add even more customers, I have no doubt that 2012 will be the 'Year of the 737 MAX," said Boeing Commercial Airplanes President & (CEO) Jim Albaugh.

Southwest Airlines (SWA) was the only carrier in 2011 to place firm orders for the 737 MAX, becoming the launch 737 MAX customer when it ordered 150 airplanes in December. The 3,771 unfilled order backlog does not include the 737 MAX commitments, (TBC) confirmed.

After a 40-month delivery delay on the 787, launch customer All Nippon Airways (ANA) took delivery of 2 787s in the fall. Its 3rd 787 Dreamliner, scheduled for a December delivery, was in danger of being delayed again due to a Boeing “productivity” issue, but following “urgent negotiations” with (ANA), the airplane was delivered on December 30.

Albaugh said Boeing’s goal in 2012 is to “ensure that 787 production is stable and reliable, while maintaining focus on execution as we deliver an increasing number of airplanes across all our programs."

Boeing’s 2011 deliveries comprised 372 737s, 9 747s, 20 767s, 73 777s and 3 787s.

The Boeing Company (TBC) has begun work on a 4-month (NASA) (NAS) contract to develop a mission concept study for solar electric propulsion technologies. Under the $600,000 firm, fixed-price contract, Boeing will evaluate concepts that combine high-power solar arrays with advanced electric thrusters to power spacecraft and payloads to high Earth orbit and deep space destinations.

“(TBC) pioneered the use of electric propulsion, and has developed an approach to integrate compact, lightweight, and highly efficient solar arrays with next-generation electric thrusters in future spacecraft,” said Steve Johnston Director Boeing Phantom Works’ Advanced Space Exploration division. “This technology offers weight and cost advantages while enabling increased on-orbit maneuverability for satellites in Earth orbit, and efficient deep space transportation for human exploration and robotic science missions.”

(TBC) is 1 of 5 contractors selected to develop a mission concept to demonstrate solar electric propulsion technologies, capabilities and the infrastructure required to affordably sustain a human presence in space. Phantom Works will conduct the study in Huntington Beach with support from Boeing Space & Intelligence Systems electric power and propulsion experts in El Segundo, California.

Boeing (TBC) will close the Wichita, Kansas facility where it converts commercial airliner frames into military airplanes by the end of next year. The announcement, although not unexpected, will bring to a close 1 of Boeing (TBC)’s longest running and most historic manufacturing facilities. (TBC) has had a facility in Wichita since it bought the Stearman Aircraft Company in 1929 and it built major commercial airliner parts there until spinning off that part of the business in 2005.

Boeing Defense, Space & Security VP & General Manager Mark Bass said the decision to close the facility was based on a thorough study of the current and future market environment and (TBC)’s ability to remain competitive.

Boeing Wichita employs >2,160 employees and is the base for the company's Global Transport & Executive Systems business and its B-52 and 767 International Tanker programs. "In this time of defense budget reductions, as well as shifting customer priorities, (TBC) has decided to close its operations in Wichita to reduce costs, increase efficiencies and drive competitiveness," Bass said. "We will begin program transitions in the coming months, with the complete closure of the site scheduled for the end of 2013. We do not anticipate job reductions as a result of this decision until early in the 3rd quarter of 2012."

Future military airplane maintenance, modification and support work will be placed at the Boeing facility in San Antonio, Texas, and engineering will go to Oklahoma City. Work on the US Air Force (USF)’s refueling tanker will be performed in Puget Sound, Washington.

Boeing spinoff, Spirit AeroSystems builds 737 fuselages in Wichita.

The AirFrance (AFA)/(KLM) Group has finalized an order for 25 787-9s, with options. The order was signed in late December. A preliminary agreement was 1st announced on September 16. Boeing (TBC) said the order increases the number of 787-9s on order to 305 airplanes. The 787 Dreamliner family, including the 787-8 and 787-9, has accumulated a total of 860 orders from 59 customers.

Boeing (TBC) rolled out its 1st 737NG at the new production rate of 35 airplanes a month from its Renton, Washington facility. (TBC) delivered the airplane to (AWAS) Aviation Services (AWW) for lease by Norwegian Air Shuttle (NWG).

Boeing VP & General Manager 737 Program Beverly Wyse credited the increase to employees who “reduced waste in our production system and identified opportunities to further increase productivity.”

(TBC) also celebrated securing production of the 737 MAX at the Renton factory. "The capability of this team played heavily into the decision to keep the 737 MAX here in Renton," Wyse said.

According to a (TBC) statement, going forward, it will focus on “stabilizing the production rate at 35 a month, while investments are underway to go up in rate to 38 737s a month in the 2nd quarter of 2013 and 42 a month in the 1st half of 2014.”

Saudi Arabian Airlines (SVA) has ordered 8 additional 777-300ERs in an order valued at $2.4 billion at list prices. The order was announced as (SVA) took delivery of its 1st 2 of the type from a previous deal for 12 airplanes, plus 10 options.

Norwegian Air Shuttle (NWG) has signed agreements with Airbus (EDS) and Boeing (TBC) for a total of 222 new airplanes.

The Boeing (TBC) firm order includes 100 (CFM) (Leap-1B)-powered 737 MAX and 22 737-800 airplanes, valued at $11.4 billion at list prices. (NWG) becomes the European launch customer for the 737 MAX. Boeing (TBC) said this was its largest-ever order from a European carrier.

The Airbus (EDS) firm order is for 100 A320neos.

The firm orders have a total value of approximately NOK127 billion/$21.6 billion at list prices. The airplane purchase is supported by the Export-Import Bank of the USA (Ex-Im) and European Export Credit Agencies.

The agreement also includes additional purchase rights for 100 737 MAX 8 and 50 A320neos. Deliveries will begin in 2016. (NWG) did not announce the engine selection for the neos, for which the options are the Pratt & Whitney (PRW) (PW1100G) and (CFM) International (Leap-1A) engines.

“Today is a historic day for (NWG). The order is the largest ever in European aviation history and marks a major milestone in the company’s 10-year history. We have secured our fleet renewal for years to come and are very pleased with the agreements with both Airbus (EDS) and Boeing (TBC),” said (NWG) (CEO) Bjorn Kjos. “(NWG) has now reached a size where we will benefit from having 2 suppliers, both in terms of ensuring adequate flight capacity, flexibility and competition between two manufacturers,” he said.

(NWG) operates a fleet of 62 737s (48 737-800s and 14 737-300s) on about 300 routes to >100 destinations across Europe and into North Africa and the Middle East. (NWG) carried 15.7 million passengers in 2011, an increase of +19.8% compared to the previous year.

(NWG) said this transaction lifts its order book to 150 purchase rights and 277 airplanes for future delivery, including 55 previously ordered 737-800s and a firm order for 6 787-8 Dreamliners.

SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLE - - "TBC-2012-01-RECORD JET ORDER-A/B."

In order to meet certification requirements ahead of its 1st delivery, Boeing (TBC) will lock out the 12,500 l/3,300 gal horizontal stabiliser tail fuel tanks on its 747-8I Intercontinental after a flutter condition was found to occur in a certain structural failure scenario.

"(TBC) certified the 747-8I Intercontinental with the tail fuel tanks locked out because during design review of flight test data it was discovered that, under a certain regulatory-required structural failure scenario, the airplane can experience flutter events when the fuel tanks in the horizontal stabiliser are filled >15% of their capacity," said Boeing.

To comply with USA (FAA) regulations, (TBC) will deactivate the tail fuel system to satisfy the requirement that no structural flutter be present in the airframe after any single failure condition. "These conditions do not present themselves when the tanks are empty," Boeing (TBC) said of the structural failure evaluations, which were only found to occur if the airplane's wing-to-strut join fitting had failed.

The "requirement for all key structural fittings need to have a design tolerant of 'any single failure'", said (TBC). "We're actively working on ways to activate the fuel tanks for the long term."

(SIA) will be the launch customer for Boeing (TBC)’s new Electronic Logbook (ELB) software. The new version of (ELB), developed in partnership with Ultramain Systems, Inc, enables communication between pilots (FC), ground crews, maintenance crews and engineering.

(SIA) will be deploying (ELB) on all their 777 airplanes.

(ELB) runs on an airplane’s Electronic Flight Bag (EFB) to connect flight data with ground-based technicians (MT) and equipment. The application feeds flight crew (FC) data into a central repository where it is combined with maintenance and engineering information. This allows airlines to better understand and diagnose issues within the context of multiple airplane systems.

“(ELB) allows us to transform data into usable information that can give our customers’ operations a competitive edge,” said Per Noren, VP of Boeing’s Commercial Aviation Information Services. “Airplane information is efficiently and quickly shared with the people who need it, which facilitates fast turnaround times – and that translate into better passenger service and greater airline cost savings.
“(SIA) consistently leads the industry in adopting technology to improve their quality, service and reliability. Their partnership throughout our development process helped realize important operational efficiency opportunities,” Noren added.

With this investment, (SIA) adds (ELB) to their existing Boeing (TBC) digital efficiency solutions: Maintenance Performance Toolbox, Airplane Health Management (AHM) and Integrated Material Management (IMM) services. Combining these Boeing tools, integrated into (SIA)’s back office resource management systems, will enable even better passenger service and greater maintenance and operational efficiencies.

AirBridgeCargo Airlines (ABC) has taken delivery of the 1st of 5 747-8F freighters, making (ABC) the 1st customer of the type in Russia.

(ABC) placed orders for 5 firm 747-8Fs in 2007 with 5 options. Deliveries have been delayed 3x-. Initial delivery was scheduled for the end of 2009 at the rate of 1 a year, but was postponed by Boeing (TBC) to February 2011 and then to September 2011.

(ABC) Executive President, Tatyana Arslanova said the 747-8F, which will replace some of (ABC)’s older airplanes, will give (ABC) the youngest freighter fleet in the industry, while “maintaining the highest standards of environmental compliance.”

(ABC) operates 2 747-200Fs, 1 747-300F and 8 747-400s.

According to market experts, Russia’s Interstate Aviation Committee (IAC) has not yet certified the 747-8F but it is expected (ABC) will be able to take the airplane to Russia by the beginning of February. The 1st 747-8F routes have not been revealed but it is anticipated the airplane will operate on Europe – China service.

(ABC), which was established in 2004 as a part of Volga-Dnepr Group (VDA), is based at Moscow Sheremetyevo and operates flight mainly between European and Chinese hubs. According to Fraport Cargo Services, (ABC) was the biggest cargo carrier at Frankfurt airport (FRA) in 2011. Last year, (ABC) launched its 1st scheduled flight to North America.

The new 747-8F Freighter is 250 feet, 2 inches/76.3 m long, which is 18 feet and 4 inches/5.6 m longer than its predecessor, the 747-400F Freighter. The stretch provides customers with +16% more revenue cargo volume, which translates to 4 additional main-deck pallets and 3 additional lower-hold pallets. The 747-8F freighters are powered with (GE)’s (GEnx-2B) engines.

Korean Air (KAL) celebrated delivery of (KAL)’s 1st 747-8F and 777F Freighters. With the milestone delivery, (KAL) becomes the 1st airline in the world to operate both the 747-8F and 777F Freighters.

"We are very proud to become the 1st airline in the world to have the combined strengths of these 2 freighters in its fleet,” said Yang Ho Cho, Chairman of (KAL). “Our cargo fleet is being improved by these fuel-saving planes. They can help reduce carbon emissions by -17% and this supports our goal to be a responsible citizen of the world.”

Korea’s flagship carrier is the 1st Boeing (TBC) customer to order both variations of the new 747-8 airplane and is also a key supplier partner on this new airplane program.

The 747-8F Freighter offers a range of 4,390 nautical miles/8,130 km and a maximum structural payload capacity of 148 tons/134 tonnes, while offering an additional 4,221 cubic feet/120 m3 and +16% more revenue cargo volume than the 747-400F Freighter.

The twin-engine 777F Freighter is the most fuel-efficient airplane with leading economic and environmental performance in its category. It has a cargo capacity of 103 metric tons/113 tons with a range of 9,038 km/4,880 nautical miles.

Korean Air (KAL) plans to operate the 747-8F Freighter on its transpacific route, with stops in Osaka and Narita, Japan, Los Angeles, and San Francisco. The 777F Freighter is (KAL)’s 1st twin-engine freighter and will allow the airline to open into new markets in Europe, including Vienna, Frankfurt, and London.

Boeing Commercial Airplanes (BCA) Marketing VP Randy Tinseth confirmed that a shimming issue has been discovered on some 787s in production. “Shimming is a routine practice used across the industry to fill small gaps that occur naturally during manufacturing. Shims are basically engineered fillers used to make sure parts fit together. In this case, we found that incorrect shimming was done on the support structure of the aft fuselage of some 787s. Our engineers have a good handle on the situation and have a straightforward fix,” Tinseth said.

“The good news is there’s no short-term safety concern. Repairs will take days, not months, and can be conducted concurrent with other planned build activities. This work has already started on some airplanes.” Tinseth said all customers had been notified.

February 2012: Boeing (TBC) aims to capture a larger share of the aviation services and support market, and will start promoting is wide range of activities as "Boeing Edge," (TBC) announced at the Singapore Airshow.

(TBC) also revealed it is extending its GoldCare maintenance, engineering and material management service for its 747-400F freighters, for which Singapore Airlines (SIA)/(SQC) is the launch customer with its fleet of 13 of the type. The GoldCare aftermarket support program initially was only available on the 787 and was extended to include 737 NextGens in March 2011.

“The leadership of the Singapore Airlines Group is very forward-thinking and they adopted many of Boeing’s Information Technology (IT) and spares support products during the time that GoldCare was being developed for the 787 Dreamliner. Together with maintenance engineering and planning, this brings together the major elements of GoldCare in a way that tailors the service to the needs of Singapore Airlines Cargo (SQC),” Boeing Senior VP Commercial Aviation Services, Lou Mancini said.

Mancini confirmed (TBC) is evaluating GoldCare offerings for other Boeing airplane models. “We are reviewing the extension to other [Boeing] airplane types; we have nothing formatted yet but I expect this to happen in the next couple of years.” Commercial Aviation Services (CAS) already represents 15% of Boeing Commercial Airplanes (BCA)’s revenue “and we aim to continue growing the division,” he said.

Over the next 20 years, Boeing estimates the global market for commercial aviation services will reach $2.3 trillion.

“GoldCare is a great example of our new initiative, the "Boeing Edge," which brings into focus the unmatched advantage Boeing customers gain through the company’s services and support,” Mancini said.

The Boeing Edge is a service mark designed to better position the diversity and value of the company’s commercial services and support portfolio, the largest in the industry. It bundles Boeing Commercial Aviation Services’ 5 core capabilities: product support, material services, fleet services, flight services and information services.

Boeing (TBC) has taken 787 VP, Scott Fancher off the 787 Dreamliner program and replaced him with 777 Program VP Larry Loftis. Fancher takes over as 777 Program VP, reporting to Pat Shanahan Senior VP of Airplane Programs. He will also work with Lars Andersen, defining the next variant of the 777. The switch takes effect immediately and comes at a time when the 787 is still facing production challenges as the program shifts from the 1st delivery phase to production ramp-up.

Boeing (TBC) is now building 2.5 787s per month and is slated to ramp up to 3.5 787 Dreamliners monthly in the 2nd quarter, and to 10 by the end of 2013. "As this [787] program transitions into production, this appointment will take advantage of Larry's >32 years of commercial product experience and knowledge of Boeing's production system," Boeing Commercial Airplanes President & (CEO) Jim Albaugh said.

USA President Barack Obama spoke to workers at Boeing (TBC)'s Everett, Washington, manufacturing plant, touting rising commercial airplane sales as a sign that USA manufacturing is on the rebound.
"It's hard not to be amazed by the 787 Dreamliner," Obama said, noting that the 787 is "lighter, it's faster, it's more fuel-efficient than any airplane in its class. And it looks cool. The 787 Dreamliner is the plane of the future. And by building it here, (TBC) is taking advantage of a huge opportunity that exists right now to bring more jobs and manufacturing back to the USA."

The President said that (TBC)'s business "is booming. Now the biggest challenge is how to turn out planes fast enough. That’s a high-class problem to have."

He continued, "Every 787 Dreamliner that rolls off the assembly line here in Everett supports thousands of jobs in different industries all across the country. Parts of the fuselage are manufactured in South Carolina and Kansas. Wing edges, they come from Oklahoma. Engines [are] assembled in Ohio. The tail fin comes from right down the road in the Frederickson site [Washington]."

Obama commented that "companies like Boeing (TBC) are finding out that even when we can't make things faster or cheaper than China, we can make them better. Our quality can be higher . . . That's how we're going to compete."

ALSO SEE ATTACHED "SEATTLE TIMES" ARTICLE ON PRESIDENT OBAMA'S VISIT TO BOEING THIS MONTH - - "TBC-2012-02-PRESIDENTS VISIT."

(TBC) will begin the final phase of wind tunnel testing on the 737 MAX this month. Testing will take place at QinteQ’s Farnborough, UK, facility and Boeing’s transonic wind tunnel in Seattle. “We will then be able to look at firming up the configuration of the airplane,” Boeing Commercial Airplanes Marketing VP Randy Tinseth said.

The 1st 737 MAX flight is scheduled for 2016 and 1st delivery for 2017. Randy Tinseth said the smaller fan of the 737 MAX’s (CFM) International (LEAP) engine and the lighter weight of the airplane versus its rival, the Airbus A320neo, will give the 737 MAX a +6% fuel consumption advantage on a per flight basis based on a 500 nautical mile flight.

Lion Air (MLI) has firmed up its agreement with Boeing (TBC) announced in November to buy 201 737 MAXs and 29 737-900ERs in a $22.4 billion contract that is (TBC)’s largest ever. (MLI) also acquired purchase rights for a further 150 737s. The initial commitment was announced in Bali, Indonesia, with USA President Barack Obama present. (TBC) put the list price of the (MLI) firm order for 290 airplanes at $22.4 billion. “This deal is the largest commercial airplane order ever in Boeing (TBC)'s history by both dollar value and total number of airplanes,” Boeing Commercial Airplanes (BCA) VP Asia-Pacific & India Dinesh Keskar said at the contract signing at the Singapore Airshow.

The contract for the (CFM) International (LEAP-1B) engine order that will power the 201 737 MAXs is valued at approximately $4.8 billion at list prices, and the (CFM56-7B) engine order to power the 29 73-900ERs is valued at $580 million at list prices, (CFM) said.

(MLI) Founder & President Director Rusdi Kirana said the contract offers the flexibility to decide closer to the delivery date, how much of each variant (MLI) will take. He also said financing of the new airplanes will be “no problem” and will be done partly through the USA Export-Import Bank (Ex-Im Bank) and other bank loans. (MLI) intends to outright buy up to 85% - 90% of the airplanes, he said.

He said he could not detail when the purchase rights would be converted into orders, noting that “much depends if the Asian "open skies" materializes. If it does, as we hope for by 2015, then a very big market opens up for us.”

Deliveries of the new order will start in 2017 and continue through 2026, by then it will have taken delivery of 408 new 737-900ERs/MAXs. The new firm order adds to existing orders for 178 737-900ERs; these deliveries run through 2016. (MLI) was the launch customer for the 737-900ER and received the world's 1st 737-900ER in April 2007.
(MLI) carried 27 million passengers last year and holds a domestic market share of 51%, Rusdi Kirana said. He aims to increase this to 60%. (MLI) began operations in June 2000.

To date, the 737 MAX has orders and commitments for “>1,000 airplanes” from 15 customers, Boeing (TBC) said.

SEE IMAGE - - "TBC-737 MAX 9 - 2012-02."

Boeing (TBC) and Pakistan International Airlines (PIA) announced a firm order for 5 777-300ER (extended range) airplanes. Valued at nearly $1.5 billion at list prices, the order also includes purchase rights to (PIA) for +5 777-300ERs.

SEE IMAGE - - "TBC-777-300ER - 2012-02."

Boeing (TBC) is exploring an ultra long-range replacement of the 777-200LR, conceptually dubbed the 777-8LX. Likely to be the last of 3 members of a conceptual 777X family, the 777-8LX could potentially have a service entry in the 2020s, providing a mission range of 17,550km/9,480nm, which is +85nm longer than the 17,395km/9,395nm offered by the 777-200LR.

The reduced fuel burn per seat for the 777-8LX is estimated to be a +14% to +16% improvement over the 777-300ER, and the extended range may, for the 1st time, open the prospect of profitably operating flights between Sydney and London without a "kangaroo" stop in SE Asia.

Today's ultra long-range 777-200LR and the Airbus A340-500, which is no longer in production, have served in mostly niche roles for carriers requiring long-range capacity on hot and high and extended missions. "(TBC) continues to explore many options to build on the 777's popularity" including a new wing and even a clean-sheet airplane, said (TBC), declining to discuss in detail the latest 777X concepts.

The 777-8LX's fuselage would match that of a proposed 777-8X, now seen as a 3-class 353-seat 4.46m/14ft 7in stretch of the 777-200ER. With common structural elements, the 777-8LX and the larger 777-9X would share a 344t/760,000lb maximum takeoff weight (MTOW), allowing the smaller jet to carry additional fuel for the extended missions, with a common fuel tank capacity across the conceptual family.

Both the 777-8X and 777-9X concepts currently aim for an 14,800km/8,000nm design range.

With a common engine to the 777-9X, the 777-8LX is conceptually powered by the General Electric (GE9X) with a 99,500lb thrust rating, while the 777-8X is understood to be significantly derated off the engine's baseline design with its lower (MTOW).

Currently, the 407-seat 777-9X, 2.13 m/7 ft longer than the 777-300ER and, could have a service entry later this decade.

Boeing (TBC)'s 777X concepts have continued to evolve since (TBC) formally established its advanced product development program in January 2010, and the 777-8LX is understood to be a lower priority concept for (TBC) as the heart of the market remains focused on the 777-200ER and 777-300ER-sized airplanes to respond to the A350-900 and A350-1000.

Early studies revolved around maintaining the 777-300ER and 777-200ER fuselage lengths, increasing capacity by carving out sidewalls and fuselage frames to comfortably accommodate 10-abreast economy (Y) class seating. Now Boeing's studies have expanded to bridging the product gap between a conceptual 323-seat 787-10X and 467-seat 747-8.

It is understood that part of (TBC)'s ongoing 777X evaluation also includes 3 options for a new massive carbon fibre reinforced plastic (CFRP) wing, with a potential baseline 71.1m/233ft 5in span and raked wingtip, and 65m/213ft 3in and 68.6m/225ft wings with blended winglets.

The 787-inspired (CFRP) wing would grow the 777-300ER and 777-200LR's wing area by approximately +10%, providing slower and quieter approaches. The 71.1m wing would push the 777 from (ICAO) Code E airport classification to Code F standards, the same category occupied by the 747-8 and A380. Under study is a revival of the original 777-200 wing-fold concept, which would have tilted upward a 6.9m/22ft 6in portion of the wing that included the outer two leading edge slats and outboard aileron to accommodate McDonnell Douglas DC-10-sized gates.

(TBC)'s current concept scales back the weight and complexity of the design by folding only the raked wingtip, which is understood to be a 3.4 m/11 ft portion of the wing, and does not house any wing control surfaces.

In short, (TBC) would maintain Code E standards on the ramp and taxiway, up to 65 m/213 ft 4in, in line with today's 777-300ER, and shift to a Code F classification after entering the runway.

With its 1,000th 777 coming down the line for Emirates (EAD), Boeing's 777 continues to evolve from its earliest incarnations. The latest interior catalog offerings, now selected by American Airlines (AAL), include a 787 and 737-style Sky Interior (LED)-lit entryway for its 777-300ERs, which enter the fleet in December. Long-time Boeing interior design firm, Teague is believed to have been working on this feature for a while now.

Arranged in a 3-class cabin configuration, the new 777-300ER will provide the airline with more passenger and cargo capacity than any other airplane in its fleet today. Customers will be welcomed into the 777 by unique mood lighting. (AAL) will be the 1st carrier to use this dramatic archway and ceiling treatment on the 777-300 to create a feeling of spaciousness.

SEE ATTACHED - - "TBC-2012-02-777-300ER INTERIOR-A."

747-8K8 Intercontinental (37544, A7-HHE), delivery. It is the 1,439th 747 built since 1968.

Captain Steve Taylor, who serves as President of Boeing Business Jets (BCJ), was at the controls for the non-public flight plan. The 747-8K8 was ferried to Boeing (TBC)'s Wichita, Kansas Global Transport & Executive Systems (GTES) facility for installation of the Greenpoint Technologies Aeroloft cabin. The Aeroloft grows the 747-8's cabin area to 444.6 sq m/4,786 sq ft with 8 individual berths positioned in the upper crown area in the aft part of the airplane's cabin between the empennage and the iconic hump.

Following the Aeroloft installation, the airplane will travel to Hamburg, Germany for completion at Lufthansa Technik (DLH) (LTK), wrapping up an approximately 24-month conversion process before entering service with (QAT).

To date, 7 customers have ordered 9 747-8 (VIP) airplanes, 8 of which will be delivered for completion in 2012. (TBC) expects to deliver between 35 and 42 747-8Is and 747-8F Freighters, respectively, in 2012. 747-8 VP & General Manager Elizabeth Lund said production for the 747-8 passenger and freighter variants will accelerate to 2 airplanes per month from 1.5. Lund said the fuselage and wing build-up areas are already running at the higher rate and final body join will advance in the middle of the year.

March 2012: Boeing (TBC), Airbus (EDS) and Embraer (EMB) signed a memorandum of understanding (MOU) to work together on the development of drop-in, affordable aviation biofuels. The airframe manufacturers agreed to seek collaborative opportunities to speak in unity to government, biofuel producers and other key stakeholders to support, promote and accelerate the availability of sustainable new jet fuel sources. "There are times to compete and there are times to cooperate," said Boeing Commercial Airplanes President & (CEO) Jim Albaugh. "2 of the biggest threats to our industry are the price of oil and the impact of commercial air travel on our environment. By working with (EDS) and (EMB)on sustainable biofuels, we can accelerate their availability and reduce our industry's impacts on the planet we share."

The collaboration agreement supports the industry's multi-pronged approach to continuously reduce the industry's carbon emissions. Continuous innovation, spurred by competitive market dynamics that push each manufacturer to continuously improve product performance, and air traffic modernization, are other critical elements to achieving carbon-neutral growth beyond 2020 and halving industry emissions by 2050 based on 2005 levels. "Having these 3 aviation leaders set aside their competitive differences and work together in support of biofuel development, underscores the importance and focus the industry is placing on sustainable practices," said (ATAG) Executive Director, Paul Steele. "Through these types of broad industry collaboration agreements, aviation is doing all it can to drive measurable reductions in carbon emissions, while continuing to provide strong global economic and social value."

All 3 companies are affiliate members of the Sustainable Aviation Fuel Users Group, which includes 23 leading airlines responsible for about 25% of annual aviation fuel use. (TBC) and (EMB) are already collaborating on how to establish a sustainable aviation biofuels industry in Brazil and exploring new technology pathways to broaden biofuel sourcing and availability. (TBC) and (EDS) are also active around the globe in helping to establish regional supply chains, while the 3 manufacturers have all supported numerous biofuel flights since global fuel standards bodies granted their approval for commercial use in 2011.

The Commercial Aircraft Corporation of China (COMAC) (CCC) and Boeing (TBC) announced a collaboration agreement to partner in areas that will enable commercial aviation industry growth in China and potentially around the world. This is the 1st collaboration agreement between (COMAC) (CCC) and Boeing (TBC) which was signed in Beijing.

As part of the agreement, both companies will create the Boeing (TBC)-(COMAC) (CCC) Aviation Energy Conservation & Emissions Reductions Technology Center which will be located at (COMAC)'s Beijing Civil Aircraft Technology Research Center.

The Boeing (TBC)-(COMAC) (CCC) Center will support research projects to increase commercial aviation's fuel efficiency and reduce greenhouse gas emissions. Meanwhile, (TBC) and (CCC) agreed to have annual leadership engagements and exchange commercial aviation market forecasts. "Through this collaboration agreement, Boeing (TBC) and (COMAC) (CCC) will build relationship and will further sustainable growth and fuel efficiency for China's fast-growing aviation market," said Jim Albaugh Boeing Commercial Airplanes President & (CEO).

SEE PHOTO - - "TBC-2012-03-COMAC AGREEMENT."

The companies will collaborate with China-based universities and research institutions to expand knowledge of technologies and will jointly select and fund research projects. "We are hoping that innovative emissions-reduction technologies developed through the Boeing-(COMAC) Center will advance aviation in China and around the world," said Marc Allen Boeing China President.

Boeing (TBC) and Uzbekistan Airways (UZB) have partnered with "Project Hope" to transport a consignment of medical supplies destined for hospitals in Tashkent on a newly delivered 767-300ER (Extended Range).

The 6,950-pound/approximately 3,150 kg shipment is made up of 162 boxes of medicines and medical supplies and comes as part of Boeing (TBC)’s "Humanitarian Delivery Flights" program.

“Boeing (TBC), through its "Global Corporate Citizenship" organization, supports relief efforts around the world in partnership with non-governmental agencies and non-profits like "Project Hope." Through these collaborative efforts and with our airline partners, we bring relief and hope to people in need,” said Liz Warman, Global Corporate Citizenship Northwest Director.

On a previous delivery flight in February, (TBC) and (UZB) partnered with the "Seattle - Tashkent Sister City Association" and the "Academy of Sciences of Uzbekistan" to transport a consignment of scholarly books for the Tashkent-based International Library. The 4,720-pound/approximately 2140 kg shipment included 118 boxes of scholarly books covering various fields such as literature, linguistics, languages, history, demography, ecology and public health.

“(UZB) is constantly looking at ways to contribute to the development and benefit of the community and we are happy to be working with (TBC) and "Project Hope" to transport medical supplies to Tashkent,” said Valeriy Tian Director-General (UZB). “I would like to thank our partners at (TBC) and "Project Hope" for driving this initiative for the betterment of our community in Uzbekistan.”

Over the years Boeing (TBC) has facilitated >140 humanitarian delivery flights, working in partnership with nearly 50 different airlines world wide.

Boeing (TBC) and >5,000 employees, suppliers, customers and government officials celebrated the 1,000th 777 at a special March 2 event. The 1,000th 777 jetliner will be delivered to Emirates (EAD) later this month.

SEE ATTACHED PHOTO - - "TBC-777-300ER-1000TH-2012-03."

Last year was the best year on record for 777 sales with 200 orders from 22 customers (topping the previous record of 154 set in 2005). Production is at an all-time high for the program and a +20% rate increase begins this fall, increasing from 7 to 8.3 airplanes per month. The program will begin building 100 airplanes per year beginning in 2013. To date, Boeing (TBC) has recorded orders for 1,361 777s to 64 customers around the globe.

Emirates (EAD) is the 777 program’s largest customer with 102 777s now in its fleet and 84 passenger airplanes and 9 freighters on order. (EAD) is the only airline that operates all 6 members of the 777 family.

“(EAD) is honored to be the recipient of Boeing (TBC)’s 1,000th 777 airplane whose advanced long range capacity has been instrumental in our success of becoming a truly global airline,” said His Highness Sheikh Ahmed bin Saeed Al-Maktoum Chairman & Chief Executive, the Emirates Airline Group. “As the world’s largest operator of the 777, we have +93 more 777s on order, which is testament to our belief in the product and the role this airplane will play in our goal to further establish Dubai as a central gateway to worldwide air travel.”

SEE ATTACHED - - "TBC-2012-03-A/B/C/D - JAL 787 DELIVERY."

April 2012: Boeing (TBC) earned a net profit of +$923 million in the 1st quarter, up +58% over +$586 million in net income in the prior-year period, on a +30% jump in revenue to $19.38 billion.
“Airline industry fundamentals remain intact,” Chairman, President & (CEO) Jim McNerney told analysts and reporters. “Global demand for commercial airplanes is strong and growing. Passenger demand remains resilient. Cargo [traffic] remains below long-term trends but it appears this market is stabilizing and should improve in the 2nd half of the year.”

Boeing Commercial Airplanes (BCA)’s 1st-quarter operating profit more than doubled year-over-year to +$1.08 billion from +$509 million in the 2011 March period. The unit’s 1st-quarter revenue rose +54% to $10.94 billion as commercial airplane deliveries increased +32% to 137. It booked 412 net orders during the quarter, including 301 firm orders for the 737 MAX. Backlog at quarter’s end stood at >4,000 airplanes valued at $308 billion.

McNerney said the combination of rising passenger demand and rising fuel costs means airlines need more airplanes yet are interested only in the most fuel-efficient models, which “positions us exceptionally well for the future.”

A new aviation pact signed between Boeing (TBC) and Embraer (EMB) will be a 1st step in exploring technological synergies and potential cross benefits, Embraer (EMB) President & (CEO) Frederico Curado said.

Curado and Boeing Commercial Airplanes (TBC) President & (CEO) Jim Albaugh signed the memorandum of understanding (MOU) in Washington, DC during the annual meeting of the USA - Brazil (CEO) Forum.

Speaking at a press briefing, Curado said the 2 companies shared similar philosophies regarding airplane cockpit design and technological development. Both companies, for example, invest heavily in advancing safety and on the man/machine interface. “[The agreement] is just a recognition that both players are in the same areas and there could be some cross benefits through work sharing, learning and so forth. It’s a non-exclusive agreement, so it does not affect our relationships with each other or anyone else. It’s how to best leverage our efforts in research and development and it’s really a 1st step,” Curado said.

Curado added there was no specific agenda at this stage. “Let’s see where it takes us. It may lead to the creation of a new technology, but there are no specific goals,” he said.

Embraer (EMB) signed an (MOU) with Airbus (EDS) and Boeing (TBC) in March to collaborate on aviation biofuels development.

Separately, Boeing (TBC) is planning to open an aerospace technologies research center in Sao Paulo later this year, focused on researching biofuels, advanced Air Traffic Management (ATM), advanced metals and bio-materials, and support and services technologies.

Boeing (TBC)’s 747-8 has so far exceeded Boeing (TBC)’s performance expectations. “[It’s] better than we targeted,” Boeing (CAS) 747-8 Support & Services, Leslie Lauer said. Boeing has so far delivered 15 (one 747-8I VIP configuration and 14 747-8F freighters).

“We set those targets based on previous entries into service. We tend to be a little bit conservative in our approach in terms of we expect the best, and plan for anything and everything. It has worked out better than we anticipated based on previous entries into service (EIS).”

She told a panel, “Component removals have been less than half of what we targeted as a potential.”

Lufthansa (DLH)’s passenger 747-8I will be delivered “very soon,” Lauer said, and will be the 1st of the type to enter services as a revenue commercial airplane.

Approximately 70% of the 747-8’s structure is new, compared to the 747-400. It is operating at 63 airports around the world, and, after meeting with >80 different civil aviation areas of the world, Boeing (TBC) gained approval for 747-8 operations from the 200th airport. It so far has flown 15,000 hours and has completed 2,800 flights.

(TBC) announced its 747-800, which has been in service for approximately 6 months, has been approved for operations at 200 airports around the world; 14 747-8Fs are operating revenue flights to 63 airports. Its most recent approval was received from London Heathrow.

Airbus (EDS) delivered 131 airplanes in the 1st quarter, up +12 compared to 119 airplanes in the 2011 1st quarter. In the 2012 1st quarter, (EDS) delivered 10 A319s, 79 A320s, 15 A321s, 10 A330-200s, 1 A330-200F, 12 A330-300s and 4 A380s.

Boeing (TBC) delivered 137 airplanes in the 1st quarter, up +33 compared to 104 airplanes in the 2011 1st quarter. In the 2012 1st-quarter, (TBC) delivered 137 airplanes, comprising 99 737NextGens, 6 747s, 7 767s, 20 777s and 5 787s.

Boeing (TBC) announced it has made a series of design changes to the 737 MAX to further optimize the new-engine variant's performance.
The design improvements include an extended tail cone, an integrated engine/wing design similar to that of the 787, and fly-by-wire spoilers. A potential revision to the wing tips is also being considered and evaluated in wind tunnel tests.

The tail cone will be extended and the section above the elevator thickened to improve steadiness of air flow. This eliminates the need for vortex generators on the tail and will result in less drag.

The (CFM) International (LEAP-1B) engines will be integrated with the wing similar to the aerodynamic lines of the 787 Dreamliner engine with its wing. A new pylon and strut, along with an 8-inch nose gear extension, will maintain similar ground clearance to today's 737 while accommodating the larger engine fan. The nose gear door design will be altered to fit with this revision.

The flight controls will include fly-by-wire spoilers, which will save weight by replacing a mechanical system. The 737 MAX also will feature an electronic bleed air system, allowing for increased optimization of the cabin pressurization and ice protection systems and better fuel burn.

Other minor changes to the airplane include strengthening the main landing gear, wing and fuselage to accommodate the increase in loads due to the larger engines. (TBC) also said it will continue to conduct aerodynamic, engine and airplane trade studies to optimize the design of the airplane by mid-2013.

"We also continue to do work in the wind tunnel to affirm the low- and high-speed performance of the 737 MAX design," said Michael Teal 737 MAX Chief Project Engineer & Deputy Program Manager.

(TBC) said the 737 MAX will provide +10% to +12% fuel-burn improvements over today's most fuel-efficient narrow bodies.

Boeing has >1,000 737 MAX 1,000 orders and commitments from 16 customers, including launch customer Southwest Airlines (SWA).

SEE ATTACHED "SEATTLE TIMES" ARTICLE ON THE 777X FUTURE - - "TBC-2012-04-777-FUTURE - A/B/C/D/E/F."

May 2012: Nico Buchholz Executive VP Group Fleet Management at Lufthansa (DLH), said he is not happy with the weight of the 747-8I jumbo, but that will not restrict its use. “On all our in-service fleet, even those in our fleet 10 years, we are never happy with the weight situation, so we are always trying to reduce weight in order to save even more fuel. We have planned certain missions for this 747-8I and we will do the missions as we planned them. Yes, we are satisfied, otherwise we wouldn’t have signed the acceptance of the airplane.”

The 747-8I is several tonnes heavier than Boeing (TBC)’s original target, which generally increases fuel costs. (TBC) said in February it plans to hit its original weight target by 2014. “Yes, it is a bit overweight, there’s no secret about that, but is that impacting any of our operations? No.” Buchholz told "Reuters." “Certain things are better than Boeing (TBC) promised. When I look at all the elements combined as an airplane, that’s when I say the airplane does what we want it to do and does it the way we want it to do.”

At this time, (TBC) has only 36 orders for the 747-8I passenger version, including 20 of those from Lufthansa (DLH). So far, it has delivered 2 passenger 747-8Is to private buyers and 1 to (DLH).

The freighter version of the 747-8F has fared better, with 70 orders so far.

Boeing (TBC) delivered 1 767-300F freighter to (UPS), the cargo carrier’s 50th of the airplane type. It has + 9more 767F freighters on order.

Boeing [TBC] successfully completed the software Preliminary Design Review (PDR) for its Commercial Crew Development (CCDev-2) initiative on May 18. (CCDev-2) is part of (NASA) (NAS)’s Space Act Agreement.

Software competency is essential to all operational aspects of (TBC)’s Crew Space Transportation (CST)-100 spacecraft, including launch, orbital maneuvering, docking with and separating from the International Space Station, re-entry and landing. The (PDR) team analyzed the system’s flight software, including details regarding safety, testing, overall redundancy management, avionics hardware and ground systems.

“The review, conducted with Boeing (TBC) management along with independent (TBC) and (NAS) reviewers, effectively demonstrated a software design that meets (NASA) safety requirements as well as all system-level requirements within cost and schedule constraints,” said John Mulholland VP & General Manager, Boeing Commercial Programs. “The completion of the software (PDR) sets the stage for us to finalize a mature system that is capable of providing safe, reliable crewed access to the International Space Station (ISS).”

By following a rigorous design process that integrates (NASA) Human Rating requirements as well as (CST-100) system-level requirements, Boeing is reducing the risk of potential future certification noncompliance and rework that could impact safety, cost and schedule.

“On a fixed-price program such as this, detailed planning and innovative teamwork yield better odds toward successful and affordable operations,” said Orlando Rodriguez Avionics & Software Integrated Product Team Manager for Boeing.

With the successful completion of the software (PDR), Boeing has concluded 45 (CCDev-1) and (CCDev-2) milestones to date, including the (CST-100) vehicle design Preliminary Design Review in February. The team is on schedule to complete remaining (CCDev-2) milestones in the next few months, including a propellant tank demonstration test and an orbital maneuvering/attitude control engine hot fire test that will provide additional data on significant elements of the spacecraft design.

The (CST-100) is a reusable spacecraft that uses a demonstrated capsule architecture, as well as proven materials and subsystem technologies. The (CST-100) can transport up to seven astronauts, or a combination of astronauts and cargo. Boeing has designed the spacecraft to be compatible with a variety of expendable rockets. Boeing has selected the United Launch Alliance Atlas V launch vehicle for initial (CST-100) test flights in 2015 - 2016.

Last active 720, 720-023B (JT3D-1) (189-18027, /61 59 34 C-FETB), last operated as a flying testbed for Pratt & Whitney Canada (PWC), ferried from Montreal (YHU) to Trenton for preservation.

June 2012: Boeing Commercial Airplanes (BCA) President & (CEO), Jim Albaugh has announced he will retire after 37 years with the company, including the last two and a half years as chief of Boeing’s commercial unit, on October 1. Raymond Conner, (BCA) Senior VP Sales & Customer Support, will replace him.

Boeing Chairman, President & (CEO) Jim McNerney said Albaugh has “helped ensure the certification and successful entry into service of the 787 Dreamliner and 747-8, and the launch of the 737 MAX.” Albaugh took the helm of (BCA) from Scott Carson at the start of 2010 with the 787 program in the midst of recurring delays.

Albaugh began his career with Rockwell's aerospace and defense businesses, which Boeing (TBC) acquired in 1996.

Conner joined Boeing (TBC) in 1977 as a mechanic (MT) on the 727 program and has been with the company for 34 years. “He has built airplanes, sold airplanes, serviced airplanes, managed our largest programs, knows our customers extremely well, and is respected by our employees,” said McNerney. “He is the natural next leader.”

Conner has held a number of positions with (TBC), including VP Supply Chain Management & Operations, VP & General Manager of the 777 and 747 programs, and Sales VP for the Americas and Asia-Pacific regions.

(TBC) said Conner’s replacement will be named at a later date.

(KLM) has operated what it claimed was the longest commercial biofuel flight to date. Flight KL705 left Amsterdam June 19 bound for Rio de Janeiro to coincide with the Rio+20 United Nations Sustainable Development Conference, a flight of almost 6,000 miles/9,600 km.

The 777-200 was operating a normal commercial service, but partly flying using sustainable fuel made from used cooking oil. Passengers included the Netherlands State Secretary of Infrastructure & the Environment, Joop Atsma.

(KLM) has been working with the World Wide Fund for Nature - The Netherlands (WWF-NL) since 2007, and in June last year operated the first commercial biofuel flight. It was the first airline to develop a biofuel program with SkyNRG, a company founded by (KLM) in 2009 with the North Sea Group and Spring Associates that now supplies more than >15 carriers worldwide with sustainable kerosene.

(KLM) said it was open “to using different kinds of raw materials for the end product, as long as they meet a range of sustainability criteria, including a substantial reduction in CO2 emissions, and minimal negative impact on biodiversity and food supply.” It also stressed that any biofuels it used, would have to meet “the same technical specifications as traditional kerosene,” requiring no adjustments to either the airplane engines or the infrastructure.

The operation of the flight also marked the launch of (KLM)’s BioFuel Program that will enable companies to operate some of their flights using sustainable biofuel and help stimulate the further development of biofuels, (KLM) said.

Companies that have joined the program thus far include Ahold, Heineken, Accenture, (DSM), Philips, Nike and the Schiphol Group.

(KLM) Managing Director, Camiel Eurlings said, “Using sustainable BioFuel is one of the most important ways to make aviation more sustainable. We can only achieve this with partners who dare to stick their necks out.”

“The (KLM) BioFuel program enables companies to join (KLM) and SkyNRG to demonstrate the leading position they occupy on sustainability. I call upon Dutch businesses to join in to accelerate the development of biofuels and to stimulate a sustainable economy. I will do everything in my power to ensure that from 2013, Dutch officials on government business will travel as much as possible on biofuel flights, including the government’s own airplanes,” Atsma said.

The Boeing Company (TBC), in cooperation with Air China (BEJ) and PetroChina, will press ahead with a second test flight that will be partly powered by plant oil, company executives said. The test, scheduled for the third quarter of this year, is likely to involve a trans-Pacific trip, far longer than the one-hour test flight that was conducted in China last October, said Stephen Emmert, Boeing (TBC)'s Regional Director of the Biofuel Strategy team for China and North America.

The project aims to prove that a China-produced biofuel works, and to ensure "regulators and airlines around the world are comfortable using it for commercial flights," he said.

The planned test, like last year's, will involve use of a biofuel produced by PetroChina (601857.SS) from locally grown jatropha, a thorny green shrub. Jatropha based fuel, produced with oil extracted from seeds, could have particular appeal in China, where there are huge swathes of barren land that could be turned to growing the plant.

"China has a need (for cleaner fuels) like the rest of the world that is very real," said Marc Allen, Head of Boeing (TBC)'s China operations. "They have (economic) scale that many parts of the world cannot match. And they have fast growing technological capability that will allow them to be on the forefront on these initiatives."

Boeing Shanghai Aviation Services Company Ltd announced that Boeing Shanghai has signed agreements with Nok Air (NKA) to perform airplane maintenance on two of (NKA)’s 737-400s at Pudong International Airport in Shanghai.

Boeing Shanghai will complete a "C"-check and full paint on the first of the two airplanes in this month. The second (NKA) 737-400 was inducted on June 12, also for a "C"-check.

The Boeing Company [TBC] and Embraer [EMB) announced an agreement to collaborate on the KC-390 (SEE PHOTO - - "TBC-KC-390-EMBRAER - 2012-06") airplane program. Under this agreement, Boeing (TBC) and Embraer (EMB) will share some specific technical knowledge and evaluate markets where they may join their sales efforts for medium-lift military transport opportunities. “Boeing has extensive experience in military transport and air refueling airplanes, as well as deep knowledge of potential markets for the KC-390, especially those which were not considered in our original marketing plan,” said Luiz Carlos Aguiar, President & (CEO) of Embraer Defesa e Segurança. “This agreement will strengthen the KC-390's prominent position in the global military transport market.” The KC-390 collaboration is part of a broader agreement that Boeing and Embraer signed in April. The companies previously announced that they are exploring ways to cooperate in commercial airplane efficiency and safety, research and technology, and sustainable aviation biofuels. Boeing (TBC) and Embraer (EMB) will conduct a joint market assessment for the medium-lift military transport market and analyze business collaboration models. The market assessment includes potential customers that had not been considered in the initial market prospects for the KC-390. “Embraer is a leading global innovator and we both understand the value of working in partnership to provide high-quality, affordable customer solutions,” said Dennis Muilenburg, President & (CEO) of Boeing Defense, Space & Security. “This collaboration matches Boeing’s proven excellence in military transport with Embraer’s KC-390 accomplishments to further advance this highly capable and efficient medium-lift airplane.” The KC-390 is a Brazilian Air Force project for which Embraer (EMB) signed the development contract in April 2009. It is the biggest airplane to be manufactured by the Brazilian aerospace industry and will set new standards in the medium-lift market in terms of performance, cargo capacity, flexibility, and life cycle costs. Boeing (TBC) has had a strong and enduring partnership with Brazil for 80 years, delivering the first F4B-4 fighters to the Brazilian government in 1932 and providing commercial airplanes to Brazilian airlines since 1960. Boeing opened its office in São Paulo in October.

Lion Air (MLI) has selected the 787 over the A330 for its new premium carrier, Batik Air. Boeing (TBC) confirmed (MLI) has made a commitment to order five 787-8s.

Airbus (EDS) in May delivered a total of 45 airplanes, comprising 34 A320 family, eight A330s and three A380s, down from a total of 50 deliveries in May 2011, comprised of 38 A320s, nine A330s, and three A380s.

Included among the three A380 deliveries was Malaysia Airlines (MAS)’s first of the airplane type, and AirAsia (ASW)’s 100th A320.

Boeing (TBC) delivered 49 total airplanes last month, with 36 737s, three 747s, two 767s and eight 777s, up from 39 in May 2011, with 33 737s, one 767, and five 777s.

The first two operators of the 787-8 are seeing better-than-anticipated fuel burn, despite prior expectations of below-par performance as a result of data from predelivery flight tests.

The numbers, though based on early experience with a relatively small fleet on a variety of routes, are surprisingly positive given the early configuration of the airframes and engines. The operators have not yet incorporated all the planned weight and fuel burn improvements of follow-on production versions.

Four of the current active 787 fleet are from an early production block in which each is thought to be around 8,800 lbs over specification weight, while the remainder are lighter airplanes built from the block point change introduced from line No 34.

Boeing (TBC), which is expected to comment officially on the 787’s in-service fuel burn numbers at the Farnborough air show next month, is in the midst of introducing weight reductions and other enhancements to compensate for what was expected to be a relatively significant shortfall in the planned +20% improvement over the 767.

Yet figures from launch airline All Nippon Airways (ANA) show fuel savings are up to -21% on long-range flights, while figures for the General Electric (GEnx-1B)-powered airplanes at Japan Airlines (JAL) indicate potentially slightly better numbers.

(GEC) says initial performance data show its (GEnx-1B) engine has a 2% fuel burn advantage over the competing Rolls-Royce (RRC) (Trent 1000), not counting an additional 1% benefit from expected performance retention in terms of sustained exhaust gas temperature margin. The first (GEnx-1B)s are in service with (JAL), while 787 launch operator (ANA) uses 787s powered by the (Trent 1000).

(ANA) earlier this month was the first to reveal that its airplanes were producing around -21% lower fuel burn on international flights compared to the 767-300ER that the 787 is designed to replace.

(ANA), which accepted its ninth 787 on June 24, is believed to have been anticipating a -17 to -19% improvement, based on the (Trent 1000) Package B that Rolls (RRC) introduced to counter some deficiencies seen in flight testing.

After its first six months of service, (ANA) says the 787 efficiency levels are slightly up on the -20% savings originally expected at the beginning of the program. On domestic routes, the saving is -15 to -20%, which meets expectations, say (ANA) officials. The short-haul sub-fleet includes four early delivery 787S powered by the interim (Trent 1000) Package A standard engine. (ANA)’s long-haul configured 787s operate between Tokyo Haneda Airport and Frankfurt Airport, with additional transpacific routes from Tokyo Narita International Airport to Seattle-Tacoma International Airport and Norman Y Mineta San Jose International Airport in California due to be launched by early 2013.

July 2012: Boeing (TBC) has reported a second-quarter net income increase of +2.8% to $967 million on revenues of $20 billion, after its Commercial Airplanes group increased airplane deliveries by +27%.

Boeing Commercial Airplanes (BCA) saw second-quarter revenue increase +34% to $11.8 billion. The company booked 28 net orders during the quarter and said its backlog stands at about 4,000 airplanes valued at $302 billion.

New Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner told a Farnborough Airshow news conference that the commercial air transport market’s prospects remain healthy despite an uncertain global economy, leading (BCA) to focus intensely on ramping up production to meet demand. Overall, (BCA) will boost airplane production by an “unprecedented” +30% over the next three years.

“The commercial aviation market continues to be very, very strong,” he said. “The long term outlook is creating a heck of an opportunity for Boeing (TBC) and all of the manufacturers.” And the opportunities are not just in airplane sales. He said (BCA) is lined up to tap into an aftermarket services sector that could be worth as much as $2.3 trillion over the next two decades.

Conner told reporters that (BCA) has made significant strides in efficiency in its own production facilities and has helped suppliers improve their operations after supply chain problems led to repeated 787 program delays. (BCA)’s 737 Final Assembly Line has become “a lean operation,” he said. “You wouldn’t believe it compared to 10 years ago.”

Regarding the often-troubled 787 Dreamliner program, Conner said, “Clearly the production system is something we have had concern about over time, but it’s starting to get healthy. Improvements are not only occurring in our factory, they’re also occurring in our supply chain.”

To date this year, (BCA) has received 463 net orders for new airplanes and delivered 283 units, according to Conner.

Boeing (TBC) has signed a memorandum of understanding (MOU) with Indonesian’s Ministry of Transportation to help establish advanced aviation training programs and practices that meet globally recognized standards. These will be used for training the country’s pilots (FC), maintenance technicians (MT), dispatchers and air traffic controllers (ATCO)s.

The (MOU) focuses on the development of an aviation training center and infrastructure, including the establishment of ab initio through to commercial jet pilot training programs in accordance with the (FAA) and European Aviation Safety Agency (EASA) regulations.

It will also help align (ATCO) training programs to standards and equipment deployed throughout Indonesia, and to align airline maintenance training programs with global standards of courseware, curriculum and the education and training of instructors, management and staff.

The Boeing Pilot and Technician Outlook projects that Southeast Asia, including Indonesia, will require more than >47,000 new commercial airline pilots (FC) and more than >60,000 new maintenance technicians (MT) over the next 20 years to support economic and air travel growth and new airplane deliveries.

Indonesia is working hard to address a poor track record in commercial aviation safety, and in April this year, the European Commission (EC) said it “recognizes the efforts of [its] safety oversight authorities to reform the civil aviation system and notably to improve safety to guarantee that international safety standards are effectively and consistently applied.”

All Indonesian carriers were added to the European Union (EU)’s blacklist of unsafe airlines in 2007 and most remain on the list. However, national carrier Garuda Airways (GIA) was removed from the list in 2009 and a handful of other airlines (including Airfast Indonesia (PTF), Mandala Airlines (MND), Ekspres Transportasi Antarbenua, Indonesia AirAsia (AWR) and Batavia Air (BTV)) have now been given the all-clear.

British Airways (BAB) Engineering was selected by Boeing (TBC) as a line maintenance and engineering services provider for its GoldCare program, which covers the 787 and the latest 737 variants.

Boeing (TBC) is on track to ramp up 787 production to five airplanes a month by the end of this year and to 10 a month by late 2013.

Another goal is firming the design of the 737 MAX in 2013 so that it can meet its scheduled in-service date of 2017. Boeing (BCA) also announced a commitment by Aeromexico (AMX)to purchase 90 737 MAX 8s and 9s, and 10 787s.

Total commitments and orders for the 737 MAX stands at 1,200, of which 649 are firm orders.

Air Lease Corporation (ALE) announced the first firm order by a leasing company for Boeing (TBC)’s 737 MAX range, inking a contract for 60 737 MAX 8 and 15 MAX 9, as well as taking reconfirmation rights on a further 25 examples across the MAX range. Deliveries will run from 2018 - 2022 and the deal is worth $7.2 billion at list prices.

“The 737 MAX is an excellent addition to our portfolio and the ideal complement to our growing fleet of 737-800s,” (ALE) Chairman & (CEO), Steven Udvar-Hazy said. (ALE)’s current order for almost 80 737-800s will be delivered between 2012 and 2017.

At the Farnborough airshow, Udvar-Hazy was reminded that as recently as March he had expressed reservations about the 737 MAX and had questioned the decision to sole-source the engine with the (CFM) International (LEAP). But Udvar-Hazy’s doubts seem to have been addressed. “Since then, Boeing (TBC) and (CFM) have really worked hard to change the design concept,” he replied. “The engine is no longer the same engine that’s on the Airbus A320neo. It’s been customized and optimized for the 737 MAX in terms of the core and fan diameter and is significantly better than what we saw [previously].

“Boeing (TBC) has also been working very hard on some very significant aerodynamic improvements including new wingtip configurations and around the aft fuselage to reduce drag, as well as other things to clean up the airplane. “The airplane we looked at late last year and early this year is totally different airplane from what we’re buying today.”

There is some flexibility in the split of variants before delivery. “That’s a really important feature for us,” said John Plueger, (ALE)’s President & (COO).

Boeing (TBC) announced that the 737 MAX will have >3,500 nm range (up 400 - 540 nm vs 737NG); the 126-seat 737 MAX 7 will fly 3,800 nm (vs 3,400 for the 737-700); the 162-seat 737-MAX-8 will fly 3,620 nm (vs 3,080 nm for the 737-800), and the 180-seat 737 MAX 9 will fly 3,595 nm (vs 3,055 for the 737-900ER).

Lessor, Aviation Capital Group (CGP) placed an intent to order 35 MAX airplanes in November.

This month, United Airlines (UAL) made a $14.7 billion order for 100 737 MAX airplanes and 50 737-900ERs.

(GECAS) (GEF) ordered 75 737 MAX-8s and 25 737-800s. It previously had ordered 390 737NGs (341 delivered).

(ALAFCO) (AVF) agreed to order 20 737 MAX-8s in a deal valued at $1.9 billion at list prices.

Avolon Leasing Company (AZV) made a commitment to purchase 10 737 MAX-8, 5 737 MAX-9, and 10 737-800s including reconfirmation rights for five more 737 MAX airplanes. The deal is valued at 2.3 billion at list prices, not including the the five reconfirmation 737 MAX airplanes. A reconfirmation, according to Boeing (TBC), refers to a "firm commitment that has some flexibility around it."

August 2012: Singapore Airlines (SIA) regional affiliate, SilkAir (SLK), which has an all-Airbus (EDS) fleet, has moved in a different direction with a letter-of-intent (LOI) to purchase 23 Boeing (TBC) 737-800s and 31 737 MAX airplanes valued at $4.9 billion at list prices. The (LOI) also includes 14 options and gives SilkAir (SLK) the ability to switch among variants within the 737 product line.

“The order is the largest in (SLK)’s history and remains subject to the negotiation of a final purchase agreement,” (SLK) said. “Deliveries are due to begin in 2014 and continue to 2021, by which time (SLK)’s fleet will have more than doubled in size.” The airplanes will be used both to replace older A320 family airplanes and to grow capacity.

(SLK) (CEO), Marvin Tan said the selection was made following “detailed evaluations and extensive negotiations with both Airbus (EDS) and Boeing (TBC). The order will enable us to maintain a young and modern fleet with an airplane that has a proven track record of strong customer appeal, excellent reliability and low operating costs.”

(SLK) now operates a fleet comprising 21 A319s/A320s with three more A320s slated to be delivered by the end of next year.

Boeing (TBC) confirmed the (LOI) and said it “looks forward to finalizing” the deal.

Rockwell Collins, which announced a retrofit update to the 757/767 flight deck at the Farnborough Airshow in July, has revealed that it is planning to add synthetic vision capability by around 2016.

The 757/767 flight deck upgrade, which is due for certification in the second quarter of 2014, will include elements of the 787 cockpit, including large displays and the option of an integrated head-up guidance system.

“We’re also going to add, in the future, a synthetic vision capability on the Head Up Display (HUD). Synthetic vision is a database-driven situational awareness system,” Rockwell Collins VP & General Manager Air Transport Systems, Jeff Standerski said.

Standerski said Rockwell Collins already offers a (HUD) with synthetic and enhanced vision capability to the business jet market and it hopes to make this functionality available for the 757/767 “a year or two” after the initial upgrade.

“The business market is where you tend to have a lot more bells and whistles, so the ability to take technologies from the business jet market and provide them to the air transport market is going to be a significant opportunity for us,” he said. “We see (HUD) and advanced situational awareness as a major growth item.”

INCDT: A fan shaft fracture was the cause of a contained engine failure on a 787 during a pre-delivery taxi test, the USA (NTSB) has determined.

The incident happened July 28 at Charleston Airport, South Carolina. The (GE) Aviation (GEC) (GEnx) engine was removed and taken to a (GEC) facility in Cincinnati, Ohio, where it was disassembled for an investigation led by (NTSB) Investigator-in-charge, David Henson.

The (NTSB) said, “As a result of the investigative work to date, the (NTSB) has determined that a fan mid-shaft on the failed (GEnx) engine fractured at the forward end of the shaft, rear of the threads where the retaining nut is installed. The fan mid-shaft is undergoing several detailed examinations including dimensional and metallurgical inspections.”

Having determined what caused the contained failure, the investigation is now focused on what led to the fracture. The (GEnx) is a dual shaft engine, meaning that one shaft connects the compressor spool at one end to the high pressure turbine spool at the other end. The fan shaft connects the fan and booster in the front of the engine to the low pressure turbine in the back.

Investigators will continue the detailed examination of the engine and metallurgical analysis of its components and have also begun reviewing the engine manufacturing and assembly records, the (NTSB) said.

According to (GEC), this type of fracture is not unknown, but is extremely rare. In 10 years, there have been only six instances across all operating engines and 600 million flight hours.

The (FAA), Boeing (TBC) and (GEC) experts are all assisting the investigation. So far, there seems to be no safety implications for the installed fleet.

Boeing (TBC) has appointed John Wojick, VP Sales for Boeing Commercial Airplanes (BCA), succeeding Ray Conner, following his election to President & (CEO) of Boeing in June.

Wojick was previously VP North America Sales for (BCA), and has led multiple regions.

Brad McMullen, who led Japan & Oceania Sales, will succeed him to lead Commercial Sales in the North America market.

The Esterline (CMC) Electronics PilotView Electronic Flight Bag (EFB) has been selected as a maintenance access terminal (MAT) replacement for the 777 flight deck.

(CMC)’s 10.4 inch (EFB) is certified for Class 2 and Class 3 usage, and has over 30 Supplemental Type Certificates (STC)s available for airplanes including the 737 among others.

“The fact that Boeing (TBC) will be using our PilotView CMA-1410 in the 777 as a Maintenance Access Terminal (MAT), as opposed to a Class 2 (EFB), underscores the flexibility of our design. Given its ability to swiftly communicate with onboard airplane systems, the CMA-1410 actually has more applications than just serving as an (EFB),” said Greg Yeldon, President of Esterline (CMC) Electronics.

September 2012: Qantas Airways (QAN) will be the launch customer for the Boeing (TBC) Onboard Performance Tool (OPT) for iPad. (QAN) will deploy the iPad-based Electronic Flight Bag (EFB) solution on 130 of its Boeing (TBC) airplanes in the fourth quarter. (QAN) will be the first airline to use Boeing’s (OPT) application on an iPad aboard commercial airplanes.

The (OPT) provides ideal speeds and engine settings along with the other standard applications provided by (EFB) solutions. Boeing (TBC) said (QAN) will use the (OPT) as a standalone (EFB) or as a backup to other Class 2 or 3 (EFB) applications. "The mobile (OPT) is the latest of our industry-leading airplane applications, part of our Digital Airline solutions suite. It was developed to give our customers a marketplace advantage as they serve their customers and run the most efficient operations possible," said Per Noren, VP Information Services at Boeing (TBC). "Boeing has a unique portfolio of digital solutions and we're rapidly expanding it, making use of our existing and new, innovative technologies."

The (OPT) application is currently used by more than >120 customers, and Boeing (TBC) has received more interest recently for their new iPad-based version of the (OPT). "The Boeing (TBC) mobile (OPT) is very well aligned with our flight deck mobile strategy. We especially appreciate the (OPT)'s remarkable flexibility, which allows us to define unique policies and configurations to suit our needs,” said Captain David Oliver, Head of Flight Technical for Qantas (QAN).

(LAN) Airlines took delivery of its first 787. (LAN) is only the fourth customer in the world to include the Boeing 787 in its fleet.

The 787, powered by Rolls-Royce (RRC) (Trent 1000) engines, is the first 787 Dreamliner to be received by an airline in the Americas. (LAN) is now a subsidiary of the (LATAM) Airlines Group. It has 32 787s on order, valued at $4.9 billion, to be delivered over the next decade. Two more will be delivered this year.

(LAN) said it expects to start Los Angeles - Lima 787 flights later this year. (LAN) (CEO), Ignacio Cueto said, “The 787 Dreamliner will make it possible for us to cover greater distances in a more environmentally conscious and highly efficient airplane.”

Other cities expected to be served by (LAN) 787s over the next year are Santiago, Buenos Aires, Madrid and Frankfurt. (LAN)’s 787s are configured with 217Y economy seats and 30C business-class seats.

The aerospace industry must inspire the younger generation to pursue careers in Engineering, Boeing (TBC) Executive VP, Jim Albaugh said. He told a Wilson Center forum in Washington DC that “about half” of Boeing’s workforce will be eligible to retire by 2015.

“It’s not just at Boeing (TBC),” he said “and it ripples through our supply chain.” The shortage could lead to the USA losing its edge in the global aerospace industry, he cautioned. “Unless we get more people interested in what we do, we could fall behind,” he said. “We have to start by inspiring the next generation with big, bold ideas.”

The key, Albaugh said, lies in education reform. “There is no quick fix,” he said of the problem. “I think we need a national referendum on education. Until we fix the education issue, I think we’re just going to be nibbling around the edges.”

Boeing (TBC)’s Next-Generation 737-900ER surpassed 500 orders this month. The milestone was reached when a customer converted its 737-700s to 737-900ERs. To date, the 737-900ER has logged 537 orders from 17 customers in 10 countries. Since the beginning of 2010, the 737-900ER has more than doubled the number of its customers and orders. Most airlines that have bought the 737-900ER have also bought the 737-800 because the 737 family provides commonality and flexibility to match capacity to demand while maximizing profits.

The Next-Generation 737-900ER replaced the larger, single-aisle 757, which ceased production in 2004. The 737-900ER is capable of flying 96% of the 757 current routes at a much lower operating cost.

Airbus (EDS) said that it had registered 384 plane orders in the eight months from January through August, leaving it well behind USA rival Boeing (TBC). At the end of July, Boeing (TBC)’s order book was already stuffed with 700 orders.

Southwest Airlines (SWA) has ordered 268 more winglet sets from Seattle-based, Aviation Partners Boeing (APB) for its 737 airplanes. (SWA)'s original order in 2003 was for 169 so-called “blended winglets” with an option for more through this year. The new order is (APB)’s largest single order in its history. (SWA) can expect the winglets to bring more than -$150 million in annual fuel savings, while reducing their carbon dioxide output by more than >-580,000 tons a year.

INCDT: USA airplane safety investigators have called for grounding certain Boeing (TBC) 787s and 747-8s powered by General Electric (GEC) engines until they are inspected for cracks and also revealed that a cracked fan midshaft was discovered on a third engine last month.

The recommendations issued by the National Transportation Safety Board (NTSB) offer the clearest explanation yet for the rash of zero- or low-time (GEnx) engine failures since 28 July.

The (NTSB) letter sent to the Federal Aviation Administration (FAA) also reveals that an analysis of the fan midshaft fractures do not point to metal fatigue as a likely cause. The fan midshaft connects the low pressure turbine to the fan and booster stages at the forward end of the engine.

Instead, the cracks in the critical engine component are "typical of environmentally assisted cracking of certain high strength alloys such as that used on the (GEnx) [fan midshaft]", the (NTSB) letter says. The (NTSB) is continuing to investigate what is triggering the environmentally assisted cracking. According to (GEC), such metals crack as a result of galvanic corrosion caused by a moist environment with the presence of hydrogen.

A potential trigger of the galvanic corrosion could have been revealed earlier. (GEC) said it has changed the coating process for the fan midshaft on the production line as a result of the engine failures. (GEC) says that the new coating process changes the dry film applied to the midshaft, and replaces the lubricant used when a retaining nut is clamped to the midshaft.

The (NTSB)'s letter to the (FAA) indicates all three engine failures discovered to date could be linked to the same cause.

The latest engine failure to be revealed actually was discovered during an ultrasound inspection on 13 August, but it was not disclosed to the public until now. The ultrasound check on the engine, which was installed on a 787 that had not been flown, revealed an indication of a "similar" crack on the fan midshaft.

The first such incident occurred on 28 July. An engine on an Air India (AIN) 787 in Charleston, South Carolina, failed in a low-speed taxi test. The flight crew (FC) was accelerating the 787 through 40 kt when the low-pressure speed rolled back on the No 2 engine. The flight crew (FC) aborted the test and a visual inspection revealed the first stage of the low pressure turbine had shifted backward, colliding into trailing stages.

Six weeks later, a 747-8F operated by Air Bridge Cargo (ABC) with about 1,200 flight hours and 240 cycles, experienced a similar problem. As the airplane accelerated through 50 kt, the low-pressure turbine speed of the No 1 engine dropped. The flight crew (FC) rejected the take-off and an inspection revealed "extensive damage" to the low pressure turbine.

The (NTSB) highlighted the potential safety danger of repeated failures on low-time engines. The (NTSB)'s letter highlighted the "possibility that multiple engines on the same airplane could experience a [fan midshaft] failure".

In the event of an extended twin-engine flight over water, for example, the airplane would have to operate on only a single engine for up to 5.5 hrs, the (NTSB) letter says.

In response, (GEC) says that it has already recommended repetitive inspections to the (FAA) and is close to completing ultrasonic inspections of the fan midshaft for all (GEnx) engines in service.

Boeing (TBC) adds that is working with (GEC) to inspect nine 747-8Fs within a "few days" to complete ultrasound inspections on the operational (GEnx) fleet.

October 2012: Boeing (TBC) reported third-quarter net income of $1.03 billion, down -6% from a +$1.1 billion net profit in the year-ago quarter. But the company touted surging revenue, including a +28% year-over-year jump by its Boeing Commercial Airplanes (BCA) unit.

(TBC) Chairman, President & (CEO), Jim McNerney said, "Commercial Airplanes continued to build momentum with 787 deliveries and 737 MAX orders. Underpinned by our solid performance to date and positive outlook, we are raising our year-end guidance for revenue, earnings and operating cash flow. We remain well positioned for long-term growth.”

Third-quarter revenue increased +13% to $20.01 billion, while operating profit was +$1.56 billion, down -9%. Boeing Commercial Airplanes (BCA) posted a +28% year-over-year rise in third-quarter revenue to $12.19 billion as airplane deliveries heightened +17% to 149. “(BCA) booked 369 net orders during the quarter,” the company said. “Backlog remains strong with approximately 4,100 airplanes valued at $307 billion.” (BCA) is projecting 585 - 600 commercial airplane deliveries for the full year.

Airbus (EDS) won less than half as many airplane orders as Boeing (TBC) in the first nine months of the year as Boeing (TBC) benefited from a surge in demand for its new 737 MAX fuel-efficient single-aisle model.

(EDS) sold 437 planes in the period from January to September, compared with 962 for (TBC) between January 1 and October 2. After cancellations, (TBC) outsold (EDS) by 879 to 382, based on the latest figures published by both companies.

(TBC) also outpaced (EDS) in terms of deliveries, with 436 planes handed over to airline and leasing customers against 405 for (EDS). This was helped by a doubling in deliveries of (TBC)'s delayed carbon-composite 787 Dreamliner in the third quarter to 12.

The fresh data show (TBC) is on course to reclaim the top spot in commercial airplane production from (EDS) this year. (TBC) lagged (EDS) on deliveries for the ninth year in a row last year.

(TBC)'s market share sank to its worst level in the history of its 40-year rivalry with (EDS) in 2011, as it took longer to decide on a strategy to meet demand for more fuel-efficient single-aisle jets in response to (EDS)' new A320neo.

But the arrival of the 737 MAX is helping (TBC) accelerate ahead of (EDS) this year, with overall orders rising to 404 in the third quarter from 36 in the second as it logged 377 sales of the new model.

(EDS)' new business in September included follow-on orders for 10 A330-300 long-haul airplanes from Philippine Airlines (PAL) and 10 A320neo planes for an undisclosed customer. Dublin-based lessor Aircraft Purchase Fleet Ltd also bought two A320s.

(EDS) last month reaffirmed its sales target of 650 gross orders this year, with sales chief John Leahy saying (EDS) was "on track to do at least 650, hopefully a bit more". He reiterated then that it was becoming tougher to reach its target of selling 30 A380 airplanes, although (EDS) was on track to deliver 30 of the A380 superjumbos this year. (EDS) said that it had delivered 17 A380s in the nine months through September.

Boeing (TBC) said it has started building the 777 at a rate of 8.3 airplanes per month, up +20% from the 7 per month rate it had been building the wide body airplane.

(TBC) said a rate of 8.3 airplanes per month is the “highest rate ever for a Boeing twin-aisle airplane. The first part, the lower lobe of the aft fuselage, of the first 777 [a freighter designated for Korean Air (KAL)] to be built at the new rate, was loaded into position in the factory on the same day as the announcement.”

(TBC) said the increase “reflects the strong demand for the 777.” It added that 1,049 777 passenger and freighter airplanes are currently in service.

Boeing (TBC) joined with Ethiopian Airlines (ETH) and Seattle Anesthesia Outreach (SAO) to deliver approximately 20,000 pounds/9,000 kilograms of medical supplies to Ethiopia’s largest hospital. The delivery was made to Black Lion Hospital using (ETH)’s third 787 Dreamliner, marking the first time a Dreamliner has been used as part of Boeing (TBC)’s Humanitarian Delivery Flights program.

“Ethiopian Airlines is one of Boeing’s most active partners in our Humanitarian Delivery Flights program,” said Liz Warman, Director of Boeing Global Corporate Citizenship for the Northwest region. “Our two companies have a long history together not only buying and selling airplanes, but also in leveraging our resources to help those in need.”

The airplane was delivered and flew away from Everett on October 22 and flew directly to Ethiopian capital Addis Ababa, where it landed after an approximately 15-hour nonstop flight.

“Ethiopian Airlines continues to be a leader in corporate social responsibility activities in Ethiopia,” said Tewolde GebreMariam, (CEO) of Ethiopian Airlines. “As the flag carrier for the country of Ethiopia, we are viewed as not only an airline but also as a source of vital service for the people of Ethiopia. We are proud and honored to work with Boeing to help our people and country where we have such great needs.”

The shipment includes several anesthesia machines to be used in the hospital’s operating rooms, patient monitoring equipment, as well as intensive care beds and other surgical equipment. (SAO) has more than >20 physicians, nurses and technicians in Addis Ababa who will help set up the equipment and spend the several weeks teaching in the hospital.

“Boeing and Ethiopian Airlines continue to be critical partners and supporters of our organization, helping us get these needed medical supplies to Black Lion Hospital, the largest public hospital and main teaching facility in Ethiopia,” said Dr Julian Judelman, board member of Seattle Anesthesia Outreach. “Thanks to this partnership, we have been able to ship 40 tons of medical equipment over the last two years at little to no cost, which is important for a small non-profit organization like ours.”

The Boeing Humanitarian Delivery Flights program is a collaboration effort between Boeing (TBC), airline customers and non-profit organizations to deliver humanitarian aid throughout the world to communities in need or crisis. The humanitarian items are loaded into the empty cargo space of new airplanes being delivered and transported to the customer’s home destination.

(ETH) is committed to support worthy social activities that are designed to help build sustainable livelihoods for individuals, the community and the society in general. In doing so it has left its mark on major social initiatives in Africa.

(ETH) has seven 787 Dreamliners remaining on order. (ETH) is the first African operator of the 787, 777-200LR and 777F Freighter. (ETH) currently operates an all-Boeing fleet of 737, 757, 767, 777, and 787 airplanes in passenger service, and has 757, MD11, 777F and 747 airplanes in cargo operations.

Russian lessor, Aviation Capital Services has announced a commitment for 35 737 MAX airplanes, becoming the first Russian company to sign up for the MAX. Boeing (TBC) said the order was valued at more than >$3 billion at list prices. Aviation Capital Services is a subsidiary of the State Corporation Russian Technologies (Rostech). It was established in February 2011.

"Today Aviation Capital Services signed a commitment for 35 737 MAX that will make it the first customer of the 737 MAX airplanes in Eastern Europe. As a result, our partner airline carriers will receive the most modern airplane with improved fuel efficiency, flight characteristics and greater comfort for passengers," Rostech (CEO), Sergey Chemezov said.

The MAX is powered by (CFM) International (LEAP-1B) engines and Boeing (TBC) says it will see a -13% fuel-use improvement over today's most fuel efficient single-aisle airplanes. (TBC) has 858 orders for the 737 MAX.

November 2012: Boeing (TBC) and the State Corporation Russian Technologies (Rostech), a majority shareholder in the joint stock company (VSMPO)-(AVISMA) Corporation, are working on an agreement to expand collaboration in titanium procurement and technology development.

Aviation Equipment, a Rostech sister company, will invest $30 million in the deal. The first stock will start in Moscow in November. Later, the company plans to launch regional centers. Components delivery for Western-built airplanes takes from one to three days in Russia, according to Boeing. Aviation Equipment (CEO), Maxim Kuzyuk said the new distribution center will reduce this time to six hours. The company plans to supply carriers only with spare parts for Boeing (TBC) at the beginning, but later, components for Airbuses (EDS) and modern Russian airplanes will be added.

According to Airclaims, 23 Russian carriers operate more than >300 Boeing airplanes. The local Maintenance Repair & Overhaul (MRO) market is estimated to be worth $2 billion annually.

Boeing (TBC) and (VSMPO)-(AVISMA) Corporation are considering expanding their titanium-production joint venture, Ural Boeing Manufacturing (UBM) to support ongoing production increases for the 737NG. (UBM) has purchased four new machines to increase capacity for producing 737NG landing gear beams. The equipment is scheduled for installation in 2013.

Boeing and (VSMPO)-(AVISMA) launched (UBM) in July 2009 as a 50:50 equity joint venture based in Verkhnyaya Salda, in the Ural Region in Russia.

Boeing (TBC) delivered the sixth Royal Australian Air Force (RAAF) (RAA) C-17 Globemaster III at the company’s final assembly facility in Long Beach. The airlifter will be assigned to No 36 Squadron at (RAAF) Base Amberley near Brisbane, where it will help meet increased demand for airlift to support military, humanitarian and peacekeeping operations.

Boeing (TBC) has delivered 248 C-17s worldwide, including 218 to the US Air Force active duty, Guard and Reserve units. A total of 30 C-17s have been delivered to Australia, Canada, Qatar, the United Arab Emirates (UAE), the United Kingdom and the 12-member Strategic Airlift Capability initiative of (NATO) and Partnership for Peace nations. India has 10 C-17s on order for delivery in 2013 and 2014.

Boeing (TBC) has rolled out the first 787 Dreamliner built at the new production rate of five-airplanes-per-month. The airplane is the 83rd 787 to be built.

(TBC) earlier this year increased the rate from 2.5 to 3.5 airplanes per month and is on track to achieve a planned 10-per-month rate by late 2013. The program production rate accounts for airplanes built at Boeing South Carolina and Everett, including the Temporary Surge Line that was activated earlier this year in Everett. According to (TBC), orbital drilling machines are being deployed to improve productivity in the final assembly areas. “The machines are used to drill holes to attach the wings to the center fuselage section of the airplane. Benefits of the machines include improved precision and time savings for mechanics.”

SEE PHOTO - - "TBC-787 FAL - 2012-11."

To date, 35 787s have been delivered to eight airlines and the program has more than >800 unfilled orders with 58 customers worldwide, (TBC) said. Japan Airlines (JAL) is running an 84% LF on its new Tokyo - Boston 787 flights, significantly above its system usage.

Singapore Airlines (SIA) regional affiliate, SilkAir (SLK) has finalized an order for 54 737s and 737 MAX 8s, worth $4.9 billion at list prices. The previously announced letter of intent (LOI), comprising 23 737-800s and 31 737 MAX 8s, begins (SLK)’s fleet transition to Boeing airplanes. This is the largest airplane order in (SLK)’s history.

Boeing (TBC) has achieved firm concept of its 737 MAX, and said it had defined “significant’ changes needed to achieve performance targets. "The team has a firm plan in place to incorporate all the changes necessary to realize a 13% fuel-use reduction within the scope and schedule of the program,” 737 VP & General Manager, Beverly Wyse said.

It announced the addition of a Honeywell (SGC) electronic bleed air system (EBAS), designed to take airflow from the engines, providing cabin pressurization and environmental cabin controls and to bring warm air to the wings to prevent icing. The 737 MAX will also incorporate Rockwell Collins large-format displays on the flight deck: — four configurable 15.1-inch landscape (LCD) displays to increase situational awareness. The displays, featured on the KC-46 tanker, are also offered for retrofit on existing 757 and 767s.

Along with the technology additions, Boeing (TBC) has further defined the airplane’s aerodynamic lines, eliminating the need for a bump on the nose-gear door which appeared in earlier designs. Previously-announced design changes to the 737 MAX included an extended tail cone and dual feather winglets.

Despite the changes, Boeing (TBC) remains optimistic that the airplane will stay on schedule. "The 737 MAX remains on track for first delivery in 2017," 737 Chief Project Engineer, Michael Teal said. "Now we are focused on the finer details of the configuration and we are confident we'll be ready to begin detailed design in mid-2013."

The 737 MAX is slated for first delivery in 2017.

Emirates (EAD) President, Tim Clark has told "Arabian Business" that he could easily see Emirates (EAD) ordering 100 B777X airplanes if Boeing (TBC) decided to build a new generation 777-300ER that could fly "farther on less fuel with more passengers." (EAD) currently already operates 79 777-300ERs and has another 76 on order.

December 2012: Boeing (TBC) has created and tested a new process for measuring radio signal quality in a bid to improve wireless signals for in-flight connectivity. The process measures radio signal quality using proprietary measurement technology and analysis tools. It will enable engineers to “more efficiently measure” the strength of a signal and how far it spreads and reduced required testing times from over two weeks to 10 hours.

“This technology was first developed to more thoroughly and efficiently ensure that signal propagation met the regulatory safety standards that protect against interference with an airplane's critical electrical systems,” Boeing (TBC) said. “A wireless signal inside an airplane can deviate randomly when people move around. Boeing (TBC)'s new test process takes advantage of state-of-the-art technology and ground-breaking statistical analysis to identify strong and weak signal areas and balance them by adjusting the connectivity system accordingly. The result is increased safety and reliability.” Boeing (TBC) conducted most of the testing on a grounded, de-commissioned airplane.

Boeing (TBC) and the (BMW) Group have agreed to collaborate on joint research on carbon fiber recycling. The two companies are pioneering the use of carbon fiber in their products. According to a Boeing, its 787 is made up of 50% carbon fiber material and (BMW) will introduce two vehicles with passenger compartments made of carbon fiber in 2013. “Recycling composite material at point of use and the end of product life is critical to both companies,” Boeing (TBC) said.

As part of the collaboration agreement, the two companies will also share carbon fiber manufacturing process simulations and ideas for manufacturing automation.

Boeing Shanghai Aviation Services was inducted into Shanghai’s Pudong Airport Free Trade Zone, becoming the first Maintenance Repair & Overhaul (MRO) company to conduct business in a free trade zone in China. A Jet Airways (JPL) 777-300ER was the first airplane to enter Boeing Shanghai under the new free trade zone policies and underwent passenger cabin reconfiguration.

Boeing (TBC) said it has delivered more 737s this year than in any year of the program’s history. The first 737 model entered service in the late 1960s. This month, Boeing (TBC) delivered a 737-900ER to United Airlines (UAL), bringing its 2012 737 delivery total to 377. The 737’s previous record year was 2010 with 376 deliveries.

(TBC) said the 737 this year “also broke its own record for net orders in a single year when it topped the 2007 record of 846 orders” in October. Net year-to-date orders for the 737NG and re-engined 737 MAX now stand at 1,031. (TBC) aims to achieve a 737 build rate of 42 per month by the first half of 2014. As is typical for the airline industry, the ordering peak occurred just prior to the onset of a major dip in global passenger traffic, triggered by a global financial crisis.

American Airlines (AAL) has taken delivery of its first 777-323ER (31543, N717AN) as part of (AAL)'s fleet modernization effort and global network strategy. The delivery makes (AAL) the first USA airline to add the 777-323ER to its fleet. The 777-323ER will enter service in early 2013 on the Dallas Fort Worth - Sao Paulo route. (AAL) (CFO), Bella Goren said the delivery is “another tangible example of our progress in building the new American (AAL).”

A flurry of year-end sales brings Boeing (TBC)'s net annual sales tally to 1,115 jet airplanes, meaning (TBC) will finish far ahead of Airbus (EDS) in this year's order race, largely because of the sales success of the 737 MAX. At the end of November, (EDS) had a net order tally of 585 jet airplanes.

When the final tallies are given in January, they are expected to show Boeing regaining its status as the world's No. 1 jet airplane-maker, with both more orders and more jet airplane deliveries than its European rival.

SEE ATTACHED "SEATTLE TIMES" ARTICLE BY DOMINIC GATES - - "TBC-2012-12 - MOST ORDERS AND DELIVERIES."

January 2013: The USA Federal Communications Commission (FCC) has established new rules to help speed the deployment of Internet services on board airplanes. Since 2001, the (FCC) has authorized companies (on an ad hoc basis) to operate earth stations aboard airplanes (ESAA) communicating with fixed-satellite service (FSS) geostationary-orbit space stations by means of antennas mounted on the exterior of airplanes. The authorized companies are Panasonic Avionics Corporation, Row 44, ViaSat, ARINC Inc, and Boeing (TBC). Gogo filed an application June 19.

With the rulemaking, the (FCC) has now adopted a “report and order,” which it said formalizes (ESAA) as a licensed application in the fixed satellite service and establishes a regulatory framework for processing applications. It also ensures other radio service operations are protected from interference.

“Rather than have to license on board systems on an ad hoc basis, airlines will be able test systems that meet (FCC) standards, establish that they do not interfere with airplane systems, and get (FAA) approval,” the (FCC) said. “The new rules should allow the (FCC) to process (ESAA) applications up to +50% faster and will speed the deployment of ubiquitous broadband service aboard commercial and private airplanes.”

Boeing announced plans to reduce its workforce at a Texas plant by up to -160 jobs, in anticipation of the sequester triggering large federal defense spending cuts in March. (TBC) said by 2014 it will eliminate two of the three buildings at its El Paso, Texas, facility, where currently a total of 370 employees produce electronics for their airframes and other products. “Anticipated USA defense budget cuts likely will mean less demand for these items.”

In addition to the $487 billion in spending cuts from the Budget Control Act of 2011, the Department of Defense (DoD) would lose another $500 billion over the next decade unless Congress produces a restructured deficit reduction plan by March, according to consulting firm, Deloitte. "This difficult decision was based on a thorough study of the current and future business environment and the need to remain competitive," said Derek McLuckey, Director Boeing Network Operations.

Boeing (TBC) booked 1,203 net commercial airplane orders and delivered 601 airplanes in 2012. The orders mark the second best year in company history, trailing only the banner year of 2007, when Boeing (TBC)’s net airplane orders topped 1,400.

Deliveries in 2012, up +26% from 2011, were the most by the company since 1999. “Boeing (TBC)’s unfilled commercial airplane orders at the end of the year stood at 4,373 [including 3,074 737 orders], the most in company history.”

The 2012 order frenzy was led by the 737 program, which took in 1,124 net orders, including 914 orders for the re-engined 737 MAX.

Boeing (TBC) added that 49 total 787s have been delivered to eight customers.

Aviation Capital Group (CGP) has finalized an order for 60 737 MAX airplanes, comprising 50 737 MAX 8s and 10 737 MAX 9s. The order is valued at $6 billion at list prices. (CGP) (CEO), Denis Kalscheur said the order is a “major step in building our broad portfolio of modern, fuel-efficient airplanes.”

With (CGP)’s order, Boeing (TBC) said the 737 MAX has orders for 1,029 airplanes from airlines and leasing companies worldwide.

Boeing Commercial Airplanes (BCA) rolled out the first 777F (a freighter for Korean Air (KAL)) to be built at the production rate of 8.3 per month.

Boeing (BCA) built 777s at a rate of five per month just two years ago. The new build rate equates to 100 777s produced annually. VP & General Manager 777 Program & Airplane Development, Scott Fancher said, “Our factory is running smoothly and we’ve reduced the time it takes to build a 777 by one day from 49 to 48 days.”

Boeing (BCA) added that manufacturing “innovations such as flex-track drilling in the body and wing panels” have helped speed the process. (BCA) has delivered 1,066 777s to date.

INCDT: All Nippon Airways (ANA) has grounded its 787 fleet after one of its 787s made an emergency landing at Takamatsu airport, the "BBC" and other news agencies have reported.

The "BBC" said a spokesperson for (ANA) said all passengers and crew were taken off the airplane, which was operating as flight NH 692 from Yamaguchi Ube to Tokyo Haneda. It also reported that the flight crew (FC) had reported a battery malfunction and that passengers were evacuated via the 787's emergency chutes.

According to a "Reuters" report, smoke appeared in the 787’s cockpit.

A Boeing (TBC) spokesman said, “We are aware of the event and are working with our customer and the appropriate regulatory agencies.”

The 787 is under review by the (FAA) and the Japanese government following a number of safety incidents. A fire the previous week aboard a Japan Airlines (JAL) 787 at Boston Logan Airport was the most high-profile of a number of safety incidents that have occurred on 787s in recent weeks. The USA National Transportation Safety Board (NTSB) is conducting an investigation into that incident.

(JAL) and (ANA) combined have taken delivery of 24 of 50 787s in service worldwide; (ANA) was the 787 Dreamliner’s launch customer.

A very short time later, all 787 operators grounded their airplanes following the (FAA)’s emergency airworthiness directive (AD); the European regulatory authority, (EASA) also adopted the (AD).

Air India (AIN), Ethiopian Airlines (ETH), (LAN) Airlines, (LOT) Polish Airlines, Qatar Airways (QTA) and United Airlines (UAL) all suspended 787 flights. All Nippon Airways (ANA) and Japan Airlines (JAL) had already grounded their 787s after an (ANA) 787 was forced to make an emergency landing following a battery malfunction.

The (EASA) said it is working closely with the (FAA) as the primary certification authority and Boeing (TBC). “(EASA) has adopted the (FAA) (AD) in order to ensure the continuing airworthiness of the European fleet (currently two 787s operated by (LOT) Polish Airlines).

(QTA) (CEO), Akbar Al Baker said: “I previously stated that (QTA) will only stop operating our 787 Dreamliners if we receive such an instruction from the regulators. Safety remains the number one priority for (QTA). We ensure all our airplanes meet the most stringent safety standards and this will not be compromised in any way. We are actively working with Boeing (TBC) and the regulators to restore full customer confidence in the 787. “(QTA) will resume 787 operations when we are clear that the 787 meets the full requirements of the (AD) and our standards, which assure the safety of our passengers and crew at all times. So we are not flying the 787 until and only such a time this is achieved.” (QTA) has five 787s.

(ANA) confirmed that all 17 of its 787s remained suspended and it has cancelled 24 domestic flights and six international flights that were scheduled for tomorrow. (JAL) said it has made adjustments to flights originally scheduled to be operated with the 787 for the period January 19 to January 25. “During this period, the affected flights will remain as scheduled with a change in airplanes, except for the service between Narita and San Diego, which will be cancelled, and the service between Narita and Boston, which will have a set delay in departure time on certain days,” (JAL) said.

The International Communications Group (ICG) and Boeing (TBC) completed an installation of the (ICG) NxtLink Series (ICS)-220A Iridium system on a 747-400. The EL AL Airlines (ELA) 737-400 is the first of several being outfitted to fly international routes using Future Air Navigation System (FANS-1/A) over Iridium (FOI) services, the company said. “This is the second Boeing (TBC) airplane model to have an (ICG) Iridium system installed under a Boeing Service Bulletin (SB). It provides the flight crew (FC) with reliable and global voice and data link services via the Iridium satellite network,” said Armin Jabs, President of (ICG)’s Commercial Airplane Systems Division. “For Extended Twin-engine Operations (ETOPS) and Polar route operations requiring long range communications, Iridium is the least expensive and only truly global system available to the industry today."

A derivative of the (ICG) NxtLink (ICS)-220A communication system was developed to meet the requirements for the Boeing (SB) program. The device was approved by Boeing (TBC) under the 747-400 Type Certificate (TC) for installations on the 747-400 airframe and listing in the Boeing (SB) as Buyer Furnished Equipment (BFE). Having successfully completed (FOI) certification on both the MD-11 and 747-400 airframes, (ICG) is supporting Boeing efforts to develop similar (SB)s for other Boeing airframe models.

The (ICS)-220A provides communications for both flight deck data link requirements, including Aircraft Communications Addressing & Reporting System (ACARS), Controller Pilot Data Link Communications (CPDLC) and Automatic Dependent Surveillance-Contract (ADS-C) messaging, and flight deck voice communications via conventional airplane audio systems and call control, utilizing (ARINC) 739a compliant Multifunction Control Display Units (MCDU).

(ICG)’s NxtLink ICS-220A is a three-transceiver device which combines dual L-Band Transceivers to provide two channels of global voice with a Short Burst Data modem dedicated to data link services. It offers restoration and redundancy services in the event of data link or voice channel failures. It operates with (ICG)’s new external Configuration Identification Module which contains the Iridium (SIM) cards as well as the system configuration information, making it a true Line Replaceable Unit (LRU).

Boeing (TBC) has started building the 737NG at a rate of 38 airplanes per month. Over the past two years, 737 production has risen more than >20%, from 31.5 to 38 airplanes a month.

In July 2011, Boeing opened a new paint hangar near its Renton, Washington facility and in January 2012, it rolled out its first 737NG at the production rate of 35 monthly. In 2014, the rate is expected to increase to 42 airplanes a month.

According to Boeing, mechanics (MT) have completed loading initial parts of the spars (internal support structures in the wings) into an automated spar-assembly machine.

Boeing VP & General Manager 737 program, Beverly Wyse said the company is “well on our way” to another production rate increase.

The first 737NG built at the new rate is scheduled to be delivered in the second quarter.

At the end of the month, Boeing (TBC) reported net income of $3.9 billion for 2012, down -3% from a net profit of +$4.02 billion in 2011, on a +18.9% rise in revenue to $81.7 billion.

Net earnings were negatively affected by a $2 billion income tax expense, up +42.9% from a $1.4 billion income tax expense in 2011.

(TBC) noted it continues production on 787s but has suspended deliveries of the airplanes until the USA (FAA) clears the 787 Dreamliner to fly again.

The Boeing Commercial Airplanes (BCA) unit was a point of strength for the company, posting a full-year operating profit of +$4.71 billion, up +35% year-over-year, on a +36% lift in revenue to $49.13 billion. Commercial airplane deliveries increased +26% compared to 2011 to 601.

Boeing noted that during the fourth quarter, Commercial Airplanes started building 787s at a rate of five per month. It was one of five production rate increases on a cross-section of programs that the company achieved in 2012. It said firm orders for the re-engined 737 MAX now stand at more than >1,000. Boeing’s commercial backlog at year end comprised nearly 4,400 airplanes valued at $319 billion, its highest ever backlog.

Boeing Chairman, President & (CEO), Jim McNerney said 2012 was “a year of significant growth and solid execution. Our first order of business for 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers. At the same time, we remain focused on our ongoing priorities of profitable ramp up in commercial airplane production.”

Boeing’s companywide full-year 2012 operating profit was +$6.31 billion, up +8% year-over-year. Fourth quarter net income was down -30% year-over-year to +$978 million.

(TBC) predicted it will deliver 635 - 645 commercial airplanes this year.

February 2013: The All Nippon Airways (ANA) Boeing 787 lithium ion battery that failed January 16 exhibits signs of “thermal runaway,” according to Japanese investigators. Additionally, Boeing (TBC) is asking the USA (FAA) to allow it to conduct 787 test flights.

The Japan Transport Safety Board (JTSB) told reporters that the badly burned (ANA) 787 battery experienced an “uncontrollable high temperature” associated with thermal runaway, according to multiple reports from Tokyo. The USA National Transportation Safety Board (NTSB) has said the Japan Airlines (JAL) 787 lithium ion battery that sparked a fire in Boston January 7 similarly shows indications of thermal runaway.

The (JTSB) and (NTSB) both have been unable to determine a root cause of the lithium ion battery failures.

As part of the effort to determine what happened on the two airplanes and facilitate the process of lifting the worldwide 787 Dreamliner grounding, Boeing (TBC) is asking the (FAA) for permission to operate 787 test flights. An application for 787 test flights is “under evaluation” by the (FAA). (TBC) is not commenting further on the proposed flight testing.

The (ANA) event (involving the main battery in the forward electronic equipment bay) occurred in-flight and caused an unusual smell to permeate the airplane, prompting an emergency landing. The (JAL) 787 event (involving the battery used to start the auxiliary power unit (APU)) led to an on board fire while the airplane was parked following a Tokyo - Boston flight.

Russian aviation authorities have given Aeroflot (ARO) permission to operate its Boeing 777-300ER. Last month, (ARO) had to postpone the 777-300ERs first flight due to the missing type certification. The first flight (from Moscow to Bangkok) was immediately rescheduled for February 4. Aeroflot (ARO) (which has 16 of the type on order) received its first 777-300ER January 30 in Seattle, Washington. It had planned a flight to Moscow on January 31; its first commercial service from Moscow to Bangkok was scheduled for February 1.

Boeing (TBC) has promoted Matt Ganz to President Boeing Germany & Northern Europe as well as VP European Technology Strategy, effective April 1. He succeeds the retiring Marlin Dailey. Boeing Director Northern Europe, Brian Moran will lead the Berlin office during the transition. Ganz is currently VP & General Manager, Boeing Research & Technology.

Icelandair (ICE) has placed a firm order for 16 Boeing 737 MAXs valued at more than >$1.6 billion at list prices. The order, originally announced as a commitment for 12 737 MAXs in December 2012, has been increased to 16 airplanes and includes 737 MAX 8s and 9s, as well as purchase rights for eight additional 737 MAXs. Boeing (TBC) said the (ICE) order brings total 737 MAXs ordered to date to 1,180. Icelandair (ICE) currently operates a fleet of 23 757s.

Xiamen Airlines (XIA) is planning a rapid expansion this year as it grows its fleet and takes advantage of the booming Asian market demand. The Xiamen-based carrier (XIA) operates 87 Boeing airplanes and is scheduled to take delivery of a further 15 this year. (XIA) committed to purchasing 40 737-800NGs in 2012 and plans to grow its fleet to 200 airplanes by the end of 2020.

It plans to boost international capacity +14.7% this year and open new routes including Zhengzhou - Xiamen - Jakarta, Dalian - Xiamen - Kuala Lumpur, Dalian - Xiamen - Singapore, Tianjin - Fuzhou - Kuala Lumpur, Dalian - Xiamen - Kuala Lumpur, and Dalian - Xiamen - Singapore.

(XIA) will also increase domestic capacity +18.6% this year and add more flight frequencies on routes, including Xiamen - Kunming, Xiamen - Chongqing - Lhasa, and Xiamen - Zhengzhou - Xining.

(XIA) has reported a consecutive profit for 26 years. It posted an operating profit of +CNY2 billion/+$317.4 million in 2012, up +17% over +CNY1.7 billion in 2011. It aims to transport more than >20 million passengers this year and cargo traffic volume is targeted at more than >200,000 tonnes.

March 2013: On March 12, the (FAA) at last approved Boeing (TBC)'s certification plan for a redesigned 787 battery system, a first step toward getting the 787 Dreamliner back into the air. The (FAA) said the certification plan would begin the process to evaluate the 787’s return to flight and requires Boeing to conduct extensive testing and analysis to demonstrate compliance with the applicable safety regulations and special conditions.

“This comprehensive series of tests will show us whether the proposed battery improvements will work as designed,” USA Transportation Secretary, Ray LaHood said. The battery system improvements include a redesign of the internal battery components to minimize initiation of a short circuit within the battery, better insulation of the cells and the addition of a new containment and venting system.

Boeing Commercial Airplanes President & (CEO), Ray Conner said the proposed fix includes three layers of improvements. “First, we’ve improved design features of the battery to prevent faults from occurring and to isolate any that do. Second, we’ve enhanced production, operating and testing processes to ensure the highest levels of quality and performance of the battery and its components. Third, in the unlikely event of a battery failure, we’ve introduced a new enclosure system that will keep any level of battery overheating from affecting the airplane or being noticed by passengers.”

Design feature improvements for the battery include the addition of new thermal and electrical insulation materials and other changes. The enhanced production and testing processes include more stringent screening of battery cells prior to battery assembly. Operational improvements focus on tightening of the system’s voltage range. A key feature of the new enclosure is that it ensures that no fire can develop in the enclosure or in the battery.

The (FAA) granted Boeing permission to begin flight test activities on two airplanes: line number 86, which will conduct tests to demonstrate that the comprehensive set of solutions work as intended in flight and on the ground; and (ZA005), which is scheduled to conduct engine improvement tests unrelated to the battery issue.

The (FAA) said it will approve the redesign only if the company successfully completes all required tests and analysis to demonstrate the new design complies with (FAA) requirements.

Boeing (TBC) and (KLM) Royal Dutch Airlines have begun a series of commercial flights that will demonstrate how several advanced technologies, fuels and concepts can significantly improve operational efficiency, save fuel and reduce carbon and noise emissions. The technology demonstration encompasses all aspects of an airplane’s flight (pre-flight, takeoff, cruise, descent and post-landing).

The first of the flights, with a (KLM) 777-200 flying round trip from Amsterdam Airport Schiphol to John F Kennedy International Airport in New York, is scheduled this month. A total of 26 flights are planned for a program called “Optimal Flight” that will continue through 2013.
“The art of the possible comes to life with Optimal Flight: It combines all of Boeing (TBC)’s current flight efficiency projects in a single program to demonstrate the most efficient, environmentally progressive flight possible,” said Mike Caflisch, Director Airspace Programs for (TBC)’s Digital Aviation Customer Solutions. “This demonstration program will help us determine where next to focus our research and development to deliver improvements to air traffic management and airline services for our customers.”

Each flight is being powered in part by sustainable aviation biofuel sourced from used cooking oil. (TBC) is at the epicenter of the industry’s efforts to develop and commercialize renewable fuel sources that don’t compete with food, water or land resources.

The flights also feature new services that provide various advisories directly into the airplane’s flight management computer (FMC) and mobile device in the flight deck.

Developed by Boeing Research & Technology, the flight services highlight applications that increase real-time situational awareness for pilots (FC) using advanced digital aviation and air traffic management concepts. They include:

* Automation to integrate the dispatch and modified versions of the flight plan and performance data into the (FMC). This saves work for the flight crew (FC), allows for real-time adjustments and reduces errors by eliminating the need to make repeated (FMC) entries.

* Procedures and software applications that provide the flight crew (FC) with recommendations to optimize the airplane’s speed variance, while providing real-time weather advisories in flight to save fuel and enable more accurate way point arrival predictions.

If the Optimal Flight Program is successful, Boeing (TBC) and (KLM) will establish new operational procedures and recommendations for follow-on development programs with the partners, including (NLR), (TU) Delft (Delft University of Technology), John F Kennedy International Airport, Gander, Shanwick, (NATS) Domestic and Schiphol Group.

There is also focused research and development through a joint agreement between Boeing (TBC), (KLM), Amsterdam Airport Schiphol and Air Traffic Control (ATC) in the Netherlands. This agreement is an extension of an agreement first signed in 2002 to develop solutions for the sustained growth of aviation in the Netherlands. “Boeing (TBC) is committed to improving the efficiency of flight by working with progressive airlines such as (KLM) to accelerate smart technologies and make them available for regular commercial use,” said Julie Felgar, Managing Director Environment & Aviation Policy for Boeing Commercial Airplanes (BCA). “Through our support and services organization, and commitment to relentless research, we can help ensure their airplanes are safe, reliable and on time. This is yet another great example of a value-added partnership between Boeing (TBC) and the Netherlands, a country with an outstanding aerospace and technology industry,” said Brian Moran, VP, Boeing Northern Europe. “(KLM) is one of the most progressive airlines in the industry and a great partner in our ongoing commitment to finding ways to realize savings in fuel and reductions in emissions and noise.”

Boeing (TBC) has announced leadership changes to its 777X, 737 MAX and Propulsion Systems divisions. (TBC) has named Bob Feldmann as VP & General Manager of the 777X program and Keith Leverkuhn as VP and General Manager of the 737 MAX program. Leverkuhn is formerly VP and General Manager of the Propulsion Systems Division. Nicole Piasecki will succeed him in this position.

Four of the five Business Development & Strategic Integration Teams (BDSI) (Environment & Aviation Policy, Product Strategy, Services Strategy, and Strategic Planning & Analysis) will merge with Marketing, renamed to Marketing & Business Development. The fifth (BDSI) team, Industrial Participation, will join the Supplier Management Organization.

Boeing Technical Workers have approved a new four-year contract after a nearly year-long negotiation. The Society of Professional Engineering Employees in Aerospace (SPEEA)-represented workers were told by union negotiators that a second rejection would likely result in a strike. “Union members were voting on a contract offer that was identical to the offer the 7,191 technical workers narrowly rejected and the larger professional unit of engineers narrowly accepted on February 19,” (SPEEA) said. “While engineers and technical workers bargain at the same time, the contracts are separate and independent agreements.”

The new contract includes +5% annual salary increase pools plus an increase to retirement benefits, but no increases to employees for medical coverage, (SPEEA) said. The union noted that the end of the new contract will mark—for both technical workers and engineers—eight straight years of +5% salary increase pools with guaranteed minimum wage increases each contract year.

Boeing (TBC)’s negotiations with (SPEEA) began in April 2012.

Air China (BEJ) has agreed to buy 31 Boeing airplanes, including 20 737-800s, according to a filing with the Hong Kong stock exchange made by (BEJ). In addition to the 737-800s, (BEJ) said it has agreed to order two 747-8I Intercontinental airplanes, one 777-300ER and eight 777F freighters. The 777Fs will be used by Air China Cargo. Under the terms of the agreement with Boeing (TBC), Air China (BEJ) said it has the option to swap four 737-800s for one 777-300ER.

Air Lease Corporation (ALE) has ordered 10 777-300ERs airplanes in an order valued at $3.2 billion at list prices. (ALE) has ordered 185 Boeing (TBC) airplanes, including 78 737NGs, 80 737 MAXs, 12 787s and 15 777-300ERs. It also has reconfirmation rights on 20 additional 737 MAX airplanes.

American Airlines (AAL) has a new purchase and lease back agreement with (AIG) subsidiary, International Lease Finance Corporation (ILFC) for 15 737-800s and one 777-300ER. The 777-300ER will be delivered later this month, and delivery of the new 737-800s will be completed by December 2014. The leasing agreement comes following the recently announced merger between (AAL) and US Airways (AMW)/(USA).

Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said the 787 could be flying again “very fast” if the (FAA) approves (BCA)’s proposed fix for the grounded airplanes. “So much is dependent on” how quickly the (FAA) makes a decision on whether to accept Boeing (TBC)’s solution for modifying the 787’s lithium ion batteries, Connor said via webcast. “Once we get [FAA approval] this will move very fast in terms of getting the airplanes back up in the air,” Conner said. “We are prepared and ready to go.”

Conner said Boeing (TBC)’s fix addresses “everything that could go wrong” with the 787’s lithium ion batteries. If and when the fix is approved, (TBC) would proceed to certification testing, then implement the fix on the 50 grounded in-service airplanes and then fix production 787s, Conner explained. “This is just not only a Boeing-type solution,” he said. “We worked with a number of people outside Boeing [and] ran it by them just to make sure we were on the right track.”

Conner noted that 787 production continues at a pace of five airplanes per month. “We haven’t slowed that down a bit,” he said.

Conner reiterated Boeing’s confidence in using lithium ion batteries on the 787 even after rival Airbus (EDS) moved away from the technology on the A350, switching to nickel cadmium batteries. “We couldn’t see any reason to make the switch,” he said. “We feel very comfortable with the technology as it stands.”

The USA National Transportation Safety Board (NTSB) will hold the first of two Boeing 787-related public events April 11 - 12, focusing generally on lithium ion batteries in transportation. According to the (NTSB), the lithium ion battery “forum,” to be held at the board’s headquarters in Washington DC, will focus on the “the design, development and performance of lithium ion batteries; regulations and standards related to manufacturing, use and transport of the batteries; and the application and safety aspects of lithium battery technology in various transportation modes.”

The (NTSB) is continuing its investigation into the January 7 Japan Airlines 787 lithium ion battery fire in Boston. Later in April, it plans to hold a public hearing specifically focused on the design and certification of the 787’s battery system, which uses lithium ion batteries. The April 11-12 forum “will explore failure modes and other performance issues” with lithium ion batteries, the (NTSB) said. While the event will inevitably focus on the 787’s batteries, it also likely will touch on lithium batteries carried as air cargo. Two fatal freighter crashes, one involving a (UPS) 747-400 in September 2010 and another involving an Asiana Airlines (AAR) 747-400 in July 2011, have been tied to lithium battery cargo fires.

Boeing (TBC) has agreed to demands by operating lessor, Air Lease Corporation (ALE) to slightly increase the range, thrust requirement and gross weight of the nascent 787-10X. "It's in the works," says (ALE) (CEO), Steven Udvar-Hazy.

Previously, Boeing (TBC) had advertised the range for the double-stretch variant as between 6,700 nm/12,400km and 7,000 nm, but that fell short of Udvar-Hazy's expectation for the airplane.

In November, he told a teleconference of market analysts that he wanted (TBC)to increase the range to at least 7,100nm.

Four months later, 787-10X engine providers General Electric (GEC) and Rolls-Royce (RRC) have confirmed they both can meet the higher thrust requirement for the 7,100 nm-range level, Udvar-Hazy said.

The additional thrust is necessary because the range boost implies a slightly higher gross weight for the airplane, he added.

The official launch of the 787-10X has been slowed by the ongoing 787 battery crisis, in which the entire 787 Dreamliner fleet remains grounded due to two instances of overheating lithium-ion batteries.
However, (TBC) still expects to formally launch the 787-10X airplane later this year.

Ryanair (RYR) has placed an $18 billion/€14 billion order with Boeing (TBC) to buy up to 200 airplanes, the "Irish Independent" has learned. The mammoth order (due to be confirmed by USA President, Barack Obama and Taoiseach Enda Kenny at the White House) is the single biggest airplane purchase ever agreed by (RYR). It’s also one of the biggest orders ever placed with Boeing. SEE ATTACHED - - "TBC-2013-03 - RYR 737 ORDER-A/B."

Boeing (TBC) has selected (GE) Aviation (GEC) as the engine partner for its 777X development program. (TBC) said the next generation 777 is moving closer to be being formally launched. The 777X is expected to enter service near the end of the decade.

“This decision to work with (GEC) going forward reflects the best match to the development program, schedule and airplane performance,” Boeing Commercial Airplanes VP & General Manager 777X Development, Bob Feldmann said. “We are studying airplane improvements that will extend today’s 777 efficiencies and reliability for the next two decades or longer, and the engines are a significant part of that effort.”

(GEC) said that its study of a prospective 777X engine, called the (GE9X), “has been underway for several years. The study is focused on an engine in the 100,000 lbs thrust class and will offer a +10% fuel burn improvement over today’s (GE90) engines.”

It said key features of the (GE9X) will include a 132-inch diameter composite fan case, fourth generation composite fan blades, a 27:1 pressure ratio high pressure compressor, a third-generation twin annular pre-swirl (TAPS) combustor, and ceramic matrix composite material in the combustor and turbine. As part of its ongoing study on the engine, (GEC) said a high pressure compressor test rig is scheduled to run this summer in Italy.

(TBC) noted development work on the 777X has included consultations with current 777 customers from around the world. “We have had strong and productive engagement with a broad set of customers in the marketplace to understand their future needs,” Feldmann said. “We are aggressively moving forward on our plan and will continue to refine requirements with customers.”

Boeing (TBC) has rolled out the first 737NG built at the new production rate of 38 airplanes per month. Copa Airlines (COP) will take delivery of the 737-800 in early April. Over the past two years, 737 production has risen more than >20%, from 31.5 to 38 airplanes a month due to market demand. In 2014, the rate is expected to increase to 42 airplanes a month.

Boeing (TBC) and China Eastern Airlines (CEA) celebrated the delivery of the 1,000th Boeing airplane for China, one of the world’s most dynamic markets for commercial airplanes. Boeing forecasts that China will need 5,260 new airplanes, valued at $670 billion, in the next 20 years.

The 1,000th airplane, a Next-Generation 737-800 with the Boeing Sky Interior painted in special peacock livery, will join China Eastern Yunnan Airlines. (CEA) currently operates the largest 737 fleet among Chinese airlines.

Boeing airplanes comprise the majority of commercial jetliners operated in China, providing dependable, efficient service to more than >20 different Chinese airlines. Chinese suppliers contribute parts and components to every current Boeing commercial airplane model, including 737, 747, 767, 777 and 787. Today, more than >7,000 Boeing airplanes operating throughout the world use major parts and assemblies from China.

Headquartered in Shanghai, (CEA) is one of the three major airlines in mainland China. Flying a fleet of more than >400 long-haul and short-haul airplanes with an average age of less than <7 years, (CEA) serves nearly 70 million travelers annually and ranks among the world’s top five airlines in terms of passenger transportation volume.

Hanoi's Noi Bai International Airport became the world's 100th airport to receive the 747-8. This demonstrates that the 747-8 can operate safely within an airport environment, accounting for regulatory, clearance, pavement loading, and parking requirements.

SEE ATTACHED - - "TBC-2013-08 - 747-8 OPERATORS."

April 2013: Boeing (TBC) earned first-quarter net income of +$1.12 billion, up +20% over a net profit of +$923 million in the 2012 March quarter. Revenue did decline -3% year-over-year to $18.89 billion as the suspension of 787 deliveries in mid-January offset higher 737 and 777 deliveries. First-quarter operating profit was +$1.53 billion, down -2% from an operating profit of +$1.57 billion in the year-ago period.

First-quarter revenue for the Boeing Commercial Airplanes (BCA) unit dipped -2% year-over-year to $10.69 billion. But Commercial Airplanes’ operating profit rose +13% to +$1.23 billion as the unit’s operating margin lifted +1.5 points to 11.4%. Boeing (TBC) delivered 137 commercial airplanes in the quarter, the same number as delivered in the 2012 March quarter. “Strong core operating performance fueled by productivity gains and solid program execution drove higher company earnings and double-digit operating margins,” Boeing Chairman, President & (CEO), Jim McNerney said.

“Commercial Airplanes worked around the clock to resolve the 787 battery issue, while also successfully increasing production rates on the 737 and 777 programs. Our first priority in the days ahead is to fully restore our customers’ 787 fleets to service and resume production deliveries. Our outlook for the year is positive.”

Boeing (TBC) said Commercial Airplanes (BCA)’s revenue decline can be attributed to “delivery mix and lower services revenue.” The operating margin improvement in part reflects “lower Research & Development (R&D),” it said.

(BCA) booked 209 net airplane orders during the quarter. Backlog on March 31 stood at 4,400 airplanes valued at $324 billion.

On April 3rd, Boeing Commercial Airplanes (BCA) opened its new expanded Everett Delivery Center (EDC), a world-class facility which will be the home of deliveries for the 747-8, 767, 777 and 787. The grand opening ceremony was attended by Boeing employees, customers and state dignitaries. “Boeing is producing market-leading commercial airplanes at its highest rates ever,” said Pat Shanahan, Senior VP & General Manager, Airplane Programs, Boeing Commercial Airplanes. “The new facility enables us to meet growing demands and continue doing what our team does best – exceed customer expectations.”

The 180,000 sq ft facility triples the amount of office, conference and delivery operations space as the old (EDC) and is designed to increase operational efficiencies. “I want to congratulate The Boeing Company and its hard-working employees on the new Everett Delivery Center. This facility shows the strength of the aerospace industry in Washington and is a sign that the state’s long history with the company will continue to grow,” said Governor Jay Inslee. “As production rates increase and the company looks to roll out new airplane derivatives in Washington, it is clear this facility is going to see a lot of use.”

The building features three floors dedicated to customers and the delivery experience. Amenities include a customer lounge, a Tully’s cafe, over >20 conference rooms, four contract signing rooms and 35 offices to support resident customers and on-site delivery teams. The building’s highlight, a customer event area, offers sweeping views the Olympic Mountains beyond the neighboring flightline and Paine Field. “Last year we delivered a record 183 airplanes and this new facility will help us continue to increase deliveries,” said Tom Maxwell, Everett Delivery Center VP. “The expanded space will also allow us to keep pace with customer demands.”

The Seattle-based (DLR) Group created the “Embrace the Plane” design which features a unique, curved architecture. The design allows airplanes to pull up to the building and connect by custom boarding bridges, enhancing ease of customer travel. Construction led by Skanska began in March 2012.

The Boeing Company (TBC)’s previously announced plan to consolidate Flight Training and certain operations from Seattle to the Boeing Flight Services training campus in Miami, will affect approximately 38 positions. (TBC) said the affected workers comprise approximately 33 Simulator Instructors and five Standards Pilots (FC).

On March 28, Boeing (TBC) informed the union during negotiations that it did not (at the time) have open positions for the job classifications for Simulator Instructors and Standards Pilots at the Flight Services training campus in Miami. “We are committed to do whatever we can to find equivalent positions either in the Puget Sound area or elsewhere at Boeing (TBC),” a spokesperson said.

The Society of Professional Engineering Employees in Aerospace (SPEEA) said on March, “During negotiations with The Boeing Company (TBC), negotiators for Flight Services informed our team (TBC) intends to eliminate Flight Standards and Simulator Instructor Pilot positions and will not offer to relocate these existing pilots (FC) to Miami. Boeing negotiators indicated they will not be prepared to provide specifics regarding the “effects” of the move on employees until negotiations resume April 10.”

Boeing (TBC) said the consolidation is intended to align with market and airline requirements and to better meet increased demand as airplane delivery rates increase.

“Miami is a key location for Boeing Flight Services, and as announced in 2008 at the Farnborough Airshow, Miami would include 787 Training to better serve the training requirements of airlines based in Latin America, the United States and elsewhere,” a (TBC) spokesperson said. “The consolidation plan includes relocating all full-flight simulators (FFS)s and other devices, starting with the two Seattle-based 787 Training Suites. The majority of the Seattle Flight Services team will not be affected, but some employees will be impacted.”

There are approximately 100 employees in the bargaining unit and more than >500 Seattle employees in Flight Services.

Officials at The Boeing Company (TBC) have selected Mechtronix, a Canadian-based flight simulator company, to build and install a new Boeing 737NG full flight simulator (FFS) level D for the company’s sophisticated training campus in Singapore.

The new Mechtronix FFS X will simulate the Boeing 737-800W, 737-800W SFP, 737-800W BBJ, and 737-700W airplane configurations for training, starting in the second quarter of 2014.

The simulation and training solution employs an electric/pneumatic motion system and features the Mechtronix 200x40-degree field of view (FoV) visual display and Liquid Crystal on Silicon (LCoS) projectors.

The Mechtronix FFS X will be installed in Singapore, a booming economic center, and will serve the growing Next-Generation 737 flight training needs in the Asia-Pacific region.

"The FFS X combines the highest reliability standards with the most cost-efficient operations and maintenance requirements in the industry," says George Karam, VP, Mechtronix.

Boeing (TBC) conducted a second 787 test flight related to the certification of its fix for the 787’s lithium ion batteries. The company said that it was the “final certification test for the new battery system.”

The April 5th flight operated with a production airplane designated for (LOT) Polish Airlines, went west from Paine Field in Everett, Washington to the Pacific coast line, flew south along the Washington state coast and then over the Oregon coast before turning around and returning to Paine Field, according to flight tracking service FlightAware. The flight lasted just under two hours.

The worldwide 787 Dreamliner fleet has been grounded since January 16 following the failure and overheating of lithium ion batteries on two in-service 787s within a 10-day period. Boeing (TBC) is endeavoring to convince the (FAA) that its fix for the battery system should enable the lifting of the grounding.

Boeing (TBC) said it has now completed “the testing required by” the (FAA). “The flight crew (FC) reported that the certification demonstration plan was straightforward and the flight was uneventful,” Boeing (TBC) said following Friday’s flight, adding, “Boeing will now gather and analyze the data and submit the required materials to the (FAA). We expect to deliver all of the materials to the (FAA) in the coming days. Once we deliver the materials, we stand ready to reply to additional requests and continue in dialog with the (FAA) to ensure we have met all of their expectations.”

The Federal Aviation Administration (FAA) on April 19th approved Boeing (TBC)’s design for modifications to the 787 battery system, a key hurdle in returning the planes to service after they were grounded globally. Airlines operating the 787 will be required to install containment and venting systems and to replace batteries with modified components. The (FAA) said it will only allow 787s to return to service after inspectors accept the work.

Boeing (TBC) is deploying 10 teams comprised of 300 specialists around the world to perform FAA-approved modifications on the 50 787s that were in service when the 787 Dreamliner fleet was grounded January 16.

Turkish Airlines (THY) has committed to ordering 50 737 MAX airplanes from Boeing (TBC), a $6.9 billion order at current list prices. The order includes 40 737 MAX 8s, 10 737 MAX 9s and 20 Next-Generation 737-800s. (THY)'s order includes options for 25 additional 737 MAX 8s.

Boeing Canada Winnipeg plans to increase its Murray Park Road manufacturing site by more than >22%, primarily to house new composites work for the 737 MAX. The building will be expanded by 150,000 sq ft to 665,000 sq ft of manufacturing space, which will be used mainly to construct the one-piece composite acoustic inner barrel on the newly designed engine nacelle inlet for the 737 MAX.

“The inner barrel is one of the latest quiet engine technologies that will be employed on the 737 MAX to help reduce the operational noise of the airplane by up to 40%,” Boeing said. The expanded building, which includes two bays, will house 737 MAX and some 787 production. Construction will begin immediately on the west side of the existing Murray Park facility, with an estimated completion by the fourth quarter of 2014.

May 2013: See video - - "TBC-747-8 Intro" - -
https://www.youtube.com/user/Boeing?v=DN2VR3NytM0

SEE ATTACHED "SEATTLE TIMES" UPDATE ON 777X - - "TBC-2013-05 - 777X PROGRESS-A/B."

Boeing (TBC) will seek to transfer major elements of the 787's cockpit systems to the new 777X, perhaps preserving the common cockpit rating achieved between the 787 and the legacy 777 series. The decision was announced on 7 May by VP Marketing & Business Development, Mike Bair.

(TBC) says it has not finalized the avionics architecture and source of supply for the 777X.

The new details emerged shortly after Boeing's board of directors granted the authority to offer the 777X to customers, a key milestone ahead of a formal launch event perhaps later this year. Boeing (TBC) plans to introduce the re-engined and re-winged stretch of the 777 series at the end of the decade, and likely at least a year after the scheduled certification of the General Electric (GE9X) in May 2018.

Boeing (TBC) is now in discussions with potential customers, which include British Airways (BAB), Emirates (EAD), Qatar Airways (QTA) and Air Lease Corporation (ALE), to refine aspects of the 777X's design and performance before formally launching the airplane and booking orders.

Re-using the Honeywell (SGC) system for the 777X marks a break from Boeing (TBC)'s approach on the cockpit system for the re-engined and updated 737 Max. In that case, Boeing (TBC) decided to replace the Honeywell (SGC) system used on the next generation 737 family with a Rockwell Collins system on the 737 Max series.

But the 777X avionics strategy follows Boeing (TBC)'s strategy to harvest new technologies gained from the painful introduction of the 787, which appeared more than >3 years late and has only recently recovered from a 3-month grounding caused by over-heating lithium-ion batteries.

The 787 cockpit system was substantially modelled on the suite on the 777-200LR and 777-300ER, to the point that the airplanes share a common type rating that helps reduce required training for pilots (FC).

It is not clear yet if Boeing (TBC) will seek a common type rating for the 777X and 787 families. The 777X family is expected to include possibly as many as three variants (a roughly 350-seat 777X-8, an ultra long-range 777X-8LX and the 400-plus-seat 777X-9. Boeing (TBC) is also likely to consider a freighter variant based on the 777-8F.

Boeing (TBC) has rolled out its first 787 to be built at the increased production rate of seven airplanes per month. The 787, which will be delivered to British Airways (BAB), is the 114th 787 and the 100th 787 to be built at the Everett, Washington, factory.

(TBC) said the 787 program is “on track to achieve a planned 10 per month rate by year end.” The production rate accounts for airplanes built at the Everett Final Assembly facility, the Everett Temporary Surge Line and Boeing South Carolina.

To date, 50 787s have been delivered to eight airlines. The program has more than 800 unfilled orders with 58 customers worldwide,

SEE ATTACHED - - TBC-2013-05 - 777-300ER MAP" WHICH SHOWS EXISTING ORDERS WORLD LOCATION.

Airbus (EDS) plans for the A350-1000 to enter service in 2017, two years before the 777X. It has received 110 orders for the type globally, of which 36 are from the Asia-Pacific (Asiana Airlines (AAR) has ordered 10, and Cathay Pacific (CAT) 26).

Asiana (AAR) is scheduled to receive one A350-1000 in 2018, while Cathay (CAT) should receive six. All 36 A350-1000s the pair have ordered should be delivered by 2021.

In the next decade, the region's early adopters of the 777-300ER such as Japan Airlines (JAL), All Nippon Airways (ANA), Eva Air (EVA) and Singapore Airlines (SIA) will be looking at replacement options.

The replacement market alone for 777-300ERs in the Asia-Pacific is likely to amount to 250 - 300 airplanes. Given the region's strong traffic growth, the total Asia-Pacific market for the 777X and A350-1000 could come up to over >300 airplanes.

Southwest Airlines (SWA) was named the launch customer for Boeing (TBC)'s 737 MAX 7. (SWA) converted its existing orders for 30 Next-Generation 737s into orders for 737 MAX 7 series, and has also chosen to exercise options to add five Next-Generation 737-800s to its fleet. At current list prices, the total order (including options) is valued at $2.9 billion. Deliveries for (SWA) are scheduled to begin in 2019.

With the 737 MAX 7 conversions and exercised options for 737-800s, (SWA)’s unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. The 737 MAX now has orders for 1,315 airplanes.

General Electric Company (GEC) and the Boeing Company (TBC) have alerted airlines about a potential problem with engines on Boeing (TBC)’s long-range 777 jumbo jet that caused the engines to shut in mid-flight twice this year. The problem affects about 118 so-called transfer gear boxes made between September and March. The part, made by Italian company Avio SpA, are on about 26 in service 777-300ER jets and another 44 airplanes in production, (GEc) said.

There are more than >1,150 of the (GE90-115B) engines in service and the gearbox has been a reliable part for more than >15 years, (GEC) said. The cause of the problem appears to be with an anomaly in the material that caused gears to separate, although the exact cause remains unknown, (GEC) said.

The companies told airlines to inspect or replace the transfer gear boxes produced during the six-month period, ensuring that at least one engine on the plane has had an inspection or a replacement made before September. (GEC) is sending replacement parts to airlines.

The gearbox transfers power from the engine to run fuel pumps and other vital engine functions, (GEC) said. Failure causes the engine to shut down. The incidents in which engines shut down during flight occurred in February and on May 9, (GEC) said. One of the incidents occurred on an Air China (BEJ) plane. The other could not immediately be identified.

In both cases, only one engine shut down, and the twin-engine 777 is able to continue flight with the remaining engine. “You don’t have a fire, you don’t have an explosion,” when the gearbox fails, said Rick Kennedy, a (GEC) spokesman. While the cause of the failures remains unknown, the (FAA) is expected to make the inspections mandatory through an Airworthiness Directive (AD).

Boeing (TBC) said its 747-8I Intercontinental completed its first four-hour test flight this week with a package of performance improvements including enhanced (GE) engines. Boeing (TBC) Flight Test & Evaluation Captain Kirk Vining said, “It was a great flight and the engines performed as expected.” He was accompanied by Boeing Chief Pilot, Captain Mark Feuerstein at the controls.

The 747-8I’s Performance Improvement Package (PIP) includes improvements to the (GEnx-2B) engines and Flight Management Computer (FMC) software. Boeing (TBC) said the improvements have resulted in an accumulated +1.5% gain in fuel efficiency since the first airplane was delivered less than <2 years ago. “These new improvements will give operators an airplane that is an additional +1.8% more efficient,” Boeing (TBC) said, adding, “The test program will also validate the design changes and demonstrate the operation of the horizontal tank fuel system on the passenger version of the 747-8I, which was deferred from the initial deliveries.”

First deliveries of the new configuration will be in early 2014 and will be available for retrofit. Entry into service (EIS) of the new engines and (FMC) software will take place in late 2013.

SEE "FLIGHT" ARTICLE - - "TBC-2013-05 - 777X UPDATE."

See video "THE 787 DREAMLINER" - -

June 2013: Lufthansa (DLH), took delivery of its seventh 747-8I last month, and it was Boeing's 50th delivery of the 747-8. For more than a year-and-a-half, airlines have benefited from the 747-8's excellent schedule reliability, utilization, performance and operational advantages. Schedule reliability, an industry measure of departure from the gate within 15 minutes of scheduled time, is 98.8% for the 747-8 fleet.

Boeing (TBC) has begun the final assembly on the 787-9 in Everett, Washington, USA. The longer fuselage sections are 20 ft longer than the 787-8. Boeing (TBC) said the 787-9 will carry +40 more passengers an additional +300 nautical miles, allowing airlines to grow routes first opened by the 787-8.

Air New Zealand (ANZ) is the launch customer for the 787-9, which is expected to operate on the airline’s international network from mid-2014.

This month, China Southern (GUN) became the first Chinese airline to take delivery of the game-changing 787 airplane which will be used as part of its international expansion plans.

(GUN) has 10 787 Dreamliners on order. According to (CEO), Tan Wangeng, the rest of the airplane order will be delivered by the end of next year. Tan noted the airline’s first 787 will be initially operated on its Beijing - Guangzhou route beginning June 6. Later, it will be used on long-haul routes to Paris, Vancouver, London, and Auckland.

(GUN) is the tenth customer worldwide to take delivery of the 787, which was granted an airworthiness certificate from the Civil Aviation Administration of China (CAAC) in May.

In recent years, (GUN) has accelerated its international expansion pace, especially on its Canton route between Australasia and major European gateway cities, as part of an overall strategy to grow its international network and attract more business (C) travelers.

Air China (BEJ) has 15 787s on order, Hainan Airlines (HNA) has ordered 10 787s and Xiamen Airlines (XIA) has six of the type on order.

Hainan Airlines (HNA) is scheduled to introduce its first 787 at the end of June, while Xiamen Airlines (XIA) is expected to take delivery of its first 787 in July 2014; the rest of the airplanes will be introduced between 2014 and 2015. Xiamen (XIA) plans to operate its 787 Dreamliners to open more international routes to Europe and the USA.

Boeing (TBC) officially launched the Boeing 787-10 at the Paris Air Show. (TBC) is going ahead with the development of the 787-10 on the back of firm commitments for 102 from five different customers. The first 787-10 is to be delivered in 2018. SEE ATTACHED - - "TBC-2013-06 - 787-10 LAUNCH."

Among the customers launching the program are Air Lease Corporation (ALE) (30 airplanes), United Airlines (UAL) (20), British Airways (BAB) (12), Singapore Airlines (SIA) (30) and GECAS (GEF) (ten). All of the orders are new commitments except ten of the 20 (UAL) airplanes, which have been rolled over from a previous 787 order and converted into the larger version.

The 787-10 is a 18 ft stretch of the 787-9, allowing room for around +40 additional seats. Boeing (TBC) says it will offer room for around 300 - 330 passengers. The 787-10 will have a range of 7,000 naut mi. “The 787-10 will be the most efficient jetliner in history,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said at the launch event in Paris. “The 787-10 is +25% more efficient than airplanes of its size today and more than >10% better than anything being offered by the competition for the future.”

According to Boeing (TBC), final assembly and flight tests of the 787-10 are both to begin in 2017 with first delivery scheduled for 2018. “The 787-10 will be one of the most powerful wide-body airplanes for decades ahead,” (ALE) Chairman/(CEO), Steven Udvar-Hazy said. In his opinion, the 787-10 will benefit from operational and development experience gained on the 787-8 and the 787-9.

Boeing managed to overcome Hazy’s initial concerns about range by increasing it to 7,000 naut mi. Hazy said that was addressed by introducing a slightly higher maximum take-off weight (MTOW) of 553,000 pounds. Some reinforcements in the wing to body attachment area and on the landing gear were needed to accommodate the increased weight. Engine thrust will also be slightly higher than originally planned. “The range covers 97% of the wide-body city pairs of the world,” Hazy pointed out. Its range will be around 1,500 naut mi more than the 787-9.

The (ALE) (CEO) believes that a lot of 777-200s and Airbus A340s will be replaced by the 787-10. (ALE) is also working with Boeing (TBC) on the 777X, but it is still too early for a launch decision according to Hazy. “It is still under design refinement,” Hazy stated.

Boeing (TBC) closed in on some of the early Airbus momentum at the Paris Air Show, announcing orders for more than >200 of its 737 family airplanes from Ryanair (RYR) and leasing firm, the (CIT) Group (TCI) worth a combined $18 billion.

(RYR) finalized an order for 175 Next-Generation 737-800s, originally announced as a commitment in March. The order, worth $15.6 billion at current list prices, is the largest ever airplane order Boeing has received from a European airline.

"These 175 new airplanes will enable us to lower costs and airfares even further," (RYR) (CEO), Michael O'Leary said, adding that his airline hopes to use the new airplanes to compete with European flag and regional airlines, many of whom are reducing their short-haul operations.

Boeing is bringing the 737 MAX’s entry into service (EIS) date forward by six months and will equip the airplane with an all-new technology cockpit with the same displays as those in the Boeing 787.

July 2013: Boeing (TBC)'s second quarter net profit increased by +13% over the same period 2012 reaching $1.1 billion, as (TBC) reported higher deliveries of its 737 and 787 airplanes.

Revenue from commercial airplanes increased +15% to $13.6 billion, compared to $11.8 billion a year ago. The April - June period was strong enough for the company to raise its 2013 revenue outlook from $82 - $85 billion to $83 - $86 billion.

Jim McNerney, President & (CEO) of (TBC), said its "successful launch of the 787-10 and $40 billion of new orders, while our defense, space and security business delivered improved margins and market share in a tough market."

During the second quarter, Boeing (TBC) recorded 481 net orders, pushing its backlog to 4,800 airplanes worth $339 billion.

The 787 Dreamliner returned to service during the second quarter after being grounded as the result of incidents involving overheating batteries in January. The 787 continues to face scrutiny though, as the (FAA) prepares to require mandatory inspections of the 787's emergency locator transmitter (ELT) system, which is suspected to be the cause of a fire that occurred on an Ethiopian Airlines (ETH) 787 at Heathrow International Airport recently.

The UK Air Accidents Investigation Branch (AAIB) has recommended that the Honeywell (SGC) emergency locator transmitter (ELT) on all in-service 787s be temporarily made “inert” following a recent fire on board an Ethiopian Airlines (ETH) 787-8 at London Heathrow Airport.

In a special bulletin, the (AAIB) said the fire damage suffered by the (ETH) 787 coincided with the location of the (ELT) and its related wiring. “There are no other airplane systems in this vicinity which, with the airplane unpowered, contain stored energy capable of initiating a fire in the area of heat damage,” the bulletin stated. The (AAIB) said it had found “indications of disruption” to the (ELT)’s lithium-manganese dioxide batteries, although it was unclear whether the combustion was triggered by the batteries themselves or by an external cause, such as an electrical short circuit. “Detailed examination of the (ELT) and the possible mechanisms for the initiation and sustaining of the fire in this airplane continues.”

Over 6,000 (ELT)s of this design have been fitted to a wide range of airplanes and the (AAIB) said this was the “only significant thermal event” to date, making it “extremely rare.” However, the (AAIB) cautioned that a similar event in-flight could pose “a significant safety concern” given that the space above the cabin ceiling is not typically equipped with fire detection or suppression equipment.

“It is recommended that the [FAA] initiate action for making inert the Honeywell International (SGC) RESCU406AFN fixed emergency locator transmitter system in 787s until appropriate airworthiness actions can be completed,” the (AAIB) bulletin said. It also recommended that the (FAA) and other regulatory authorities perform a safety review of lithium-powered (ELT) installations on other airplane types and take airworthiness action where needed.

Boeing (TBC) issued a statement saying it supported the two recommendations, which it described as “reasonable precautionary measures” during the ongoing investigation. “We are confident the 787 is safe and we stand behind its overall integrity,” (TBC) said.

The (ETH) 787 suffered “extensive heat damage” to its upper rear fuselage from the July 12 incident, including “significant” damage to its insulation and composite structure. Smoke from the parked, unoccupied airplane was spotted by the air traffic control (ATC) tower. Fire crews on the scene “encountered thick smoke” in the cabin and saw “indications of fire” above the ceiling panels. The panels were removed and the fire was extinguished.

Boeing (TBC) announced the completion of firm configuration for its 737 MAX 8 passenger airplane, which is scheduled to final assembly beginning in 2015. The configuration includes (LEAP-1B) engines, a redesigned tail cone, Boeing's winglets and upgraded flight deck displays.

The 737 MAX will be able to fly up to 3,500 nautical miles, an increase of +400 to +540 nautical miles over the Next-Generation 737.
First delivery of the 737 MAX 8 is scheduled for the third quarter of 2017.

See video "ALL BOEING JET AIRPLANES 707 TO 787" - -

August 2013: "Boeing (TBC) Forecasts Increased Global Demand for Airline Pilots."

Half a million new pilots (FC) are needed to support projected airplane deliveries:
- Demand for maintenance technicians (MT) remains strong.

Boeing (TBC) projects the commercial aviation industry will need more than >1 million new pilots (FC) and maintenance technicians (MT) to support the expanding demand for new airplane deliveries over the next two decades. Projected pilot (FC) demand is increasing worldwide, as is demand for technicians in some regions. At an event marking the launch of 787 Flight Training at the Boeing Flight Services campus in Miami, (TBC) released the 2013 Pilot & Maintenance Technician Outlook: — a respected industry forecast of aviation personnel. The outlook indicates that by 2032 the world will require:

* 498,000 new commercial airline pilots (FC)
* 556,000 new commercial airline maintenance technicians (MT)

“The urgent demand for competent aviation personnel is a global issue that is here now and is very real,” said Sherry Carbary, VP Boeing Flight Services. “The key to closing the pilot (FC) and maintenance technician (MT) gap in our industry, is enhancing our training with the latest, cutting-edge technologies to attract and retain young people interested in careers in aviation.”

The 2013 outlook projects significant increases in pilot (FC) demand (compared to previous forecasts) in all regions except Europe, which declined slightly over last year’s outlook. Overall, the demand is driven by steadily increasing airplane deliveries, particularly single-aisle airplanes, and represents a global requirement for about 25,000 new pilots (FC) annually.

Global demand for maintenance technicians (MT) remains significant, at approximately 28,000 new maintenance technicians (MT) required annually. However, the introduction of more efficient and smarter airplanes will require fewer mechanics (MT) over time, as aging airplanes (which typically require more maintenance) are retired from service. New airplane technologies, featuring more advanced components are likely to lead in some areas to lower maintenance requirements and corresponding lower technician demand.

Projected demand for new pilots (FC) and maintenance technicians (MT) by global region:

* Asia Pacific – 192,300 pilots (FC) and 215,300 maintenance technicians (MT)
* Europe – 99,700 pilots (FC) and 108,200 maintenance technicians (MT)
* North America – 85,700 pilots (FC) and 97,900 maintenance technicians (MT)
* Latin America – 48,600 pilots (FC) and 47,600 maintenance technicians (MT)
* Middle East – 40,000 pilots (FC) and 53,100 maintenance technicians
* Africa – 16,500 pilots (FC) and 15,900 maintenance technicians (MT)
* Russia and the (CIS) – 15,200 pilots (FC) and 18,000 maintenance technicians (MT).

“This is a global issue that can only be addressed by industry-wide innovation and solutions,” said Carbary. “We need to attract more young people to careers in aviation by continually looking at innovative ways to train pilots (FC) and maintenance technicians (MT), moving away from paper and chalkboard-based learning to incorporate tablets, eBooks, gaming technology and three-dimensional models. Aviation is a great field to be in — - we have a responsibility to make sure it’s a viable career option for the world’s youth.”

Boeing (TBC) this month marked the launch of 787 Customer Training in Miami, site of the company’s largest commercial aviation training campus. Aeromexico (AMX) and (LAN) Airlines are the first two customers to train on the 787 suites at the Boeing Flight Services Miami campus.

At an event attended by Florida Governor, Rick Scott as well as a number of other federal, state and local officials, community leaders and airline customers, Boeing (TBC) also established Miami as its pro forma flight training campus for the Americas: — the location where airline crews will receive the initial training provided to Boeing (TBC) customers for new model airplane introductions.

“Miami has always been an important Boeing (TBC) training campus and the largest campus in our global network. Now it will also play an expanded role in training the pilots and technicians who will fly and maintain the groundbreaking 787 Dreamliner,” said Sherry Carbary, VP Boeing Flight Services. “Miami’s location at the crossroads of the Americas offers tremendous advantages as a preferred location for airlines based in Latin America, Canada, and the United States. Customers also travel from Europe, Africa, the Middle East, and China to conduct training in Miami.”

Boeing (TBC) has greatly enhanced its overall training capability in Florida following an announcement in March 2013 that the company would relocate training devices from Seattle to Miami. To better serve airlines and meet growing personnel training requirements, two 787 full-flight simulators are now located at the Miami campus as well as an additional Next-Generation 737 full-flight simulator and 717, 747 and 767 simulators. An additional 777 simulator will locate in Miami later this year. These seven devices will bring total capability in Miami to 17 full-flight simulators across airplane types, making the campus one of the largest commercial flight training facilities in the world.

“Aeromexico (AMX) sees the expanded capabilities at the Miami campus as a very positive move,” said Max Alvarez, VP Fleet Negotiations, Aeromexico (AMX). “This is a very beneficial development that will allow a savings in transportation times and associated costs for our airline.”

The consolidation of Boeing flight training campuses in the Americas is designed to bring training closer to where customers operate, reducing travel times for airline crews and the costs of sending students for training. Miami is an international hub for commercial aviation training and provides geographic diversity within the framework of Boeing (TBC)’s global commercial training network – and convenience that airlines prefer.

“Boeing is adding nearly $100 million in training assets to the Miami campus, representing a significant positive impact for the local Miami-Dade economy,” Carbary said. “The result will be a premier state-of-the-art training campus staffed by world-class qualified and experienced pilots (FC) and instructors, all providing the highest quality training in a well-established, flexible and productive work environment.”

Boeing Flight Services, a business unit of Commercial Aviation Services, operates a geographically diverse network of 20 flight and maintenance training campuses on six continents. In addition to Miami, Boeing (TBC) offers 787 training in strategically located campuses in Singapore, Shanghai, and London.

Boeing (TBC) selected (UTC) Aerospace Systems, a unit of United Technologies Corporation in Hartford, Connecticut, to manufacture landing gear for the new Boeing 737 MAX. (UTC) Aerospace Systems will provide the nose and main landing gear, in addition to the main gear side struts. (UTC) Aerospace Systems also provides landing gear for the Boeing Next-Generation 737, 747, 767, and 777.

(UTC) Aerospace Systems will manufacture the 737 MAX landing gear in several of its facilities in North America and Poland. More than >1,400 orders currently exist for the new airplane, with the first delivery of the 737 MAX planned for 2017. (UTC) Aerospace Systems designs, manufactures, and services integrated systems and components for the aerospace and defense industries.

Boeing (TBC) is targeting a launch date for a newly improved version of its long-range 777 airplane, the 777X, by the end of the year. (TBC) expects the 777X to enter into service (EIS) by 2020.

There are currently two planned variants for the 777X: the 777-8X in a 350-seat configuration and the 777-9X in a 400-seat configuration. The wide-body jet will be a competitor to the Airbus (EDS) A350 XWB, which is scheduled to enter into service next year. The 777X will have greater range capability than the A350-1000, which enters into service in 2017, and will have about -20% lower fuel consumption and -15% lower operating costs than today's 777.

(TBC) does not currently have a list price in mind for the 777X. Currently, the price tag for the 777-300ER, its largest variant of the existing 777 model, is $315 million.

Boeing (TBC) delivered a Next-Generation 737-800 to Iraqi Airways (IRQ), the first of 30 that (IRQ) ordered in 2008. With this delivery, (IRQ) currently has 39 (TBC) airplanes on order, including 29 Next-Generation 737-800s and 10 787 Dreamliners.

The Next-Generation 737 family has won orders for more than >6,500 airplanes, while the 737 family has surpassed >11,000 orders to date. Boeing (TBC) has delivered more than >7,600 737s (including more than >4,500 Next-Generation 737s) and currently has more than >3,400 unfilled orders for 737s (through July 2013).

See video "TBC-747-8IF - INTRO") - -

See video "TBC-BUILDING THE 777 - EPISODE 1" - -

See video "TBC-BUILDING THE 777 - EPISODE 2" - -

See video "TBC-BUILDING THE 777 - EPISODE 3" - -

See video "TBC-BUILDING THE 777 - EPISODE 4" - -

See video "TBC-BUILDING THE 777 - EPISODE 5 - -

September 2013: Boeing (TBC) said its subsidiary Jeppesen is teaming up with multiple pilot (FC) training centers worldwide to guide cadets through the initial [ab initio] stage of training to become professional pilots (FC). “The Jeppesen pilot (FC) training program is the first step in Boeing (TBC)’s flight training program that will advance student pilots (FC) through several stages of training from inexperienced newcomers to becoming licensed commercial pilots (FC),” Boeing (TBC) said.

“With the growing near-term demand for aviation personnel the industry needs a strong training program to provide the proper foundation for a dynamic new generation of pilots (FC) and technicians (MT),” Boeing Flight Services VP, Sherry Carbary said. “The Jeppesen ab initio pilot (FC) training program establishes the first step of the pilot (FC) development process and builds on the Boeing (TBC) and Jeppesen expertise in aviation training to offer customers the advantage of a full-service platform for student training and career development.”

* Boeing (TBC) has released an iPad airplane Maintenance App:

Boeing (TBC) has released a suite of new mobile applications for the iPad to give airplane Maintenance Technicians (MT) easier access to manuals, part numbers and other critical information required for maintenance checks. (TBC) worked with several airlines to develop the new application, which allows technicians to update airplane reference manuals and share information about maintenance issues with peers in real time. "Data-driven optimization across flight operations, airspace and maintenance operations is saving airplane operators millions of dollars in operating costs today. This is an exciting new chapter of that journey," said John Maggiore, Director Fleet & Maintenance Solutions at Boeing Digital Aviation.

Norwegian Air Shuttle (NWG) has confirmed reports it has summoned Boeing management representatives to Oslo later this week to address reliability issues that have dogged (NWA)’s two new 787 Dreamliners.

(NWG) said a number of teething problems had forced it to ground the new 787s, the first of which was delivered in late June, several times over recent weeks, causing unacceptable disruption and delay for passengers. A (NWG) spokesperson confirmed these problems included brakes, hydraulic pump and power issues. Further problems last weekend (understood to have involved oxygen supply to the cockpit and a valve problem) have prompted (NWG) to call the meeting later this week.

(NWG) Senior VP Corporate Communications, Anne-Sissel Skånvik said: “We will tell Boeing (TBC) that this situation is far from good enough. We have not had the reliability that we had expected from brand new planes, so something must happen, fast. Our expectation is that their strict quality control systems rule out ‘snag’ and technical issues before delivery to the customer.”

Boeing (TBC) responded: “Boeing is working with Norwegian to address issues. We are disappointed to have issues so early in our 787 operations. We regret the disruption caused to Norwegian and its passengers. We are committed to improving the 787’s in-service dispatch reliability and are applying the resources required to achieve the results that we and our customers expect. We have a significant focus on component reliability improvements and are working airline-by-airline to ensure we have the right support in place to help each airline through the entry-into-service (EIS) process.”

Boeing also said its 787 fleet is averaging about 175 revenue flights per day, has flown more than >12,000 revenue flights since return to service in April, and more than >30,000 revenue flights since the 787 entered service.

(NWG) has ordered eight 787 Dreamliners, the third of which is due to be delivered in 2013, with a further four in 2014 and one in 2015.

Boeing (TBC) has agreed to base a team of 787 Dreamliner technicians in Oslo following a troubleshooting meeting with (NWG). (TBC) also said it will set up more spare parts centers to address any further problems that might arise.

The Boeing (TBC) team, which included Commercial Airplanes (BCA) President & (CEO), Ray Conner, was summoned to the Norwegian capital by (NWG) to discuss reliability issues that have overshadowed the entry into service (EIS) of (NWG)’s first two of eight new 787s.

(NWG) (CEO), Bjørn Kjos told reporters: “It was a positive discussion. They agreed to put up spare part stocks at designations we fly to and they’ll send a dedicated team of experts to (NWG) so if there’s a problem popping up, they can immediately solve it.”

A Boeing spokesman said: “How the 787 performs in service for our customers is paramount for the entire Boeing team. Any impact to our customers’ operations is not satisfactory. Our focus is working in partnership with (NWG) to address the 787 issues it is experiencing.”

Although compensation was not discussed at the meeting, Kjos indicated the issue is not closed. “Most important is to have the airplanes running before we know the cost, that’s at a later stage,” he said.

(NWG) has had to ground the new 787s, the first of which was delivered in late June, several times over recent weeks, causing unacceptable disruption and delay for passengers. One of the two 787s was again grounded by a hydraulic pump failure in Bangkok, according to a "Reuters" report.

Boeing (TBC) flew the 787-9 for the first time on Tuesday, September 17th. The 787-9 is 20 feet longer than the 787-8 and carries +40 more passengers. It also has a range that is +300 nm farther than the 787-8. Launch customer Air New Zealand is scheduled to take delivery of its first 787-9 in mid-2014.

“It’s a beautiful machine,” Boeing Commercial Airplanes President & (CEO) Ray Conner said on a webcast shortly after takeoff. The 787-9 variant is “going to be the backbone of the 787 fleet,” he added.

SEE ATTACHED - - "TBC-2013-09 - 1ST 787-9 FLIGHT-A/B."

Lufthansa (DLH) announced the largest airplane order in its company history, an $18.9 billion order for 34 Boeing 777-9Xs and 25/30 Airbus A350-900s, to renew its future long-haul fleet.

The launch of the 777X family is targeted for later this year and entry into service (EIS) around the end of the decade. Advanced technology, including a new composite wing, all-new engines and superior aerodynamics will result in the incredible fuel efficiency promised by the 777X family. The 777-9X, with around 400 seats, will be the largest and most efficient twin-engine commercial jet in the world with the lowest operating cost per seat of any commercial airplane and no competitor in its market segment.

“We are focused on developing and delivering a superior airplane that ensures the 777 remains the unequivocal long-haul leader,” said John Wojick, Senior VP Global Sales, Boeing Commercial Airplanes. “With its new engines and an all-new composite wing design, the 777X will be the largest and most-efficient twin engine jet in the world with -20% lower fuel consumption and -15% lower operating costs than today’s 777. Boeing (TBC) is delighted that (DLH) is continuing its longstanding partnership with (TBC) by selecting the 777X for its future fleet development.”

“(TBC) and (DLH) share more than >50 years of partnership and innovation and a tradition of launching new airplane models: – starting with the original 737s, and most recently, the efficient 747-8I Intercontinental,” said Nico Buchholz, Executive VP & Head of Fleet, (DLH). “(DLH) is demonstrating its legacy of innovation and market leadership again with its selection of the 777X. We look forward to many years of partnership with Boeing (TBC), as we make air travel more efficient, comfortable and environmentally sustainable with airplanes such as the 777X.”

Earlier this year, the Lufthansa Group ordered six 777-300ERs for the fleet of Swiss International Airlines (CSR). Boeing (TBC) will deliver the first of Lufthansa Cargo (LUB)’s five new 777F Freighters later this year.

Lufthansa (DLH) today operates 93 Boeing (TBC) airplanes within its group fleets.

Air Transport World (ATW) magazine reader, David Gregor sent this beautiful shot of the rollout of Qantas (QAN) (VH-EBA) in February 1959. This is one of three Boeing 707-138s still around. SEE PHOTO - - "TBC-707-138 - 2013-09."

Qantas (QAN) was the first airline outside the USA to buy the Boeing 707, and 13 were built for (QAN). The airplane shown in the picture was the 29th Boeing 707 built.

The airline’s first 707-138 entered service on Sydney - San Francisco on July 29, 1959.

The last 707-138 built, (VH-EBM), is owned and operated by actor, John Travolta and is painted in its last Qantas (QAN) colors registered as (N707JT).

The airplane shown was restored by the "(QFM) 707 Restoration" project, a group consisting of current and retired Qantas (QAN) staff.

Reader David Gregor began as an engineer (MT) at Qantas (QAN) in January 1964, six months before the last two 707-138s were delivered. He was part of the restoration team. This airplane was restored in England, and in 2006 it was flown home to Sydney via the USA. At that time, it was the oldest airworthy commercial jet. It now resides at the Qantas (QAN) Founder Museum at Longreach Queensland, but under a different registration.

October 2013: Boeing (TBC) has reported a strong third-quarter financial performance, with a net profit of +$1.2 billion, up +12% over the same period a year ago.

Boeing (TBC) recently completed the first Required Navigation Performance Authorization Required (RNP AR) demonstration flights at Kanas Airport in China, as (TBC) looks to assist airlines flying in low visibility conditions in the region. Kanas Airport is located in the Altay Mountains region of China, an area where weather conditions often lead to flights diverted to other airports or cancelled altogether. Boeing (TBC) and China Southern Airlines (GUN) conducted demonstration (RNP AR) flights using a Next-Generation 737 passenger jet.

(RNP AR) uses on board avionics and Global Navigation Satellite Systems (GNSS) to allow pilots (FC) to fly predefined flight paths with no assistance from ground-based navigational aids. The curved approach paths enabled by (RNP AR) allows airplanes to avoid difficult terrain and complete landings in low visibility conditions.
Chuck Steigerwald, manager of Boeing Airspace Solutions said the procedures will help airlines flying into Kanas Airport to "enhance safety and improve their bottom line efficiency." China Southern (GUN) is seeking Civil Aviation Administration of China (CAAC) approval of the new procedures, which will be the first (RNP AR) procedures in China to use (RNP) levels of less than <0.2 nautical miles.

Boeing Commercial Airplanes (BCA) is restructuring its Marketing & Business Development unit following the unexpected announcement by Mike Bair (the executive who leads the current Strategic, Planning & Marketing group) that he is to retire.

Bair, who is 57, was named Senior VP Marketing in February 2012 following a period as leader of the 737 Product Development group in the run up to the launch of the 737 MAX. Before that, he was VP Business Strategy & Marketing for Boeing Commercial Airplanes, but is best remembered for his role as VP & General Manager of the 787 program.

After he joined the company in 1979 as an engineer on the 767, Bair rose through the ranks until in 2000 he took the lead in marketing Boeing’s future products. A key player in the events that led to the cancellation of the 747X, a predecessor to the radically different 747-8, Bair also oversaw the birth and death of the Sonic Cruiser and the subsequent launch of the 787.

Bair was appointed VP & General Manager of the 7E7 program in January 2003, and was tasked with building the business case to launch the first all-new Boeing airliner in a decade. This included finding risk-sharing partners, running a hotly debated competition for the final assembly site and finding customers.

He led the program through its formative years and its formal launch as the 787, until it hit major delays and development issues in 2007 and 2008. Scott Fancher, the current VP & General Manager of the recently formed Airplane Development organization, took the reins of the troubled 787 program from Bair in December 2008.

With Bair’s departure, Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner has decided to revise the management structure.

Marketing will now go to the Sales group led by VP Marketing, Randy Tinseth, who in turn, reports to Senior VP Global Sales, John Wojick. The strategy elements, including Products, Environment & International Business Ddevelopment, will be folded into the Finance group led by Kevin Schemm, who will be head of Finance & Strategy.

Boeing (TBC) signed an agreement with South African Airways (SAA) to launch development of a sustainable aviation biofuel chain in Southern Africa. The agreement was signed during the Corporate Council on Africa's 9th Biennial USA - Africa Business conference. (TBC) and (SAA) are looking to research new developments in technology that they believe will enable the conversion of biomass into jet fuel. "Sustainable aviation biofuel will play a central role in reducing commercial aviation's carbon emissions over the long term, and we see tremendous potential for these fuels in Africa," said Julie Felgar, Managing Director Environmental Strategy & Integration at Boeing (TBC).

Felgar said the new partnership will research feedstocks and other organic sources in South Africa to begin developing a biofuel supply chain for airlines within the region. The project is being monitored by the World Wildlife Fund-South Africa. The two companies did not mention a projected date when they will begin producing biofuel.

Teledyne Controls has been awarded a landmark contract by Boeing (TBC) to develop and supply the next generation of airplane data acquisition systems for the 737 and 737 MAX and the new information management system (IMS) for the 777, 737, 737 MAX and 747-8 production airplanes.

Boeing (TBC) reported 170 commercial airplane deliveries during the third-quarter, comprised of 112 737 NGs, four 747s, five 767s, 26 777s and 23 787s. (TBC)’s 170 deliveries represent an overall +14.1% increase in third-quarter deliveries for the company, compared to the year-ago quarter. Deliveries of 787s nearly doubled, and 737 deliveries increased by +9.8% year-over-year.

Among (TBC)’s third-quarter deliveries to the world’s regions, 79 airplanes went to the Asia-Pacific region (53 to East Asia, 15 to Southeast Asia, five each to Oceania and South Asia, and one to Central Asia). (TBC) said 44 airplanes went to North America; 24 went to Europe; 11 went to Africa/Middle East (nine to the Middle East, two to Africa); and 12 went to Latin America/Caribbean (nine to South America and three to Central America/Mexico).

China Southern Airlines (GUN) took delivery of 13 airplanes, receiving nine 737-800s, two 777Fs and two 787-8s. American Airlines (AAL) received eight 737-800s and one 777-300ER. United Airlines (UAL) took delivery of six 737-900ERs and one 787-8.

During the third-quarter, (TBC) delivered 95 737-800s to 35 separate air carriers and lessors in 18 countries (China received 29 airplanes; the USA took 25).

Of the 23 787 third-quarter deliveries, All Nippon Airways (ANA) and Hainan Airlines (HNA) each received three; British Airways (BAB), China Southern (GUN), Japan Airlines (JAL)/(JAS), Qatar Airways (QTA) and lessor (ILFC) received two each; and Air India (AIN)/(IND), Ethiopian Airlines (ETH), (LAN) Airlines, (LOT) Polish Airlines, Qantas (QAN), (UAL) and British leisure travel company (TUI) Travel (TUG) each took delivery of one 787 Dreamliner.

In contrast, with its defense business, (TBC) was able to make year-over-year airplane delivery gains despite major government budget cuts to defense spending in the USA and other nations. (TBC) delivered 42 military airplanes in the third quarter, compared to 33 deliveries for the third quarter of 2012.

Royal Brunei Airlines (RBA) has taken delivery of the first of five Boeing 787s scheduled for (RBA)’s long-haul fleet expansion plan. On October 2, the 787 flew nonstop from Boeing (TBC) to Bandar Seri Begawan International Airport in Brunei.

Royal Brunei (RBA) is scheduled to start operating the 787 to Singapore from October 18, with long-haul service to London, via Dubai, set to begin December 1. (RBA) plans to use the 787 for services to Melbourne, Australia, in the 2014 second quarter.

The Boeing Company (TBC) has secured commitments for around 200 of its 737 Max airplanes, the upgraded variant of its best-selling short-haul planes, from multiple Chinese customers, said two sources familiar with the deals.

The deals are worth a combined $20.7 billion at list prices and must be approved by the Chinese government, a usual practice for airplane orders in the country, before the customers can be identified, the sources said.

These are the first commitments for the 737 Max from China, the world’s fastest-growing airline market. Officials from both (TBC) and Airbus (EDS), which makes the A320 that competes with the 737, have said China is likely to overtake the United States as the world’s largest market over the next 20 years.

The commitments come from a range of customers including state-owned airlines via the national procurement agency, China Aviation Supplies Holding Company (CSC), as well as leasing firms associated with the country’s banks, the sources said.

Boeing (TBC) will boost 737 production to 47 airplanes per month in 2017, the latest build-rate increase (TBC) has announced on its narrow body line. (TBC) began producing 38 737NGs per month early this year and the rate is expected to rise to 42 per month in the first half of next year. By 2017, when the company is scheduled to deliver its first re-engined 737 MAX airplanes, the 737 program “will build more than >560 airplanes per year and will have increased output by nearly +50% since 2010.”

Boeing (TBC) VP & General Manager 737 Program, Beverly Wyse said, “Our employees and our suppliers have successfully increased the production rate to unmatched levels over the last three years. This increase will lay a solid foundation as we bridge into production on the 737 MAX.”

(TBC) currently has more than >3,400 unfilled orders across the 737 family, including more than >1,600 orders for the 737 MAX.

November 2013: News Item A-1: See video "TBC-JFK AIR FORCE ONE" - -

See video "TBC-777-X Potential" - -

News Item A-2: Boeing (TBC), the leadership of the company’s largest union, and Washington state governor Jay Inslee have tentatively agreed on a range of terms under which the 777X will be built at Boeing Commercial Airplanes’ manufacturing facilities in the Seattle area.

The rank-and-file membership of the International Association of Machinists & Aerospace Workers (IAM) District 751, which represents more than >35,000 Boeing (BCA) workers in the Seattle area, will vote on a proposed labor contract extension through 2024. And the Washington state legislature is being called on by Inslee to vote on a package including tax incentives for Boeing (TBC) to build the 777X in Washington.

Negative votes by the union membership or the state legislature could potentially derail Boeing (TBC)’s plans to produce the 777X, which it plans to formally launch by the end of this year in Washington state. But all parties involved are expressing confidence the voting will go Boeing (TBC)’s way.

Later, Boeing union workers in Washington state voted to reject the proposed labor contract extension, casting doubt on whether the 777X will be built at Boeing Commercial Airplanes’ facilities in the Seattle area. The rank-and-file membership of the International Association of Machinists & Aerospace Workers (IAM) District 751 voted by a 67% to 33% margin to reject an eight-year labor contract extension to 2024. Boeing had already won significant tax incentives from Washington state lawmakers to build the 777X in the Seattle area, and indicated that a positive vote by (IAM) workers would cement 777X production in Washington state.

But after the workers rejected the labor deal, Boeing Commercial Airplanes President & (CEO), Ray Conner said that the company is “left with no choice but to open the process competitively and pursue all options for [a location to build] the 777X. We had hoped for a different outcome.”

Was it really not that long ago that we had the Boeing merger with McDonnell Douglas. Not long after that, we had to endure the misfortune of having Harry Stonecipher heading up Boeing and had to suffer through Boeing going "Global" and relocating upper management to its new HQ in Chicago.

Then after surviving the consequences of "9/11," Alan Mulally, President and (CEO) of Boeing Commercial Airplanes left the company in 2006 after 37 years to take over the top spot at the troubled Ford Motor Company. Alan Mulally had led the development of the 777 and was named President in 1998. He added the (CEO) title in 2001.

Jim McNerney, Chairman, President and (CEO), the Boeing Company, based in Chicago steered the company and started the South Carolina 787 assembly line.

The 2:1 rejection by our local Machinists of the Boeing "insulting" offer makes our true local Puget Sound Boeing aviation supporters wish that we could have Alan Mullaly return as the "white knight" we need in this sorry debacle to save the Boeing Airplane Company, replace McNerney and return our company's HQ to its proper location in the Puget Sound area. There have been rumors of Alan Mullaly being offered the vacant (CEO) of local Microsoft. Yes Alan, you've proved you can save a major US company like Ford, and you could of course do the job at Microsoft, but Alan, please, please come home to where you belong!

(TBC) completed test flight of 2nd 787-9 (ZB002). Boeing (TBC) has received 396 orders for the 787-9.

Boeing (TBC) has certified a Teledyne Controls fifth generation Airplane Wireless (LAN) Unit (AWLU) as a buyer furnished equipment (BFE) option for installation on all new 777 production airplanes.

The (AWLU) enables the secure, reliable and cost-effective transfer of data to and from the airplane. In this 777 application, the (AWLU) provides the wireless transfer of electronic flight bag (EFB) and/or on board networking system applications data.

Mobile satellite communications specialist, Inmarsat has announced the first of its Global Xpress satellites (designated Inmarsat-5 F1) has traveled from California to the launch site in Kazakhstan. The Global Xpress network will power GX Aviation, the world’s first global Ka-band high-speed satellite network specifically designed for mobile assets, with jet airplanes a target market. “The imminent launch of the first satellite brings the introduction of GX Aviation much closer,” Inmarsat President Aviation, Miranda Mills said. “We have our network of distribution partners in place and we know from our conversations with airlines and (VIP) operators that there is strong demand for high bandwidth in-flight connectivity. The good news is they don’t have long to wait: the GX program is on track for introduction in 2015.”

According to Inmarsat, the 6,100 kg spacecraft departed from Los Angeles International Airport on November 9 aboard an Antonov AN-124 heavy transporter and is scheduled to arrive at the Baikonur Cosmodrome, approximately 2,100 km/1,300 miles southeast of Moscow.

The spacecraft was constructed at Boeing (TBC)’s El Segundo facility in California and is the first of three Global Xpress satellites scheduled to be launched on behalf of Inmarsat by International Launch Services (ILS). Inmarsat-5 F1 is scheduled for launch in December by a Proton Breeze M launch vehicle.

The second satellite is in the final stages of construction and testing. It is scheduled for launch in the first half of next year, with the third being launched towards the end of 2014. GX Aviation is on schedule to be available for both commercial and (VIP) airplanes in 2015. In addition, Inmarsat has recently ordered a fourth I-5 satellite from Boeing (TBC).

Boeing (TBC) formally launched the 777X with orders and commitments by four airlines for 259 airplanes. SEE ATTACHED - - "TBC-2013-11 - 777X LAUNCH."

Highlights!

* First twin-aisle launch in history to achieve 259 orders and commitments;

* 777X will be the largest, most-efficient twin-engine jet in the world;

* Emirates (EAD), Etihad Airways (EHD), Lufthansa (DLH) and Qatar Airways (QTA) commit to 777X;

* The 777X advances the world’s most efficient, flexible twin-aisle family.

The combined value of the agreements is more than >$95 billion at list prices. The 777X builds on the passenger-preferred and market-leading 777, which today commands 55% of market share in its category in terms of backlog, and 71% of the in-service fleet world wide. The 777X family includes the 777-8X and the 777-9X, both designed to respond to market needs and customer preferences.

The 777X builds on the best-in-class dispatch reliability from today’s 777, as well as offering more market coverage and revenue capability that surpasses the competition. The 777-8X competes directly with the A350-1000, while the 777-9X is in a class by itself.

Opening new growth opportunities for airlines, the 777-9X offers seating for more than >400 passengers, depending on an airline’s configuration choices. With a range of more than >8,200 nautical miles/15,185 km, the airplane will have the lowest operating cost per seat of any commercial airplane.

The second member of the family, the 777-8X, will be the most flexible jet in the world. The airplane will seat 350 passengers and offer an incredible range capability of more than >9,300 nautical miles/17,220 km. In addition, the airplane will have unmatched takeoff and payload capability compared to the competition.

The 777X introduces the latest technologies in multiple places, including the most advanced commercial engine ever (the (GE9X) by (GE) Aviation (GEC)) and an all-new, high-efficiency composite wing that has a longer span than today’s 777. The airplane’s folding, raked wingtip and optimized span deliver greater efficiency, significant fuel savings and complete airport gate compatibility.

Like the 787 Dreamliner, which was launched as the "7E7," the 777X will be formally named at a later date. Design of the 777X is underway and suppliers will be named in the coming months. Production is set to begin in 2017, with first delivery targeted for 2020.

At the Dubai Air Show, Emirates (EAD) announced it had signed up for 150 777Xs and placed 50 purchase rights. The 777Xs are powered by the General Electric (GE9X) engine.

Etihad Airways (EHD) has placed an order for 25 Boeing 777Xs, 30 Boeing 787-10s and one 777F freighter at the Dubai air show. The order for 25 777Xs covers 17 777-9Xs and eight 777-8Xs. (EHD) is the first carrier to order the 777-8X and will be launch customer of the airplane, which Boeing (TBC) says is expected to arrive around the end of the decade. It has also taken options and purchase rights on 12 more of the type.

Qatar Airways (QTA) signed a letter of intent (LOI) for 50 777-9Xs. The 777Xs are powered by the General Electric (GE9X) engine. (QTA) (CEO), Akbar Al Baker, said the 777-9X was Qatar Airways (QTA)’s “flagship airplane,” adding that the order was valued at $19 billion.

(EHD) has also placed options and purchase rights on 12 787-10s, on top of the firm order for 30 of the type. (EHD) already has 41 787-9s on order. (EHD) has also taken two options on two additional 777F freighters.

* The 787 has reached an order milestone faster than any other wide body airplane in history;

* Etihad Airways (EHD) has become the world’s largest airline customer of the 787 Dreamliner!!!

The Boeing 787 Dreamliner received its 1,000th customer order when Etihad Airways (EHD) announced its order for 30 787-10 Dreamliners, valued at $8.7 billion at list prices.

Launched in April 2004, the 787 family received its 1000th order in approximately nine years, about eight years faster than the popular Boeing 777. Including this latest announcement, the 787 Dreamliner has accumulated 1,012 orders from 60 customers world wide. (EHD) now has 71 787 Dreamliners on order and is the world’s largest airline customer for the airplane.

In addition to bringing big-jet ranges to midsize airplanes, the 787 family provides airlines with unmatched fuel efficiency, resulting in exceptional environmental performance. The airplane uses at least -20% less fuel with -20% fewer emissions than today’s similarly sized airplanes. Airlines also realize more cargo revenue capacity (a 20 to 45% advantage over similarly sized airplanes).

The first member of the family, the 787-8, entered service in September 2011, and the longer 787-9 is in testing and on track to deliver in mid-2014. To date, 102 787 Dreamliners have been delivered to 16 customers around the world.

The 787-10 will be the third and longest member of the family. With its greater passenger and cargo capacity and high degree of commonality, the 787-10 will set a new benchmark for fuel efficiency and operating economics. The 787-10 will be +25% more efficient than airplanes of its size today and more than >10% better than anything offered by the competition for the future. Final assembly and flight test of the 787-10 are set to begin in 2017, with first delivery targeted for 2018.

Also at the Dubai Air Show, Flydubai (FDB) stated it will order 100 737 Max twinjets as well as +11 more 737NGs, a type (FDB) already operates. The 737 Max will be powered by the (CFM) International (Leap-1B).

Flydubai (FDB) will begin taking delivery of its newly ordered Boeing 737 Max aircraft in the second half of 2017. (FDB) ordered up to 100 of the type (75 of them firm) together with +11 more 737-800s. Deliveries of the 737 Max airplanes will run until 2023.

(FDB) placed a launch order of 50 737-800s in 2008 and already operates 33 of the type on a network serving 65 destinations. The remaining airplanes from this order will be delivered by 2015. The additional 737-800s ordered will follow in 2016 - 2017.

Sheikh Ahmed bin Saeed Al Maktoum said: "Today’s commitment for an order for up to 111 airplanes from Boeing (TBC) signifies the strength of (FDB)’s business model and the still untapped opportunity to connect previously under-served markets to Dubai. This acquisition will support Flydubai (FDB)’s ambitions going forward.

The order marks Boeing (TBC)'s largest single-aisle order from a Middle East carrier.

The (FAA) is poised to order airlines to avoid flying 787 Dreamliners and 747-8 jumbo jets with General Electric Company (GEC) engines near thunderstorms after some of the planes experienced ice buildup.

An airworthiness directive (AD) due to be released is an “interim action” to ensure pilots (FC) fly clear of icing conditions that could reduce thrust from (GEnx) engines. The USA move follows Japan Airlines (JAL)’s decision to shift to other jets from 787s on some Asia routes. The icing risk adds urgency for pilots (FC) to steer clear of thunderstorms already shunned because of potentially deadly lightning and turbulence. Jets flying at high altitudes through tropical zones can be at risk from powerful storms that promote the formation of performance-sapping ice, according to (GEC). “It’s a relatively rare phenomenon, because it requires just the right meteorological conditions,” Hans Weber, President of San Diego-based aviation consultant, Tecop International Inc, said. “This isn’t a problem that will be limited to (GEC) engines. These crystals have been found in all engines at high altitudes near thunderstorms.”

The 787 Dreamliner, the first jet made chiefly of composite materials, entered service with (ANA) Holdings Inc’s All Nippon Airways (ANA) in October 2011. (ANA), the biggest 787 Dreamliner operator, uses Rolls-Royce Holdings (RRC) engines on its planes.

(JAL)’s 787s have (GEnx) engines, as do the 787S flown by United Airlines (UAL), the only USA airline flying 787s. (UAL) hasn’t changed schedules or routes for its 787s, said Christen David, a spokeswoman.

Atlas Air Worldwide Holdings Inc (AAWW) (TLS), the lone USA operator of 747-8s, adjusted operations after Boeing (TBC)’s November 23 warning for (GEnx)-equipped jets to stay 50 nautical miles/93 kilometers from storms, said Bonnie Rodney, a spokeswoman. Any disruptions for the freighters “will be minimal and can be managed with only minor re-routings,” Rodney said.

Cathay Pacific Airways (CAT), the Hong Kong-based airline, said it has 10 Boeing 747-8Fs in its fleet that are powered by (GEnx) engines. As a precautionary measure, it’s standard operating procedure for 747-8F freighters is to avoid flying into thunderstorms, (CAT) said in an e-mailed response.

“This looks a lot like a classic teething issue,” Richard Aboulafia, an Aerospace analyst at Fairfax, Virginia-based consultant, Teal Group, said by e-mail. “It’s probably isolated to just the engine, and even then just one of the two engines available as options. It’s also probably easily fixed with a software tweak, rather than any kind of hardware modification.”

(GEC) said it’s making software modifications to eliminate the ice-buildup risk and expects them to be available in the first quarter. Marc Birtel, a Boeing (TBC) spokesman, said the engines’ design and maintenance practices, together with the new instructions, allow for the jets’ “continued safe operation.” “The (FAA) has been working closely with Boeing and (GEc) to monitor and understand these events as the companies develop a permanent solution,” the (FAA) said. It didn’t give a specific time for issuing the (AD) on the planes, which only covers USA carriers.

Both the 787 and 747-8 have had bumpy debuts. The 747-8 was two years late in starting service in 2011, and slack demand forced Boeing to cut output. The 787, whose 2011 entry was 3 1/2 years late, was grounded for three months in January after meltdowns in the lithium-ion battery packs on two 787s.

There have been six cases since April of planes with (GEnx) engines temporarily losing thrust in high-altitude icing conditions, (GEC) said November 23. Five were with 747-8s and one was with a 787.

(JAL) will replace 787s on flights between Tokyo and Delhi with 777s until November 30, and will switch to 767s on its Tokyo - Singapore route.

Boeing (TBC) surpassed 1,000 orders for the 787 with its haul at the Dubai Air Show this month. (TBC) handed over 57 of the four-engine 747-8s, through the end of last month, most of which are freighters.
“Airlines wouldn’t be too concerned about engines in terms of costs,” K Ajith, a Singapore-based analyst at (UOB) Kay Hian Pte. “There will be some of sort compensation for airlines. Despite the problems, the airplane is quite popular.”

To contact the reporters on this story: Tim Catts in New York at tcatts1@bloomberg.net; Alan Levin in Washington at alevin24@bloomberg.net

To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net; Bernard Kohn at bkohn2@bloomberg.net

Boeing (TBC)’s third 787-9 test airplane completed its test flight November 19. The 787-9, (ZB021), took off from Paine Field in Everett, Washington and landed 2 hours and 44 minutes later at Seattle’s Boeing Field.

See video "Boeing 777X INTRO" - -

December 2013: Boeing Chairman, President & (CEO), Jim McNerney announced management changes (which become effective December 31) as the company scales up for growth.

Dennis Muilenburg has been promoted to Vice Chairman, President & (COO). Muilenburg (currently Boeing Executive VP & President & (CEO) of Boeing Defense, Space & Security) will join the corporate team in Chicago and will share oversight with McNerney of the day-to-day business operations of the company.

Boeing Commercial Airplane’s Ray Conner has been promoted to Vice Chairman, President & (CEO), Boeing Commercial Airplanes (BCA). Conner has led the Commercial Airplanes (BCA) unit since June 2012 and will remain based in Seattle to continue overseeing that growing business, which now accounts for more than >60% of Boeing revenues.

In addition, the company appointed Boeing Military Airplane President, Christopher Chadwick as Executive VP, President & (CEO), Boeing Defense, Space & Security, replacing Muilenburg. Shelley Lavender will replace Chadwick as the leader of Boeing Military Airplanes. She currently serves as VP & General Manager Integrated Logistics for the Global Services & Support business within Boeing Defense, Space & Security.

“Through a concerted effort, we have developed a deep and highly effective executive team across all levels of Boeing,” McNerney said.

Boeing (TBC) said that Conner and Muilenburg (in their new roles as corporate Vice Chairmen) “will join with McNerney in managing a number of core Boeing corporate processes and activities, and in continuing to drive seamless ‘One Boeing’ strategies and execution across the enterprise.”

Boeing (TBC) has selected UK-based leisure carrier TUI Travel (TUG) as a partner for the next part of its "ecoDemonstrator" program, which aims to accelerate creation and production of sustainable technologies for airplanes. (TBC) has selected its 757 for the program, which will spend the next year being fitted with a selection of innovative technologies and begin technical validation and operational testing in 2015. Also in 2015, the ecoDemonstrator 757 flight test airplane will visit a number of cities in Europe to showcase the new environmental technologies. At the end of the development program, the businesses will test a recycling method for improving recovery and reuse of the airplanes’s materials.

TUI Travel Deputy (CEO), Johan Lundgren said: “The ecoDemonstrator program sets a benchmark in research and development (it has the potential to drive meaningful change in the industry and we look forward to being a part of the program). It is a fantastic example of innovation which plays a significant role in mapping out the future of air travel, not just for Boeing (TBC) and TUI Travel (TUG), but for the industry as a whole.”

TUI Travel (TUG) has a historically strong relationship with Boeing (TBC). On November 19, (TUG) completed an order for two more 787-8s, taking its total commitment to 15 of Boeing’s newest airplane. In May, TUI Travel (TUG) committed to buy 60 737 MAX airplanes, with 90 options. In addition, (TUG) will also retrofit its 737 NG airplanes with Aviation Partners Boeing (APB) new Split Scimitar winglets, with modified airplanes flying from March 2014.

Russia’s Skolkovo Foundation, Industrial Investors and Boeing (TBC) will launch a new aviation training center in Russia in 2015. Transas, an Industrial Investors subsidiary, will provide flight simulators. The training center development is expected to exceed RUB1.5 billion/$45.8 million in the initial stage. The facility, which will be located at Skolkovo Technical Park in the Moscow region, will provide pilot (FC) and maintenance technician (MT) training.

The airplane types have not yet been specified, but experts say initially it could be Boeing 737s, one of the most popular airplanes among Russian companies.

The demand for pilot (FC) and maintenance technician (MT) training for Western-built airplanes in Russia has grown tremendously over the last years as most of the carriers have been replacing their Soviet-era fleets with Boeing and Airbus airplanes. Nearly 90% passengers in Russia are carried by Western-built airplanes.

Boeing has selected (GKN) to manufacture the advanced technology winglet for the 737 MAX. (GKN) will produce the winglets at its Cowes site on the Isle of Wight in the UK; final assembly will be at (GKN)’s facility in Orangeburg, South Carolina.

Air Canada (ACN) has announced an agreement that includes commitments, options and rights to purchase up to 109 737 MAXs. (ACN)
said the order “includes firm orders for 33 737 MAX 8 and 28 737 MAX 9 airplanes with substitution rights between them as well as for the 737 MAX 7 airplane. It also provides for options for 18 airplanes and rights to purchase an additional 30. Deliveries are scheduled to begin in 2017 with two airplanes, 16 airplanes in 2018, 18 airplanes in 2019, 16 airplanes in 2020 and nine airplanes in 2021, subject to deferral and acceleration rights.”

When finalized, Boeing (TBC) said the order is expected to be worth $6.5 billion at current list prices.

Cathay Pacific (CAT) is the first Asian airline to order Boeing’s 777X with a $7 billion order for 21 777-9X airplanes. (CAT) placed the 777X order as part of its future long-haul fleet strategy. Boeing launched the 777X program at the Dubai Airshow with a record 259 orders worth $95 billion at current list prices.

John Slosar, (CEO) at Cathay Pacific Airways, said the 777-9X fits with their fleet expansion, because its improved payload range capability and reduced operating costs compared to the current 777s within its fleet, including the 777-300ER.

The $377 million 777-9X has a range of more than >8,200 nautical miles, powered by (GE9X) engines with capacity for 400 passengers. According to Boeing (TBC), the 777X series’ composite wings, new engines and advanced technologies lead to a -20% reduction in fuel burn over today's model. "We think it will be an ideal fit for long-haul destinations in North America and Europe, in particular those routes where we carry high volumes of passengers and cargo each day. (CAT) is committed to modernizing its fleet to provide a superior experience to passengers," said Slosar.

(CAT) carrier is also expecting the delivery of 12 Boeing 777-300ERs beginning in 2014, and will add 50 of this airplane type to its fleet by 2020. Deliveries of the 777-9X to (CAT) are scheduled to begin in 2021. Boeing (TBC) announced a new order from Cathay Pacific (CAT), on December 27 for an additional 747-8F Freighter and three 777-300ER (Extended Range) airplanes, a $1 billion order at current list prices.

(CAT), Hong Kong’s flag carrier operates 55 777s, including 38 777-300ERs and an all-Boeing freighter fleet that includes 13 747-8F Freighters. With this order, Cathay Pacific will have 21 777-9X airplanes, 15 777-300ERs and one 747-8F Freighter on order with Boeing.

Boeing (TBC) delivered the first 747-8 with performance-improved (GEnx-2B) engines as part of the airplane’s Performance Improvement Package (PIP.) A Cathay Pacific Airways (CAT) 747-8F Freighter was the first 747 to deliver with the (PIP) engines.

The engine is the first of the package’s three improvements to enter service. The two other components, Flight Management Computer (FMC) software upgrades and reactivation of the horizontal tank fuel system on the 747-8I Intercontinental, are expected to enter service later this month and in early 2014, respectively.

“This is a significant milestone for the 747 program. These upgrades are part of our commitment to continually improve the 747-8 for our customers,” said Eric Lindblad, VP & General Manager of the 747 program.

The (PIP) engine improves the airplane’s efficiency by +1.8%. “With this improvement, 747-8 customers will use roughly -30 less semi-sized trucks of fuel per airplane per year,” said Bruce Dickinson, 747-8 Chief Project Engineer & VP.

All three (PIP) components can be retrofitted on the 747-8. The tail fuel reactivation is applicable only for the 747-8 Intercontinental and the (FMC) upgrades can also be made to 747-400s.

Ethiopian Airlines (ETH) is expanding its air cargo fleet with the acquisition of four new Boeing 777-200 LR Freighter airplanes. The purchase will occur under a pre-delivery payment loan financing agreement with the Eastern & Southern African Trade & Development Bank (PTA Bank). Delivery is scheduled to begin in fall 2014.

(ETH) operates the largest cargo fleet in Africa, currently using six dedicated freighter airplanes to 24 destinations in Asia, Europe, Africa and the Middle East. Tewolde Gebremariam, (CEO) of (ETH) said the new airplanes will help support the carrier's newly established cargo hub in Lome, Togo with its partner airline ASKY Airlines (AKY).

"We are phasing in the latest technology cargo airplanes with the aim of supporting Ethiopia's exports and the booming trade between Africa and the rest of the world. The 777-200LRF Freighters have proven capabilities that are ideal for the transport of perishables," said Gebremariam.

Boeing (TBC) has been selected to fulfill a $750 million five-year contract for work on the US Air Force (USF) fleet of B-1 bombers, the Pentagon announced on December 30. The contract includes integrated engineering services such as computer network support, technical analysis, flight safety analysis, and potential enhancement work, according to the US Defense Department digest of major contracts. Also included in the contract are four one-year options and a one-year base period.

January 2014: SEE ATTACHED - - "TBC-2014-01 - BOEING 777X NEWS."

Boeing (TBC) revealed a 747-8F Freighter painted in the livery of the National Football League (NFL)’s Seattle Seahawks. The livery commemorates the team’s National Football Conference Championship and upcoming appearance in Super Bowl XLVIII.

GO SEAHAWKS! - SEE ATTACHED - - "TBC-2014-01 - GO SEAHAWKS-A/-B/-C/-D." This 747-8 is scheduled to do a "fly by" at the match this Sunday.

Boeing (TBC) booked 1,355 net commercial airplane orders and delivered 648 airplanes in 2013. According to (TBC), the orders mark the second best year in company history, exceeding 2012’s previous second-best-ever high of 1,203 net orders, but not yet matching Boeing (TBC)’s peak year (2007), when net airplane orders reached 1,413.

(TBC) made 648 airplane deliveries in 2013, up +7.8% from 2012, reaching a new company record. New 2013 delivery records for the company included the delivery of 440 Next-Gen 737s, 98 777s and 65 787s.

“787 Dreamliners are now flying with 16 customers around the world,” (TBC) said, effectively doubling the customer base for the airplane in one year.

At the end of the year, “(TBC)’s unfilled commercial orders stood at 5,080 [including 3,680 unfilled orders for 737s and 916 unfilled orders for 787 Dreamliners], also a new Boeing record.”

2013’s net orders for 737s came to 1,046 airplanes, a drop of -6.9% from 2012. Net orders for 787s rebounded with 182 net orders placed in 2013, up from the -12 deficit for 787 Dreamliner airplanes the company reported in 2012. SEE ATTACHED - - "TBC-2014-01 - 2013 DELIVERY RECORD A/B."

Airbus (EDS) has not yet released its order and delivery totals for 2013. (EDS)’ year-to-date total by the end of November 2013 came to 1,373 gross orders and 562 deliveries. Airbus’ net orders by the end of November came to 1,314.

By the end of November, (TBC) had logged 1,212 gross orders. The company reported an additional +319 orders in December, bringing its 2013 gross order cumulative total to 1,531.

Boeing (TBC) named Marc Allen as the next President of Boeing Capital, succeeding Mike Cave. It is also realigning the unit under Boeing Corporate Treasury.

The Boeing Company (TBC) has selected (BAE) Systems to provide the spoiler control electronics for the new Boeing 737 MAX. The successful outcome of this competitive procurement was largely driven by the (BAE) Systems team’s ability to demonstrate a system that showed technical readiness and reduced development risk when introduced on the Boeing 737 MAX. (BAE) Systems is a leader in high-integrity flight and engine controls, and cabin and flight-deck systems. Every second, a flight takes off enabled by its flight critical systems. The spoiler control electronics will be developed at the company’s Endicott, New York facility and manufactured at its Fort Wayne, Indiana facility. Delivery of the 737 MAX is planned for 2017. SEE PHOTO - - "TBC-737 MAX - 2014-01."

A biofuel supply sufficient to meet up to 1% of aviation’s fuel needs could be available “instantly,” and at a price competitive with petroleum jet fuel, if green diesel is approved for use in airplanes, according to Boeing (TBC). (TBC) is working with partners to gain approval by the end of 2014. Clearing the road-transport fuel for use in airplanes would get aviation over the hurdle of scaling up biofuels to commercial volumes at competitive prices. Sufficient capacity already exists in the USA, Europe and Singapore to produce 600 million gallons of jet fuel a year.

Unlike conventional biodiesel, which is unsuitable for use in airplanes, green diesel is produced from vegetable oils and animal fats via the same method as hydroprocessed esters and fatty acids (HEFA) bio-jet fuel, which is already approved for aviation use in blends up to 50% with conventional jet fuel. “Green diesel approval would be a major breakthrough in the availability of competitively priced, sustainable aviation fuel,” said James Kinder, a Technical Fellow in Boeing Commercial Airplanes’ Propulsion division. Wholesale cost is about $3 a gallon with government incentives, he said.

“This is one small step in the total aviation fuels story, but a giant leap towards commercial availability,” Boeing Managing Director, Environmental Strategy & Integration, Julie Felgar said. “The first 1% is the hardest and now, boom, it can be there overnight. The capacity exists today, at price parity.”

Boeing (TBC) and (GE) Capital Aviation Services (GECAS) (GEF) announced an order for 40 737s. The order, valued at US$3.9 billion at list prices, consists of 20 737 MAX 8s and 20 Next-Generation 737-800s.

"We ordered more 737 MAX 8s and Next-Generation 737-800s because demand continues to grow as our airline customers require more fuel-efficient airplanes to compete in the marketplace," said Norman Liu, President & (CEO), (GEF).

The follow-on order increases the (GEF) order book for the 737 MAX to 95 airplanes and the Next-Generation 737 to 387 airplanes, the most for both models by any company in the leasing industry. To date, 32 customers have ordered 1,763 MAX airplanes.

With this announcement, (GECAS) (GEF) has ordered 638 airplanes directly from Boeing (TBC), which includes 737s, 747s, 757s, 767s, 777s and 787s. To date, (GECAS) has taken delivery of 459 of the airplanes.

Boeing (TBC) has rolled out the first 787 built at the increased production rate of 10 airplanes per month. The 787-8 and the 155th 787 built, will be delivered to International Lease Finance Corporation (ILFC) for operation by Aeromexico (AMX). This airplane will be the fourth 787 operated by Aeromexico (AMX) and will be used on (AMX)'s Mexico City - London Heathrow route.

The new 10-per-month rate is the highest ever for a twin-aisle airplane. The 787 program has increased its production rate three times in just over a year, including to five 787s per month in November 2012 and seven per month in May 2013. “This rate increase reflects the continued strong demand for the 787,” Boeing Commercial Airplanes VP & General Manager 787 Program, Larry Loftis said.

Boeing assembles and delivers 787s in two locations: Everett, Washington, and North Charleston, South Carolina. “The entire 787 team is now focused on capturing efficiencies at this historic level of production, as well as meeting our commitment to increase the production rate to 12 per month in 2016 and to 14 per month by the end of the decade,” Loftis said.

To date, 115 787s have been delivered to 16 customers. The program has 1,030 total orders from 60 customers worldwide.

February 2014: Boeing (TBC) this month will begin assembling the first 737NG to be built at the increased production rate of 42 airplanes per month. Since 2010, production of the 737 has increased about +33%, from 31.5 to 42 airplanes a month, its highest rate ever.

According to Boeing (TBC), mechanics (MT) at the Renton, Washington factory will load initial parts of the spars—internal support structures in the wings—into an automated spar-assembly machine. The spar is the first step in building the wings and marks the start of the assembly of the 737 airplane.

Boeing Commercial Airplanes VP & General Manager 737 Program, Beverly Wyse said, “Efficiency improvements in the factory, many of them developed by our employees, are a big part of why we are able to successfully increase the number of airplanes we build.”

The first Next-Generation 737 built at the new rate is scheduled to be delivered in the second quarter. As previously announced, the 737 production rate is scheduled to increase to 47 airplanes month in 2017.

Boeing (TBC) and Hainan Airlines (HNA) announced a five-year pilot (FC) training agreement to support (HNA)’s recent introduction of the 787 to its fleet.

Under the agreement, Boeing Flight Services, a unit of Boeing Commercial Aviation Services, will extend (HNA)’s existing contract for flight training at Boeing’s Singapore and Shanghai training campuses on three Boeing models (the Next-Generation 737, 767 and 787). “The option of training campuses close to our headquarters and the training quality were the deciding factors in continuing our partnership, as is Boeing (TBC)'s unique knowledge and its ability to provide full training solutions,” Hainan Airlines (HNA) 787 Fleet Manager, Xing Tao said.

According to Boeing’s 2013 "Pilot & Technician Outlook," there is a demand for 192,300 new commercial airline pilots (FC) and 215,300 new maintenance technicians (MT) in the Asia-Pacific region through 2032.

Hainan Airlines (HNA) is the fourth largest airline in terms of fleet size in China. Its current fleet includes 118 Boeing airplanes. (HNA) serves scheduled domestic and international services on 500 routes from Beijing, Haikou and other operating bases on the mainland, and provides charter services.

Singapore Airlines (SIA) regional affiliate, SilkAir (SLK) has taken delivery of its first Boeing 737-800, marking the start of (SLK)’s transition to an all-Boeing (TBC) fleet - - SEE ATTACHED - - "TBC-2014-02 - 1ST SLK 737-800." Over the coming years, Boeing (TBC) will deliver a total of 23 737-800s and 31 737 MAX 8s to SilkAir (SLK).

(SLK) (CEO), Leslie Thng said the new 737 airplane “will support our network expansion plans. The transition to an all-Boeing (TBC) fleet will enable us to efficiently serve more destinations, fly longer routes and increase capacity on existing routes.”

(SLK)’s new 737 will enter service later this month, flying to existing destinations, including in Malaysia, Thailand, and Indonesia. With the follow-on 737 deliveries, (SLK) will fly the airplanes to more destinations in Cambodia, Vietnam, India, and the Philippines starting in March.

SunExpress (SNS) has placed a firm order for 15 Boeing 737 MAX 8s and 25 737-800s. The order, valued at more than >$3.8 billion at list prices, also includes options for 10 additional MAX 8s.

The order is the largest in (SNS)'s near 25 year history, and brings the total number of 737 MAX orders to date to nearly 1,800.

Based in Antalya on the Turkish Riviera, (SNS) was founded in October 1989 and is an all-Boeing (TBC) operator with a fleet of more than >60 737-700s and 737-800s. (SNS) carries more than >7 million passengers per year to more than >90 destinations across Europe, the Middle East and North Africa.

March 2014: Boeing (TBC) kicked off expansion of its 737 Commercial Delivery Center (CDC) at Boeing Field in Seattle. The project more than doubles the space that will be available for customers and groups supporting increased 737 deliveries. “Our customers expect and deserve a first-class facility when they come to pick up their airplanes, and we think these improvements will take their experience to the next level,” said Beverly Wyse, 737 VP and General Manager, Boeing Commercial Airplanes. “A larger, more capable facility is essential as we continue to increase our rates and get ready for the introduction of the new 737 MAX.”

The expanded (CDC) will be more than >90,000 square feet and include a new three-story building, as well as new delivery and departure areas with three covered jetways. The design features an open, airy look with large windows overlooking the Boeing Field flight line. The (CDC) expansion is the latest of many investments Boeing (TBC) is making across the Puget Sound region and in the future of the 737 program.

“I founded the King County Aerospace Alliance to foster the continued growth and global competitiveness of our region’s aerospace industry, and this expansion is great economic news for the county and our airport,” said King County Executive, Dow Constantine. “This is a significant investment by Boeing in our region, securing our partnership for generations to come.”

Production of the 737 is set to increase to 42 airplanes per month in April and to 47 airplanes per month in 2017, an increase in output of nearly +50% since 2010. Deliveries of the 737 MAX, with the latest technology, (CFM) International (LEAP-1B) engines and other efficiency enhancements like Advanced Technology winglets, will also begin in 2017 at the upgraded facility.

Plans are in place to ensure seamless deliveries to 737 customers during construction, which includes the demolition of one building. The (CDC) expansion is scheduled for completion in mid-2015.

Comair (CML) has placed a firm order for eight Boeing 737 MAX 8s, valued at $830 million at list prices. The order, which was placed in December 2013 and logged to an unidentified customer, marks the first 737 MAXs to be ordered by an African airline. Johannesburg-based, Comair (CML) said the airplanes will be used for fleet renewal and expansion.

Comair (CML) operates Africa’s first low cost carrier (LCC), kulula.com (KUL), offering flights to South Africa’s major cities. Comair (CML) is also the franchise partner of British Airways (BAB), operating its local and regional Southern African routes. The company currently flies an all-Boeing fleet of 25 Classic and Next-Generation 737s on its (KUL) and British Airways (BAB) (operated by Comair (CML)) brands. The order for eight 737 MAX 8s will support future fleet renewal and expansion.

After reviewing the critical systems on the Boeing 787 following serious incidents with the lithium-ion battery system in January last year, a team of aviation experts has determined that the airplane meets intended safety level and design standards.

The 787 Critical Systems Review Team (CSRT) conducted the review over a six-month period, evaluating the 787's design, manufacture and assembly. With the review, the (FAA) intended to evaluate its oversight role in the certification of new airplanes and found that it has "effective processes in place to identify and correct issues."

Although the safety of the airplane was verified through the review, the report also shows that Boeing (TBC) implemented new manufacturing and assembly processes that its subcontractors and suppliers were unfamiliar with. This resulted in a significant amount of "traveled work,” in which incomplete airplane elements were shipped to Boeing for final assembly, according to the review.

As a result of the findings, the (FAA) issued a series of recommendations focusing on actions that Boeing (TBC) and the (FAA) can take to improve quality control (QC) mechanisms for the production of modern airplanes.

"The review team identified some problems with the manufacturing process and the way we oversee it, and we are moving quickly to address those problems," said (FAA) Administrator, Michael Huerta.

For the production of the 787, Boeing (TBC) moved to a distributed supply chain system and assigned design authority for components to Tier 1 suppliers, while moving manufacturing to lower suppliers, according to the review. The (FAA)'s certification process failed to address that shift.

To address this, the (FAA) is recommending that Boeing (TBC) "continue to implement and mature gated design and production processes; ensure suppliers are fully aware of their responsibilities; establish a way to ensure suppliers identify realistic program risks; and require its suppliers to follow industry standards for personnel performing Boeing-required inspections."

Based on the review, the (FAA) is also undertaking actions to address recommendations for revising its certification oversight process. As a result, the (FAA) is revising its order on certificate management of manufacturers to recognize new business models, as well as its process for approving production procedures for large-scale manufactures with extensive supply chains. The (FAA) is also revising the way it regulates engineering conformity inspections.

The (FAA) is also working on a rule to strengthen the supplier reporting process for the airplane production process.

Boeing (CEO), Ray Conner agreed with the recommendations, and said the review validates the company's "confidence in both the design of the airplane and the disciplined process used to identify and correct in-service issues as they arise."

Boeing (TBC) has rolled out its first Next-Generation 737 airplane at its newly increased rate of 42 per month from its Renton, Washington, factory. The production rate has increased +33% from 31.5 in 2010 to the current rate of 42, due to market demand. (TBC) has performed functional, systems and flight-testing prior to delivering this 737-800 to Air Berlin (BER) and it will ultimately be leased to Transavia France (TVF). The next production increase will raise the rate to 47 per month and is projected for 2017. Airbus (EDS) is also increasing the production rate of its A320 family airplanes from 42 to 46 airplanes per month by the second quarter of 2016.

See video "PAN AM 707 PROMO FILM" - -

April 2014: Boeing (TBC) reported first-quarter net income of $965 million, down -12.7% from a net profit of +$1.12 billion in the year-ago period. The profit drop was mostly due to weakness in the military airplane sector, but the Commercial Airplanes (BCA) unit posted across-the-board improvement.

Boeing Commercial Airplanes (BCA)’s first-quarter operating profit increased +23% year-over-year to +$1.5 billion on a +19% rise in revenue to $12.74 billion. Boeing (TBC) delivered 161 commercial airplanes in the three months ended March 31, up +18% over 137 airplanes delivered in the 2013 first quarter. Deliveries were led by 115 737s and also included 24 777s, 18 787s and four 747s.

Boeing (BCA) expects to deliver 715 to 725 commercial airplanes in 2014, which would break last year’s company record of 648 deliveries. It anticipates delivering around 110 787s this year. “We measurably increased [first-quarter] revenue, core operating earnings and cash flow, and expanded core operating margins,” Chairman & (CEO), Jim McNerney said. He added the company’s full-year 2014 outlook remains positive on “the strength of demand for our fuel-efficient new commercial airplanes.”

Boeing (BCA) booked 235 net commercial airplane orders in the March quarter, building its backlog to 5,100 airplanes valued at $374 billion. The company’s overall first-quarter revenue increased +8% year-over-year to $20.47 billion and operating profit rose +1% to +$1.54 billion.

SEE ATTACHED - - "TBC-2014-04-CUSTOMER SUPPORT CRISIS-A/B/C/D."

On April 10th, and with a continuation provided by a banner front page headline in the April 16th Seattle Times newspaper, the latest major crisis at Boeing (TBC) was described as follows:

Boeing (TBC) stated it will transfer +1,000 more Engineering jobs from the Puget Sound area to Southern California by the end of next year. The move, rumored for months, is the latest in a series of Engineering transfers out of state that now totals more than >4,300 Boeing (TBC) jobs.

In the latest blow, most of the Engineering group that provides technical support to airlines flying Boeing jets will move to Seal Beach and Long Beach. Even the Customer Services Operations Center in Tukwila, where a team is on call "24/7" to respond to any technical issue with a Boeing airplane anywhere in the world, will move to California. There may be further job losses among administrative staff that support the Engineers whose work is moving.

Mike Delaney, VP Engineering at Boeing Commercial Airplanes (BCA) - - SEE ATTACHED PHOTO - - "TBC-9-MIKE DELANEY-2014-04" said the company is shaping distinct future engineering roles for its design centers in Washington state, Southern California and South Carolina. He said engineers in the Puget Sound area will focus on developing new airplanes and building them efficiently, with the 777X project providing a new opportunity “to become a true world-class composite center for advanced manufacturing and design.”

Although support of Boeing’s airline customers is “a crown jewel” of the company, it’s not part of the central mission of the Engineering role here, he said. He said that in California, Boeing (TBC) can tap into a large pool of aviation-engineering talent. And he said moving the Customer Support group from the Puget Sound region will give it “much greater focus,” and will “declutter all the things we have to do up here.”

However, some employees said the move seems intended to nudge out older, higher-paid workers and at the same time weaken the Engineering union. They questioned how Boeing’s decision fits with the $9 billion in tax breaks, the company obtained from the state last year. The engineers in the Customer Support group work to maintain airplanes that are already in service with airlines. They write and update technical manuals and in-service bulletins. They address maintenance issues, consult on the need for spare parts and, if necessary, send out teams to fix technical problems. Also, on behalf of the Federal Aviation Administration (FAA), they attest to the airworthiness of any modifications made to a Boeing jet. The local (Puget Sound) group is about 1,600 engineering staff, the majority based in two office towers in Tukwila and the rest mostly in Everett.

Current employees, many of them veterans of more than >20 years at Boeing (TBC), won’t automatically transfer to California if they wish to move. They’ll have to apply for the jobs there once they are posted. Those who move will get relocation expenses.

“We want as many as possible to consider coming down” to California, said Lynne Thompson, VP Customer Support group. “Other people will find work in other places, either inside of Boeing or outside.” The only customer-support engineers remaining here will be those supporting the newest in-service jet, the 787 Dreamliner. Sometime around 2015, the 787 support work is expected to be routine enough that it, too, will move down to California. The small group left here will then focus on the next new planes, the 737 MAX and the 777X, Thompson said.

The recent drain of Boeing engineering jobs from Washington comes amid boom times in the aviation business. Last year saw record commercial-jet orders and deliveries. Airplane production in Renton and Everett, already at all-time highs, is set to climb sharply.

And Boeing in January committed to build the 777X here, an investment of between $7 billion and $10 billion. That follows other recently launched new jet programs: the 737 MAX and the 787-10. In addition, the US Air Force 767 tanker is under development in Everett.

The company estimates the 777X project alone will require a dedicated local team of 850 engineers. That prospect means a growing need from 2018 forward for the engineers who design new planes.

Delaney said Boeing’s investments and its commitment to building new airplanes here show the company’s approach to the region “is clearly a growth strategy.” The real significance of that 777X win, he said, is the increased scope of future engineering work here, because the methods of fabricating a composite wing so intimately affect how the wing is designed. In the future, Delaney said, “We’ll fundamentally do research and development around wing fabrication here in Puget Sound.”

He said North Charleston, South Carolina will focus on composite fuselage technology. And Southern California gets the aftermarket work. Delaney said the customer-support engineers will still interact with the design engineers up here. “They’ll just be doing it from California,” Delaney said.

Ray Goforth, Executive Director of the Society for Professional Engineering Employees in Aerospace (SPEEA), rejected Delaney's logic of this division split, saying it makes more sense to have customer-support engineers near the engineers who designed the airplane. "Cluttering isn’t a problem anyone else has noticed,” said Goforth. He also questioned what Washington is getting for the almost $9 billion in extended tax breaks the state granted Boeing (TBC) to win the 777X.

“(SPEEA) specifically warned Washington State Governor Inslee that his legislation was crafted with loopholes that would allow Boeing (TBC) to take the $9 billion and outsource jobs anyway,” Goforth said. “Why doesn’t the governor call a special session to close the loopholes and save these jobs?” Inslee said Boeing (TBC)’s decision is “obviously disappointing” but added that he welcomed hearing Boeing “reiterate its commitment today to keeping a robust core of engineering work here.”

Alex Pietsch, who heads the governor’s aerospace office, said that Governor Inslee discussed imposing some kind of job quota during the 777X negotiations last year but that was unacceptable to Boeing (TBC). Pietsch said the state settled for the best agreement it could get. He said Boeing (TBC) is continuing to invest heavily in the state (this month embarking on a big expansion in Everett for the 777) and employs more than >81,000 people here. After the work transfers, he said, Washington will still retain Boeing (TBC)’s “most significant engineering.”

Before the April 10th announcement, Boeing (TBC) already had earmarked a long list of white-collar jobs to move out of the Puget Sound region: the local Information Technology (IT) engineering work; pilot (FC) training; support for out-of-production airplanes; modifications and conversions of passenger jets to freighters; work on advanced airplane concepts; and, most recently, the company’s research-and-technology unit.

Meanwhile, the local Customer Support Engineering group whose future was detailed on April 10th had already dwindled considerably through attrition. “We haven’t hired anyone in my organization in two years,” said one engineer in the group who asked to be unnamed because Boeing (TBC) doesn’t permit employees to discuss internal matters. “We used to occupy two floors of this building. Now we have half of one floor. “Everyone I know is looking for a job,” he said. “Morale is the worst I’ve ever seen.” He added that response times for customer projects have been “moving out longer and longer because we don’t have the resources.”

Thompson, the VP of the Customer Support group, said she deliberately let the local staffing level fall, because she knew this move was coming. But she denied any impact on the level of customer support. She said the plan in Southern California is to set up a new 24/7 Operations Center with the various support teams arranged around it. "It will deliver a superior customer experience,” Thompson said. The first step in the migration, she said, will be to hire new people in California “in order to do the knowledge transfer to that team down there.” After the third quarter, the move of people from here will begin, and the process will complete next year.

Many engineers in the Customer Support unit are convinced that Boeing (TBC) is trying to get rid of older, more expensive veterans in favor of hiring younger people in California. Some also suspect an anti-union motivation, because the company’s Engineering facilities in Seal Beach and Long Beach are not unionized. During contract talks with (SPEEA) in fall 2012, Delaney warned publicly that an expensive union contract would lead to job transfers out of state. In the interview, he denied any connection between the subsequent work transfers and that warning. He said he devised the strategy of geographic diversification much earlier, soon after taking his current position in January 2010. Delaney also denied any age discrimination. “That is a fabrication by people trying to rationalize the situation they are in,” he said. “Our worry is the opposite,” Delaney said. “If we do not take action, our large group of baby boomers will retire and we won’t have replenished the organization.”

He said competition from Airbus is “fiercer than it’s ever been,” so Boeing management has to be “absolutely fanatical about driving down unit costs.” Nevertheless, he said, Boeing Management recognizes that all the major problems with the 787 (including the early flaw found in the join between the wing and fuselage; the repeated issues with the power-generation system; and the overheating batteries) were solved not by the partners that built the affected structure or supplied the faulty parts, but by Boeing (TBC)’s own engineers.

“There are many parts of this business that are experience-based,” Delaney said. He said roughly a third of the company’s engineers are in Washington state. Delaney declined to say whether more transfers are in the works. “We study everything,” he said. “We make strategic decisions when the time is right.”

At a discussion of the future of Aerospace Engineering at Seattle’s Museum of Flight, attended by a contingent of veteran Boeing engineers, a common theme among speakers on the panel was that small groups of engineers working closely together, provide the best hope of innovation and efficient airplane development. There was a consensus that attempts to collaborate across geographic and organizational boundaries have not worked well. Yet Boeing (TBC) is choosing now to disperse Engineering resources that for so long were concentrated here.

Delaney said Boeing (TBC) cannot do things today, the way they were done more than >40 years ago when it developed the first 747. Airplanes and production systems are more complex now, he said. “People pine for the days that no longer exist,” Delaney added.

Dominic Gates: (206) 464-2963 or dgates@seattletimes.com

The above article by Dominic Gates provides the "writing on the wall" and details Boeing's precarious position with its headlong negative direction, instigated by the unfortunate "leadership" which emanates out of Chicago. The most urgent efforts are required to ensure that all Boeing Engineering resources in its entirety and especially its worldwide renowned "crown jewel" of customer services and customer support, firmly remain resident in the long existing location of Washington State's Puget Sound, where they must truly always belong.

Further concern is highlighted in the attached "TBC-2014-04-ENGINEERING CRISIS-A/B/C/D."

Going further south (to the southern hemisphere, no less) Boeing (TBC) has also said it will cut its Australian workforce by -300 at its Fisherman’s Bend, Melbourne facility. Boeing said the move would take place by the end of 2014, reducing the Australian workforce to around 1,000.

Australia has the largest Boeing (TBC) workforce outside the USA, but the company has increasingly relied on subcontractors in the areas of design, test, certification and manufacture of advanced structures. Currently, Fisherman’s Bend manufactures wing components (such as flaps and ailerons for the 787) but the cuts likely come as Australian manufacturing is under pressure from international currency fluctuations and the strength of the dollar.

Boeing (TBC) said the job cuts were “in line with a long-established financial forecast,” noting they were part of a planned process due to be implemented once “the company’s airplane programs stabilized at full production rates.” Boeing may continue its move to third-party operations, or could take some capacity back to North American key sites at Washington State and North Charleston. It is not clear if the cuts will be in manufacturing (or in the Australian facility’s Research & Development (R&D) section) which includes design and analysis, materials and process technology, and composite structure testing & research.

Boeing (TBC) subsidiary, Jeppesen has received a letter of operational suitability from the (FAA) confirming the form and functionality of the iPad mini for use in cockpits, when paired with Jeppesen’s electronic flight bag (EFB).

Delta Air Lines (DAL) has released a request for proposals (RFP) for up to 50 wide body airplanes to Airbus (EDS) and Boeing (TBC). (DAL) will evaluate the Airbus A330-200 and A330-300, Airbus A350-900 and A350-1000, Boeing 777-300ER and Boeing 787-8, 787-9 and 787-10 to replace some or all of its Boeing 747-400s and Boeing 767-300ERs.

(DAL) currently operates 16 747-400s and 74 767-300s. With an average age of 21 years and 20 years, respectively, the types are among the oldest of its wide body fleet. “This wide body airplane initiative continues (DAL)'s disciplined approach to fleet renewal, as we evaluate new airplanes to replace a portion of our wide body fleet," said Nat Pieper, VP Fleet Strategy & Transactions at (DAL). “The airplanes under consideration will enable (DAL) to optimize capacity with market demand by matching the right airplanes with the right market.”

(DAL) is also understood to be considering a potential re-engined A330-300, if Airbus (EDS) decides to go forward with the program. (DAL) anticipates making a decision and possibly placing an order in the second half of 2014.

Airplane communications service provider Gogo has reached a technical services agreement with Boeing (TBC) to evaluate the prospect of installing Gogo in-flight connectivity technology during the manufacturer’s airplane production process.

Gogo has developed an extensive business in which it reaches agreements with airlines to retrofit in-service airplanes with in-flight Wi-Fi-connectivity and wireless in-flight entertainment (IFE) technology. It has in-flight connectivity contracts with Aeromexico (AMX), American Airlines (AAL), Air Canada (ACN), AirTran Airways (CQT), Alaska Airlines (ASA), Delta Air Lines (DAL), Japan Airlines (JAL), United Airlines (UAL), US Airways (AMW)/(USA), and Virgin America (VUS).

But the agreement with Boeing (TBC) “initiates the evaluation process for potential installation on new Boeing airplane orders,” Gogo said.
Gogo President & (CEO), Michael Small added, “As Gogo continues to retrofit airplanes with its various connectivity solutions, it’s crucial to work towards line-fit of these solutions for all new orders, so each airplane comes off the line with Gogo connectivity already installed and ready for service from day one.”

(GE) Aviation (GEC) and the Ontario Teachers’ Pension Plan announced a strategic partnership to support the development of advanced technologies for the (GE9X) engine, which will power the Boeing 777X. It will also provide a +10% improvement in fuel consumption over the existing (GE90-115B) engine. The 777X is scheduled to enter service in 2020.

Boeing (TBC) delivered the 8,000th 737 to come off the production line to United Airlines (UAL). The Next-Generation 737-900ER, features a special logo.

May 2014: News Item A-1: See video "TBC-BOEING 737 AD" - -
https://www.youtube.com/user/Boeing?v=jfSNj8HB_WI

News Item A-2: The USA National Transportation Safety Board (NTSB) has called on the (FAA) to “re-evaluate” the risk of an “internal short circuit” in lithium ion batteries currently operating on in-service Boeing 787s.

The recommendation was part of a 12-page “safety recommendation” letter sent by the (NTSB) to (FAA) Administrator, Michael Huerta stemming from findings in the (NTSB)’s investigation of the January 7, 2013 fire aboard a parked Japan Airlines (JAL) 787 at Boston Logan Airport. Though the (NTSB) has not established a root cause for the (JAL) 787 fire, it has determined that short circuiting in a cell of the lithium ion battery, that starts the airplane’s auxiliary power unit (APU) led to thermal runaway (uncontrolled chemical reactions resulting from overheating) that cascaded to other battery cells and led to a fire.

That incident, coupled with a January 16 lithium ion battery failure aboard an All Nippon Airways (ANA) 787 during a flight over Japan, prompted the (FAA) to ground the 787 Dreamliner fleet for more than >3 months in 2013. Boeing developed a comprehensive fix for the 787’s lithium ion batteries (used for the 787’s main battery and (APU) battery) that convinced the (FAA) to lift the grounding in April 2013.

But the (NTSB) said that the current standard for lithium ion battery design and safety certification in aviation applications “does not address all of the unique aspects of a battery’s installation on an airplane. Thus, airplane manufacturers need to evaluate whether additional requirements and testing are necessary to ensure airplane-level safety.”

Boeing (TBC) said that the 787’s revamped lithium ion battery system went “through rigorous certification testing before the 787 returned to service last year” and the tests were “fully consistent” with recommendations made by the (NTSB). “We therefore remain confident in the safety and integrity of the comprehensive battery solution which was developed by Boeing (TBC), and approved by the (FAA), last year,” (TBC) said.

Mike Sinnett, who served as Boeing’s 787 Chief Project Engineer until July 2013, conceded during testimony before the (NTSB) in April 2013, that while the original 787 lithium ion battery certification testing conducted in 2006 was “rigorous in retrospect [the testing] wasn’t conservative enough.” When the (FAA) cleared Boeing (TBC)’s fix for the 787’s battery system in April 2013, Sinnett told reporters, “We have learned a lot about how to test batteries and be more conservative.”

The (NTSB) has concluded that the original 787 lithium ion battery certification tests conducted in 2006 “were inadequate, in part because there is no standardized thermal runaway test that’s conducted in the environment and conditions that would most accurately reflect how the battery would perform, when installed and operated on an in-service airplane.” The (NTSB)’s safety recommendation to the (FAA) said that certification tests for lithium ion batteries for use on airplanes should be conducted to ensure a full understanding of how the battery will react when installed on an airplane.

The (NTSB) “has concluded that airplane certification tests that induce thermal runaway of a cell in a lithium ion battery configured as installed on the airplane would better demonstrate to the (FAA) that the battery installation could effectively mitigate the potential safety effects of an internal short circuit,” the (NTSB) told the (FAA). “As a result, the (NTSB) recommends that the (FAA) develop abuse tests that subject a single cell within a permanently installed, rechargeable lithium ion battery to thermal runaway, and demonstrate that the battery installation mitigates all hazardous effects of propagation to other cells and the release of electrolyte, fire, or explosive debris outside the battery case. The tests should replicate the battery installation on the airplane and be conducted under conditions that produce the most severe outcome.”

The (NTSB) said the (FAA) should “develop an airplane-level thermal runaway test to demonstrate safety performance in the presence of an internal short circuit failure” and require that such a test be “part of certification of future airplane designs.” In addition, the (NTSB) wants the (FAA) to “develop guidance for thermal runaway test methods” and “include a panel of independent expert consultants early in the certification process for new technologies installed on airplane.”

Responding to the (NTSB)’s recommendations, Boeing (TBC) said, “While the testing performed on the 787’s original lithium ion batteries during certification was consistent with the widely accepted industry standards of that time, airplane certification standards should and do evolve as the state of knowledge advances. For that reason, while we are reviewing the (NTSB)’s specific recommendations to the (FAA), we support efforts to ensure that certification standards for lithium ion batteries reflect and incorporate such advances. We stand prepared to work with the (FAA) and other affected stakeholders as it considers the (NTSB)’s specific recommendations.”

UK-based aerostructures and engine components specialist (GKN) Aerospace sees gaining more work from Boeing (TBC) as one of its main priorities.

Boeing (TBC) and Embraer (EMB) will open a joint research center to advance a sustainable aviation biofuel industry in Brazil. Under a memorandum of understanding (MOU), the two companies will perform joint biofuel research, as well as fund and coordinate research with Brazilian universities and other institutions. The research will focus on technologies that address gaps in a supply chain for sustainable aviation biofuel in Brazil, such as feedstock production and processing technologies. The companies’ biofuel research center will be located in Sao Jose dos Campos Technology Park.

In 2013, Boeing (TBC), Embraer (EMB) and the Fundacao de Amparo a Pesquisa of the State of São Paulo (FAPESP) completed an action plan (Flightpath to Aviation Biofuels in Brazil) that identified gaps in a potential biofuel supply chain. The joint research between Boeing (TBC) and Embraer (EMB) will help address those gaps.

Boeing (TBC) has agreed to acquire (ETS) Aviation, a provider of fuel-efficiency management and analytics software. (ETS) Aviation’s fuel efficiency solutions support more than >120 airlines on more than >600 commercial airplanes across nearly 900,000 flights annually. (ETS) Aviation’s fuel efficiency tools will become part of the integrated suite of aviation services, marketed as the Boeing Edge. Employees of (ETS) Aviation will join Boeing's Jeppesen unit in the UK.

Boeing (TBC) has announced its acquisition of Netherlands-based aviation software company, the AerData Group in an effort to provide its customers with a method for managing airplane maintenance records. The purchase is (TBC)'s second acquisition of a software company in less than a week, following the recently announced agreement to acquire fuel efficiency management software provider, (ETS) Aviation.

"AerData's tools make it easier for airlines and leasing companies to manage complex maintenance records," said Stan Deal, Senior VP of Commercial Aviation Services (CAS) at Boeing. "Increasing the efficiency of records management helps streamline the process of placing airplanes and other valuable assets with operators during leasing transactions.

The European company will be integrated into the Boeing Digital Aviation team, which provides airplane parts, Engineering and Maintenance support for airlines and leasing companies.

AerData's 120 employees across the Netherlands, the UK and Ireland will continue to work under current Managing Directors, Mark Nieuwendijk and Paul van Tol.

Boeing (TBC) 787 operators have received (FAA) approval to fly Extended Twin-engine OPerationS (ETOPS), a development that (TBC) says will enable the airplane to fly on a wider range of routes and to more destinations. The (ETOPS) approval allows 787s to be operated for up to 330 minutes/5.5 hours away from an airport, up from the previous 180 minutes. The (FAA)'s approval is a sign of confidence in the 787 that received negative publicity throughout 2013 after incidents involving its lithium-ion battery system grounded the global 787 fleet for more than >3 months.

"Our customers are eager to expand their 787 operations," said Larry Loftis, VP & General Manager, 787 Program, Boeing Commercial Airplanes (BCA). "We're delighted that this capability, which was designed into the airplane from the very beginning, has been certified."

To date, Boeing (BCA) has delivered 146 787 Dreamliners to 19 different customers, and has received 1,030 orders for the 787 from 60 different customers. (BCA) plans on an entry into service (EIS) for two new versions of the 787, with the 787-9 toward the end of this year, and the 787-10 in 2016.

The International Lease Finance Corporation (ILFC) will lease two Boeing 787-8 Dreamliners to the Neos (NEO) airline. The Somma Lombardo, Italy-based carrier operates leisure flights out of Malpensa International Airport to Southern Europe, Russia, Africa, the Middle and Far East, the Caribbean, Mexico, and Brazil.

Neos (NEO), which will become Italy’s first 787 operator when it takes delivery of the airplane in 2018, will use the type to expand its route network. (NEO) currently operates an all-Boeing (TBC) fleet of six 737-800s and two 767-300ERs. This is not an incremental 787 order for Boeing (TBC).

Boeing (TBC) Flight Services and low-cost carrier, (LCC) Scoot (SCT) have signed a five-year pilot (FC) training agreement to support the Singapore-based (SCT)’s fleet transition to 787s. Boeing (TBC) anticipates 32 Scoot (SCT) pilots (FC) will undergo training in 2014.

Scoot (SCT) will acquire 20 787s beginning in late 2014. The airplanes were originally ordered by parent company, Singapore Airlines (SIA). (SCT) currently operates 777s on medium- and long-haul flights from Singapore to Sydney, Gold Coast, Bangkok, Taipei, Tokyo, Tianjin, Shenyang, Nanjing, Qingdao, Seoul, Perth, and Hong Kong.

Boeing Flight Services VP, Sherry Carbary said, “Aviation opportunities (for airlines and pilots (FC)) are expanding rapidly in the Asia-Pacific region, and we’re pleased to offer a robust network of experienced instructors and training devices close to our customers across the region.”

Boeing’s 2013 Pilot & Technician Outlook projects a requirement for 498,000 new commercial airline pilots (FC) and 556,000 new maintenance technicians (MT) to fly and maintain the new airplanes entering the world fleet over the next 20 years. In Southeast Asia, 51,500 pilots (FC) and 64,700 technicians (MT) are needed to fill the gap.

Nok Air (NKA) has finalized an order for eight Boeing 737-800s and seven 737 MAX 8s. (NKA) plans to convert one of the 737-800s into a 737 MAX at a later date. The order, first announced as a commitment at the Singapore Airshow in February, is valued at $1.45 billion at list prices. (NKA) is the first airline in Thailand to operate the 737 MAX.

(NKA) (CEO), Patee Sarasin called the 737 “the backbone of our fleet and has fueled our growth over the past 10 years. This order is a key part of our disciplined fleet strategy.” While (NKA) currently operates a fleet of 15 Next-Generation 737NGs, this marks (NKA)'s first direct order with Boeing.

Japan Transocean Air (SWL)), a member of the (JAL) Group, has finalized an order for 12 Boeing 737-800s in an order valued at $1.1 billion at list prices. The arrival of the new airplanes in 2016 will mark the start of (SWL)’s fleet renewal program. As part of the agreement, (SWL) will also have the flexibility to switch to the 737 MAX family of airplanes. “This order is a key part of our strategy to bring the highest levels of comfort, amenity and convenience to the people of Okinawa, by continuing to operate the most reliable and fuel-efficient airplanes available today and in the future,” Manabu Sato, President of Japan Transocean Air (SWL) and Executive Officer at Japan Airlines (JAL), said.

Based in Okinawa, Japan’s southernmost major island chain, Japan Airlines Group member, (SWL) currently operates a fleet of 737-400 airplanes on domestic routes linking Okinawa with major Japanese cities as well as other Okinawa islands.

Air Lease Corporation (ALE) has taken delivery of the first of 15 Boeing 777-300ERs on order. The airplane is the first of two delivering to British Airways (BAB) on long-term lease; the second one is scheduled to deliver from Boeing (TBC) in July.

(ALE) Chairman & (CEO), Steven Udvar-Hazy said, “The operational capabilities and versatility of the 777-300ER provide significant profitability potential for our customers. With its leading economics and passenger-pleasing interior, this airplane has maintained a broad customer base year after year and will continue to do so long into the future.”

According to Boeing (TBC), Udvar-Hazy helped launch the 777-300ER in 2004, and has ordered 94 777s during his career in the industry. This includes 43 777-200ERs, eight 777-300s and 43 777-300ERs (more than any other lessor and the second most of any Boeing customer).

June 2014: SEE ATTACHED - - "TBC-2014-06-NTSB ASIANA 777 CRASH-A/B."

Southwest Airlines (SWA) has selected Boeing Airplane Health Management (AHM) to enhance operational efficiency in its maintenance and engineering operations. (SWA) will use (AHM) to collect and evaluate airplane operations data while the airplane is in flight. This real-time data is used to signal ground operations crews of any potential maintenance issues before the airplane lands, minimizing flight schedule disruptions and maintenance-related delays.

(AHM) is a web-based system that captures data in real time from airplanes while in-flight and delivers it to airlines' ground operations through the MyBoeingFleet.com web portal. Access to data about oxygen pressure, engine condition and hydraulic fluid are among the parameters monitored using the Aircraft Communications Addressing & Reporting System (ACARS) through the installed Aircraft Condition Monitoring System (ACMS).

"In our trials with Airplane Health Management, we clearly saw how we would be able to reduce (and even avoid) unscheduled maintenance and ground time for our fleet," said Jim Sokol, VP Maintenance Operations, (SWA). "The predictive nature of this product allows us to proactively initiate planning for necessary repairs, even while an airplane is in flight. With this capability, we can mitigate schedule delays and help ensure on time arrivals and departures for our customers."

Boeing technical teams will work with (SWA) to facilitate initial deployment of the system for its Next-Generation 737s. (SWA) is Boeing's 66th customer for Airplane Health Management. "We expect to see an immediate cost benefit with the introduction of (AHM) to our next-generation 737 fleet," said Trevor Stedke, VP Technical Services, Southwest Airlines. "We're excited to work with Boeing (TBC) to take advantage of the full potential of this product and further leverage its capabilities to improve efficiency across our operations."

(BHM) is a powerful, data-driven capability used worldwide by airplane operators, and maintenance, repair & overhaul providers (MROs) to proactively manage the serviceability of airplanes and fleets. It is designed to interface with existing airplane systems and communication infrastructure, using state-of-the-art airplane and ground technology to address day-of-operation disruptions, help predict future operations events and prevent unplanned maintenance and schedule interruptions.

Airplane Health Management (AHM) is part of an integrated suite of aviation services marketed as the "Boeing Edge." These include parts, training, engineering, maintenance and software solutions that increase the efficiency and profitability of airlines and leasing companies. "Throughout the long relationship between Boeing (TBC) and (SWA), we have worked closely together to support ongoing focused efforts in applying state-of-the-art technology to solve day-of-operations issues," said Rick Anderson, VP Sales, Boeing Commercial Aviation Services (CAS). "We are very pleased to provide Digital Aviation solutions such as Boeing (AHM) to enhance and accelerate improvements in (SWA)'s operations with real-time data analysis, which gives our customers a competitive advantage."

(SWA) is an all-Boeing carrier and operates the largest 737 fleet of any airline. In 2011, (SWA) became the launch customer for the 737 MAX.

Boeing (TBC) and Global Eagle Entertainment signed a Technical Services Agreement (TSA) to evaluate the possibility of offering a satellite-based In-Flight Connectivity (IFC) system as a line-fit option on 737s and 787s. Global Eagle is expecting the evaluation to be completed by next year. According to Global Eagle, the two companies believe there is demand from airlines to begin purchasing passenger jets with connectivity systems pre-installed. Currently, the majority of airlines and operators retrofit their airplanes with connectivity solutions.

Global Eagle Chief Operating Officer (COO), Dave Davis said the agreement highlights "the strong demand by airlines for connectivity solutions." Global Eagle's Ku-band satellite system is currently installed on more than >550 airplanes worldwide.

Boeing (TBC) has reached an agreement with several of Japan's major airplane component manufacturing companies to supply approximately 21% of the major components for its next generation 777X. The agreement was signed between Boeing (TBC) and Japan Aircraft Industries (JAI), plus the Japan Aircraft Development Corporation (JADC).

Under the agreement, the Japanese manufacturers will provide the fuselage sections, center wing sections, pressure bulkheads, main landing gear wells, wing components and wing-body fairings, and passenger, cargo and main landing gear doors.

The announcement from Boeing (TBC) comes as the major competitor to its next generation passenger jet, the Airbus A350 XWB, saw a $16 billion order cancelled by Emirates Airline (EAD). (EAD) is also the biggest customer for the Boeing 777X, placing a $76 billion order for 150 airplanes with 50 options in the fall of 2013.

Boeing has previously partnered with Japanese suppliers to manufacture previous passenger jets, including the Next-Generation 737, 737 MAX, 747, 767, 777, and 787 Dreamliner.

While Boeing (TBC) has not yet announced a finalized avionics architecture for the 777X, (TBC) is seeking to transfer the major elements of the 787's cockpit avionics to the 777X. The 787 cockpit system features an Integrated Modular Avionics (IMA) structure with major systems components provided by Honeywell (SGC), Rockwell Collins and General Electric (GEC). Boeing (TBC) will begin production on the 777X in 2017, and is targeting 2020 for its first delivery.

Boeing (TBC) named Eric John as President of Boeing Korea, succeeding retiring Pat Gaines.

The (FAA) and the European Aviation Safety Agency (EASA) have certified the Boeing 787-9 Dreamliner for commercial service. Each agency granted Boeing (TBC) an Amended Type Certificate for the 787-9, certifying the design complies with aviation regulations and is safe and reliable. To earn certification, Boeing said it undertook a comprehensive test program with five airplanes and more than >1,500 hours of flight testing, plus ground and laboratory testing. “Certification is the culmination of years of hard work and a rigorous flight-test program, that started with the 787-9's first flight last September,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said. “With this validation that the airplane is ready for commercial operations, Boeing (TBC) (along with our airline and leasing customers) now look forward to introducing the newest member of the 787 Dreamliner family to passengers around the world.”

The (FAA) also granted Boeing (TBC) an Amended Production Certificate, validating that the Boeing production system can produce 787-9s that conform to the design. (TBC) said it is now in the final stages of preparing for the first 787-9 delivery to launch customer Air New Zealand (ANZ).

SEE ATTACHED - - "TBC-2-JOE SUTTER-MR 747 1500TH 747 TO DLH" AT 93 YEARS OLD, WITH 747 PROGRAM CHIEF PILOT, CAPTAIN MARC FEUERSTEIN.

July 2014: Boeing's Chicago "HQ" leadership announced that the 787-10 is not going to be built by Boeing Everett. Instead it is going to be constructed practically entirely by North Charleston's plant in South Carolina because one of the factors influencing their decision was that the mid-body 787-10 fuselage would be too long to fit into the Dreamlifter to be transported to Everett for final assembly. "TBC-2014-07 - 787-10 TO NORTH CHARLESTON-A/B."

Boeing (TBC) earned net income of +$1.65 billion in the second quarter, up +52% over a +$1.09 billion net profit in the 2013 June quarter, on a +1% rise in revenue to $22.05 billion.

Boeing Chairman & (CEO), Jim McNerney pointed out that Boeing (TBC) has already booked 783 commercial airplane orders this year. “Our backlog remains large and diverse,” he said. Boeing’s commercial backlog as of June 30 stood at over >5,200 airplanes valued at $377 billion.

Boeing Commercial Airplanes (BCA) delivered 342 airplanes in the first six months of the year, up +12% year-over-year. The Commercial Airplanes unit’s second-quarter operating profit was +$1.55 billion, up +7% over a +$1.45 billion operating profit in the prior-year quarter. The unit’s first-half 2014 operating profit was +$3.05 billion, up +14% over a +$2.67 billion operating profit in the first half of 2013.

(BCA)’s second-quarter revenue rose +5% year-over-year to $14.3 billion and its first-half revenue increased +11% to $27.04 billion.

Boeing (TBC) posted an overall first-half net profit of +$2.62 billion, up +19% over net income of +$2.19 billion for the first six months of 2013. Boeing’s first-half revenue increased +4% year-over-year to $42.51 billion.

Boeing (TBC) has confirmed delivery of the first 787-9 to Air New Zealand (ANZ), the launch customer for the larger version of the 787 Dreamliner that received (FAA) and European Aviation Safety Agency (EASA) certification last month. (ANZ) has 10 787-9s on order for delivery through 2017. The 787-9 is 20 feet longer than the 787-8 currently in operation. The Auckland, NZ-based airline is configuring the 787-9 with 18C business class seats, 21PY premium economy seats and 263Y economy seats.

Separately, Boeing (TBC) announced that 787-9 flight test airplane (ZB001) will be on static and flying display at the Farnborough Airshow from July 14 - 18.

Boeing (TBC) has had a busy week leading up to the 2014 Farnborough Air Show. (TBC) finalized a $56 billion 777X order, delivered its first 787-9 Dreamliner and signed an agreement to establish a new Asia Pacific region airplane maintenance services company.

Emirates (EAD) finalized its $56 billion order for 150 777X airplanes placed during the 2013 Dubai Airshow. (EAD) is already the largest 777 operator in the world, and will look to introduce the 777X into its commercial fleet beginning in 2020. The 777X will feature (GE) Aviation (GEC)'s (GE9X) engines, an all composite wing design and a cockpit avionics setup similar to the 787 with Head-up Displays (HUDs), dual Electronic Flight Bags (EFB) and dual (GPS) receivers with triple redundant Flight Management Systems (FMS).

"Today, Emirates (EAD) operates more than one in every 10 Boeing 777s airplanes built. We fly 138 of these efficient planes across the globe, spanning the USA and Latin America in the west, to New Zealand and Japan in the East. The 777X will offer us operational flexibility in terms of range, more passenger capacity and fuel efficiency, and we look forward to inducting them into our fleet from 2020," said (EAD) President, Tim Clark. The order includes optional purchase rights for +50 additional airplanes, which could increase the value to $75 billion.

Design of the 777X is underway, with production due to begin in 2017 and initial deliveries targeted for 2020. To date, the 777X has accumulated 300 orders and commitments from six customers.
Boeing (TBC ) said the 777-9X model will be +12% more fuel efficient than any competitor and the 777-8X will have a +5% advantage over competitors.

Signaling an effort to provide more support for the growing number of Boeing airplanes flying in the Asia Pacific, (TBC) signed a partnership agreement with (SIA) Engineering Company. (SIAEC) is to form Boeing Asia Pacific Aviation Services (BAPAS). The new partnership will provide Engineering, spare parts and airplane repair in maintenance from its headquarters in Singapore. "The joint venture (JV) will be a game changer for the airline industry," said William Tan, (CEO), (SIAEC). "It will set new standards for airplane reliability and utilization. It will also make fleet management solutions far more accessible, customizable and affordable for airlines. Airplane ownership will be made much simpler." The joint venture (JV) will provide service for 737s, 747s, 777s and 787s. Singapore Airlines (SIA) and Scoot (SCT) have already signed on to receive services from the (JV) once it is finalized and clears regulatory approvals.

Boeing (TBC) delivered 181 commercial airplane deliveries during the second quarter, a 7.1% increase from the same period a year ago. The airplanes (comprising 124 737 NGs, two 747s, one 767, 24 777s and 30 787s) make up 47.1% of (TBC)’s 342 commercial airplane deliveries year-to-date. Boeing (TBC)’s delivery rate is up +19.9% from the 2013 second-quarter.

During the second quarter, Southwest Airlines (SWA) took delivery of 12 737-800s; United Airlines (UAL) received 10 737-900ERs and one 787-8; lessor (GECAS) (GEF) received five 737-800s and three 777-300ERs; American Airlines (AAL) took five 737-800s and two 777-300ERs; Air Lease Corporation (ALE) received four 737-800s and two 777-300ERs; Indonesian carrier, Lion Air (MLI) took delivery of six 737-800s and Turkish Airlines (THY) received six 737-800s.

Boeing (TBC) predicts a demand for 36,770 new airplanes over the next 20 years, valued at $5.2 trillion, up +4.2% from last year’s forecast of 35,000 airplanes, according to its Current Market Outlook. “This market is strong and resilient,” Boeing Commercial Airplanes (BCA) VP, Randy Tinseth said. “With new and more efficient airplanes entering service, the growth in air travel is being driven by customers who want to fly where they want, when they want.”

Fueling this year’s forecast is the single-aisle market, which is projected to be the fastest growing and most dynamic segment due to the continued emergence of low-cost carriers (LCC). According to Boeing (TBC), 25,680 new airplanes will be needed in this segment, making up 70% of the total units in the forecast.

“Based on the overwhelming amount of orders and deliveries, we see the heart of the single-aisle market in the 160-seat range,” Tinseth said. “There’s no question the market is converging to this size, where network flexibility and cost efficiency meet. The Next-Generation 737-800 and new 737 MAX 8 offer our customers the most revenue potential in this mid-sized space.”

Boeing forecasts that 8,600 new airplanes will be needed in the twin-aisle segment, led by small wide body airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner. This year’s forecast reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X. “With the most comprehensive wide body lineup in the industry, we're confident that we will meet our customers’ needs now and in the future,” Tinseth added.

Boeing (TBC) has projected a global demand for 1.1 million new airline pilots (FC) and maintenance technicians (MT) over the next 20 years, according to its 2014 Pilot & Technician Outlook. The report projects that between 2014 and 2033, there will be a need for 533,000 new commercial airline pilots (FC), up +7% compared to last year’s outlook, and 584,000 new commercial airline maintenance technicians, up just over >+5% compared to 2013.

The report also noted the Asia-Pacific and the Middle East are showing the strongest demand and most rapid growth. “Pilot (FC) demand in the Asia-Pacific region now comprises 41% of the world’s need, and the Middle East region saw significant growth since last year’s outlook due to increased airline capacity and orders for wide body models, which require more flight crew (FC) members,” the outlook stated.

Projected demand for new pilots (FC) and maintenance technicians (MT), broken down by global region, comprises: Asia Pacific (216,000 pilots (FC) and 224,000 maintenance technicians (MT)); Europe (94,000 (FC) and 102,000 (MT)); North America (88,000 pilots (FC) and 109,000 maintenance technicians (MT)); Latin America (45,000 pilots (FC) and 44,000 maintenance technicians (MT)); Middle East (55,000 pilots ( and 62,000 technicians); Africa (17,000 pilots and 19,000 technicians); and Russia and CIS (18,000 pilots and 24,000 technicians).

“The challenge of meeting the global demand for airline professionals cannot be solved by one company or in one region of the world,” Boeing Flight Services VP Sherry Carbary said. “This is a global issue that can only be solved by all of the parties involved—airlines, aircraft and training equipment manufacturers, training delivery organizations, regulatory agencies and educational institutions around the world.”

Boeing (TBC) announced the launch of its new Space Bins, which provide more room for carry-on bags. Space Bins are now available as an optional feature on new Next-Generation 737s and 737 MAX airplanes. Each of the larger Space Bins will stow six bags, two more than the current pivot bins installed on Next-Generation 737s with the Boeing Sky Interior. That's based on a standard size carry-on bag measuring 9-in x 14-in x 22-in/23 cm x 36 cm x 56 cm.

The global airline industry “is in better shape than it’s been in since the 1990s,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said at the Farnborough Airshow, predicting “phenomenal growth” in commercial airplane sales over the next two decades. The heart of the market is the single-aisle sector, he said, and Boeing (TBC) is adding a 200-seat version of the 737 MAX 8 to take advantage of the robust demand. The 200-seat MAX 8, offering +11 more seats than the standard MAX 8, will be +20% more fuel efficient than today’s 737NG.

The MAX is “the most successful launch in the single-aisle [sector] in Boeing (TBC) history.” Yet, demand for single-aisle airplanes is so large, that (TBC) has just managed a split of the re-engined narrow body market with the Airbus A320neo. “There are still 16,000 single-aisle airplane [sales] out there for the taking [over the next two decades], and we look forward to competing on every one,” Conner said.

With the 787-8 in service worldwide, the 787-9 about to enter service with Air New Zealand (ANZ) and the 737 MAX and 777X under development, “I think we’ve solidified our product strategy for an awful long time,” Conner said. Boeing Commercial Airplanes (BCA)’s focus in now on production execution, he said, noting the steady rise in production rates the manufacturer has achieved over the last few years. Boeing will produce +55% more commercial airplanes this year than it did in 2010.

“We’ve been able to reach unprecedented production rates,” Conner said. “We’ll deliver more 737s this year than we did [all airplanes] across all of our programs in 2011.”

MG Aviation Limited finalized an order for two additional 787-9 Dreamliners, valued at $499 million at current list prices. The order will support the leasing company’s growing fleet of modern airplanes.

Intrepid Aviation (INL) announced the leasing company’s first direct Boeing order for six 777-300ERs (Extended Range), valued at $1.9 billion at current list prices. Intrepid (INL) also has the option to purchase an additional four 777s. If all options are exercised, the value could reach more than >$3.2 billion at list prices.

Boeing (TBC) has decided to conduct final assembly of the 787-10 exclusively in North Charleston, South Carolina. Boeing (TBC) builds 787-8s and 787-9s, the first two variants of the 787 Dreamliner that are in service, at both its facilities in Everett, Washington and South Carolina and will continue to do so. Final assembly of the first 787-10, which will be 18 ft/5.5 m longer than the 787-9, is scheduled for 2017 in North Charleston.

“We looked at all our options and found the most efficient and effective solution is to build the 787-10 at Boeing South Carolina,” Boeing Commercial Airplanes (BCA) VP & General Manager, 787 program, Larry Loftis said. “This will allow us to balance 787 production across the North Charleston and Everett sites as we increase production rates.”

Boeing added that the 787-10 mid-body “is too long to be transported efficiently from North Charleston, where systems integration work is performed, to the Everett facility for final assembly. In addition, introducing the 787-10 in North Charleston takes advantage of that facility’s capacity, while allowing the Everett facility to continue improving productivity as it focuses on the 787-8 and 787-9.”

With two 787 production lines in Everett and one in North Charleston, Boeing (TBC) is currently producing 10 787s per month. Boeing (TBC) plans to boost the 787 production rate to 12 per month in 2016 and 14 per month by the end of the decade. North Charleston currently assembles three 787s monthly, expected to rise to five per month in 2016 and seven per month by 2020.

Boeing (TBC) has logged 132 787-10 orders from six customers.

SEE VIDEO OF 787-9 AT FARNBOROUGH WHICH SHOCKED ORGANIZERS - -

August 2014: Boeing (TBC) has selected (UTC) Aerospace Systems’ Aerostructures to extend its provision of complete nacelle systems for the 787 Dreamliner to include the 787-10 variant. The Aerostructures business was awarded the contract to provide inlets, thrust reversers, fan cowls and exhaust systems for both the (GE) and Rolls-Royce (RRC) engine options on the 787-8 and 787-9 in 2004.

The 787-10 agreement covers design and manufacture of nacelle systems for those engine variants for the higher capacity version of the 787 Dreamliner.

The Chula Vista, California-based, Aerostructures business will also supply aftermarket support of the 787-10 nacelle systems through its global network of maintenance, repair and overhaul (MRO) facilities and spares distribution centers.

(UTC) Aerospace Systems is a unit of United Technologies Corporation.

Boeing (TBC) has received a contract from (NATO) (NAT) worth approximately $250 million to install digital flight decks and avionics on 13 of (NAT)’s Airborne Warning & Control System (AWACS) airplanes, which are based on the Boeing 707 commercial airplane.

The new technology ensures compliance with current and future air traffic control (ATC) and navigation requirements, giving the airplanes broader access to airspace around the world. “Increasing airspace access means greater mission efficiency by saving time and fuel during operations,” said Jon Hunsberger, Boeing (AWACS) Modernize (NATO) (AWACS) Fleet Program Manager. “The improvements also provide the pilot (FC) and co-pilot (FC) user-friendly and customizable engine, navigation and radar data.”

Additionally, the upgrade will result in a cost savings in personnel because the flight deck crew will be reduced from four to three. It also solves the challenge of finding out-of-production avionics for the (AWACS) fleet by utilizing readily available commercial-off-the-shelf digital avionics. The modifications begin in 2016 and will be completed by 2018.

Under an earlier Engineering Manufacturing & Development (EMD) contract, Boeing (TBC) installed a new digital flight deck and avionics on one (NATO) (AWACS). Flight testing begins in the fourth quarter of this year with delivery scheduled for December 2015. As part of the (EMD) contract, Boeing (TBC) also will upgrade the flight deck and avionics of a USA (AWACS) airplane beginning this November.

Boeing (TBC) has won an initial contract worth $296 million to buy parts needed for production of 12 more P-8A "spy" planes, including eight for the US Navy (USN), and four for the government of Australia, the Pentagon announced.

The contract, which kicks off funding for a second batch of full-rate production jets, runs through April 2018, the Defense Department said in its daily digest of major weapons contracts.

Boeing won a $2.1 billion contract in February to build the first batch of 16 P-8A Poseidon long-range maritime spy planes for the (USN), which came on top of $300 million in funds awarded earlier for certain materials that take longer to procure, such as titanium.

The P-8A, based on Boeing’s 737-800 commercial airplane, will replace the US Navy (USN)’s P-3 spy planes, which have been in service for more than >40 years.

Royal Jordanian (RJA) celebrated the delivery of (RJA)’s first 787 Dreamliner on August 27th. (RJA) acquired this airplane through leasing company, AerCap (CLJ)/(DEA). With this delivery, (RJA) becomes only the second airline in the Middle East to operate the 787.

Boeing executives and Washington State political leaders took sledgehammers to a 1960s office block to help clear the way for a factory that will make composite wings for the company's newest jet, the 777X.

The 1.3-million-square-foot composite wing center at the site of Boeing (TBC)'s massive airplane assembly operation, should cement the company's growth in Washington State for decades to come, and reflects (TBC)'s desire to bring more of its operations under its own roof. The previous generation of composite wings, used on Boeing's 787 Dreamliner, are made by Mitsubishi Heavy Industries Ltd in Nagoya, Japan.

"We're going to be a here for a long, long time," Boeing Commercial Airplanes (CEO), Ray Conner told a crowd of about 100 that included Senator Maria Cantwell (Democrat WA), Governor Jay Inslee, senior Boeing executives, employees and officials from the International Association of Machinists & Aerospace Workers, District 751.

The decision to build the wing in the USA marks a major shift in Boeing (TBC)'s strategy after it outsourced wings and other major pieces of its carbon-composite 787 to suppliers around the world, a process that led to production problems and made the airplane three years late in reaching customers.

(TBC)'s decision should also ensure decades of stability and growth for hundreds of suppliers located near the factory and across the state, who will provide crucial 777X components. "We're bringing this wing home from where it is built for the 787. It is a hometown wing," Washington State Governor Inslee said.

The new wing factory will house three of the world's largest autoclaves used for curing composite material. Each autoclave is large enough to hold two 737 fuselages. The building will be occupied, starting in 2016. The first 777X is due to be delivered in 2020. The new 777X, which carries a list price of up to US$389 million and has garnered 286 orders, is expected to be +12% more fuel efficient than the current 777, which was introduced in 1995 and has become one of Boeing (TBC)'s most popular and reliable wide-body planes.

Conner thanked the machinists' union for approving an eight-year extension to their labor contract earlier this year. The agreement essentially traded union members' defined-benefit pension plan for the guarantee of future work on the 777X. Boeing (TBC) said the extension was necessary to ensure the wing factory and the 777X assembly plant would be placed in Washington, and not in another state. But the vote bitterly divided union members.

(IAM) District 751 Local C President, Ron Coen, who was among the dignitaries taking a swing at the wall, told the crowd he didn't agree with the vote. "But that's the past," he said. "We're here today about the future, about promises made and kept by the Boeing Company (TBC)."

Boeing (TBC) announced that Roger Bone, President of Boeing UK & Ireland, will retire at the end of September. He will be succeeded by Michael Arthur, who will assume the post from October 1.

A significant aviation anniversary occurred on August 23, 2014; it recognized the 60 years since the first flight of the legendary Lockheed Hercules airplane as of that date. This year has already witnessed another significant 60th anniversary flight last month on July 15: that of the "367-80" prototype of the Boeing 707 - - SEE ATTACHED - - The history and impact of the Boeing 707:

http://www.rbogash.com/Boeing/707-is-60.html

While the Boeing (TBC) product beat the Lockheed to the skies by over a month, the “Herc” has a distinction that the 707 (and the closely-related C/KC-135) cannot match: it’s still in production now. Indeed, more than >2,500 have been ordered to date, according to Lockheed Martin’s website, with 2,471 deliveries as of July of this year.

On July 16th, the (ASL) Aviation Group, based in Dublin, Ireland, announced it had signed a Letter of Intent (LOI) to order up to ten LM-100J commercial freighters (based on the current production ‘J’ model of the C-130). These are intended to replace the nine L-100s at (ASL)’s subsidiary, SAFAIR (SFA), in South Africa. Thus, it looks very likely that there will be L-100s flying on the 70th and 80th anniversaries of the C-130’s first flight.

September 2014: News Item A-1: "TBC-AIR FORCE ONE - 747" - -

News Item A-2: (Reuters) - Airbus (EDS) and Boeing (TBC) both topped 1,000 new jet orders in the first eight months of the year, but Boeing (TBC) is far ahead after adjusting for cancellations.

Boeing (TBC) also has delivered more planes this year than its European rival, hanging on to the title of world's largest jet airplane maker.

The Airbus Group sold 21 jet airplanes in August, a traditionally quiet month following the busy Farnborough Airshow in July, bringing its total gross orders for the year to 1,001 airplanes, monthly data showed.

In contrast, (TBC) booked 107 orders in the same month, bringing total gross orders for the year to 1,004.

Adjusting for cancellations, Airbus (EDS) reported 722 net orders between January and August. That compares with 941 net orders for Boeing from January 1 to September 2, after accounting for 63 cancellations.

(EDS) said the total of 279 cancellations it has announced this year are boosted by conversions from one product to another, as airlines hop out of the current-generation A320 single-aisle family into the newer and more efficient A320neo.

It has argued (TBC) will face similar pressure to convert orders when its own revamped 737 MAX approaches delivery, but some analysts have expressed concerns about the underlying level of cancellations as investors remain sensitive to any signs of weakness in recently strong demand for passenger jets.

The A320neo is being readied for its first test flight with engines from Pratt & Whitney (PRW), expected in the second half of the month.

August's order figures included four more upgrades from the existing A320 to the A320neo from major single-aisle customer AirAsia (ASW), bringing the total number of A320 order conversions this year to 73.

Cancellations also reflect the loss of an order for 70 A350 wide body airplanes from Emirates airline (EAD) in June, though (EDS) is ahead of its net order guidance for the year.

The International Consolidated Airlines Group (IAG) meanwhile ordered eight A350-900 airplanes, exercising an option for its Spanish subsidiary Iberia (IBE) in August.

(EDS) has now reached 750 orders for its next generation of long-distance airplanes, designed to compete with (TBC)'s lightweight, carbon-composite 787 Dreamliner.

Separately, the head of the European Aviation Safety Agency (EASA) told Reuters the A350 was on schedule to receive its safety certification by the end of September. It is due to enter service with Qatar Airways (QTA) by the end of the year.

In its latest update, (EDS) also said it had delivered 389 airplanes between January and August. (TBC) delivered 461 between January and August, including 13 787 Dreamliners, well above its target of 10 deliveries a month of the high-tech jet.

For the full year, (EDS) is targeting around the same number of deliveries as last year, when it delivered 626 passenger jets. It says net orders should exceed this.

(TBC) is targeting 715 - 725 deliveries in 2014.

Boeing (TBC) said China will need 6,020 new commercial airplanes valued at $870 billion over the next 20 years.

(TBC)’s latest China forecast predicted that Chinese carriers will take delivery of nearly 45% of all new commercial airplanes in the Asia-Pacific region over the next two decades. “China’s aviation market is going through dynamic changes,” Boeing Commercial Airplanes (BCA) VP Marketing, Randy Tinseth said. “New business models like low-cost carriers (LCC)s and airplane leasing companies, a new generation of fuel-efficient airplanes and evolving consumer needs, are driving demand for more direct flights to more destinations.”

Growth in long-haul flying to/from China “is expected to result in demand for an additional 1,480 new fuel-efficient wide bodies. Boeing (TBC) stated, “This year’s forecast reflects a continued shift in demand from very large airplanes to efficient new small and medium wide body airplanes.”

Tinseth added, “To compete in the tough long-haul international market, our Chinese customers are focused on evolving new business models, adding new destinations, increasing their capacity and resources. These trends will shape market demand for an airplane lineup that has high efficiency, low operating costs, environmentally progressive technologies and a great passenger experience.”

Boeing (TBC) launched the newest member of the 737 MAX family on September 8th with a commitment from Ryanair (RYR) for 100 airplanes. Europe's leading low-cost carrier (LCC) will be the first airline to operate the 737 MAX 200, a variant based on the successful 737 MAX 8 that can accommodate up to 200 seats, increasing revenue potential and providing customers up to +20% better fuel efficiency per seat than today's most efficient single-aisle airplanes. SEE ATTACHED - - "TBC-2014-09 - 737-MAX 200 ORDER - A/B/C."

In addition to the commitment, valued at US$11 billion at current list prices, (RYR) has options to purchase another 100 737 MAX 200s.
"(RYR) is proud and honored to become the lead operator of Boeing's 'gamechanger' 737 MAX 200, which will expand our fleet to 520 airplanes by 2024 and create another +3,000 new jobs for pilots (FC), cabin crew (CA) and engineers (MT) in Europe, while allowing us to grow traffic from 82 million last year to over >150 million annually by 2024," said (RYR) (CEO), Michael O'Leary.

"These new "gamechanger" airplanes will allow (RYR) to lower its costs and airfares, while improving the customer experience with more leg room and the Boeing "Sky Interior," particularly for our Business Plus and Family Extra customers. As many of Europe's flag carriers cut capacity on short haul routes, (RYR) looks forward to using these new Boeing 737 MAX 200s to grow at many more of Europe's primary airports," said O'Leary

(TBC) developed the 737 MAX 200 in response to the needs of the fast growing low-cost carrier (LCC) sector, which is forecasted to account for 35% of single-aisle airline capacity by 2033. While the heart of the single-aisle market will remain at 160 seats, the 737 MAX 200 will provide carriers like (RYR) with up to +11 more seats of potential revenue and up to -5% lower operating costs than the 737 MAX 8, driving economic growth and increasing access to air travel.

Based on the 737 MAX 8 airframe, the 737 MAX 200 can accommodate up to 200 seats by incorporating a mid-exit door increasing the exit limit. The airframe is 2.2 meters longer than the A320neo, giving customers more flexibility and space in the cabin, and offering a better solution at both the heart of the single-aisle market (160 seats) and at maximum passenger configurations.

Standard across the 737 MAX family, (RYR)'s 737 MAX 200s will be configured with the Boeing Sky Interior, featuring modern sculpted sidewalls and window reveals, (LED) lighting that enhances the sense of spaciousness, and larger pivoting overhead stowage bins. (RYR)'s 737 MAX 200s will be configured with 197Y seats. The seats will have just over >30 inches of pitch. With 2,239 orders from 46 customers worldwide, the 737 MAX family offers customers superior fuel efficiency, economics and passenger comfort in the single-aisle market.

(TBC) appears increasingly likely to boost production of its top-selling 737 jetliners to 52 a month starting in 2018. “Our focus today would be around a 52-a-month rate in (737 production) somewhere in that 2018 time frame,” (TBC) (CEO), Ray Conner said. The remarks, among the most explicit by Boeing (TBC) so far, further cement the widely held view that (TBC) is close to announcing another firm planned rate increase for the narrow-body 737. (TBC) currently makes 42 737s a month and has set firm plans to lift the rate to 47 a month in 2017.

The Airbus Group (EDS) also is studying raising output of its A320-family airplanes beyond the record level of 46 jets a month already targeted for 2016. A decision could come by year-end, Airbus Americas President, Barry Eccleston said.

Both companies have thousands of orders for the agile, fuel-efficient planes, which are immensely popular with low-cost carriers (LCC)s. In Boeing (TBC)’s case, its backlog of 4,008 737 orders represents nearly eight years of production at current rates, meaning airlines must wait to get planes they order today.

By increasing production rates, Boeing (TBC) and Airbus (EDS) create earlier delivery slots that they can sell to customers.

Boeing (TBC) and Ethiopian Airlines (ETH) announced an order for 20 737 MAX 8s. The order is worth more than >US$2.1 billion at list prices and also includes options and purchase rights for a further 15 737 MAX 8s. The order represents the largest single Boeing order by number of airplanes from an African carrier.

"Today's order underlines our commitment to our 15-year strategic plan, 'Vision 2025,' in which (ETH) will strive to become the leading airline group in Africa carrying 18 million passengers per annum," said Tewolde Gebremariam, (CEO) of (ETH), during a visit to the Association for the Promotion of Tourism to Africa National Forum in Chicago. "The 737 MAX will form a key component of that strategic vision, enhancing our single-aisle fleet and keeping us at the forefront of African aviation."

The 737 MAX incorporates the latest technology (CFM) International (LEAP-1B) engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX will be +14% more fuel-efficient than today's most efficient Next-Generation 737s, and +20% better than the original Next-Generation 737s, when they first entered service. The 737 MAX has a total of 2,294 orders from 47 customers worldwide.

Ethiopian (ETH) currently serves more than >83 destinations across five continents from its base at Bole International Airport in the Ethiopian capital, Addis Ababa. The Ethiopian flag carrier's partnership with Boeing (TBC) has existed for more than half a century, with a current fleet of more than >50 Boeing airplanes that includes Next-Generation 737s, 757s, 767s, 777s, 787 Dreamliners and a cargo fleet of 757s, 777F Freighters and MD-11s.

Airberlin (BER) has reached an agreement with Boeing (TBC) to cancel orders for 15 787 and 18 737 airplanes, “at a current price of some $5 billion to be rescinded.”

(NASA) (NAS) agreed to pay Boeing (TBC) $4.2 billion and SpaceX $2.6 billion to certify, test and fly their space capsules. The two contracts call for at least two and as many as six missions for a crew of four as well as supplies and scientific experiments, said (NASA)'s Kathy Lueders, Commercial Crew Program Manager. The space "taxis" will double as emergency lifeboats at the orbiting outpost.

The hope is that the commercial approach will spur a space-travel industry far larger than just (NASA). Boeing (TBC) for example, has announced a partnership to fly space tourists to the space station.
SEE ATTACHED - - "TBC-2014-09 - SPACE TRAVEL-A/B."

SEE ATTACHED - - "TBC-2014-09 - 2000 DEFENSE JOBS EXODUS-A/B/C/D."

October 2014: News Item A-1: SEE ATTACHED - - "TBC-2014-10 - 737 RAMP-UP-A/B/C."

News Item A-2: Alaska Airlines (ASA) ordered +10 737-900ERs at an estimated total market price of more than half a billion dollars. This makes their current order status grow to 37 737-900ERs with the rest coming over the next 3 years.

(ASA) also has 37 of the new 737MAX family on order for delivery from 2018. (ASA) which has an existing fleet of 136 737s, plans to replace aging 737 Classics and to expand services out of its Seattle hub. "We're doubling down on our strength in Seattle," said Alaska Air Group (CEO), Brad Tilden. "We have a very strong franchise here. It's important that we protect what we've got." (This is a reference to (ASA)'s battle to maintain its dominance at Seattle-Tacoma International Airport against a rapid expansion by Atlanta-based airline giant, Delta Airlines (DAL). Note: The latest passenger traffic data from the Port of Seattle, which runs the airport, suggests that so far, (ASA) is holding its own.

In August, (ASA)'s passenger traffic through Sea-Tac was up +9.4% compared with a year earlier, roughly in line with over-all traffic growth at the airport, thanks to a strong local economy. For the year through August, the hometown airline carried 51% of all the passengers passing through the airport. (DAL)'s share of Sea-Tac passenger traffic climbed to just shy of 15%, almost 2 points higher than 4 months earlier.

Delta (DAL)'s growth is affecting the market share of international carriers out of Sea-Tac more than (ASA)'s.

Year-to-date through August, United (UAL)'s passenger traffic share at the airport was down -7% compared with the previous year.

Meanwhile, (ASA) continues to grow. In 2010, (ASA) flew 114 Boeing 737s. By 2017, with some older jets being retired and the new orders deliveries coming in, the fleet should grow to 147 of the jets.

In addition to Boeing, another local company will win business from (ASA)'s order: Aviation Partners Boeing (AVP), which designs and sells new winglets for the 737. (ASA) is modifying the wingtips on its existing 737s and on the latest ones rolling out, is replacing the standard upward-sweeping winglets with the "(AVP)-designed "split scimitar" models that have parts curving both upward and downward.

The drag-reducing aerodynamics of the (AVP) winglets improve the airplanes fuel efficiency by roughly +1.5%.

To underscore its hometown roots against the interloper from Atlanta (DAL), (ASA) organized a Seattle-area scavenger hunt for Friday October 10th, with prizes including pairs of free flight tickets and the opportunity to fly a Boeing 737 in a simulator. Details are on the (ASA) blog at blog.alaskaair.com/

SEE ATTACHED - - "TBC-2014-10 - ASA 737-900ER ORDER-A/B."

News Item A-3: Boeing Network & Space Systems (N&SS) and Panasonic Avionics have partnered to develop a broadband, electronically steered phased array antenna for commercial airliners. The antenna will deliver in-flight Wi-Fi through Panasonic’s eXconnect broadband service, while reducing fuel burn and emissions through a reported -65% reduction in weight compared to mechanically steered equivalents.

The antenna, which will be available to the commercial market in 2016, will support data and multicast TV services on Ku-band to deliver In-Flight Connectivity (IFC) to passengers. Paul Geery, VP of C3 Solutions for Boeing (N&SS) said the company is offering its Ku-band design to Panasonic as the only licensee of the Boeing technology, to manufacture the antenna system under the pending agreement.

While commercial buyers will see the technology in two years, a version of the antenna has already been in production with Boeing (TBC) for several years in the military market, where buyers are willing to “spare no expense,” according to Todd Hill, Director of Global Communications Services, Products & Capacity at Panasonic Avionics. Now, however, with advancing technology, the low-profile, electronically steered antenna has become affordable enough to bring to the table for commercial customers.

“Our connectivity customers have always wanted an antenna like this but the cost was always too high,” Hill said. “Now, however, technology advancements in the level of integration of digital and analog (RF) circuits supports an affordable and reliable version.”

The initial focus of the antennas will be for popular narrow-body airframes, such as the 737 and the A320, and, based on demand, the companies plan to offer the technology for a much broader range of narrow- and wide-body airplanes in the future. The antenna mount is also compatible with the (ARINC) 791 standard, which will allow it to be “installed by the Original Equipment Manufacturers (OEM)s and also retrofit in a robust installation that can be easily maintained over the life of the plane,” Hill said.

According to Geery, once the agreement is finalized, the two companies will complete detailed designs, pre-production units, qualification and certification for the antenna. Last year, Boeing (TBC) entered into an agreement with Panasonic to provide eXConnect (IFC) to military customers. Geery confirmed that Boeing (TBC) would also offer access to (IFC) through the new low-profile antenna to government customers, who used the phased array technology in the past.

While the companies plan to make the technology available and fitted for as many operators as possible, it might not be for everybody. Because the satellites that Panasonic eXconnect is working with are located around the equator, Hill notes that not all operators and air routes are suitable. “Low-profile antennas are somewhat limited in how close to the horizon they can look, so they are not the best choice for planes that fly a lot of polar routes. The airline’s route structure will determine if the antenna is a good fit for their wide-body fleet,” Hill said, noting that airlines with a route structure based closer to the equator and outside the Arctic Circle are the ideal candidates.

Geery also acknowledged that the phased array antenna would have less coverage in high altitude regions compared to mechanically steered alternatives. Still, Boeing (TBC) and Panasonic anticipate the pros of an electronically steered antenna will outweigh the cons. “This should not impact the majority of the routes flown by customers in the target airplane market,” Geery added.

Despite the geographic limitation in access, Panasonic covers more than >99% of air routes globally. Rather than focus extensively on the less than <1% of routes lacking coverage, the company plans to bolster the amount of capacity available over highly trafficked areas. Panasonic has already purchased capacity on the upcoming EpicNG High Throughput Satellite (HTS) Intelsat 29e, which will cover most of the Americas, Europe and the North Atlantic flight corridor. Following the launch of the IS-29 satellite in 2015, Panasonic will have two more (HTS) payloads coming online in 2016: one aboard Eutelsat 172b and other on IS-33. Eligible operators will benefit from the reduced operational weight and drag. According to Hill, the typical 737 operator will save more than >$65,000 annually at current fuel prices.

Panasonic is evaluating whether the antenna system will be available to other service providers once completed, or if it will remain exclusively within the company — similar to Gogo’s agreement with ThinKom. Hill notes that Boeing’s expertise in phased-ray antennas is what makes this technology possible. “They’re the only ones we know of that are building phased array antennas. Including antennas for submarines and Air Force One (and those are just the ones that are somewhat public). Who knows what they’ve been building for all the black projects,” he said.

News Item A-4: Boeing (TBC) said it sees signs of a strengthening air cargo market but nevertheless has lowered its long-term air cargo traffic growth forecast by -9.6% compared to two years ago. (TBC) released its biennial World Air Cargo Forecast on October 7th, projecting annual air cargo traffic growth of +4.7% over the next 20 years, down from the 5.2% annual growth rate it forecasted two years ago. (TBC) noted that “world air cargo traffic stagnated from mid-2011 to early 2013,” explaining, “This prolonged period of weak growth can be attributed to two factors: a weak world economy and slack trade growth.”

Prior to the 2008 financial crisis, (TBC) was predicting +5.8% to +6.1% annual air cargo traffic growth, which was in line with historic growth rates in the air cargo sector. But “since the onset of the global economic crisis in 2008, world air cargo traffic has averaged only +1.7% growth per year through 2013,” (TBC) said. “On a positive note, world air cargo traffic began to grow again in second quarter 2013. By July 2014, traffic had grown +4.4% compared with the first seven months of 2013. Forecasts for even better economic and trade growth should lead to sustained air cargo traffic growth in 2015 and 2016.”

Boeing Commercial Airplanes (BCA) VP Marketing, Randy Tinseth said, “We see strong signs of a recovery as airfreight traffic levels continue to strengthen after several years of stagnation.”

Boeing projected a market for 840 new factory-built freighter airplanes over the next 20 years. Those airplanes will be augmented by 1,330 passenger to freighter conversion airplanes delivered over the next two decades, (BCA) said.

“More than >52% of [new freighter and conversion] deliveries are expected to replace retiring airplanes and the remainder used for growth,” (BCA) stated, adding, “More than >70% of the new factory-built airplanes scheduled to deliver between 2014 and 2033 are forecast to be large freighters, such as the 747-8F and 777F.”

The World Air Cargo Forecast 2014/2015 is available at http://www.boeing.com/boeing/commercial/cargo

News Item A-5: Boeing (TBC) will produce 777X parts at its site in St Louis, Missouri, bringing back inside the company, work that is currently performed at suppliers or performed overseas for the current 777 program. The design for these parts will be done in St Louis, Boeing Aerostructures Australia and other Boeing sites.

The parts built by the St Louis team will support 777X work at the composite wing center in Everett, Washington, home of the 777X program. The new 1 million sq ft composite wing center is currently under construction.

Boeing Commercial Airplanes VP & General Manager 777X Program, Bob Feldmann said a “program of this size requires that we bring together all of the talent that Boeing (TBC) has to offer.” (TBC) will perform final assembly of the 777X in Everett.

To accommodate this production work, Boeing (TBC) said it would expand its current St Louis composites facility, which will begin producing parts for the 777X program in 2017.

(TBC) has broken ground on its new 1 million sq ft 777X composite wing center at the Everett, Washington campus. (TBC) said it is investing more than >$1 billion for constructing and outfitting the new building. “Once completed, the facility (located on the north side of the main final assembly building) will help usher in composite wing fabrication for the company’s newest commercial jetliner and sustain thousands of local jobs for decades to come,” (TBC) said.

Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said the new facility will play a crucial role in bringing the 777X to market. The building is expected to be completed in May 2016. First delivery of the 777X is targeted for 2020.

According to (TBC), the 777X (which was launched at the November 2013 Dubai Air Show) has received 300 orders and commitments. The 777X family will comprise two models (the 777-8X, with approximately 350 seats and a range capability of more than >9,300 nautical miles, and the 777-9X, with approximately 400 seats and a range of more than >8,200 nautical miles.

(TBC) said the 777-8X competes directly with the Airbus A350-1000, which is expected to enter service in 2017.

News Item A-6: After trailing rival Boeing (TBC) for most of the year, Airbus (EDS)’ commercial airplane orders surged in the third-quarter, as (EDS) logged 560 commercial airplane orders (compared to Boeing (TBC)’s 549) placing the two manufacturers in a near neck-and-neck competition for the year-to-date grand total.

At the 2014 third-quarter mark, ending September 30, Boeing (TBC) had 1,083 orders; Airbus (EDS) had 1,068. Boeing (TBC)’s net commercial airplane order count for the first three quarters was 977, versus Airbus (EDS)’ 788.

Boeing (TBC) delivered 510 commercial airplanes through September 30, the majority of which (343) were 737 family airplanes. Airbus (EDS) delivered 437 commercial during the first three quarters of the year, half of which (219) were A320 family airplanes.

Commercial airplane calculations exclude orders from government or military entities, (VIP)/business jet customers and private customers.

Airbus (EDS)’ 560 commercial airplane orders for the third quarter included bookings for 294 A320neo airplanes (including 110 for lessor (SMBS) Aviation Capital, 50 for lessor (ILFC) and 40 for lessor Hong Kong Aviation Capital); 149 A321neo airplanes (including 60 for Air Lease Corporation (ALE), 30 for Hong Kong Aviation Capital and 23 for (ANA) Holdings); 92 A320ceo airplanes (including 27 for easyJet (EZY), 19 for Singapore-based lessor, BOC Aviation (SIL), and 17 for an undisclosed customer); 11 A330-200s (eight to Iberia (IBE) and three to Air Algerie (ALG)); eight A350-900s to Iberia (IBE); and six A319ceo aircraft to USA lessor, Z/C Aviation.

Airbus (EDS)’ third-quarter orders primarily came from European customers, with 205 total orders (Irish lessor (SMBC) Aviation Capital ordered 110 A320neo airplanes). Asia-Pacific region customers placed 171 orders (including 70 from Hong Kong Aviation Capital and 30 from (BOC) Aviation (SIL)). North American lessors placed 116 orders during the quarter (60 from (ALE); 50 from (ILFC) and six from Z/C Aviation).

Boeing reported 549 commercial airplane orders for the third quarter, including 220 bookings for the 777X (dominated by Emirates (EAD)’ July 8 order for 150 of the airplanes, Qatar Airways (QTA)’s order for 50, and (ANA)’s order for 20); 195 737 MAX airplanes (including 60 collectively ordered by three unidentified customers, 50 by lessor (BOC) Aviation (SIL) and 20 by Ethiopian Airlines (ETH)); 49 737-800s (including 30 for (BOC) Aviation (SIL)); 47 787-9 Dreamliners (including 15 to an unidentified customer and 14 to (ANA)); 34 777-300ERs (all to lessor companies except for six to (ANA)); and four 767-300F cargo airplanes to FedEx (FED).

Boeing (TBC)’s third-quarter orders (excluding unidentified customers) predominately came from carriers in the Africa - Middle East region, with 222 orders (largely Emirates (EAD)’ and Qatar Airways (QTA)’ orders for 170 777x airplanes, and Ethiopian Airline (ETH)’s order for 20 737 MAXs). Asia-Pacific customers placed 122 orders during the quarter (40 from Japan’s (ANA) and 82 from Singapore’s (BOC) Aviation (SIL)). North American customers booked 38 orders during the quarter (all were lessors, save for FedEx (FED)’s four 767-300Fs).

Boeing (TBC)’s 180 deliveries for the 2014 third-quarter included 97 737-800’s, 26 787-8 Dreamliners, 25 777-300ERs, 16 737-900ERs, four 787-9 Dreamliners, four 747-8F cargo airplanes, two 747-8s, two 767-300F cargo airplanes, two 777F cargo airplanes, and two 737-700s.

Southwest Airlines (SWA) took 11 deliveries from Boeing during the third quarter (all 737-800s), followed by eight each for (ANA) (three 787-8 Dreamliners, two 787-9 Dreamliners and three 737-800s) and Indonesia’s Lion Air (MLI) (four 737-900ERs and four 737-800s); and seven each for Air China (BEJ) (four 737-800s, a 747-8, a 777-300ER and a 777F for Air China Cargo (CAO)), China Eastern Airlines (CEA) (five 737-800s, a 737-700 and a 777-300ER) and USA lessor, (GECAS) (GEF) (six 737-800s and a 777-300ER).

Boeing (TBC)’s third-quarter deliveries went predominantly to customers in the Asia-Pacific region (77 deliveries), followed by 54 for North American customers and 23 for European customers.

Airbus (EDS)’ 139 third-quarter deliveries included: 37 A321s, 66 A320s, 17 A330-300s, eight A319s, eight A380s and three A330-200s.

China Eastern Airlines (CEA) took delivery of 13 Airbus airplanes during the third-quarter (five A320s, four A319s, two A321s and two A330-200s). US Airways (AMW)/(USA) received eight A321s, and five each went to China Southern Airlines (GUN) (five A321s), (BOC) Aviation (SIL) (five A320s), AirAsia (ASW) (five A320s) and Air China (BEJ) (two A320s, two A330-300s and an A321).

Airbus (EDS)’ third-quarter deliveries went primarily to Asia-Pacific region carriers, with 68 deliveries, followed by 28 for North American customers and 25 for European customers.

Boeing (TBC) said the first test plane for its KC-46 (767-200ER) Air Force aerial-refueling tanker program is expected to fly in late November or early December. Despite the delay, Boeing remains on track to fulfill its contract requirement of having 18 tankers built and ready to deploy by late 2017. The US Air Force plans to buy a total of 179 of the tankers to be delivered through 2027. SEE ATTACHED - - "TBC-2014-10 - USF KC-46 (767-200ER) TANKER UPDATE-A/B."

News Item A-7: Boeing (TBC) has delivered to Virgin Atlantic Airways (VAA) the airline's first 787-9 Dreamliner. (VAA) is the first European carrier to take delivery of the 787-9 and plans to operate the airplane initially on its London Heathrow to Boston route.

(VAA)'s first 787-9 touched down at London's Gatwick Airport following a more than >4,000 nautical mile (nm) nonstop flight from Paine Field in Everett, Washington, USA. The airplane is the first of 16 787-9s (VAA) has ordered from Boeing (TBC).

The 787 is slated to cut (VAA)’s fuel costs by -21% per trip and will be a “major driver” in its financial turnaround. It will be deployed on existing routes, starting with Boston on October 28, followed by Washington DC in December, New York/Newark in January, and London Heathrow - New York (JFK) from February.

(VAA) plans to use the new airplanes to tweak its upper class (F) and premium economy (PY) products, introducing a new on board premium economy (PY) lounge area called “the Wander Wall.” It will configure its 787s with 31F upper class, 35PY premium economy and 198Y economy seats. All passengers will have access to Wi-Fi connectivity.

According to Boeing (TBC), nearly 60 global customers have ordered more than >1,000 787 Dreamliners to date, approximately 40% of which are 787-9s.

News Item A-8: Garuda Indonesia (GIA) has announced an order for 50 Boeing 737 MAX 8s, valued at $4.9 billion at list prices. (GIA) will purchase 46 737 MAX 8s and convert existing orders for four 737-800s to 737 MAX 8s, Boeing (TBC) said. The order was previously listed on Boeing (TBC)'s orders and deliveries website as an unidentified customer. (GIA), a new SkyTeam (STM) Alliance member, operates 77 737s. The 737 MAX 8s will be powered by (CFM) International (LEAP-1B)s, the sole-source engine.

Kunming Airlines ((IATA) Code: KY, based at Kunming Changshui) (KMG) has committed to purchase ten 737s, including four 737-700s and six 737 MAX airplanes, from Boeing (TBC). The commitment is valued at USD897 million at current list prices.

News Item A-9: Boeing (TBC) started production of the first 737 MAX fuselage stringers at Boeing Fabrication Integrated AeroStructures in Auburn, Washington. Stringers run the length of the fuselage structure giving it stability and strength.

After forming, Boeing (TBC) said it will send the stringers to Spirit Aerosystems in Wichita, Kansas for incorporation into the first 737 MAX fuselage. From there, the fuselage will be shipped to (TBC)’s Renton, Washington facility, where Boeing employees will build the 737 MAX.

“The program is on track to begin final assembly of the first 737 MAX in 2015. The airplane will be part of the flight test fleet and is scheduled to fly in 2016,” (TBC) said.

(TBC) said the total number of 737 MAX orders to date is 2,295 airplanes from 47 customers worldwide.

News Item A-10: Emirates Airline (EAD) has taken delivery of its 100th Boeing 777-300ER. With this delivery, (EAD) will have 142 777s in operation and is the only airline in the world to operate all 777 variants. With a current direct backlog of 51 777-300ERs, the 777 also comprises the largest part of (EAD)’s 213-strong fleet.


“The Boeing 777-300ER is one of the most remarkable jet airplanes ever built, and its combination of efficiency, range and payload is second to none. Our customers are equally excited by the airplane and its on-board product, and to date over >108 million passengers have flown on an (EAD) Boeing 777-300ER,” said Sir Tim Clark, President of Emirates Airline (EAD).

“We have +204 more Boeing 777s on order, which supports over >400,000 jobs in the USA, including those from various suppliers such as General Electric (GE) which provides the (GE90) engines that power all of our 777-300ERs,” said Clark.

Today’s 777-300ER is the most fuel and cost-efficient airplane in its class departing on time 99.5% of the time making it the most reliable twin-aisle airplane in the world. It also has the highest cargo capability of any passenger airplane. Its 330-minutes Extended Twin engine OPerationS (ETOPS) approval allows for more direct flights and decreases cancellations due to conditions at alternate airports.

The 777-300ER has consistently won many accolades including “Best Airplane Type” which were awarded based on passenger preference polls, “Best in Class” based on fuel burn, passenger load cost and performance and “Best Residual Value for a Twin Aisle Airplane” among others.

“We are proud of our long-term relationship with (EAD) and for the confidence they have in Boeing (TBC)’s products and services beginning with the 777 and continuing with the 777X in the years to come,” said Boeing Commercial Airplanes President & (CEO), Ray Conner. “The operating economics and long-range capability of the 777-300ER have played a prominent role in the success of (EAD)’s business strategy.”

At the 2013 Dubai Airshow, (EAD) became one of the launch customers for the 777X by committing to 150 airplanes. The order was finalized in July of this year.

Each 777-300ER contains approximately three million components and assemblies, with more than >65% purchased through Boeing’s global supply chain. More than >500 companies around the world contribute parts for the 777, with a significant percentage in the USA.

Boeing (TBC) provides (EAD) with essential support and services from its "Boeing Edge" portfolio of aviation services, including parts and components, Airplane Health Management (AHM) to speed the detection and resolution of maintenance issues, Jeppesen Crew Rostering services to optimize flight crew (FC) scheduling, and AerData STREAM (Secure Technical Records for Electronic Asset Management) to manage airplane and engine records.

SEE VIDEO ON BOEING 777X COMPOSITE WING CENTER ANIMATION - -
http://atwonline.com/airframes/atw-video-boeing-777x-composite-wing-center-animation?NL=ATW-04&Iss

November 2014: News Item A-1: Boeing (TBC) has begun flight testing more than >25 new technologies aimed at improving aviation’s environmental performance through every phase of flight.

According to (TBC), the "ecoDemonstrator Program" accelerates the testing, refinement and use of new technologies and methods that can improve efficiency and reduce noise. “This new round of testing, using 787 Dreamliner (ZA004), will evaluate software and connectivity technologies related to operational efficiency; remote sensors to reduce wiring; aerodynamic and flight control improvements for greater fuel efficiency, and icephobic wing coatings to reduce ice accumulation.”

News Item A-2: With Monarch Airlines (MON)’s late-October booking for 30 Boeing 737 MAX 8s, Boeing (TBC) added to its lead over rival manufacturer Airbus (EDS) in the year-to-date commercial airplane order race; as of October 31, Boeing (TBC) has 1,127 gross orders on its books, compared to Airbus (EDS)’ 1,070.

Airbus (EDS) booked just a single commercial airplane order in October: two A320ceos for Singapore-based lessor, (BOC) Aviation (SIL).

In contrast, (TBC) logged five commercial orders during the month, for a total of 44 airplanes. In addition to the Monarch Airlines (MON) order, bookings were logged for 10 737-900ERs for Alaska Airlines (ASA); a 747-8F freighter for Russia’s AirBridgeCargo Airlines (ABC); two 737-800s for an unidentified customer, and a 737 MAX for a separate unidentified customer. On October 12, Garuda Indonesia (GIA) converted a previously placed order for four 737-800s to four 737 MAX 8s.

Year-to-date commercial airplane deliveries for the two manufacturers, as of October 31, stand at 569 for Boeing (TBC) and 486 for Airbus (EDS).

In October, (EDS) delivered 49 commercial airplanes, including four to Air Lease Corporation (ALE) (three A321ceos and one A330-300); four to Philippine Airlines (PAL) (three A321ceos and one A330-300); three to China Eastern Airlines (CEA) (one A319ceo, one A321ceo and one A330-200) and three A321ceos to (GECAS) (GEF). Additionally, British Airways (BAB) took delivery of an A380 on October 16.

Boeing (TBC) delivered 59 commercial airplanes in October, including four to lessor (GECAS) (GEF) (three 737-800s and a 777-300ER); four to Indonesian carrier Lion Air (MLI) (three 737-800s and one 737-900ER); and three each for American Airlines (AAL) (two 737-800s; one 777-300ER), China Eastern Airlines (CEA) (a 777-300ER, a 737-700 and a 737-800), Qatar Airways (QTA) (two 787-8 Dreamliners and one 777-300ER) and United Airlines (UAL) (two 737-900ERs and one 787-9 Dreamliner).

Airbus (EDS)’ October deliveries went primarily to Asia-Pacific region carriers, with 23 deliveries, followed by 14 for North American customers. The bulk of Boeing (TBC)’s October deliveries went to North American customers (20 deliveries) and Asia-Pacific region customers (19 deliveries).

Commercial airplane calculations exclude orders and deliveries from/to government or military entities, (VIP)/business jet customers and private customers.

News Item A-3: From the Avionics Magazine, SEE ATTACHED WIRELESS DATA BY TELEDYNE CONTROLS at - -
http://interactive.avionicstoday.com/wireless-data-the-new-age-of-flight-operations-efficiency/?hq_e=el&hq_m=2971986&hq_l=5&hq_v=81840c0c20

News Item A-4: (SMBC) Aviation Capital (SBC) has placed an order for 80 Boeing 737 MAX 8s, valued at more than >$8.5 billion at list prices, making this the largest single order for 737 MAXs from a leasing company.

With this agreement, (SBC) becomes Boeing’s 50th 737 MAX customer and grows the program’s order book to more than >2,400 airplanes.

(SBC) (CEO), Peter Barrett said, “The 737 MAX 8 is one of the most fuel efficient and versatile airplanes available. Following this order and given the clear commitment of our shareholders and the strength of the global airplane leasing sector, we remain very confident in our ability to continue to deliver long-term growth.”

News Item A-5: Boeing (TBC) promoted Donna Hrinak to President Latin America.

News Item A-6: SEE ATTACHED "SEATTLE TIMES" AEROSPACE REPORT BY DOMINIC GATES - - "TBC-2014-11 - DAL AIRBUS ORDER-A/B/C." Delta Air Lines (DAL) ordered 25 Airbus A330-900neos and 25 A350-900s at a list price of $14.3 billion. However, the real value of this order after normally expected discounts, should amount to approximately $6.2 billion. Boeing was trying to sell Delta (DAL) a mix of 777-300ERs and the 787-9 (the larger version of the Dreamliner), to replace (DAL)'s aging 747s and 767s.

The decisive factor in (DAL)'s choice, nevertheless, was that Airbus (EDS) was able to offer early delivery slots, but Boeing (TBC) could not.

Boeing (TBC) has unfilled orders FOR 850 787 Dreamliners and plans to ramp up production from the current 10 jets per month to 14 by the end of the decade, in order to meet demand for earlier deliveries.

Delta (CEO), Richard Anderson had said back in June that (DAL) really needed deliveries around 2017, and 2018.

(DAL) is presently the most profitable airline in the world and, measured by passengers carried, is the second largest following the "new" ("old" (AAL) merged with US Airlines (AMW)/(USA)) American Airlines (AAL). (DAL)'s current wide body fleet consists of 126 Boeing jets and just 32 Airbus jets. The Airbus jets (all A330s) were inherited from Northwest Airlines (NWA) when the two carriers ((AAL)/(NWA)) merged in 2008. Last year, (DAL) ordered +10 more A330s.

The decision now that (DAL) will update its wide body fleet with the new version of the A330 and the A350 is a major disappointment for Boeing (TBC). On the other hand, Airbus grabbing such a prominent major USA airline in a head-to-head competition between the 787 and its rival A350 is a timely boost for Airbus (EDS).

Aviation analyst, Scott Hamilton of Leeham.net stated this order "It's huge, since up to now, Airbus' wide body penetration into the USA jet airplane market has been minuscule."

American Airlines (AAL) and United (UAL) presently have all-Boeing (TBC) fleets, although the "new" (AAL) inherited an Airbus A350 order when it merged with US Air (AMW/USA), and (UAL) also now has A350s on order.

This new (DAL) order confirms the market potential of the A330neo, featuring the new fuel-efficient Rolls Royce (RRC) engines, which were part of last July's Farnborough Air Show, including commitments for 121 of these airplanes. The A330neo will likely be flown on trans-Atlantic routes initially, including some from Seattle to Europe.

Airbus has 549 firm orders for the A350-900, which is set to be delivered for the first time next month. The A350-900 is a long-range jet airplane seating more than >300 passengers, and like the 787 Dreamliner, has a mostly carbon fiber composite airframe. It will probably be used out of Seattle-Tacoma International Airport on trans-Pacific routes.

News Item A-7: Delta Air Lines (DAL) is growing at a phenomenal rate at Sea-Tac. On November 19th, (DAL) announced new flights to Boise, Idaho; Denver, Colorado; Sacramento, California; and to Ketchikan and Sitka in Alaska. As (DAL) increases its Sea-Tac presence, more and more Airbus airplanes will be flying out of here.

News Item A-8: Despite the recent spate of large wide body airplane orders by Japanese carriers, there are still opportunities for new contracts with these airlines, according to a senior Boeing executive.

News Item A-9: Boeing (TBC) signed a memorandum of agreement with composite supplier, Toray Industries to expand its current contract for the 787 Dreamliner to include the 777X wings. Once finalized, the long-term contract extension will take effect in 2015.

News Item A-10: China’s Ruili Airlines (RUI) has received its first direct-purchase Boeing 737-700. The new airplane is the first of 14 737 orders and commitments, comprising eight 737-700s and six 737 MAXs. The Kunming-based carrier currently operates two 737-700s and one 737-800 serving seven domestic routes in China.

News Item A-11: Boeing (TBC) has started final assembly of the 787-9 Dreamliner at its South Carolina facility. The team began joining large fuselage sections of the newest 787 on November 22 on schedule.

The North Charleston, South Carolina, site joins Boeing (TBC)’s Everett final assembly in Washington state, which began 787-9 production in May 2013. United Airlines (UAL) will take delivery of the first South Carolina-built 787-9.

News Item A-12: Thomson Airways (IATA) Code: BY, based at London Luton) (ATZ)/(TFY) will use its growing fleet of 787-8s to operate all longhaul services with effect from summer next year the airline's parent, Thomson Holidays, has announced. Presently, the leisure carrier supplements its six Dreamliners with a fleet of five 767-300s used on flights from the United Kingdom, Germany, and Scandinavia to the Caribbean, Mexico, Thailand, and the USA. Another two 787-8s are due in spring next year.

Thomson Airways (ATZ)/(TFY) currently operates 53 airplanes, and serves 31 countries, 86 destinations, on 322 routes and 73 daily flights.

December 2014: News Item A-1: Boeing (TBC) logged six commercial orders in November, for a total of 221 airplanes. (TBC) also reported delivering 53 commercial airplanes to 40 customers.

Boeing (TBC) capped the month with the November 28 finalization of Ryanair (RYR)’s order for 100 737 MAX 200s (valued at $11 billion at current list prices), confirming its status as launch customer for the high-capacity variant. The airplane deal was announced as a commitment in September, but (RYR) needed shareholder backing to turn it into a firm order.

After securing this rubber stamp, (RYR) wasted no time in cementing the $11 billion order with Boeing (TBC), with the potential to increase to $22 billion if the options are firmed. “(RYR) is proud and honored to become the lead operator of Boeing’s ‘game changer’ 737 MAX 200 airplanes,” (RYR) (CEO), Michael O’Leary said.

With this latest boost, (RYR)’s fleet will grow to 520 airplanes by 2024. The 737 MAX 200s, which are slated for delivery between 2019 and 2024, will have eight more seats than (RYR)’s 737-800s. (RYR) said the airplanes will reduce its fuel consumption by up to -18% and cut noise emissions by -40%.

Bookings logged earlier in the month included 80 737 MAX 8s for (SMBC) Aviation Capital (valued at over >$8.5 billion at current list prices); six 737 MAXs (variant undetermined) to an unidentified customer; four 737-700s (valued at $313.2 million at current prices) to an unidentified customer; 30 737 MAXs (variant undetermined) to a third unidentified customer; and a 787-9 Dreamliner (valued at $257.1 million at current list prices) to Virgin Atlantic (VAA).

Boeing (TBC)’s multiple deliveries to a single customer during the month included: four airplanes to Oman Air (OMR) (three 737-800s and a 737-900ER); three airplanes to China Eastern Airlines (CEA) (two 737-800s and a 777-300ER); three 737-800s to Hainan Airlines (HNA); two 737-800s to Air Lease Corporation (ALE); two 737-800s to American Airlines (AAL); two 737-900ERs to Delta Air Lines (DAL); two airplanes to lessor (GECAS) (GEF) (a 737-800 and a 777-300ER); two 737-800s to Lion Air (MLI); and two 737-800s to Shenzhen Airlines (SHZ).

The manufacturer also delivered a single 787-8 Dreamliner each to Air Canada (ACN), Japan Airlines (JAL)/(JAS), (LAN) Airlines, Qatar Airways (QTA), and lessors AerCap (DEA), and (CIT) Leasing Corporation (TCI).

News Item A-2: Boeing (TBC) is forecasting strong demand for new commercial airplanes in 2015, resulting in nearly $124 billion in deliveries across the industry, double the amount from 2010, according to Boeing’s Current Aircraft Finance Market Outlook for 2015.

Boeing Capital Corporation’s Aircraft Financial Services VP & General Manager, Tim Myers said, “The strength we’re seeing in airplane finance is largely the result of a healthy and balanced global demand for new airplanes, which is driven by anticipated growth in passenger traffic, record airline profitability and the continuation of a replacement cycle to improve the fuel and performance efficiency of the global fleet.”

He said the stable performance of airplane finance and investment over the past few years (particularly throughout the global financial crisis) is “attracting new participants and is driving diversification both geographically and in terms of funding sources.”

Boeing projects 2015’s commercial airplane finance strength “should result in efficient financing for airlines and historically low levels of export credit usage [13%], with commercial bank debt [29%] and the capital markets [33%] expected to cumulatively account for approximately 60% of delivery financing.”

Lessors are expected to fund about 40% of 2015’s deliveries, “while driving significant innovation in aircraft finance.” Leasing companies’ recent shift of their leverage from commercial bank debt to more efficient capital market funding has attracted new institutional investors, Boeing (TBC) said.

In the used airplane market, (TBC) projects investor demand and lessor portfolio sell-down initiatives will support continued interest and investment.

(TBC) downplayed “market angst” over concerns about fuel, interest rates, currency volatility, political upheavals and health epidemics, stating, “As long as these variables do not undermine global economic growth, the current trends for new airplane demand should continue in 2015, supporting continued strength and balance for the global airplane finance industry.”

Boeing (TBC) projects $156 billion in delivery financing will be needed in 2019. But “the airplane finance industry grew and evolved to successfully meet the rapidly rising demand of the past five years and appears to be well-positioned for the next five as well,” the report stated.

News Item A-3: The following is from the Avionics Magazine, written by: Woodrow Bellamy III:
At the 2013 Dubai Airshow, Boeing (TBC) launched the latest variant of its 777 family, the 777X, six years ahead of its projected entry into service (EIS). Since then, the wide body jet has attracted a healthy demand, with 300 orders and commitments from six different customers; and (TBC) indicates they will achieve firm configuration on the 777X in 2015. But (TBC) still faces one challenge: How to keep demand going for the current generation 777, while its customers know a newer and more efficient model is coming right behind it.

"The bigger issue (and probably the far more challenging issue) is bridging that gap with the current 777," Richard Aboulafia, VP Analysis at the Teal Group, told the "Avionics Magazine."

Airlines looking to replace the existing wide body airplane with newer and more efficient models within the next several years have two choices when considering Boeing (TBC)'s offerings. They can either purchase the latest 777 model now (the 777-300ER) and likely take the first delivery of it in 2017 or 2018; or they can order the 777X and wait until at least 2020 to receive it.

"(TBC) is running at record [production] rates on the current 777, they’ve already told people there is a new model coming. Keeping at that record rate, how do you keep selling current generation 777s to bridge that gap? And my guess is, if you don’t, you have to watch those output rates fall," said Aboulafia.

Delta Air Lines (DAL) recently announced an order that illustrates the challenge Boeing is seeing with its 777X not coming on line until 2020. The Atlanta, Ga.-based carrier placed an order in November for 50 Airbus twin-aisle jets, split between the A350 and A330neo models, to replace its aging fleet of Boeing 747s and 767-300s. Both of these airplanes are entering service prior to the 777X, with the re-engined A330-900neo scheduled for introduction in the fourth quarter of 2017.

Despite the time gap, Boeing (TBC) is confident it can overcome this challenge, which is mainly a production schedule issue. The manufacturer wants to effectively bridge the legacy 777 production rates to the introduction of the 777X in 2020. Right now Boeing is producing 100 classic 777s per year, a record for that airplane family.

Boeing President & (COO), Dennis Muilenburg discussed demand for the legacy 777 during the annual "Credit Suisse Global Industrials Conference" in New York this month. "We’re very confident we’ll be able to fill that bridge. We’re filling slots in 2017 and 2018 now. The 777-300ER is unique in the market right now. The installed base is 1,200 airplanes [of which] 40% are more than >10 years old," Muilenburg said during a question-and-answer session at the conference.

Furthermore, Boeing (TBC) has already captured demand for the 777X in the Middle East and Asia, two regions of the world, where long-range wide body jets are in high demand. All of the customers that have ordered the 777X so far (including All Nippon Airways (ANA), Emirates (EAD), Qatar, Etihad (EHD) and Cathay Pacific (CAT)) are based either in the Middle East or the Asia Pacific markets, with the exception of one, Lufthansa (DLH), which is based in Germany.

"History shows us that the guy with the biggest twin jet wins. People want something that has two engines and as many seats as possible. The A350-1000 is 350 seats, the 777-9X is 407. That should leave unbelievably good economics on the latter," said Aboulafia. "People like range, but it's really Asian and Middle East airlines that place a big premium on range. Eight thousand to 8,500 nautical miles makes the 777X a "range machine." That makes it a lot more attractive to Asian and Middle East carriers."

News Item A-4: BOEING GOES GREEN, SUCCESSFULLY COMPLETES FIRST FLIGHT WITH SUSTAINABLE FUEL: by Juliet Van Wagenen
["Avionics Today" 2014-12-03]:
Boeing has completed the world's first flight using sustainable diesel biofuel in its ecoDemonstrator 787 flight test airplane. The eco-friendly fuel is made from vegetable oils, waste cooking oil and waste animal fats and is already widely available and used in ground transportation.

Boeing powered the test airplane with a blend of 15% sustainable green diesel and 85% petroleum jet fuel in the left engine. On a lifecycle basis, sustainably produced green diesel reduces carbon emissions by -50 to -90% when compared to fossil fuel, according to Finland-based Neste Oil, which supplied green diesel for the ecoDemonstrator 787. The flight test was coordinated with the (FAA), Rolls-Royce (RRC) and Pratt & Whitney (PRW), while (EPIC) Aviation blended the fuel.

"Green diesel offers a tremendous opportunity to make sustainable aviation biofuel more available and more affordable for our customers," said Julie Felgar, Managing Director Environmental Strategy & Integration at Boeing Commercial Airplanes (BCA). "We will provide data from several ecoDemonstrator flights to support efforts to approve this fuel for commercial aviation and help meet our industry's environmental goals."

News Item A-5: Boeing (TBC) and Iran have signed two deals to buy airplane parts valued at $300,000.

News Item A-6: Boeing (TBC) was endeavoring to expand its investment and sales in China, a fast-growing market for (TBC), with its delivery in China expected to set a record this year. "Boeing (TBC)'s strategy in China will serve China's national strategy as well as the demand from Chinese customers. We not only sell airplanes in China, but we also support the future development of safety and efficiency in China's aviation industry," said Ian Thomas, President of Boeing China.

(TBC)'s investment in China includes technology, research, training, manufacturing and after-sale services, and its total investment surpassed >800 million USA dollars so far this year, Thomas said.

Boeing's delivery in China is forecast to set a record high this year, with the total number reaching 150 to 160. Major Chinese carriers including Air China (BEJ), China Eastern Airlines (CEA), and China Southern Airlines (GUN) received their newly-ordered Boeing airplanes earlier this year, he said. Boeing delivered 143 airplanes to Chinese carriers in 2013, a robust growth of +60% year on year.

News Item A-7: Boeing (TBC) has decided to lower its output of the 747-8 to 15.6 airplanes per tear, due to a slower than forecast recovery cycle in the cargo market. Annual production will drop by -2.4 units from 18, with its monthly rate to fall from 1.5 airplanes to 1.3.

News Item A-8: Boeing (TBC) has selected Aircelle (Safran) to produce titanium exhaust systems for the new 777X, marking the nacelle manufacturer’s first major supplier win with (TBC). These exhaust systems will equip the 777X’s two (GE9X) turbofan engines from (GE) Aviation (GEC).

(GE) Aviation (GEC) has been selected by Boeing (TBC) to provide the Common Core System (CCS) and the Enhanced Airborne Flight Recorder (EAFR) for the Boeing 777X airplane.

Boeing (TBC) has contracted (GE) Aviation (GEC) and Rockwell Collins to provide avionics systems for its 777X airplane. (GEC) will deliver the Common Core System (or what is often referred to as the central nervous system and brain of the airplane) which hosts the airplane's avionics utilities functions. Rockwell Collins is responsible for providing flight displays, integrated surveillance system and select flight control systems to the airplane. This contract is in addition to Rockwell Collins’ previously awarded contract to provide the flight control module for the 777X integrated flight control electronics fly-by-wire system.

(GE) will also provide Enhanced Airborne Flight Recorder (EAFR), which will record flight crew audio, parametric flight data and data link communications for the airplane. And Rockwell Collins’ Head-up Guidance System (HGS) will also be available on the airplane providing additional systems including the control stand, digital audio system, mode control panel and primary control damper. First deliveries of the 777X are planned for 2020.

General Electric (GE) has extended its involvement in the Boeing 777X by winning key elements of the big twin’s electrical and avionics systems. (GE), which is also developing the airplane’s (GE9X) turbofans, will provide an enhanced electrical load management system (ELMS) based on the current 777 system as well as the backup generator and the backup converter. The company was also selected to provide a common core system (CCS) for the 777X based on the avionics computing system used in the 787. The switch to the open architecture (CCS) away from the Honeywell (SGC)-provided airplane information management system represents a key win for (GE), which was recently selected to provide a similar system for Gulfstream’s newly-launched G500/G600 business jets.

The electrical load system will be grown to handle the larger power generated by the (GE9X) engines and the loads required by airplane systems and the larger passenger cabin. (GE) says the primary (ELMS) panels will be modified to handle the +30% higher main and auxiliary power unit generator outputs compared to the current 777 system. It adds that the secondary panels will be adapted to deliver power to the increased number of power subscribers, while maintaining growth capacity for future “developments and airline options.” The enhancements will be made within the volume and footprint of the existing system.

The back-up power and converter contracts also represent (GE)’s first commercial electrical power generating system, and a significant win for the company over the incumbent, Hamilton Sundstrand. The system will provide twice the power generation of the current system and, together with the (ELMS), will be tested and developed by the company’s Electric Power Integration Center in Cheltenham, UK and Electrical Power Integrated Systems Center in Dayton, Ohio.

The selection of the (CCS) avionics system “is a validation of our open architecture approach,” said George Kiefer, VP & General Manager of (GE) Aviation (GEC)’s North American Avionics. The system is a “platform on which we host the best of the best,” he added. Just as with the 787’s avionics system, the (CCS) will use a network of remote data concentrators located throughout the airplane to consolidate data from systems and sensors. In the 787 system, this information is distributed via a Rockwell Collins-supplied full duplex switched Ethernet network. The 787 (CCS) runs on the VxWorks 653 real-time operating system (RTOS) developed by Wind River, a wholly-owned subsidiary of Intel.

“The (CCS) will run with more than >50 different application software systems from more than >20 different suppliers. One of the things that Boeing (TBC) wanted to do was be able to field new and updated software in a more timely and cost-effective manner. Our system is certificated separately, so if someone develops updates for another system they do not have to come back and re-test the whole system. It dramatically reduces the cost and time involved,” said Kiefer. The 777X (CCS) will be adapted to interface with the two-way (ARINC) 629 digital databus used in the current 777, and will enable Boeing (TBC) to retain several existing systems. The (ARINC) 629 protocol was developed specially for the 777, each of which is equipped with 11 of these pathways.

(GE) was also picked to provide the enhanced airborne flight recorder for the 777X. The system will record flight crew audio, flight data, and data link communications and store information in non-volatile, crash-survivable memory. The system will be developed by (GE)’s facility in Grand Rapids, Michigan, while the remote data concentrators will be provided by the (GE) site in Cheltenham.

The (GE) contracts are the latest in a series of key 777X awards from Boeing (TBC) which aims to complete firm configuration around mid-2015. Other recent announcements included the selection of Safran subsidiary, Aircelle to provide titanium exhaust systems, marking the nacelle manufacturer’s first major supplier win with Boeing (TBC). The exhaust system will include acoustically-treated areas for reduced noise, and will incorporate additional heat treatment. Safran sister company, Snecma is already heavily involved in the (GE9X) propulsion system as the supplier of the forward fan case and turbine rear frame, as well as major elements of the engine itself.

Boeing (TBC) is also due to begin issuing a further raft of awards over the next few days and weeks. Requests for proposals are due in later this month regarding systems and actuation for new elements of the 777’s composite wing, including the 12-ft folding section at each tip. Other significant supplier selections for the 777X include the award earlier this year of the fly-by-wire flight control system to (BAE) Systems and Rockwell Collins.

The two companies currently supply the 777 primary flight-control electronics and autoland system, but will enhance these to control the more complex flight surfaces of the 777X. (BAE) will develop the integrated flight-control electronics (IFCE) and air-data function, which will manage the overall (FBW) system. Rockwell will develop the flight control module which forms part of the (IFCE).

In addition to controlling the standard surfaces the 777X flight control module will include computing functionality that supports the aircraft’ load alleviation, high lift and folding wing tip features.

News Item A-9: Boeing (TBC) broke ground in the construction of a new 367,000-square-foot facility, in which it will build parts for the new 777X commercial airplane. Boeing (TBC) forecasts that construction on the St Louis, Missouri center will be completed in 2016, with work on 777X wing and empennage parts starting in 2017.

The new facility is an expansion of Boeing (TBC)’s current tooling center at the site and will contain six autoclaves. (TBC) has also tapped its Everett, Washington facility as the location for a new composite wing center for the 777X program, where it will also perform final assembly of the airplane.

“As we move forward with construction of our new center, we will significantly enhance our aerospace composite capability in St Louis, positioning us for today’s opportunities, and tomorrow’s,” said Bob Ciesla, VP Boeing Military Airplanes Cross-Enterprise Design/Build. “This is a tremendous opportunity for Boeing St Louis and the entire region, which enables us to bridge to the future as a site with both commercial and defense capabilities.”

News Item A-10: Air China (BEJ) has committed to purchase 60 Boeing 737NGs and MAXs, valued at more than >$6 billion at current list prices.

Boeing confirmed the tentative deal, but did not indicate how it will be split between the two generations. “Our long-standing and productive partnership with Air China (BEJ) dates back to (BEJ)’s beginning and we are proud the 737 has been part of their success. We are excited to see that the 737 family will play a significant role in (BEJ)’s continued success,” Boeing Commercial Airplanes (BCA) VP Sales & Marketing Northeast Asia, Ihssane Mounir said.

(BEJ) took delivery of the first of seven 747-8I Intercontinentals in October. The airplane is expected to be operated on routes to Europe and the USA by the end of this year, as it pushes ahead with its international expansion.

News Item A-11: Boeing (TBC) and Malaysia Airlines (MAS) celebrated (MAS)’s 100th 737 direct delivery. The 737-800 arrived in Kuala Lumpur on December 21.

News Item A-12: Boeing (TBC) and Dragon Aviation Leasing celebrated the deliveries of four Next-Generation 737-800s this month. These deliveries represent the first four of 10 additional Next-Generation 737-800s Dragon Aviation Leasing currently has on order. The order, which is valued at US$933 million at current list prices. "The 737-800 is a perfect fit for our current business model," said Jean-Louis Chevrot, (CEO), Dragon Aviation Leasing. With these deliveries, Dragon Aviation Leasing's fleet of 737-800s is now at 11, with six additional 737s to be delivered.

Based in Beijing, Dragon Aviation Leasing was established in 2006 and is a joint venture (JV) between China Aviation Supplies Holding Company AerCap, (CACIB) AirFinance, and East Epoch Limited. Dragon Aviation’s customers in 2014 included Singapore Airlines (SIA), Brazil’s (GOL) (GOT), and Spain’s Air Europa (ARE).

News Item A-13: Air Canada (ACN) is the launch customer for Boeing (TBC)’s new landing gear exchange programs for 777-300ER and 777-200LR airplanes. Under the agreement, (ACN) will receive fully overhauled and certified landing gear shipsets for its fleet of 17 777-300ERs and six 777-200LRs during scheduled maintenance cycles.

January 2015: News Item A-1: Boeing (TBC), boosted by a banner year for its Commercial Airplanes unit, reported 2014 net income of +$5.45 billion, up +19% over a 2013 net profit of +$4.59 billion.

The company delivered a record 723 commercial airplanes in 2014, up +12% year-over-year, and projected January 28th that it will deliver 750 - 755 commercial airplanes in 2015. “Our Commercial Airplanes business successfully increased production rates and set an industry record for annual deliveries, while also growing its backlog to new highs on record new orders for the year,” Boeing Chairman & (CEO), Jim McNerney said.

Boeing (TBC)’s commercial backlog at the end of 2014 stood at 5,800 airplanes valued at $440 billion.

(TBC)’s 2014 revenue rose +4.8% year-over-year to $90.76 billion and the company provided guidance that its revenue will grow at least +5.2% in 2015 to $95.5 - $96.5 billion. The company’s 2014 operating profit was +$7.47 billion, up +14% from operating income of +$6.56 billion in 2013, as operating margin increased +0.6 point to 8.2%.

Boeing Commercial Airplanes (BCA) reported +13% year-over-year growth in revenue to $59.99 billion in 2014 and the unit’s annual operating profit rose +11% to +$6.41 billion. Boeing (TBC) provided 2015 revenue guidance for Commercial Airplanes of $64.5 to $65.5 billion. (BCA)Commercial Airplanes booked 432 net orders in the 2014 fourth quarter to bring its full-year total to 1,432.

Boeing (TBC)’s company wide net profit in the 2014 fourth quarter was +$1.47 billion, up +19% over net income of +$1.23 billion in the 2013 December quarter, on a +3% rise in revenue to $24.47 billion.

News Item A-2: SEE ATTACHED - - "TBC-2015-01 - 2014 JET RECORDS-A/B."

Boeing (TBC) broke company records in 2014 with 723 commercial airplane deliveries and 1,432 commercial airplane net orders booked. Airbus (EDS) said it delivered 629 airplanes in 2014. The deliveries, which went to 89 customers, comprised 490 A320 family airplanes, 108 A330s, 30 A380s and its first A350 XWB.

The number of deliveries broke Boeing’s (TBC) records for a second consecutive year, and the net order total (valued at $232.7 billion at current list prices, surpassed the company’s previous all-time high (1,413 net orders) set in 2007).

Boeing’s (TBC) 723 deliveries in 2014 were up +11.6% from 2013. New single-year delivery records were set for 737s (485 delivered), 777s (99 delivered) and 787 Dreamliners (114 delivered, including the first 787-9 to launch customer Air New Zealand (ANZ)).

Boeing (TBC)’s wide body family of airplanes (747-8, 767, 777 and 787 Dreamliner) accounted for more than >60% of all twin-aisle deliveries last year.

Boeing (TBC) said its Next-Generation 737 program delivered more of the single-aisle airplanes than ever before with 485 deliveries in 2014.

The year’s net orders for commercial airplanes comprised bookings for 1,104 Next-Generation 737s and 737 MAXs, 283 777s and 777Xs, 41 787 Dreamliners and four 767s. 2014’s 1,432 net orders were a +5.7% rise from 2013’s net order total of 1,355 airplanes.

Net orders for 737s were up +5.5% year-over year; however, 2014’s net orders for 41 787 Dreamliners exposed a sharp 77.5% year-over-year drop-off in demand (182 net orders for the 787s were booked in 2013).

At year’s end, Boeing (TBC)’s unfilled commercial orders stood at 5,789 airplanes (including 4,299 unfilled orders for 737s, 843 unfilled orders for 787 Dreamliners and 564 unfilled orders for 777s), a new company all-time high.

Airbus (EDS)’ year-to-date total by the end of November 2014 was 1,318 gross orders and 546 deliveries. (EDS) reported 1,031 net orders by the end of November.

Boeing (TBC) had logged 1,376 gross orders and had delivered 622 airplanes by the end of November 2014. (TBC) reported an additional 174 gross orders in December, bringing its 2014 gross order cumulative to 1,550 airplanes, including 1,196 737 family airplanes, 283 777 family airplanes and 65 787 Dreamliners.

News Item A-3: See attached "TBC-2015-01 - 2014 RECORD PROFITS-A/B/C."

News Item A-4: Boeing (TBC) Chairman & (CEO), Jim McNerney said the steep drop in fuel prices in recent months is not hurting the demand environment for new commercial airplanes. “Lower oil prices have not substantially changed [airlines’] views on fleet planning,” McNerney told analysts and reporters January 28th, while discussing Boeing (TBC)’s 2014 earnings. “Replacement demand remains an important market driver, with airlines continuing to introduce newer, more efficient airplanes with superior economics and a rapid return on investment in place of older, less efficient models. Notwithstanding a fuel price environment today that is well below the 15-year average, the value proposition for our airplanes remains a compelling one.”

McNerney said that commercial airplane orders are “more correlated to airline profits” than fuel prices. He added that airlines are not buying airplanes such as the 787 only because of fuel efficiency, but also for “lower maintenance costs, [the ability to generate] higher passenger and cargo revenue, increased residual values, a better overall passenger experience, and greater range.” McNerney said the 787 in particular is “opening up demand between city pairs that wasn’t available before.”

When announcing last month that Air Canada (ACN) would launch flights in 2015 from Toronto to Delhi and Dubai, (CEO), Calin Rovinescu said, “The operating economics of [the 787] make this service feasible.”

McNerney estimated that about “20% of the demand for [the 787 is driven by] opening up capacity between city pairs that was not available before because of the performance of the airplane.”

News Item A-5: Boeing (TBC) has announced a number of leadership changes to the 737 and 767 commercial airplane programs, as well as the Renton, Washington and North Charleston, South Carolina sites.

Beverly Wyse has been named VP & General Manager of Boeing South Carolina - - SEE ATTACHED - - "TBC-8-BEVERLY WYSE - 2015-01." Scott Campbell replaces Beverly as VP & GM 737 Program & Renton site. Scott is succeeded by Brad Zaback as VP & GM 767 Program. The positions all report to Pat Shanahan, Senior VP Airplane Programs, Boeing Commercial Airplanes (BCA).

Pat said the moves “come at an important time, as we continue to grow Boeing South Carolina, increase 737 and 787 production rates and begin the integration of the new 737 MAX in Renton.”

Beverly takes over at Boeing South Carolina from Jack Jones who will retire in May. Jack’s tenure included leadership positions on the 787, 767, 747 and 757 programs.

News Item A-6: Boeing (TBC) has awarded (GKN) Aerospace a contract for final assembly and paint of Advanced Technology (AT) Winglets for the new 737 MAX. This adds to (GKN) Aerospace’s existing work package with Boeing (TBC) and brings additional jobs to Washington state. The final assembly and paint work will be carried out at a 57,000 sq ft facility that (GKN) Aerospace will operate in Sumner, Washington, near Boeing’s 737 MAX (FAL) in Renton, Washington. The facility will open in late 2015 and employ approximately 75 people when full rate production is achieved. Staff recruitment will begin early in 2015 with the majority of the new team being drawn from the highly skilled workforce based in the state.

News Item A-7: Boeing Shanghai Aviation Services has signed a Boeing 737-400F freighter conversion agreement with Russia’s Volga Dnepr (VDA) Group. The 737-400F arrived at Boeing Shanghai at the end of November for conversion, a "C" check and full painting.

News Item A-8: Royal Air Maroc (RAM) took delivery of its first 787 at Boeing’s Everett delivery center December 31, arriving in Casablanca on January 5. (RAM) plans to use the five 787s that it has on order, plus one option, to strengthen its long-haul network. “The 787 will provide Royal Air Maroc (RAM) the capability to grow its long-haul network and significantly reduce operating costs, all while offering its customers an unmatched onboard experience,” Boeing Commercial Airplanes (BCA) VP Sales, Africa, Latin America & the Caribbean, Van Rex Gallard said.

Boeing (TBC) airplanes form the backbone of (RAM)’s 50-airplane fleet, including 737NGs, 767-300s, a 747-400, and now it first 787. Late last year, (RAM) also introduced its first Embraer EMB-190.
In 2012, a (RAM) spokeswoman said the second 787 was scheduled for delivery in March 2015, followed by another two between March and April 2016. If the option is firmed, it would be delivered in May 2017.

According to Boeing (TBC), the 787 program has now accumulated 1,055 orders from 58 customers.

News Item A-9: Qatar Airways (QTA) has finalized an order for four Boeing 777F freighters, valued at $1.24 billion at current list prices. (QTA) also has purchase rights for four additional airplanes, which would bring the combined value to $2.46 billion.

(QTA) first announced an intent to order the four 777Fs at the Farnborough Airshow in July. The Oneworld (ONW) Alliance member currently operates a fleet of 37 777-300ERs and 777-200LRs, in addition to seven 777F freighters.

News Item A-10: Boeing (TBC) announced it is finalizing terms and working toward a purchase agreement with Azerbaijan-based cargo carrier Silk Way West (AZQ) for three 747-8F freighters.

“When finalized, the contract will be valued at more than >$1.1 billion at current list prices,” Boeing (TBC) said.

Silk Way West (AZQ) is an enterprise of the Silk Way Group, which includes 23 companies working in the aviation industry and related services. The airline currently operates seven Boeing airplanes, including two 767-300Fs, three 747-400Fs and two 747-8Fs.

News Item A-11: Air Europa (ARE) has placed a follow on order for 14 Boeing (TBC) 787-9s, valued at $3.6 billion at list prices, taking its total commitment to 22 787-8s and 787-9s.

“The first 787 Dreamliners will start to arrive in 2016. This will allow us to grow both the number of flights and destinations we will operate to by around +50%,” Juan José Hidalgo, President of (ARE) parent company, Globalia, said.

(TBC) booked the order from (ARE) in December 2014, but it was previously attributed to an unidentified customer.

(ARE), which has a hub at Madrid Barajas, serves more than >40 destinations in Europe and the Americas. Throughout its history, (ARE) has operated 737s, 757s and 767s and currently has a combination of 30 737-800s and 787s on order.

News Item A-12: Boeing (TBC) and (GOL) Linhas Aereas Inteligentes (GOT) announced an agreement to implement the Boeing Fuel Dashboard solution across (GOL)’s Next-Generation 737 fleet at the Maintenance Repair & Overhaul (MRO) Latin America conference.

The Boeing analytics software solution will provide (GOL) operations teams with greater visibility on current fuel-use trends across the fleet and insights into opportunities for operational improvements and cost savings in fuel consumption. “(GOL) is pleased to be able to serve our passengers with our all-Boeing 737 fleet (one of the youngest, largest and most efficient fleets in Latin America),” said Captain Sergio Quito, Technical VP & (COO), (GOL). “We look forward to implementing Boeing Fuel Dashboard and working with Boeing’s team of operations experts to gain the maximum value from this solution. This program supports our broader strategy of improving overall operational efficiency across our fleet as we continue to grow.”

The Boeing Fuel Dashboard is part of Boeing’s fuel-efficiency solutions suite. The application provides airplane operators with a comprehensive total fleet view of operational fuel consumption. Airlines, business aviation operators, and military organizations can use Fuel Dashboard’s intelligent decision aids to gain insight into current fuel usage through all phases of flight. This visibility enables better decision-making to reduce fuel consumption, costs, and emissions.

“Our airline customers frequently tell us that fuel remains one of their largest cost pressure areas, even when fuel prices are on a downward trend,” said Rick Anderson, VP Sales, Boeing Commercial Aviation Services (BCAS). “We have received feedback from current airline customers using Fuel Dashboard indicating an average of approximately -4% annual savings in fuel costs. Leveraging the advanced capabilities of the Boeing Fuel Dashboard, our teams will help (GOL) to achieve significant fuel cost reductions and improve fleet operations efficiency.”

The Boeing Fuel Dashboard is part of an integrated suite of aviation services marketed as the "Boeing Edge." These services include parts, training, engineering, maintenance and software solutions, that increase the efficiency and profitability of airlines and leasing companies. Other Boeing Edge solutions, including Boeing Maintenance Performance Toolbox, and Airplane Health Management are also in place to support the (GOL) fleet.

With an all-Boeing fleet of more than >130 Next-Generation 737-700 and 737-800 airplanes, (GOL) has grown to become one of the world’s largest 737 operators. With plans for continuing fleet growth, the airline has signed an order for 60 737 MAX airplanes to support its strategy for expansion, maintaining one of the youngest fleets in Latin America. (GOL) has also been recognized for its progressive approach in sustainable fuels, and was the first commercial operator in Brazil to use biofuels.

News Item A-13: Boeing (TBC) has begun discussions with Russian airlines about potential changes in their fleet development due to the downturn in the country's economy, "Bloomberg" reported, quoting Boeing VP Global Sales, John Wojick. He said scheduled deliveries for 2015 will be fulfilled, as it’s too late for (TBC) to adjust the schedules.

Transaero (TRX) has two 747-8 deliveries planned for this year. Last year, (TRX) canceled its order for four 787-8s and moved the 747-8 delivery from 2016 to 2015.

According to Wojick, Russia accounts for less than <10% of Boeing (TBC)’s total commercial airplane sales.

At the beginning of December, Aeroflot (ARO) (CEO), Vitaly Saveliev told the "TASS" news agency that Russia’s biggest carriers must develop a joint fleet reduction plan, because the “planes fly half-empty.” However, Saveliev did not disclose (ARO)’s plans to postpone deliveries.

Transaero (TRX) and UTair (TYU) responded by saying they will optimize their fleets independently, without coordination with other carriers.

Also in December, UTair (TYU) announced a -40% fleet cut. It plans to ground six Boeing 737-800s, leaving nine of the type in its fleet. It will stop using two 767s and the entire fleet of 15 Bombardier CRJs. (TYU) also does not intend to use six leased Sukhoi Superjet SSJ100s. (TYU) plans to ground all 12 Airbus A321s. (TYU) will also stop operating 11 757s, as part of these airplane types are transferring to UTair (TYU)’s charter subdivision. (TYU) will continue to operate 34 Boeing airplanes (most of which are 737-500s) and 15 ATRs.

News Item A-14: In 2014, Boeing employment in Washington State, USA consisting predominantly of the Boeing Everett (747, 767, 777, 787), and Boeing Renton (737) manufacturing plants, is now 80,758, and during the year fluctuated higher by roughly 2,000 - - SEE ATTACHED - - "TBC-2015-01 - 2014 WASHINGTON STATE JOBS."

News Item A-15: (ACSS), an L-3 (ESM) & Thales Company (THL), announced that Boeing (TBC) has certified its NXT-800 Mode S transponder for Boeing 767 airplanes. The (NXT-800) offers the most advanced level of Automatic Dependent Surveillance-Broadcast (ADS-B) Out transmission, which will be required to meet the approaching global mandates for (ADS-B) Out capability.

News Item A-16: See attached "TBC-2015-01 - STOCK 2014 + AIRFORCE ONE-A/B/C" which shows Boeing (TBC)'s successful 2014 stock performance and details of next Airforce One order.

The US Air Force has chosen Boeing (TBC) as the sole-source provider and prime integrator for the multibillion dollar program to develop the next USA Presidential transport, based on the company’s 747-8.

Noting that the 747-8 is the only platform “manufactured in the United States [that] when fully missionized meets the necessary capabilities established to execute the presidential support mission,” Air Force Secretary, Deborah Lee James said competition will be sought at the subsystem level for the program. No details on these forthcoming competitions were provided, and the service is refining its strategy to move forward.

The Air Force announced the decision in a January 28 statement, and funding is likely to be included in the fiscal 2016 budget slated for release February 2, which should outline a clearer plan. The fiscal 2015 plan included $1.6 billion for the first five years of research and development and buying the first airframe. “We look forward to working with the Air Force” on the program, said Kymberly VanDlac, a company spokeswoman. She added that Boeing (TBC) has 50 years of experience in this mission area (rhetoric that likely will be repeated if the Air Force’s acquisition strategy is questioned in Congress).

The Presidential Aircraft Recapitalization (PAR) program intends to replace two VC-25As, based on the 747-200 platform and fielded in the 1990s, with two 747-8 airplanes. Initial operational capability is expected in fiscal 2023. The Air Force is one of the last customers to still fly the 747-200, making maintenance an increasingly complex and costly task due to diminishing parts. In fiscal 2014, the VC-25A flying hour cost was $210,877.

A request for proposals for the “pre-Milestone B” work is expected this year, with a contract award planned for 2017. Boeing is expected to deliver the first 747-8 for modification in 2018, Air Force spokesman Ed Gulick said. In the meantime, the service is refining its acquisition strategy prior to entering formal contract negotiations with Boeing (TBC).

The service “wants to own enough of the technical baseline to permit competition for sustainment throughout the aircraft’s planned 30-year life cycle,” the statement said. This could be a complex wish to satisfy, as Boeing (TBC) closely guards its technical data for commercial airliners.

The selection of the 747-8 is no surprise. The service acknowledges that the only other viable option is the Airbus A380, the massive double-decker passenger carrier built in Europe. However, the desire for a US-manufactured airplane clearly weighed heavily when the service made its choice. Some onlookers suggested the 787 could be an option, but the service has steadfastly contended that four engines are needed to support the array of sensors and electronics on the new Air Force One.

The choice of sole-sourcing the integration work to Boeing is likely to be more politically thorny, especially as Senator John McCain (Republican, Arizona), who recently took over the influential post as Chairman of the Senate Armed Service Committee, is highly skeptical of the Air Force’s dealings with Boeing (TBC) since the failed tanker lease more than a decade ago. The jailing of former Air Force procurement official, Darleen Druyun and Boeing’s former Chief Financial Officer (CFO) over illegal job talks that scored Druyun a Vice President spot at the company, marred the reputation of both.

Some onlookers suggested the service could compete the integration work for (PAR), but Boeing was loath to share enough technical data on its commercial airliner to allow any other company to oversee it. Thus, the service was likely left with no choice but to hand the prime role to Boeing (TBC).

“This decision is not a contract award to procure a 747-8 airplane,” said Colonel Amy McCain, the (PAR) Program Manager. “We still need to finalize the overall acquisition strategy and conduct risk-reduction activities with Boeing (TBC) to inform the Engineering & Manufacturing development contract negotiations that will define the capabilities and cost.”

The service is “committed to incorporating competition for subsystems of the missionized airplane as much as practicable and will participate substantively in any competitions led by the prime contractor,” James said. “We will insist upon program affordability through cost-conscious procurement practices.” James said the program will draw on “proven technologies and commercially certified equipment” to do so.

The service intends for the new Air Force One to have a 30-year lifespan.

Meanwhile, Boeing is on a tight schedule to keep its other major commercial derivative program for the Air Force on track. The 767-based KC-46 refueler is expected to fly this year in advance of a major decision at the Pentagon next fall on entering production. The company executed first flight of the first 767-2C, the specialized platform on which the mission systems will be integrated, in December. Boeing (TBC) already has taken a $425 million pre-tax charge ($272 million after taxes) to keep the effort on track for delivery of the first 18 KC-46s in 2017. Last year, problems meeting requirements for the platform’s wiring led to a delay, adding pressure to an already tight schedule. The first KC-46 is scheduled for first flight in April.

News Item A-17: Boeing (TBC) Receives Contract to Modernize B-52 with Digital Communications by AVIATION NEWS.EU Published February 4, 2015 By Marcel van Leeuwen:

The B-52 Stratofortress bomber was built during the Cold War, but its digital capabilities have entered the 21st century thanks to Boeing’s [TBC] ongoing Combat Network Communications Technology ("CONECT") upgrade.

On January 28, the US Air Force awarded Boeing (TBC) a full rate production contract to deliver 10 "CONECT" kits that modernize communication systems for the B-52 bombers today and into the future. Those technology enhancements include full-color (LCD) displays with real-time intelligence feeds overlaid on moving maps, several communication data links that connect via satellite to platforms and troops in the field and an onboard, high speed network that enables aircrew (FC) to respond quickly to a mission change or identify and engage new targets with their weapons.

“CONECT gives the B-52 the agility and flexibility needed for the modern battlefield while also providing greater situational awareness for the aircrew (FC),” said Scot Oathout, Boeing’s B-52 Program Director.

US Air Force personnel install "CONECT" at Tinker Air Force Base, Oklahoma, in conjunction with the B-52’s regularly scheduled programmed depot maintenance.

Under previous contracts, Boeing (TBC) is currently supplying 20 "CONECT" kits to the Air Force. This new full rate production award will bring the total number of upgraded B-52s to 30.

News Item A-18: Emirates Airline (EAD) President, Sir Tim Clark has reportedly said he would buy 100 Airbus (EDS) A380neos if (EDS), the European airplane manufacturer decided to launch a re-engined version.

Clark told "Bloomberg" at the World Economic Forum in Switzerland, “What we’ve said is if you are going to do the A380neo, we are in for 100 [airplanes]. We are putting it on the table; we’ll start it off for you.”

In September, it was reported Clark has been trying to persuade (EDS) to launch a re-engined A380.

Airbus (EDS) (COO), Customers, John Leahy said: “If we ever do the A380neo, it will not just be the engine [that has to be exchanged] . . . there will be perhaps Sharklets on the airplane, and perhaps an aerodynamic cleanup as well. But we would not do an A380neo unless there would be a -10% fuel burn reduction. And that will not come just from the engine, but from some other necessary improvements as well.” He added, “And over time, we will update every member of the [Airbus (EDS)] family. We will look at it as we need to [in light of the market].”

Emirates (EAD) currently operates 57 A380-800s and has committed to 140 airplanes. “If [Airbus (EDS)] were to build [the A380neo], it would give us an improvement in economics of up to -10% to -12%, so that’s definitely what we want to have. And I hope to move on that fairly soon,” Clark said last June. He added that the first 25 of an additional order of 50 A380s (ordered in November 2013) will be delivered in 2016 - 2017, “on the old spec, so to speak,” Clark said. “The second 25 are targeted for 2020. If there will be no A380neo, we will take those 25 anyhow. Rolls-Royce (RRC) can produce a better engine, we can get more weight out of the airplane and we can improve the aerodynamics. Up to -12%, that’s where we want to go,” he said.

News Item A-19: Boeing (TBC) delivered 49 commercial airplanes in January, leading rival Airbus (EDS)’ 36 deliveries for the month.

Each manufacturer logged orders for five airplanes during the month. Boeing (TBC)’s firm order came from All Nippon Airways (ANA), which ordered five 737-800s on January 30. Airbus (EDS)’ sole firm order for the month came from an undisclosed customer, which on January 30 ordered five A330-200s, valued at approximately $1.15 billion at current list prices.

Boeing (TBC)’s January deliveries included four airplanes to Dutch lessor AerCap (DEA) (three 737-800s and a 787-8 Dreamliner); three airplanes each to American Airlines (AAL) (two 737-800s and a 787-8 Dreamliner) and Indonesia’s Lion Air (MLI) (two 737-800s and a 737-900ER); and two airplanes each to Air China (BEJ) (two 737-800s), Delta Air Lines (DAL) (two 737-900ERs), FedEx (FED) (two 767-300 Freighters), lessor (GECAS) (GEF) (a 737-800 and a 777-300ER), Chinese carriers Hainan Airlines (HNA) (two 737-800s) and Shandong Airlines (SHG) (two 737-800s), Southwest Airlines (SWA) (two 737-800s), TUI Travel (PLC) (now known as TUI Group (TUG), which received a 737-800 and a 787-8 Dreamliner) and United Airlines (UAL) (two 737-900ERs).

787-8 Dreamliners were also delivered to Air Canada (ACN), Japan Airlines (JAL)/(JAS) and Qantas (QAN), which each took one of the airplanes; a 787-9 model was delivered to Singapore-based low-cost-carrier (LCC) Scoot (SCT).

Airbus (EDS)’ January deliveries included three airplanes to China Eastern Airlines (CEA) (two A319ceos and an A330-300) and two airplanes each to AirAsia (ASW)/Thai AirAsia (THA) (two A320ceos), American Airlines (AAL) (two A319ceos), China Southern Airlines (GUN) (an A321ceo and an A330-300), (GECAS) (GEF) (two A321ceos, one each for Thomas Cook Scandinavia (PRH) and Juneyao Airlines (YJA)), Chinese lessor (ICBC) (two A320ceos bound for Spring Airlines (CQH)), Lufthansa Passenger Airlines (DLH) (an A320ceo and an A321ceo), Spirit Airlines (SPR) (two A320ceos) and US Airways (AMW)/(USA) (two A321ceos). Additionally, Emirates (EAD) took delivery of an A380 on January 30.

February 2015: News Item A-1: Boeing (TBC)’s new 777X flagship is due to enter service in 2020. This seems like tomorrow to the company’s manufacturing side as it prepares for assembly, but for the 777 sales team looking to fill the production “skyline” during the transition it could be an eternity.

To smooth the move at the end of the decade from the current 777 family to the 777X, Boeing (TBC) needs to drum up more sales to keep the Everett assembly line ticking at, or close to, the current 8.3 airplanes per month. There are currently 278 777-300ERs and 777Fs in the firm backlog, representing just under three-years worth of production at the current rate. While the longer-term outlook appears to be positive (286 sales are already locked in for the 777X) the delivery trough between 2018 and the acceleration in deliveries of the new model from the 2020 - 2022 time frame onward, is causing some concern.

But Boeing (TBC)’s 777 sales team is about to get a shot in the arm. To help bridge the gap to the 777X, the company plans to inject additional life into the 777-200LR/777-300ER by developing an upgrade package that will reduce fuel burn by -2% from 2016 onward.

Boeing (TBC) plans to reveal full details of the upgrade in mid-March. News of the plan first emerged in January when John Wojick, Global Sales & Marketing Senior VP, revealed “we are working on a fuel-burn improvement and other items for 2016 that will provide the equivalent of around 2% fuel-burn savings.” He adds that, although 2014 was “a good year” with 63 new 777 sales, “we need to continue to work diligently to keep that skyline full, as we transition from the 777-300ER and 777F to the 777-8X and 777-9X.”

The coming availability of the upgrade, added to what Boeing Chairman/(CEO), Jim McNerney describes as the “enduring capability” of the 777, already appears to be bolstering prospects of new orders to fill out the mid-term production slots. During the recent fourth-quarter financial results call, McNerney said: “We took 63 orders in 2014, which bodes well for the 40 to 60 we need [per year] over the next few years. So I’m feeling increasingly comfortable [about] the long-term demand for the airplane. We expect demand for the 777 to remain healthy through this decade.”

General Electric (GEC), which is the exclusive engine supplier to the 777-300ER/777F with the (GE90-115B), expects to start initial tests of the engine-improvement element by the end of the year. “We are targeting about a 0.5% specific fuel consumption (SFC) improvement in the engine,” said Bill Millhaem, General Manager of the (GE90) program. Focus areas include the aerodynamic “clean-up” of the fan module with elimination of steps and gaps to reduce drag, and improvements to the efficiency of the high-pressure compressor stage-1 blisk.

The most significant single change in the engine upgrade is an improvement to the active clearance control system which cools the casing of the high-pressure turbine section, helping to minimize clearances between the tips of the blades and the shroud during cruise. “We’re introducing a new style manifold and increasing the ‘muscle’ for better clearance control,” said Millhaem, who added that the revision leverages active-clearance-control-system advances that were introduced with the (GEnx) engine for the 787 and 747-8. The new manifold improves the axial coverage area of the cooling flow over the casing. In parallel with this, GE plans to reactivate a valve in the core to improve modulation of bleed air to the manifold.

Slight aerodynamic changes will also be introduced to the first-stage nozzle of the low-pressure turbine, and the “grind” of the high-pressure turbine shroud will also be optimized to improve the match between the blades and shrouds in cruise. “In aggregate, all this adds up to around 0.5% (SFC). We are in the process of finalizing the design of the hardware and will be doing some testing later this year,” said Millhaem.

The upgrade is not considered a major certification effort because the engine thrust is unchanged and testing is aimed at “mostly assurance” work to confirm that none of the modifications affect durability, he added.

News Item A-2: "British Airways Receives Operational Approval for Boeing Electronic Logbook (ELB)" Published February 10, 2015 By Rob Vogelaar, AVIATIONNEWS.EU.

Boeing [TBC] announced that British Airways (BAB) received operational approval from the UK Civil Aviation Authority for use of Boeing (TBC)’s Electronic Logbook (ELB) on their 787 Dreamliner fleet.

Developed in partnership with Ultramain Systems, Inc, the (ELB) enables unprecedented levels of communication between flight crew (FC), cabin crew (CA) and ground-based Maintenance & Engineering (MT) staff, which translates into better passenger service and greater airline cost savings.

The (ELB) runs on the airplane’s Electronic Flight Bag (EFB) & on board server system to collect airplane flight data and crew-observed fault input, sharing that information with ground-based maintenance technicians (MT) and maintenance systems, while the airplane is still en route. Ground crews, along with needed parts and documentation, can be stationed at the gate to perform needed maintenance as soon as the airplane lands. This enables the airline to maximize maintenance process efficiency and minimize passenger delays.

“The Electronic Logbook (ELB) will allow faster and more detailed communication between our crews and ground teams, which will benefit our customers”, said Steve Frewin, British Airways Engineering 787 Fleet Chief. “We worked closely with Boeing (TBC) and used our shared expertise and knowledge of the 787’s full technology capabilities in order to receive this approval from the (CAA). This development represents our commitment to investment in technology to further improve our customers’ flying experiences.”

“British Airways (BAB) is the first 787 customer to eliminate paper technical and cabin logs,” said Per Norén, VP Customer Solutions, Boeing Digital Aviation. “The regulatory approval of (ELB) signifies industry acceptance of paperless technical logs and supports our shared commitment to improving operational efficiency, decreasing our environmental footprint and using industry-leading technologies to reduce airline costs.”

Pilot (FC) observed faults can now be created in the (ELB), whereas previously they were handwritten by a pilot (FC) into a paper logbook. Because British Airways (BAB) also uses Boeing’s Airplane Health Management (AHM) software, in-flight faults generated by the airplane and automatically recorded by the (AHM) are correlated and displayed side by side with the faults recorded by pilots (FC) into the (ELB). With this coordination of real-time, in-flight fault data collected from both solutions, (BAB)’s Maintenance organization is aware of a potential situation before the airplane even arrives at its destination.

Use of the (ELB) together with Airplane Health Management (AHM) provides comprehensive analytics and prognostics capabilities, creating a more complete picture of the airplane’s maintenance status. Equipped with this data-driven knowledge, airlines are able to understand, diagnose and quickly execute maintenance items.

News Item A-3: Nicole Piasecki, VP & General Manager Propulsion Systems Division, Boeing Commercial Airplanes (BCA) with South Carolina Governor, Ms Nikki Haley opened a large (225,000 sq ft) new propulsion plant in South Carolina on February 11th for manufacturing jet-engine air inlets for the 737 MAX and the 777X. The new plant is just a few miles from the 787 Dreamliner assembly plant. 7,500 workers are now employed at the South Carolina Boeing facilities, up from 6,700 a year ago.

Haley, who opposes unions and who has recorded radio ads opposing any attempts to unionize Boeing workers in the state, praised the company's workforce. "You did this, and South Carolina is forever grateful for bringing more work to the state."

News Item A-4: New (USF) stealth bomber Boeing/Lockheed vs Northrup Grumman (GRU) or combined with (GRU)? - - see attached Seattle Times February 11th article by Dominic Gates - - "TBC-2015-02 - NEW STEALTH BOMBER."

News Item A-5: Boeing (TBC) has certified the (NXT-800) Mode (S) transponder, made by Aviation Communication & Surveillance Systems (ACSS), an (L-3) & Thales company (THL), for 767s. (ACSS) said the (NXT-800) offers the most advanced level of Automatic Dependent Surveillance-Broadcast (ADS-B) Out transmission.

News Item A-6: "Boeing Sees No Business Case for 757 MAX - - Cost, Capacity, Market & Timing Cloud 757 Replacement Options for Boeing, while Airbus Faces More Subtle Product Decisions" by Guy Norris & Flottau, Aviation Week & Space Technology, February 17, 2015.

Whatever else Boeing (TBC) may be discussing with potential customers at this year’s International Society of Transport Aircraft Trading (ISTAT) meeting regarding options for replacing the 757, we now at least know it will not be talking about bringing the original airplane back to life with new engines.

The 757 replacement question has become an increasingly hot topic, particularly since Airbus (EDS) upped the ante by launching the long-range A321neo LR variant in mid-January. Until then, (TBC) had quietly conducted its ongoing studies through most of 2014, occasionally being more open about them at places such as the Singapore air show, when it acknowledged that serious market evaluations were underway.

Part of that issue has always been trying to figure out not only where and how big the market might be, but whether it exists at all. Boeing has pointed out that the apparent gap on the seating chart between the 737-900/MAX 9 and the 787-8 does not necessarily create a cast-iron case for a new program, particularly when the current long-range use of the 757 is distinctly “niche” in nature.

Steven Udvar-Hazy, the highly influential (CEO) of Air Lease Corporation (ALE), helped clarify the situation in a roundabout way on February 10 after The Wall Street Journal reported his comments that Boeing (TBC) could consider upgrading its out-of-production 757 with new engines and interiors. While Udvar-Hazy has helped drive some major design decisions, including most famously Airbus (EDS)’s redesign of the A350 to an all-new cross section, he could be out of luck when it comes to sparking a Phoenix-like reincarnation of the 757.

Commenting on speculation about a re-engined 757, on February 11 Boeing Commercial Airplanes (BCA) Marketing VP, Randy Tinseth said, “The fact is, there’s absolutely no business case to support that. We’re very happy with our 737 and 787 product lineups. So we’re studying the space in between them. Customer feedback has led us to look at an airplane that is larger than today’s 737 and has greater range than the 757.”

The statement reiterates (TBC)’s underlying message that if a market for a 757-sized airplane does exist, it is for an all-new “middle of the market” (MOM) airplane rather than a one-for-one successor to the current twinjet fleet. Earlier in 2014, Boeing (TBC)’s Global Sales & Marketing VP, John Wojick, told Aviation Week, “One opportunity is an airplane in the 200 - 300 seat category, which maybe doesn’t fly as far as the 787 and which is more regional. People liken it to the 757 or something different.” A key market for such an airplane is likely to be Asia, and operators in this area “will play a significant role in helping us determine what those characteristics might be.”

Echoing the view that (TBC) is likely to take a longer-term view of this market niche, rather than react to the A321neo LR with a short-to-mid-term re-engining effort, Jeffries analyst, Howard Rubel said, “There are over >150 757s parked in the desert today, approximately 15% of the fleet. If this plane [is] so hot, why is such a high proportion of the fleet going unused?” He added that “we see no urgency to fill that market niche, and believe that Boeing (TBC) has reasonable long-term options. The market may evolve and shift, creating a different need than what is perceived today. We are of the view that (TBC) is not about to jump into a new development program.”

Boeing (TBC)’s long-term new airplane development strategy is therefore focused on developing a New Small Airplane (NSA) 737 successor for the 2030s and beyond, and whether or not to tie this in with co-development of a larger (MOM) airplane. “We have got things to work out, but there is no question there is the challenge of the transition between single aisle and twin aisle.

“We are working hard to understand how large that market really is because it is not that easy. What technologies do you need for an airplane with a range of 4,000 - 5,000 nm, and at economics that make sense? And if it is a small market, how do you deliver at the right cost, and how do you set up a production system to do that?”
Others looking at (TBC)’s conundrum from the outside are also puzzled that the company is not, apparently, considering reviving the long-canceled, short-to-mid range 787-3 for the (MOM) market. After all, the airplane was designed to carry up to 330 passengers as far as 3,500 mi, making it close to the requirement. However, despite the fact that the broader appeal of the 787-3 was limited by being designed specifically for the Japanese market, more deeply rooted cost issues likely make the prospects of reviving the 787-3 a non-starter.

The 787 is the most complex, sophisticated commercial airplane Boeing (TBC) has ever produced, and it is inevitably costly to manufacture. While (TBC) is making strides to drive costs down, it is extremely unlikely to produce a “simplified 787-3” at sufficiently low cost to sell to the (MOM) sector.

Although no one knows for sure what the exact passenger capacity and range needs are, all the (TBC) Planning pundits seem to agree at the 757 replacement market will be extremely cost-sensitive.

Mike Sinnett, VP of Product Development for Boeing Commercial Airplanes (BCA), has already acknowledged that one option under study is to develop (NSA) and (MOM) in parallel, sharing common cockpits, systems and structures to cut costs. The result could be an “NSA1” aimed at the 737 market and a slightly larger, twin-aisle “NSA2” for the (MOM) sector.

The “common core” design approach was successfully used in the 1970s and 1980s to produce the 757/767 and is something “we would have in our mind going forward,” he added.

In December, Sinnett stressed to Aviation Week that the 757 replacement study “is a proxy for something that is not a 737 and is not a 757.” The airlines are interested in something that “is more than a >757. They are not looking for a carbon copy,” he said. Studies are therefore focused on designs with more range and capacity to “enter a niche, and to understand if it can be expanded into a third market segment. We are still testing the waters,” Sinnett noted.

Far more immediate matters are therefore likely to dominate (TBC)’s agenda at (ISTAT). These will include updates on the 737 MAX, the first of which will enter assembly at Renton, Washington, by year-end, as well as further measures to revive flagging sales of the 747-8, development progress on the 787-10, and new details of the planned upgrade to the current 777F and 777-200LR/300ER.

Airbus (EDS), in contrast, has already defined its answers for the segment of the market left open by the end of Boeing 757 and Airbus A300/A310 production. The answers are the A321LR (a minimal-change variant of the A321neo in the cabin-flex configuration with rearranged exit doors, and the A330 Regional). Airbus (EDS) has already secured Udvar-Hazy’s support for the A321LR, and is now promoting the airplane to airlines, following the official launch in January, but the proposed regional version of the A330 has not really taken off.

The airplane—structurally identical to the long-haul version of the A330, but with de-rated engines and a lower maximum takeoff weight, was targeted in particular at the Chinese domestic market, where there are many high-density routes that are too large for the A321. However, Airbus (EDS) has not yet identified any sales for the A330 Regional.

That is causing serious concerns in two ways. The manufacturer faces the challenge of smoothing the transition from the current version to the A330neo in the coming years. (EDS) is slowing down A330 production from 10 airplanes per month to nine in the fourth quarter of this year, but it still has some open production slots in 2015, and (even more significantly in the following years), leading many observers to conclude that more cuts are coming. Additional highly welcome short-term sales have not yet materialized.

But more long-term, the transition to the A330neo will potentially make sales of a regional version harder: The additional weight incorporated with the latest engines can be compensated for by lower fuel burn on longer-range routes, but the business case is much harder to make on the shorter-haul sectors that Airbus (EDS) is targeting.

Airbus (EDS) does not face the same A330-related production issues in terms of the A320 family, which is essentially sold out through the A320-neo transition, unless a very large number of airlines decide to cancel late-production A320ceos because of lower fuel prices and opt instead to wait for the neo.

The next program decision Airbus (EDS) may have to make, is whether to re-engine the A380. While that issue is likely to be broadly discussed at (ISTAT), a decision may not be as near as the A380’s main customer, Emirates (EAD), would like. But (EDS) is coming under increasing pressure to clarify its position: The longer the speculation about an A380neo continues, the harder it becomes to sell earlier production slots of the current version to airlines that may be concerned about being stuck with late-build airplanes of an old production standard.

News Item A-7: Boeing (TBC) is in talks with 10 separate buyers concerning the sale of early-model 787-8s, commonly referred to as "Terrible Teens" in the parlance of our times.

Informed sources told "Bloomberg" news that among the buyers are Ethiopian Airlines (ETH) which is reportedly in advanced discussions regarding eight jets. The Ethiopians were among the first operators of the 787 Dreamliners on its commercial début in 2012.

Air Austral (AUX) has ordered two Terrible Teens with the contract signed on February 6 the "Réunionaise" press said. Deliveries of (34510 & 34491) are, however, now due in May and October 2016.

Last year, (TBC) was said to have approached Garuda Indonesia (GIA), Malaysia Airlines (MAS), as well as Latin American and Middle Eastern carriers about the early 787s. RwandAir (RWA) is also among the contenders with tentative plans to acquire two ex-Royal Air Maroc (RAM) models later in 2017.

The "terrible teens" are early 787s Boeing (TBC) was forced to rework and modify after flight tests identified a number of faults including an electric-panel fire and structural weakness where the jet’s wings melded with its body. As a result of the necessary modifications, the 787s incurred a 1,600 km range penalty, rendering them less marketable than later models.

News Item A-8: Air Tahiti Nui (NUI), the major carrier of French Polynesia, has decided to order four Boeing 787-9 airplanes to replace its fleet of Airbus A340-300s. Boeing (TBC) and (NUI) intend to formalize the order soon, and deliveries of the 787s are due to begin in the fourth quarter of 2018. Two will be owned by (NUI) and the other two will be leased. The engine choice has not yet been determined.

(NUI) currently operates five Airbus A340s, with four used in scheduled long-haul service and one mainly for charters. The four 787s will only be used to meet the scheduled network requirements. (NUI)’s A340s are a mix of leased and owned airplanes.

While (NUI) is still working on the configuration of the 787s, (NUI) says they are “broadly similar in size” to the A340s, with the 787s offering about +4% more seat capacity.

(NUI), the Tahitian carrier was launched in 1998, and currently operates routes to Auckland, Tokyo, Paris, and Los Angeles. It offers flights from New Zealand to Paris, via Tahiti and Los Angeles. (NUI) serves Australian destinations via a code share with Qantas (QAN), connecting in Auckland.

News Item A-9: "52 Years Ago Today: Boeing 727 Takes Flight" February 9, 2015 by Joe Anselmo in "From The Archives."

Today (February 9th) marks the 52nd anniversary of the first flight of the Boeing 727. Powered by three Pratt & Whitney (PRW) (JT8D) turbofan engines, the passenger jet took off from the municipal airport in Renton, Washington, and landed 2 hour, 1 minute later at Paine Field, north of Seattle. Aviation Week & Space Technology, which had written extensively on the 727’s roll-out three months earlier, gave only cursory coverage to the test flight: a single page of three photos in its February 18, 1963 edition.

In a recent blog, Senior Propulsion Editor, Guy Norris noted that the 727 was the first commercial Boeing program to use a dedicated airplane for flight testing. The jetliner was also the first to be fitted with an auxiliary power unit (APU). In a brief article in the March 4, 1963 issue of "Aviation Week," it was reported that United Air Lines (UAL), Eastern Air Lines (EAL) and Trans World Airlines (TWA) (which had collectively signed up for 90 727s) placed orders with Garrett Corporations’s AiResearch Division for (APU) systems. “Installation consists of a gas turbine engine driving a 40 kva alternator which supplies compressed air for main engine starting and cabin air conditioning on the ground,” the article said. “The auxiliary power makes the 727 independent of the need for mobile power units.”

The 727 was certified later that year and entered service with Eastern (EAL) in February, 1964. Its production ran to 1984.

* "Aviation Week" is approaching its 100th anniversary in 2016. In a series of blogs, its editors will highlight editorial content from the magazine's long and rich history, including viewpoints from the industry's most iconic names and stories that have helped change the shape of the industry.

News Item A-10: "LIVE LONG AND PROSPER - (LLAP)" - - LEONARD NIMOY "MR SPOCK" DEPARTS ON HIS FINAL JOURNEY, AGE 83. HIS INSPIRATION FOR "SPACE - THE FINAL FRONTIER."

The following is a statement from (NASA) Administrator, Charles Bolden on the passing of Leonard Nimoy:

"Leonard Nimoy was an inspiration to multiple generations of engineers, scientists, astronauts, and other space explorers. As Mr Spock, he made science and technology important to the story, while never failing to show, by example, that it is the people around us who matter most.

"(NASA) was fortunate to have him as a friend and a colleague. He was much more than the Science Officer for the (USS) Enterprise. Leonard was a talented actor, director, philanthropist, and a gracious man dedicated to art in many forms.

"Our thoughts and prayers are with his family, friends, and the legions of Star Trek fans around the world."

March 2015: News Item A-1: Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner continued to lobby on behalf of a long-term re-authorization of the USA Export-Import Bank (Ex-Im), saying elimination of Ex-Im financing for commercial airplanes would have a seriously negative impact on Boeing (TBC) and the USA economy.

Ex-Im’s authorization has been temporarily extended to the end of June, but a long-term renewal for the bank has run up against opposition from, among others, Delta Air Lines (DAL) and conservative Republicans in Congress. (DAL) argues Ex-Im loan guarantees for Boeing airplanes unfairly benefit USA airlines’ foreign competitors, such as Emirates Airline (EAD), while some lawmakers simply don’t believe export financing is a proper government activity.

Speaking at the USA Chamber of Commerce Foundation 14th Annual Aviation Summit in Washington DC, Conner said, “I’m surprised we’re having this debate.” He noted that more than >60 countries around the world have export financing and none are considering curtailing such activity. “If Ex-Im is not available, that’s just going to provide a distinct advantage [to companies such as Airbus (EDS), Embraer (EMB) and Bombardier (BMB)] when an airline does need a loan guarantee,” he said.

If Ex-Im is not reauthorized, many airlines “are not going to go to the USA” to buy airplanes, Conner said. “They’ll go somewhere else to get their airplanes.”

Conner said he was trying to impress upon members of Congress how critical Ex-Im is to the USA economy. “This is a really important issue,” he said, adding that the elimination of Ex-Im “would impact our competitive position pretty significantly. It would impact 1.4 million jobs that are associated with our airplanes across the supply chain.”

Ex-Im financing “is not a bad thing,” Conner said. “It’s a good thing for the USA economy and we should all support it. It’s low risk and, the last time I looked, it made money for the USA treasury.”

News Item A-2: Li Jiaxiang, Chief of the Civil Aviation Administration of China (CAAC) met with visiting Dennis Muilenburg, Vice Chairman, President & Chief Operating Officer (COO) of the Boeing Company (TBC), and Marc Allen, President of Boeing International, in Beijing on March 23. See photo - - "TBC-2-DENNIS MUILENBURG - 2015-03."

During the meeting, the two parties conducted in-depth exchanges of views on enhancing their cooperation in the civil aviation sector.

News Item A-3: Boeing [TBC] Global Positioning System (GPS) (IIF) satellites are steadily replenishing the orbiting constellation, continuing to improve reliability and accuracy for users around the world. The 9th (GPS) (IIF) reached orbit about three hours, 20 minutes after launching March 25th aboard a United Launch Alliance (ULA) Delta IV rocket from Cape Canaveral Air Force Station, Florida, and sent signals confirming its health. SEE ATTACHED PHOTO - - "TBC-2015-03 - 9th GPS IIF IN ORBIT."

“Boeing (TBC), (ULA) and the Air Force (USF) successfully launched four (GPS) (IIF)s last year, the highest operations tempo in over >20 years, and today’s mission marks the first of three launches planned in 2015,” said Dan Hart, VP, Boeing Government Space Systems. “As they enter service, the (IIF)s are advancing and modernizing the (GPS) constellation by improving accuracy, signal strength and anti-jamming capability. We are also introducing the (L-5) civilian ‘safety-of-life’ signal intended mainly for aviation and transportation.”

The (GPS) (IIF-9), designated as (SVN-71), will undergo on-orbit testing and checkout before beginning full operation.

Boeing (TBC) has served as a prime contractor on (GPS) since the program’s inception, contributing multiple generations of (GPS) satellites and accruing more than >525 years of on-orbit operation.

News Item A-4: A recent 777-300ER delivery to Cathay Pacific Airways (CAT) marks a major milestone between (GE) Aviation (GEC) and Boeing Commercial Airplanes (BCA). The airplane was powered by the 2000th (GE90) engine to Boeing for the 777.

"The (GE90) engine along with the Boeing 777 airplane helped revolutionize the twin-engine airplane concept in commercial aviation," said Bill Millhaem, General Manager of the (GE90)/(GE9X) Program at (GE) Aviation (GEC). "Prior to its introduction, twin-engine airplanes were not viewed as a viable option for long-haul travel. Yet the proven performance and reliability of the (GE90)-powered Boeing 777 airplane altered this mindset and made the engine-airplane combination among the most successful long-range, wide body offering in service today."

Close to 70 operators utilize (GE90)-powered Boeing 777 airplanes, with the 2000th engine powering a Boeing 777-300ER. More than >500 (GE90) engines are on the order book, which continues to increase. "The customers love the airplane. It's a moneymaker for them. Which is the most important thing (that our customers make money and they like the airplane)" said Jim Petersen, Senior Chief Engineer of Propulsion for Boeing Commercial Airplanes (BCA).

The (GE90) engine family powers the Boeing all 777 models and is the exclusive powerplant on the 777-300ER, 777-200LR, and 777F Freighter airplanes. Of the 2000 (GE90) engines delivered to date, more than >400 were the earlier (GE90-94B) model and almost 1600 were the (GE90-115B) engine, which is the world's most powerful jet engine. The family has accumulated more than >45 million flight hours and 7 million cycles since entering service in 1995.

The (GE90) engine features several technology firsts, including carbon fiber composite front fan blades, the world's largest front fan at 128 inches in diameter and the world-record setting thrust of 127,900 pounds during certification testing. The popular (GE90-115B) engine includes such performance-enhancing features as three-dimensional aerodynamic (3-D aero) compressor and wide-chord, swept composite fan blades for greater efficiency. The dual annular combustor emits no more than 40% of the hydrocarbons allowed by today's international standards. In addition, today's (GE90-115B) engines have been enhanced to reduce fuel burn by -3.6% from the 2000 launch specifications.

The (GE90) engine provides the foundation for the new (GE9X) engine that will power the Boeing 777X. The (GE9X) engine will be in the 100,000 pound thrust class and features a 134-inch diameter composite fan case and 16 composite fan blades; a next-generation 27:1 pressure-ratio 11-stage high-pressure compressor; a third-generation (TAPS) III combustor for high efficiency and low emissions; and (CMC) material in the combustor and turbine. Almost 700 (GE9X) engines have been ordered by customers since it was launched last year. Technology maturation testing on key components for the (GE9X) will continue this year with the first engine scheduled to test in 2016.

News Item A-5: Oman Air (OMR) (CEO), Paul Gregorowitsch said French protectionism could lead the state-owned carrier to order additional airplanes from Boeing (TBC) instead of Airbus (EDS).

News Item A-6: The (FAA) has added Boeing (TBC) South Carolina-built 787-9s to the company’s production certificate, PC 700, which allows Boeing (TBC) to produce and deliver the type from the facility.

The (FAA) added 787-8 production to Boeing (TBC)’s PC 700 certificate in July 2012. (TBC) said the certificate is issued once an airplane manufacturer has demonstrated to the (FAA) that its facilities and quality management system meet the (FAA)’s stringent safety and reliability requirements.

The addition of Boeing South Carolina’s 787-9 production to the Boeing production certificate follows a successful (FAA) Manufacturing Inspection District Office audit that validated the site’s compliance with the Boeing Quality Management System.

Boeing (TBC) announced in July 2014 it will build 787-10s exclusively in South Carolina.

News Item A-7: The International Association of Machinists & Aerospace Workers (IAM) has filed a petition with the National Labor Relations Board (NLRB) to hold an election for more than >2,400 production employees at Boeing’s South Carolina facility in North Charleston.

Boeing builds 787-8s and 787-9s, the first two variants of the 787 Dreamliner that are in service, at both its facilities in Everett, Washington and South Carolina, and will continue to do so. Final assembly of the first 787-10, which will be 18 ft/5.5 m longer than the 787-9, is scheduled for 2017 exclusively in North Charleston.

In a statement, the (IAM) said the petition was filed “after a significant number of Boeing workers signed authorization cards expressing interest in union representation. Workers at Boeing (TBC) had reached out to the (IAM) regarding numerous workplace concerns, including forced overtime, fair wages and a lack of respect on the shop floor.”

Efforts by Boeing (TBC) workers to form a union have already been met with stiff resistance from Boeing management and outside political forces looking to advance their own agendas. South Carolina Governor, Nikki Haley recently used her State of the State address to attack the (IAM) and the Boeing (TBC) workers who are seeking union representation, the (IAM) said.

“Boeing workers have a legal right to an election process that is free of intimidation and harassment,” said (IAM) Lead Organizer, Mike Evans. “This is their decision and their decision alone. We expect Governor Haley and her friends, who have no clue what it’s like to be a front-line production employee for Boeing (TBC), to keep their personal biases to themselves and remain neutral in the weeks leading up to the union vote.”

The (NLRB) is expected to issue election dates and locations in the coming weeks. In the meantime, the (IAM) said it “will continue to help Boeing (TBC) employees educate their co-workers on their workplace rights.”

Boeing (TBC) said it “firmly believes that a union is not in the best interest of Boeing South Carolina teammates and their families, their communities, and the state of South Carolina, especially after years of the (IAM) insulting the abilities of Boeing South Carolina teammates and fighting against (BSC)’s success.”

Boeing South Carolina’s newly appointed VP & General Manager, Beverly Wyse said: “Boeing South Carolina teammates have done what so many people said couldn't be done. And they did it by working together, engaging every day, and truly committing themselves to the success of our site. And let's be really clear, the (IAM) was not part of this success — - it was our (BSC) teammates. In fact, the (IAM) aggressively opposed it, as publicly demonstrated by their filing of a claim with the National Labor Relations Board, to try to keep our site from even opening. Now, simply by filing this petition, the same union that tried to take our jobs and our work, has already begun to divide our team at a time when we're just beginning to gel and catch a solid rhythm in production.”

News Item A-8: The National Labor Relations Board (NLRB) has approved an April 22 election date for the more than >3,000 workers at Boeing (TBC)’s 787 production facility in South Carolina to vote on unionization, according to a statement by the International Association of Machinists and Aerospace Workers (IAM).

“This is an important step on the road to a collective bargaining agreement for workers at Boeing South Carolina [BSC],” (IAM) lead organizer, Mike Evans said. “This is a chance for Boeing (TBC) workers and their families to substantially improve their careers and communities. The law provides for a free and fair election without intimidation or harassment, and we intend to ensure it is conducted accordingly.”

Boeing builds 787-8s and 787-9s, the first two variants of the Dreamliner that are in service, at both its facilities in Everett, Washington and South Carolina and will continue to do so. Final assembly of the first 787-10, which will be 18 ft/5.5 m longer than the 787-9, is scheduled for 2017 exclusively in North Charleston.

Boeing (TBC) had said in an earlier statement that it “firmly believes that a union is not in the best interest of Boeing South Carolina teammates and their families, their communities, and the state of South Carolina, especially after years of the (IAM) insulting the abilities of Boeing South Carolina (BSC) teammates and fighting against (BSC)’s success.”

News Item A-9: SEE ATTACHED "TBC-2015-03 - JET AVIATION STATUS-A/B" which describes matters discussed at the annual International Society of Transport Aircraft Trading (ISTAT) meeting, currently being held at Phoenix, Arizona, March 10th (1,700 attendees).

News Item A-10: Boeing (TBC) has begun several months of flights with its ecoDemonstrator 757 to evaluate new technologies to improve commercial aviation's efficiency, reduce noise and carbon emissions. Boeing (TBC) is collaborating with UK-based leisure carrier, the TUI Group (TUG) and (NASA) (NAS) on ecoDemonstrator 757 tests.

On the left wing, Boeing (TBC) said it will evaluate technologies to reduce environmental effects on natural laminar flow as a way to improve aerodynamic efficiency. As an example, the ecoDemonstrator 757 will test a Krueger shield that can protect the leading edge from insects.

Boeing (TBC) is under contract with (NASA) (NAS)’ Environmentally Responsible Aviation (ERA) Project to test two technologies on the ecoDemonstrator 757. On the right wing, (NASA) (NAS) will test bug-phobic coatings to reduce the residue left by bug strikes on the leading edges of airplane wings; the goal is to enable more drag-reducing laminar flow over the remainder of the wing.

On the vertical tail, (NASA) (NAS) and Boeing (TBC) are testing active flow control to improve airflow over the rudder and maximize its aerodynamic efficiency. Based on wind-tunnel testing, active flow control could improve the rudder's efficiency by up to +20% and may allow for a smaller vertical tail design in the future.

The (TUI) Group (TUG) is collaborating with Boeing (TBC) as a way to reduce carbon emissions. (TUG), which includes six airlines, is preparing for a low-carbon future by reducing its environmental impact and encouraging its suppliers and customers to do the same.

Later this year, Boeing (TBC) said it will announce additional tests with the ecoDemonstrator 757, which was leased for testing purposes. After the flights are complete, (TBC) will work with the Aircraft Fleet Recycling Association and the lessor, Stifel’s airplane finance division, to recycle the 757 using environmental best practices.

News Item A-11: Boeing (TBC)'s 767 tanker program is delayed again, with the tanker's first flight pushed out by as much as two months. That flight had earlier been projected to happen in April. But at a conference in Washington D C, the Air Force's Program Director for the KC-46A Pegasus tanker said he's "not comfortable" saying the tanker will make that schedule, according to a report in the "Defense News." "I feel more comfortable saying second quarter," which extends to the end of June, U S Air Force Brig. Gen. Duke Richardson said.

News Item A-12: The (FAA) granted 330-minute Extended Twin-engine OPerationS (ETOPS) approval for the Boeing 747-8I Intercontinental, marking the first time a four-engine commercial passenger airplane has gained 330-minute (ETOPS) approval.

Boeing (TBC) said 747-8I operators will now be able “to fly long-distances more directly on virtually any worldwide city pair routing.” (TBC) noted that (ETOPS) has been a requirement for twin-engine airplane since the 1980s, and (FAA) (ETOPS) regulations have recently been applied to four-engine passenger airplanes.

747 Program VP & General Manager, Bruce Dickinson said, “Flying long-distance routes directly helps our customers fly even more efficiently, saving fuel and emitting less carbon dioxide.”

According to (TBC), there are now 83 747-8s in service with 11 customers.

News Item A-13: Boeing (TBC) has rolled out a 777 upgrade plan including a series of upgrades to ensure the 777 remains competitive in the long-range market well after the 777X derivative enters service.

News Item A-14: Boeing (TBC) has reached an agreement with Japanese partner Nabtesco to supply primary flight control actuation system on Boeing’s new 777X airplane. Nabtesco, who currently supplies flight control surfaces on the 777, will become the first Japanese systems supplier-partner on the new program.

This is the third in a series of 777X related agreements with major Japanese suppliers. In June 2014, Boeing (TBC) announced that Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Fuji Heavy Industries, ShinMaywa and Nippi would provide 21% of the 777X airframe structure. In November, Toray reached an agreement with Boeing (TBC) to provide the composite material for the 777X’s super efficient fourth generation composite wing.

News Item A-15: Swiss International Air Lines (SWISS) (CSR) has committed to buy three additional Boeing 777-300ER airplanes, in an order valued at $990 million at list prices. This additional commitment follows a previous order for six 777-300ERs in 2013. The 777-300ER will be used on SWISS (CSR)’s long-haul routes.

News Item A-16: Boeing (TBC) delivered 60 commercial airplanes in February, leading rival Airbus (EDS)’ 45 commercial airplane deliveries for the month. Boeing (TBC) logged seven orders for a total of 72 airplanes in February, the largest being an order for 50 737-MAX airplanes from an undisclosed customer on February 23. Alaska Airlines (ASA) booked a firm order for six 737-900ER airplanes on February 12, valued at approximately $594 million at current list prices. Korean Air (KAL) booked an order for five 777F freighters February 12, valued at approximately $1.55 billion at current list prices. And an unidentified customer ordered two 787-8 Dreamliners on February 6, valued at approximately $437 million at current list prices.

Airbus (EDS) logged three orders during the month, for a total of 32 airplanes, the largest being a combined order for 18 A320neo and five A320ceo airplanes placed by an undisclosed customer, valued at approximately $2.4 billion at current list prices. Additionally, AirAsia (ASW) logged a firm order for nine A320neo airplanes, valued at $956 million at current list prices.

Boeing (TBC)’s February deliveries included six airplanes to United Airlines (UAL) (five 737-900ERs and a 787-9); four 737-800 airplanes to Ryanair (RYR); three airplanes each to American Airlines (AAL) (a 737-800, a 777-300ER and a 787-8), Hainan Airlines (HNA) (two 737-800s and a 787-8) and Southwest Airlines (SWA) (three 737-800s); and two airplanes each to Dutch lessor, AerCap (DEA) (a 737-800s and a 787-9), Air China (BEJ) (two 737-800s), Delta Air Lines (DAL) (two 737-900ERs), Lion Air (MLI) (two 737-800s), and Qatar Airways (QTA) (two 787-8s).

787-8 Dreamliners were also delivered in February to Aeromexico (AMX), Air Canada (ACN), Air India (AIN)/(IND) and Japan Airlines (JAL)/(JAS). Etihad (EHD) and Virgin Atlantic (VAA) each took delivery of a 787-9 during the month.

Airbus (EDS)’ February deliveries included three airplanes each to US Airways (AMW)/(USA) (all A321ceos) and lessor (GECAS) (GEF) (three A321ceos bound for Condor Airlines (CDF), Juneyao Airlines (JYA) and Thomas Cook Scandinavia (PRH), respectively) and two airplanes each to AerCap (DEA) (two A321ceos bound for American Airlines (AAL)), Air New Zealand (ANZ) (two A320ceos), Irish lessor (AWAS) (AWW) (two A320ceos bound for Kuwait Airways (KUW)), Singapore-based lessor (BOC) Aviation (SIL) (two A320ceos bound for Capital Airlines (DER) and Tianjin Airlines (GCR), respectively) and China Eastern Airlines (CEA) (an A320ceo and an A330-200).

Additionally, British Airways (BAB) took delivery of an A380 on February 13.

News Item A-17: Boeing (TBC) has delivered the first 787-9 assembled at its North Charleston, South Carolina facility to United Airlines (UAL). The 787-9 is the 250th 787 Dreamliner to be delivered.

News Item A-18: Hainan Airlines (HNA) has ordered 30 Boeing 787-9 airplanes to meet continuous growth of China’s market demand.

According to a (HNA) statement released by the Shanghai Stock Exchange, the deal is worth $7.7 billion at list prices, but the Haikou-based airline noted it would enjoy some discounts. The airplanes will be delivered by 2021.

(HNA) said it would accelerate international expansion pace as it plans to open four new international routes to Europe and the USA. It will also boost flight frequencies on routes to Boston and Seattle starting from Beijing and Shanghai this year.

April 2015: News Item A-1: Boeing earned a first-quarter net profit of +$1.34 billion, up +38% over net income of +$965 million in the 2014 March quarter, as its Commercial Airplanes unit’s revenue continued to soar.

Commercial Airplanes’ first-quarter revenue rose +21% year-over-year to $15.38 billion, as it delivered 184 commercial airplanes, +23 more than in the 2014 March quarter. Commercial Airplanes’ operating profit for the first quarter was +$1.62 billion, up +8% year-over-year. Boeing’s commercial airplanes (BCA) backlog as of March 31 stood at over >5,700 units valued at $435 billion, down from $440 billion at the end of 2014.

Boeing (TBC)’s company wide first-quarter revenue was up +8% year-over-year to $22.15 billion and operating profit increased +2% to +$2.13 billion. (TBC) said it expects “continued strong performance” for the remainder of 2015.

(TBC) maintained its guidance that it will deliver 750 - 755 commercial airplanes in 2015, which would top the record 723 deliveries in 2014.

News Item A-2: In the quarter January - March 2015, The Boeing Company (TBC) reported delivering 184 commercial airliners, up +14.%2 over the first quarter of 2014. The largest group was 737s with 121 delivered, followed by 30 787s, 24 777s, five 767s and four 747s.

In the first quarter of 2014, (TBC) delivered 161 commercial airplanes; 137 were delivered in the 2013 first quarter. In the 2014 quarter, deliveries were led by 115 737s and also included 24 777s, 18 787s and four 747s.

News Item A-3: Oman Air (OMR) has ordered 20 Boeing 737s as it continues to expand its fleet in a bid to reach critical mass. (CEO), Paul Gregorowitsch announced at the launch of the Omani carrier’s inaugural flight to Singapore that the airplanes would be a mix of current-generation variants and the new generation 737 MAX. Ten will come direct from Boeing and 10 from lessors.

He did not specify numbers, but told "Reuters" that the current variants would be delivered from 2017 and the 737 MAX from 2019.

(OMR) already operates the 737-700 and 737-800 and has the 737-900ER on order and will use the new airplanes both for domestic services and regional routes around the Persian Gulf and to the Indian sub-continent. (OMR), which has 36 airplanes (a mix of 737s and Airbus A330s) in the fleet at present, was already riding a wave of expansion before the latest order, with the first of an order for 787-8s, due to arrive this year. (OMR) has long spoken of expanding initially to a 50-strong fleet, with the prospect of increasing that number to 70 around the turn of the decade. This latest order will allow it to achieve that ambition.

News Item A-4: Elon Musk's SpaceX (SPX) and the US Airforce (USF) suffered from a "stark disconnect in perceptions" over (SPX)'s efforts to to win approval to compete for military satellite launches, according to an independent review commissioned by the (USF) Secretary, Deborah James after the service failed to meet a December goal to certify (SPX) for satellite launches. Launches are now handled exclusively by a Boeing (TBC)-Lockheed Martin joint venture (JV). While (SPX) and the (USF) have become conciliatory and say they expect (SPX) to be certified for launches by June, the report lays out a cultural collision between Musk's entrepreneurial impatience and the (USF)'s methodical bureaucracy.

News Item A-5: Subject: AVIATION'S LARGEST AIRCRAFT

Those Scaled Composites guys are at it again. Having a billionaire paying for it helps a lot.

http://mynorthwest.com/76/2718773/Largest-aircraft-in-history-could-take-flight-in-2016-thanks-to-Paul-Allen

Imagine the 320-foot span Spruce Goose. Then picture an aircraft larger than that.

An aircraft, backed by Seattle's Paul Allen, is expected to have a 385-foot wing span and will be used deliver satellites to space. It is reportedly being called "Roc."

"This thing is absolutely huge," AviationWeek.com Senior Editor, Guy Norris told The Dori Monson Show.

The "Roc" is being assembled in Mojave, California for Stratolaunch System's space launch program. It is being built by Scaled Composites.

Powered by six Boeing 747-400 engines, along with other parts salvaged from two 747s, the twin-fuselage carrier aircraft closely resembles the WhiteKnightTwo.

Once complete, the Roc will be mostly wing, according to Norris. Basically, its sole purpose is to fly to a high enough altitude to deliver satellites.

Norris said when the Roc is in space it will fire rockets to deliver satellites. The Roc will reportedly have a crew of three: a pilot, co-pilot and engineer.

"To be quite honest with you, it has been quite a secret up until now," he said.

Norris said the most difficult aspect of launching an aircraft into space is escaping earth's gravity - just that first few miles into the air. That's why the Roc will be mostly wing and engine.

The rocket used to launch a satellite is going to be named Thunderbolt, after one of Paul Allen's childhood toys. It will weigh more than >500,000 pounds and be 130-feet long, Norris told Dori. Combined with everything on it, the Roc will weigh about 1.3 million pounds.

But why did a project like this draw Paul Allen's attention, Dori wondered.

"I imagine it is the uniqueness of it," Norris responded.

The Roc is scheduled to fly sometime in 2016.

"It's going to be as big as you can imagine," Norris said.

News Item A-6: "Blue Origin Plans to Start Suborbital Flight Test This Year" by Frank Morring, Jr, Aerospace Daily & Defense Report, April 7th, 2015.

Blue Origin has completed acceptance flight tests of its cryogenic (BE-3) deep-throttle engine, and plans to begin autonomous flight tests with the reusable New Shepard suborbital human spacecraft it will power later this year.

Rob Meyerson, President of the secretive company, bankrolled by Amazon.com founder, Jeff Bezos, said April 7 “we’re probably a few years away from selling tickets” on "New Shepard," but the completion of acceptance testing was a big hurdle to clear.

The 110,000 lb thrust engine can be throttled down to 20,000 lb thrust for a vertical landing, Meyerson said. New Shepard testing at the company’s facility in West Texas will begin in autonomous mode, with the Blue Origin crew eventually occupying the vehicle’s three seats for the initial push to 100 km (the traditional altitude where space is said to begin).

Ultimately, paying passengers will fly from the Blue Origin site in Van Horn, Texas, either for tourism or research. The vehicle’s booster will lift them to the suborbital altitude, before flying back to a tail-down landing at the launch site. The crew capsule will return to the same facility via parachute, after providing about four minutes of microgravity to its passengers and experimental payloads, Meyerson said, declining to announce a price for the service.

Flight testing New Shepard also will allow the company to build time on the (BE-3), a liquid-oxygen, liquid-hydrogen engine, the company plans to upgrade as a commercial product designated (BE-3U) for upper stage use. That will require a larger nozzle and other changes.

“To make the (BE-3) into a (BE-3U), the simplest change could be a large expansion ratio nozzle, which is designed to operate at altitude,” Meyerson said. “But there will be other changes we’ll make as we fly the (BE-3) in our suborbital flights. We could theoretically, with our plans have dozens if not hundreds of flights with the New Shepard vehicle with the (BE-3), before we fly an upper stage (BE-3U). So we could do performance improvements if our customer base needs that.”

That base could include United Launch Alliance, which already has said it will buy Blue Origin’s (BE-4) hydrocarbon-fuel main-stage rocket engine for its next-generation launcher. That engine is in testing at the component level (the power pack and a subscale injector) and is on schedule as a rapid follow-on to the Russian-built RD-180 engine, with full-scale testing set to begin next year, according to Meyerson.

“The (BE-4) is a first-of-its-kind engine to be developed in the USA). It uses liquefied natural gas to produce 550,000 pounds of thrust,” Meyerson said. “The (BE-4) offers the lowest cost and is the fastest path to production for an American-made engine. The engine is more than >3 years into development, and we’re now on track to conduct full engine testing in 2016 and complete development of the engine by 2017, two to three years ahead of any other alternative engine that’s out there.”

News Item A-7: Boeing (TBC) has named John Shannon to be VP & Program Manager for the Space Launch System (SLS), which will provide (NASA) (NAS) with heavy-lift capability to send people and cargo into deep space.

Boeing (TBC) is designing, developing, testing and manufacturing the core stages and avionics for (SLS). Shannon succeeds Virginia "Ginger" Barnes, who is retiring. He currently serves as the company's International Space Station (ISS) Program Manager, leading the Boeing team's key integration role for (NASA)'s (ISS) Program.

Prior to joining Boeing (TBC), Shannon worked at (NASA) for 25 years, leaving (NAS) as deputy Associate Administrator for Exploration Planning in the Human Exploration and Operations Mission Directorate. He also served as Program Manager for the Space Shuttle, a role in which he managed the final fourteen shuttle missions and set the direction and policy for Space Shuttle development, including Pre-launch and Flight Operations.

A unit of The Boeing Company, Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military airplanes. Headquartered in St Louis, Defense, Space & Security is a US$31 billion business with 53,000 employees worldwide.

News Item A-8: "Royal Australian Air Force’s Boeing E-7 Wedgetails - - SEE PHOTO - - "TBC-737 WEDGETAIL - 2015-04.jpg" are Working Well, with System Improvements Coming" by Bradley Perrrett, Aviation Week & Space Technology, AprIL 8, 2015.

In 2006, Australia was so concerned about the Wedgetail airborne early warning and control program, that it had to think of how to keep Boeing (TBC) committed to delivering it. The contract had a fixed price, with damages for schedule misses, that by then were apparent. But the Defense Department was not much interested in compensation. It was fixated on obtaining the capability.

Nine years later, it has it. The Royal Australian Air Force (RAAF) has given a glowing report on the performance of the Boeing E-7 Wedgetail and its Northrop Grumman (GRU) Mesa radar over Iraq in the campaign to suppress the Islamic State. Only a few minor issues now need to be resolved before declaring the six Wedgetails fully operational, probably in the middle of this year, said (RAAF) Wing Cmdr Paul Carpenter.

The type, which became initially operational in 2012 after a development program that ran for 12 years, is already in line for upgrades, notably for the Mesa.

The (RAAF) saids the Wedgetail is performing reliably in Iraq, where it shares the burden of battle-space management with Boeing E-3 Sentries. “We are very happy with the performance we are getting out of the radar and the systems,” said Carpenter, who until late last year led the (RAAF)’s Wedgetail unit, No 2 Sqdn.

Air Vice Marshal, Chris Deeble, then the head of the Wedgetail program, would have been delighted to hear those words in 2006, when he told Aviation Week that Australia would reserve some of its rights to compensation to keep Boeing (TBC) motivated. “We cannot afford to get a lesser capability than we have specified,” he said then. “It is a critical part of the way we intend to war fight.”

That way of fighting, not quite spelled out, was and is based on massive collection and dissemination of information, by and between such systems as Wedgetail, the Jindalee over-the-horizon radar, manned and un-manned maritime surveillance and electronic intelligence airplanes and the Lockheed Martin F-35, not to mention data supplied by allies, especially the USA. The campaign to thoroughly network the (RAAF) and its sibling services is now taking a step forward with "Project Jericho," prompted by the planned arrival of the F-35 into service in 2020, Deeble is now running the Australian F-35 acquisition.

In the end, Australia did not get all of the capability that it originally specified. Some items were downgraded or deleted, but it seems that none of the changes greatly reduced the Wedgetail capability. Boeing (TBC) added functions that Australia did not originally ask for—and is now pleased to have. First delivery, contracted in 2000 for 2006, did not occur until 2009. The gap understates the program delay, however, because an inordinate three years was then needed to make the airplane initially operational.

Now the Wedgetail is about to be fully operational, but not finally operational. The latter status will probably be reached the day before it is retired, said Carpenter, because the type will always be subject to upgrades. Already, “we still have a huge shopping list of things that still need to go in there, . . . lots more features to work on.”

Upgrades are easier now that signals processing in modern systems is changed by software, not necessarily by switching hardware. “There is an enormous amount of potential in that Mesa radar that is waiting to be unlocked by a whole bunch of ones and zeros,” Carpenter said at the Australian International Airshow at Avalon near Melbourne in February. There are clear paths to upgrading the radar, he added.

Turkey and South Korea also operate the E-7. Although the three countries’ airplanes are not identical, they all feature the Mesa, the active, electronically scanned array of which is mounted on a dorsal fin on the fuselage of the E-7. The airplane is based on the high-gross-weight version of the Boeing 737-700 airliner.

Typically, the Wedgetail deployed to Iraq has flown missions lasting 13 - 16 hrs, including 8 - 12 hrs on station. In-flight refueling, while previously practiced, has become routine. “We wanted the E-7 Wedgetail to take the role of the E-3, not be second-rate, and that worked,” said Carpenter. “We wanted to be plugged into the American system and not be a burden and in fact be an enhancing feature.” Logistics was part of that; the Australians supported themselves.

The deployed Wedgetail began contributing sooner than expected, on its first mission over Iraq in October. On that occasion, the E-3 was supposed to work as an apprentice to a USA Air Force (USF) E-3 in the busy northern sector of the country, so the Australians could learn the ropes before going solo in the southern sector, where fewer allied airplanes needed to be controlled. But the E-3 was unserviceable. The Wedgetail crew was forced to take on the northern sector immediately, putting to use experience gained in an intensive exercise program before the deployment.

The (RAAF) has not previously operated airborne early warning and control airplanes. In Iraq, a particular new task for the Wedgetail crew was the busy and critical one of orchestrating tanking for the airplanes in the zone.

The Wedgetails have been operating in Iraq above >30,000 ft but not at their ceiling, 41,000 ft. They stay above the tankers and tactical airplanes, while U-2s and RQ-4 Global Hawks fly above them. The electronic support measures suite has been used in Iraq, said Carpenter.

The (RAAF) and its suppliers appear to have supported the Wedgetail well in Iraq. “Every time we had to replace a component or do some work on it, we had the right people, we had the right parts and the procedures,” said the Wing Commander.

A last-minute addition to the airplane was Internet protocol (IP) chat, which had been due for installation years later, but was rigged up in weeks. The system, running through the Iridium satellite phone system, was used to communicate with the combined air operations center on the ground, with command-and-control airplanes and (UAV) operators. “The Americans used (IP) chat extensively,” noted Carpenter.

Before the Iraqi deployment, a Wedgetail took charge of movements in the search for Malaysia Airlines (MAS) flight 370 off Western Australia last year. The order to deploy was received one afternoon and the airplanecraft left its base, (RAAF) Williamtown on the east coast, the next morning. Only five workstations had to be manned for that job (compared with all 10 in Iraq or for a big exercise) but the work included the challenge of coordinating Chinese, Japanese, South Korean, New Zealand, Malaysian, USA and Australian airplanes.

The airplane is named after the wedgetail eagle, an Australian bird with unusually acute vision.

News Item A-9: Boeing (TBC) selected Liebherr-Aerospace Lindenberg to supply fold subsystem, latch pin actuator and secondary lock actuator for the 777X folding wing tip.

News Item A-10: Copa Airlines (COP) has signed for 61 Boeing 737 MAX 8 and -9 airplanes, in an order valued at $6.6 billion at list prices. This is the largest commercial transaction between a Panamanian and a US-based company. Panama President, Juan Carlos Varela Rodriguez and USA President, Barack Obama witnessed the historic agreement at the seventh Summit of the Americas.

The airplanes were previously attributed to an unidentified customer on Boeing (TBC)’s Orders & Deliveries website. They will be powered by (CFM) (LEAP-1B) engines

(COP) Chairman, Stanley Motta called the order “an important step in strengthening Copa (COP)’s leadership in the region, as we enhance our world-class product and expand our network.”

(COP) will use the 737 MAXs to replace existing airplanes and support (COP)’s plans for strategic growth. (COP) will be the first airline in the region to operate the 737 MAX 9 on deep South American routes. The 737 MAX 9’s range and passenger comfort are ideally suited to (COP)’s long-haul route network.

To date, Boeing (TBC) said the 737 MAX has accumulated 2,715 orders from 57 customers.

News Item A-11: United Airlines (UAL) said that it has swapped 10 orders of Boeing 787 Dreamliners for 10 larger 777-300ER jets, marking a victory for Boeing (TBC), as it seeks to sell out the 777 planes before their production ends.

The news follows months of speculation that Chicago-based United Continental Holdings Inc would make the swap, which allows it to move airplanes on to different routes to better fit customer demand.

(UAL) also said it is in final negotiations on the lease of 10 to 20 used narrow body airplanes for delivery over the next few years. It said it plans to retire 130 of its more than >200 50-seat planes by the end of 2015 as part of its fleet reorganization.

For Boeing (TBC), the deal signals steady demand for its wide-body 777 airplanes before it switches to production of the new 777X model later this decade. Boeing (TBC) said that its 777 production line is sold out for 2016 and half sold out in 2017, with sales extending into 2018. The additions from (UAL) were part of the 25 firm orders and commitments for 777s that Boeing (TBC) has won this year, just short of half of its target, spokesman Doug Alder confirmed in an email.

“We always work with our customers on their evolving fleet needs and we’re pleased (UAL) chose the 777-300ER,” he said. Analysts have expressed concern that (TBC) might have to cut prices to shore up any 777 production gap.

(UAL) said it will accept delivery of the 777-300ER airplanes beginning in 2016, adding that 777-300ER “will provide attractive upgauge and range opportunities to the company at competitive economics.”

(UAL) added it intends to extend the life of all 21 of its Boeing 767-300ER airplanes and switch some of its Boeing 757-200 airplanes from transatlantic to USA and Latin American routes.

News Item A-12: Air Europa (ARE) has launched scheduled flights between Madrid and Miami with its first Boeing 787 as it prepares to take 22 of the new twinjets. Privately owned (ARE) is bringing in 22 787-8s and 787-9s to completely replace its Airbus A330 long-haul fleet. (ARE) has acquired the 787s through two commitments, one for eight airplanes and a follow-on order for a further 14, which was announced in January.

Juan José Hidalgo, President of Air Europa parent company, Globalia Corporation, previously said the 787 will grow the business by around +50%.

Air Europe (ARE)’s first four 787s will arrive by the end of 2016, doubling to eight airplanes by 2018. “(ARE) will have a total of 22 787 Dreamliners all operational by 2022, completely replacing its long-haul fleet of A330s.”

The first airplane has been deployed on Madrid - Miami, cutting the journey time by -40 minutes. (ARE) currently flies this route 5x-weekly, but will increase frequencies to daily from July.

It has been configured with 252 seats, including 18C in business class and 21PY in Air Europa’s newly introduced premium economy cabin.

(ARE), which has a hub at Madrid Barajas, serves 36 destinations in Europe and the Americas. It is part of the Globalia Corporation and is headquartered in Palma de Majorca.

May 2015: News Item A-1: "(FAA): Boeing 787s Need to be Powered Off Every 120 Days" by Air Transport World (ATW)'s Aaron Karp, May 4, 2015

Boeing (TBC) is working on a software fix for 787 generator control units (GCUs), but in the meantime, the (FAA) has ordered 787 operators to power off 787 Dreamliners at least once every 120 days to avoid the potential loss of electrical power in flight.

During laboratory testing, Boeing (TBC) discovered a problem with 787 (GCU)s: After 248 days of continuous power, all four main (GCU)s will go into failsafe mode simultaneously, which would result in the loss off all electrical power. Boeing (TBC) advised the (FAA) of the problem and the (FAA) has issued an airworthiness directive (AD) with immediate effect that requires “a repetitive maintenance task for electrical power deactivation.”

The (FAA) said the “unsafe condition” justifies waiving the usual notice and comment period on (AD)s. “Loss of all alternating current (AC) electrical power can result in loss of control of the airplane,” the (FAA) said.

The (FAA) said it considers the (AD) an “interim action,” adding, “Boeing (TBC) is currently developing a (GCU) software upgrade that will address the unsafe condition. Once this software is developed, approved, and available, we might consider additional rulemaking.”

In an emailed statement, a Boeing (TBC) spokesperson said, “All airlines have already taken the required action after we notified them two weeks ago. It is important to note this issue was observed in the lab only (after 8 months of continuous power, which would be highly unusual), all operators have already completed the cycle off-cycle on fix, and they know how often they need to do it in the future until the software update arrives later this year. All airplanes in service already have performed a power off/power on cycle in the course of performing maintenance activities, according to Boeing (TBC)’s detailed records of operators’ 787 fleet maintenance.”

News Item A-2: Boeing (TBC) has appointed Bernie Dunn as President for Middle East, based in Dubai.

News Item A-3: "Boeing Awarded First Commercial Human Spaceflight Mission" by Rob Vogelaar, May 28, 2015.

Houston, Texas: (NASA) issued a tasl order as part of Boeing ('s $4.2 billion Commercial Crew Transportation Capability (CCtCap) contract recently to include the company's first-ever service flight to the International Space Station (ISS).

"This occasion will go in the books of Boeing (TBC)'s nearly 100 years of aerospace and more than >50 years of space flight history," said John Elbon, VP & General Manager of Boeing's Space Exploration dicivion. "We look forward to ushering in a new era in Human space exploration."

Boeing (TBC) was selected in September 2014 to build and fly the USA's next passenger spacecraft, the Crew Space Transportation (CST)-100. The Commercial Crew Transportation System (CCTS) is being developed in partnership with (NASA)'s Commercial Crew Program which aims to resume USA-based flights to space by 2017.

As part of the tCap contract with (NASA), Boeing (TBC) is guaranteed at least two and potentially six service flights after completing human certification.

(TBC) has successfully demonstrated to (NASA) that the Commercial Crew Transportation System has reached design maturity appropriate to proceed tto assembly, integration and test activities. "We're on track to fly in 2017, and this critical milestone moves us another step closer in fully maturing the CST-100 design," said John Mulholland, VP Commercial Programs. "Our integrated and measured approach to spacecraft design ensures quality performance, technical excellence and early risk mitigation."

The CST-100 can transport up to seven passengers or a mix of crew and cargo to low-Earth orbit destinations like the (ISS) and the Bigelow planned station. See attached "NAS-2015-05 - Post Certification Mission.jpg."

News Item A-4: French Polynesian carrier, Air Tahiti Nui (NUI) has finalized an order for two Boeing 787-9s and will lease two more from Los Angeles-based Air Lease Corporation (ALE) - - SEE ATTACHED "TBC-787-9 AIR TAHITI NUI - 2015-05.jpg." The ordered airplanes are valued at $514 million at current list prices.

The new 787-9s, which will replace (NUI)'s five A340-300s, are slated to arrive from the fourth quarter of 2018, coinciding with (NUI)’s 20th anniversary celebrations. The delivery marks a transition for Air Tahiti Nui (NUI), which is currently an all-Airbus (EDS) operator.

News Item A-5: Boeing (TBC) and Cathay Pacific Airways (CAT) celebrated the delivery of (CAT)'s 50th 777-300ER (Extended Range). With this delivery, (CAT) will have 67 777s in operation, which also includes 12 777-300s and five 777-200s. Cathay Pacific (CAT) is slated to receive three more 777-300ERs this year and is one of the launch customers for the 777X with 21 777-9X airplanes on order.

"The 777-300ER forms the backbone of our long-haul fleet," said Ivan Chu, (CEO) (CAT). "We operate the largest 777-300ER fleet in Asia, and this super-efficient long haul airplane allows us to operate multiple daily frequencies to intercontinental markets, which gives our customers a lot of choices."

(CAT) was voted the world's best airline of the year in 2014, for the fourth time, in the airline industry's most comprehensive customer satisfaction surveys conducted by SkyTrax. It bases all awards on a survey of over 18 million airline passengers hailing from over >160 countries. "We truly value the confidence (CAT) have demonstrated in the 777 program as well as Boeing (TBC)'s products and services across the board," said Ihssane Mounir, Senior VP Sales for Northeast Asia, Boeing Commercial Airplanes (BCA). "We are honored that the 777-300ER continues to play a prominent role in the success of Cathay Pacific (CAT)'s business expansion and we look forward to expanding our partnership with the new 777X in the years to come."

The 777-300ER is the most fuel and cost-efficient airplane in its class as well as the most reliable twin-aisle airplane in the world. It also has the highest cargo capability of any passenger airplane. The 777-300ER will receive further improvements in 2016 designed to reduce fuel use by -2%.

The 777-300ER has consistently won many accolades including "Best Airplane Type" based on passenger preference polls, "Best in Class" based on fuel burn, passenger load cost and performance and "Best Residual Value for a Twin Aisle Airplane" among others.

The Cathay Pacific group operates flights to nearly 100 destinations worldwide with its own fleet of more than >200 airplanes. In North America, the airline currently operates some 100 passenger flights a week to New York (JFK), Newark Liberty, Los Angeles, San Francisco, Chicago, Toronto, and Vancouver. (CAT) will begin a four-times-weekly service to and from Boston and Hong Kong on May 2 this year. Cathay Pacific Cargo serves 13 cities across the Americas using the latest 747-8F freighter fleet.

News Item A-6: Airbus (EDS) pulled into the lead for commercial jet airplane orders in 2015 with 228 gross commercial airplane orders, compared to rival Boeing (TBC)’s 152, following an April 30 order placed by Colombian carrier, Avianca (AVI) for 100 A320neo family airplanes.

News Item A-7: Liebherr-Aerospace Lindenberg is to supply crucial components for the Boeing 777X's folding wing-tip mechanism. The 3.5m/11.4 ft folding tips will reduce the 777X's wing span to less than 65m, to stay with the size category of the current 777. Liebherr-Aerospace stated that it will provide the fold subsystem as well as the latch-pin and secondary-lock actuators. The subsystem will employ a motor and rotating actuator to move the wing-tip.

News Item A-8: The (CFM) International (LEAP-1B) engine that will exclusively power the re-engined Boeing 737 MAX is now in flight testing. Boeing (TBC) and (CFMI) said that flight testing began April 29 on a modified 747 flying testbed at (GE) Aviation (GEC)’s flight testing center in Victorville, California. “The testing is the next major milestone in a two-year program that will culminate in engine certification in 2016 and delivery of the first Boeing 737 MAX in 2017,” Boeing (TBC) and (CFMI) said in a joint statement.

The engine “performed well and completed multiple aeromechanical test points at various altitudes during the 5 hour 30 minute first flight,” (TBC) and (CFMI) said. (CFMI) is a joint venture (JV) between (GE) Aviation (GEC) and Snecma.

Boeing VP and General Manager 737 MAX Program, Keith Leverkuhn said, “The 737 MAX is on track to deliver +14% more fuel efficiency than today’s most efficient Next-Generation 737s and +20% more efficiency than the first Next-Generation 737s to enter service.”

(CFMI) plans a “comprehensive test schedule” over the next several weeks “that will gauge engine operability, stall margin, performance, emissions and acoustics,” Boeing (TBC) and (CFMI) said.

News Item A-9: "C-17 Fleet Celebrates 3 Million Flying Hours" by Marcel van Leeuwen, aviationnews.eu, May 8th 2015.

The C-17 Globemaster III has proved again that it remains the world’s premier airlifter after the total C-17 fleet celebrated the historical milestone of achieving 3 million flying hours on May 5.

The C-17 is the only strategic airlifter in the world that has tactical capabilities that allow it to fly between continents; land on short, austere runways and airdrop supplies precisely where needed. The C-17 fleet is in its 22nd year of operation; it was first delivered in June 1993.

Getting to the 3 millionth flying hour all started on September 15, 1991, when the C-17 made its maiden flight. The C-17 passed the 1-million-hour mark in March 2006 and the 2-million-hour mark in December 2010.

A ceremony was held at Robins Air Force Base, Georgia, and Joint Base Charleston to commemorate the fleet’s milestone. As part of the ceremony, a combined Charleston aircrew and Boeing (TBC) team flew a ceremonial flight.

“It is such a great privilege and an honor to be a part of the C-17 program,” said Colonel Amanda Meyers, the C-17 System Program Director. “In the C-17’s relatively short history, it has done extraordinary things.

The platform provides unparalleled strategic and tactical airlift and airdrop capability to the USA as well as eight other partner nations,” Meyers continued. “It has become the airlifter of choice for the US Air Force. The incredible partnership between US active-duty, Reserve forces and National Guard make the C-17 a huge enabler for the USA. It not only allows the USA to fight and win its wars, but also to provide humanitarian assistance at an international level.”

The US Air Force owns 222 C-17s and USA's international allied partners have 44 of these strategic airlifters. “Our partner nations also benefit greatly from the capabilities that the C-17 brings to their defense organizations and national global contributions,” Meyers said.

Meyers, who became the C-17 Program Director last summer, realizes now how much heavy lifting the C-17 does. “Every time the news is on and there’s a call for assistance or unquestionable capability, the C-17 is part of the story,” she said. “Last summer, I turned on the news to see a Royal Australian Air Force (RAA) C-17 conducting a dignified transfer after the MH17 (crash). Last week, I turn on the news to hear about the earthquake in Nepal and see an Indian Air Force C-17 providing humanitarian help, quickly followed by C-17s from the USA, Canada and UK.

“The C-17 is where and when the nation calls, wherever that is, to go to war or promote peace,” Meyers continued. “Our mission is to acquire and obtain safe, effective and unrivaled global reach capability.”

Along the flight with Meyers was retired Major General Robert McMahon, the Boeing Director Field Operations. “As many know, this is Boeing (TBC)’s 100th anniversary, and we have challenged each employee to build something better,” McMahon said. “I will tell you that with the C-17, we have accomplished just that. The world’s premier airlifter.” McMahon recognized that the success of the airplane lies with the people that built it, maintain it and fly it.

“We and Boeing (TBC) are tremendously proud of those that designed and built this airplane, those today that maintain and sustain this airplane and those that currently operate the airplane,” he said.

Over time, the world has come to see the C-17 as the vehicle that carries hope and freedom.

“What makes the C-17 special is each and every day, no matter the condition, this airplane carries something very special, and that is hope to the people on the ground,” McMahon said. “Whether that was in Iraq or Afghanistan, or whether that’s the streets of New Orleans during the floods, or whether that’s someplace like Nepal today. When that t-tail shows up each and every day, what that means to the people on the ground, is hope for the future. That’s what these tremendous flight crews (FC) deliver.”

Following the preflight ceremony at Robins (AFB), Charleston Airmen prepared for takeoff as they had their eyes set on returning home.

Once the crew arrived at Charleston, Colonel John Lamontagne, the 437th Airlift Wing commander, addressed those in attendance at the ceremony. “Today is an amazing celebration recognizing 3 million hours in the C-17,” Lamontagne said. “We’ve come a long way since we first arrived here in July of 1993. Lots of lessons (have been) learned. It’s a fantastic airplane built by Boeing (TBC) for the US Air force.

“The US Air Force talks about ‘do something amazing,'” Lamontagne said. “This airplane does something amazing.”

News Item A-10: "Boeing Marks First International Sale of P-8A Training System" By Rob Vogelaar, aviationnews.eu, May 8, 2015.

Boeing [TBC] will provide the Royal Australian Air Force (RAAF) (RAA) with a complete training system for the P-8A Poseidon maritime patrol airplane under a contract that also includes the sale of four P-8A training systems for the US Navy (USN). This combined domestic and foreign military sale further strengthens the growing partnership between the (USN) and the (RAA) on the P-8 program.

The system utilizes simulators to train pilots (FC) and mission crews to operate the airplane, its sensors, communications and weapons systems without relying on costly live flights.

“Boeing (TBC) will deliver a seamless and comprehensive training solution for our customers’ pilots (FC) and mission crews” said Tom Shadrach, Boeing P-8 Program Manager on the Training Systems and Government Services team. “It will prepare them to use the world’s most advanced anti-surface and anti-submarine capabilities for any mission, at any time.”

Boeing (TBC) currently provides P-8A aircrew training devices, electronic classrooms and courseware for the Navy at its 165,000-square-foot Integrated Training Center (ITC) at Naval Air Station Jacksonville, where the goal is to shift majority of the training to the (ITC).

In February 2014, the Australian government approved the acquisition of eight P-8As and supporting infrastructure to include training and initial spares and support equipment. Airplane deliveries are scheduled to begin in 2017, the P8-A training system is expected to be delivered to Australia in 2018.

News Item A-11: Hainan Airlines (HNA) and the Air Lease Corporation (ALE) have inked a long-term lease agreement covering a pair of Boeing 787-9s. The 787-9s will be sourced from (ALE)'s current order book, which comprises 46 787-9s and 787-10s due for delivery from spring 2016.

“These two new Boeing 787-9s leased to Hainan Airlines (HNA) will be (ALE)’s very first Boeing 787-9 delivery,” (ALE) Executive VP & Managing Director, Asia, Jie Chen said.

The 787-9s will be the longest-range airplanes in (HNA)’s fleet, joining its existing 787-8s. Last month (HNA) placed an order for 30 Boeing 787-9s, valued at $7.7 billion at list prices, to meet China’s continued growth. These airplanes will be delivered by 2021.

(ALE) already has two 737-800s on long-term lease with Hainan Airlines (HNA), dating back to 2010.

News Item A-12: Boeing (TBC) and Turkish Airlines (THY) celebrated a milestone with the delivery of (THY)’s 125th airplane purchased from Boeing (a Next-Generation 737-900ER) and one of 12 airplanes (THY), the Turkish flag-carrier will take delivery of this year.

(TBC) and (THY)’s relationship stretches back to 1968 when (THY) first purchased one McDonnell Douglas DC-9. In 1974, it began operating the first of the Boeing 7 Series, taking delivery of two 727-200s. Since then, (THY) has grown to become one of the world’s leading carriers and currently operates a mix of Boeing 777-300ERs and 737 Next-Generation airplanes.

“Boeing (TBC) has played a pivotal role in the development of (THY) and these deliveries continue to enable (THY) to compete, expand and reach new short and long-range destinations nonstop from our hubs in Istanbul,” said Dr Ahmet Bolat, Chief Investment & Technology Officer, (THY). “We are committed to offering our passengers on every route the best flying experience possible and we deliver on that promise as the 777 and 737 provide comfort and convenience in spacious cabins, all matched with unrivalled reliability.”

News Item A-13: Ruili Airlines (RUI) has ordered 60 Boeing 737 MAX airplanes in conjunction with (AVIC) International Leasing Company and Minsheng Financial Leasing Company, as part of its domestic expansion plans.

The deal is worth CNY38 billion/$6.2 billion at current list prices.
(RUI) will negotiate with the two lessors to partly or wholly use the airplanes on financial or operating leases.

The Kunming-based carrier currently operates three airplanes, comprising two Boeing 737-700s and one 737-800 on seven domestic routes from Kunming to Mangshi, Chengdu, Nanchang, Wenzhou, Beihai, Xi’an, and Hohhot. At the end of the year, Ruili (RUI) plans to expand its fleet to six airplanes on 22 routes with 48 daily departures. By 2020, it plans to operate 24 airplanes on 60 - 70 domestic routes with 120 daily departures.

Launched in May 2014, (RUI) is wholly owned by the Yunnan Jingcheng Group and has a registered capital of CNY600 million.

News Item A-14: Shenzhen Airlines (SHZ), a subsidiary of Air China (BEJ), has won approval from its board to introduce 46 Boeing 737 airplanes, according to a statement released by the flag carrier on May 22.

June 2015: News Item A-1: "Abu Dhabi Partners Launch Sustainable Fuel Roadmap by (ATW) Alan Dron, June 24, 2015.

An Abu Dhabi partnership (comprising Etihad Airways (EHD), Boeing (TBC), French oil company Total, Abu Dhabi oil refiner Takreer, and the emirate’s Masdar Institute of Science & Technology) has launched a joint industry road map to sustainably produce aviation bio-fuels in the United Arab Emirates (UAE).

The report, “BIO-jet Abu Dhabi: Flight Path to Sustainability,” outlines industry actions to create a commercially viable domestic aviation bio-fuel industry.

The road map follows a year-long dialogue between the partners, together with (UAE) and global stakeholders. It sets out Abu Dhabi’s potential to produce aviation bio-fuel locally, in a sustainable way, taking account of all elements of the supply chain from feedstock supplies to bio-refining and distribution.

“The industry’s license to grow can only be granted if we find and implement ways to lower the carbon footprint of commercial aviation,” (EHD) President & (CEO), James Hogan noted.

Establishing a sustainable bio-fuel supply chain in the (UAE) was the next logical step in Abu Dhabi’s renewable energy commitments, he added.

The road map explores how a supply chain can be established in the (UAE) through the exploration of sustainable feed stocks, new infrastructure requirements and necessary policy frameworks. It indicates that Abu Dhabi holds significant potential to supply domestic feed stocks for use in aviation bio-fuel.

“The development of a bio-fuel supply chain complements our future plans to meet the rapidly growing demand for jet fuel, at both a local and regional level, and is in line with the Abu Dhabi National Oil Company sustainability policy,” added Takreer (CEO), Jasem Ali Al Sayegh.

The action plan identifies opportunities, challenges and concerns in the commercial scale-up of domestic bio-fuel production and will require the commitment of all stakeholders in addressing these.

News Item A-2: Boeing (TBC) has started building the first 737 MAX airplane on schedule in its Renton, Washington, facility - - see attached - - "TBC-2015-06 - 737 MAX Assy Start-A/B.jpg." Employees started to assemble the wings for the first 737 MAX flight test airplane. Wings are the first 737 components to be assembled in the Renton production process.

Boeing 737 MAX VP & General Manager, Keith Leverkuhn said, “Achieving this milestone on schedule is a testament to the success of the 737 and our integrated design and build team.”

According to Boeing (TBC), machine operators loaded 737 MAX wing skin panels and stringers into the new panel assembly line that uses automation to drill holes and install fasteners in the upper and lower wing panels. Mechanics (MT) also loaded the initial parts of the first 737 MAX spars (internal support structures in wings) into automated spar assembly machines. The unfinished skins, stringers and spars were machined by Boeing Fabrication Skin and Spar in Auburn and Fredrickson, Washington. When finished, the panels and spars will be transformed into completed wings.

Boeing (TBC) said that the wings will be attached to the first 737 MAX fuselage on the new Central line in Renton Final Assembly later this year. The new production line will allow the team to isolate the first 737 MAX build from the rest of production in order to learn and perfect the build process while the Renton factory continues to build at a rate of 42 airplanes a month.

To date, Boeing said the 737 MAX has 2,720 orders from 57 customers.

News Item A-3: AerCap Holdings (DEA) ordered 100 Boeing 737 MAX 8s at the Paris Air Show. The order, valued at $10.7 billion at current list prices, is the first 737 MAX order for the Netherlands-headquartered lessor. See attached - - "TBC-2015-06 - AerCap 100 737 MAX-A/B.jpg.

The airplanes will be powered by (CFM) (LEAP-1B) engines, in an engine order valued at $2.7 billion at USA list prices.

“This order complements our existing order book in the single-aisle category and is in line with our customer needs and our fleet strategy of leasing the most-in-demand and technologically advanced equipment,” AerCap (DEA) (CEO) Aengus Kelly said. “We see significant market appetite for this airplane type from our diverse customer base spanning approximately 90 countries around the world.”

News Item A-4: Qatar Airways (QTA) announced an order for 10 Boeing 777-8Xs and four 777F freighters, valued at $4.8 billion at list prices, on the opening day of Paris Air Show.

The 10 777X airplanes are powered by (GE9X) engines and the 777Fs are powered by (GE90-115B) engines. (GE) Aviation (GEC) valued the total engine order for the 20 (GE9X) engines and eight (GE90-115B) engines at more than >$1.1 billion list prices.

“Acquiring technologically advanced airplanes, such as the 777X, is integral to our expansion strategy,” (QTA) (CEO), Akbar Al Baker said. “With the addition of these 777-8Xs to the 50 777-9Xs already on order, we are confident of continuing the tremendous legacy of the 777.”

Al Baker said the order for four 777F freighters “underpins the value that this airplane has also brought to our rapidly growing cargo operations. Qatar Airways (QTA) Cargo is an integral part of the Qatar Airways Group and we look forward to enhancing the existing fleet with next-generation airplanes.”

News Item A-5: Ruili Airlines (RUI) has committed to purchase 30 737 MAXs with the financial support of (AVIC) International Leasing, amid a surge in China’s passenger traffic. The deal was announced at the Paris Air Show.

The commitment, valued at $3.2 billion at current list prices, will be subject to approval by the Chinese government.

The 737 MAX's will be powered by (LEAP-1B) engines, in an engine order valued at $810 million, according to (CFM) International.

“Today’s agreement demonstrates our ambition to grow from a startup airline to a driving force in China’s growing aviation industry,” Ruili Airlines (RUI) President, Ma Zhanwei said.

(RUI) currently operates 34 daily flights on 11 scheduled routes with a fleet of five Boeing 737s. According to its development plan, the startup carrier will expand its fleet to seven airplanes by the end of this year and 26 by 2020.

Ruili Airlines (RUI) obtained its public air transport enterprise business license from the Civil Aviation Administration of China (CAAC) in February 2014, formally establishing (RUI). The startup airline is the first private carrier approved by the (CAAC) after the regulator relaxed restrictions on new carriers in 2013.

Today's agreement from Ruili Airlines (RUI) continues the momentum of the 737 MAX in the marketplace. The 737 MAX incorporates the latest technology (CFM) International (LEAP-1B) engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

News Item A-6: China’s Minsheng Financial Leasing signed an (MOU) at the Paris Air Show to purchase 30 737 airplanes (a mix of Next-Generation 737 and 737 MAX airplanes).

Boeing did not give a numbers breakdown, but (CFM) International issued a statement announcing a (CFM56-7B) engine order to power 10 737s and a (LEAP-1B) order to power 20 737 MAX airplanes. (CFM) valued the engine order at $775 million at USA list prices.

Minsheng VP Aviation Unit, Wang Fuhou said, “Thanks to the continued emergence of low-cost carriers (LCC)s and regional airlines, the single-aisle market is projected to be the fastest growing and most dynamic segment. The Next-Generation 737 of today and the 737 MAX of the future combine market-leading economics, reliability and comfort to meet requirements from airline customers like Ruili Airlines (RUI).”

As one of the first five leasing companies approved by the China Bank Regulatory Committee, Minsheng was founded in April 2008 by China Minsheng Banking Corporation, the largest private commercial bank in China.

Boeing Commercial Airplanes Senior VP Northeast Asia Sales, Ihssane Mounir said the agreement “will allow Minsheng to capture the strong demand in both the domestic and global single-aisle market.”

News Item A-7: (EVA) Airways announced its intent to purchase five Boeing 777F freighters at the Paris Air Show. The commitment, valued at more than >$1.5 billion at list prices, represents the first 777F freighters to join (EVA)’s fleet.

(EVA) plans to use the new freighters to bolster its fleet in an effort to meet growing demand in the air cargo market.

(EVA) currently operates more than >35 Boeing airplanes in its fleet, including 20 777-300ERs. (EVA) is one of the world's leading 777-300ER operators with unfilled orders for 14 777-300ERs (both direct purchased and leased). (EVA) plans to grow its operational twin-aisle fleet to more than >60 airplanes by the end of 2025.

News Item A-8: (SMBC) Aviation Capital ordered 10 Boeing 737 MAX 8 airplanes at the Paris Air Show.

This deal adds to a 2014 order placed by the Dublin-based lessor for 80 737 MAX 8s for a total of 90 on order.

(SMBC) ordered 60 LEAP-1A engines and 20 LEAP-1B engines for 10 additional 737 MAX aircraft. The total value of the orders is $1.16 billion.

“Last year we placed the largest ever single order of 737 MAXs by a lessor, and we are pleased to be adding further to that tally today, (SMBC) Aviation Capital (CEO), Peter Barrett said. “This airplane is set to play a key role in our growing business in the years to come, and we look forward to continuing our relationship with Boeing (TBC) into the future.”

News Item A-9: Sriwijaya Air (SJA) placed an order for two Next-Generation 737-900ER airplanes at the Paris Air Show.

The order marks the first all-new airplane purchase for (SJA) and included a letter of intent (LOI) to exercise options for up to 20 additional 737s.

Sriwijaya Air (SJA) selected (CFM56-7B) engines to power the two 737-900ERs, in an order valued at $44 million at current list prices.

(SJA) President, Chandra Lie said, “Since our beginning, the 737 has been the backbone of our fleet and with its reliability, efficiency and lower maintenance and operating costs, there was no better choice for us than the 737 as we continue to grow.”

(SJA) operates an all-Boeing fleet of 737 airplanes and offers flights to various Indonesian destinations as well as a few international cities.

Boeing Commercial Airplanes Senior VP Global Sales & Marketing, John Wojick said, “These new 737s will help (SJA) continue to expand its network while carrying more passengers in greater comfort and with superior economics. We look forward to finalizing the additional 737s with this great airline in the future.”

News Item A-10: The Volga-Dnepr Group signed a memorandum of understanding (MOU) with Boeing (TBC) to order 20 747-8F freighters valued at $7.4 billion at list prices.

The airplanes will be powered by (Genx-2B) engines, in an order valued at more than >$1.8 billion at list prices.

Volga-Dnepr, parent of cargo carriers Volga-Dnepr Airlines (VDA), AirBridgeCargo Airlines (ABC) and Atran Airlines (VTR), currently operates six 747-8Fs. The Volga-Dnepr Group and Boeing (TBC) said in a joint statement that the 20 747-8Fs to be ordered will allow scheduled service airline (ABC) to grow. The 747-8Fs “will be acquired through a mix of direct purchases and leasing over the next seven years,” according to the statement.

The (MOU) also includes an agreement under which Volga-Dnepr Antonov An-124-100 freighters will be available to provide heavy lift logistics support to Boeing (TBC) on a long-term basis.

News Item A-11: "Airbus (EDS) & Boeing (TBC) Both Claim Paris Air Show Wins" by (ATW) Karen Walker, June 18 2015.

Airbus (EDS) claimed victory over rival Boeing (TBC) at the Paris Air Show with orders and commitments totaling 421 aircraft announced through the week, but Boeing (TBC)’s 331 commercial airplane sales included a far larger number of higher value wide bodies.

Airbus (EDS) sealed a last-minute deal with Budapest-based, low-cost carrier Wizz Air (WZZ), a fast growing airline that signed for 110 A321neos plus 90 purchase options Thursday, June 18, the last trade day of the show.

That brought Airbus (EDS)’ total commercial aircraft firm orders and commitments for the week to 421 aircraft at a list price value of $57 billion. The total comprised 124 firm orders worth $16.3 billion and 287 commitments valued at $40.7 billion.

Each manufacturer’s new firm orders to identified customers announced at the show, totaled 124 aircraft.

Airline and leasing customers for Airbus (EDS) aircraft included (ALE), (GCAS) (GFE), Garuda Indonesia (GIA), (EVA) Airways, Korean Air (KAL), Peach Aviation (PCA), Saudia (SVA), VietJet Air (VJE), Wizz Air (WZZ), and Avianca owner, Synergy Aerospace (ONE). There was also an A320neo order announced by one unnamed airline, which Airbus (EDS) said was in Asia and would be revealed and the agreement placed in the order book in July or August.

The large majority of the Airbus (EDS) deals were for A320 family aircraft, a mix of ceos and neos that comprised 103 firm orders and 263 commitments. The order total also included one ACJ319neo, an executive version of the neo.

But on the wide body side, there were no A380 order announcements and only one firm A350 XWB order.

And while Saudia (SVA) was announced as launch customer for the new A330-300 Regional, there were no new orders or commitments for the re-engined A330neo that was launched in July at the Farnborough Airshow.

Boeing Commercial Airplanes (BCA) clocked orders and commitments for 331 airplanes at a list value of $50.2 billion, including a deal announced Thursday June 18 for 21 737NGs to an undisclosed customer. Its Paris total included 36 787s, 10 777Xs, 2 777-300ERs, nine 777Fs and 20 747-8Fs, as well as 253 narrow bodies, a mix of 737NGs and 737 MAXs.

Boeing (TBC) customers included Aer Cap (DEA), Ethiopian Airlines (ETH), (EVA), Garuda Indonesia (GIA), Korean (KAL), Minsheng, Ruili Airlines (RUI), Qatar Airways (QTA), (SMBC) (SBC), Sriwijaya Air (SJA), and Volga-Dnepr (VDA).

Airbus (EDS) President & (CEO), Fabrice Bregier told the press Thursday June 18, that the company had “a very successful Paris Air Show” and that the number of orders and commitments was “higher than I personally expected.” He said the show confirmed that the market trends were “extremely positive” and that Airbus (EDS) would meet or over-achieve its goals for 2015. “We are leading this show again in terms of order and commitments,” he said.

Speaking on Thursday June 18, Boeing Commercial Airplanes (BCA) VP Marketing, Randy Tinseth was similarly bullish about how the air show had worked for Boeing (TBC) and what it meant for the overall market, although he admitted that this Paris was not about the kind of “eye popping numbers” that have been the theme of recent air shows.

Still, it had still been a productive week. “Any time you look at a show where you have more than >300 orders and commitments, then that’s a very good show,” he said. “There’s no question that the 787-9 has been absolutely spectacular from a show perspective with a fantastic aerial display that demonstrated the features and capabilities of that airplane.”

Tinseth said the 777 was outselling the A350-1000 “by about five to one at this point” and that Boeing (TBC)’s wide body backlog “speaks to our product line and speaks to the fact that we have the better strategy.”

Tinseth added, “We are out in front of our competition and we have no plans to relinquish our number one position.” Summing up what he felt the theme of this show had been (with both Airbus (EDS) and Boeing (TBC)sitting on record backlogs) Tinseth said, “This show is about how you deliver those airplanes and how you do that on time and on budget. That’s critical. It’s about performance right now.”

News Item A-12: See attached - - "TBC-2015-06 - 777 to 777X Transition-A/B/C/D.jpg."

News Item A-13: "Embraer (EMB) to Fly ecoDemonstrator with Boeing (TBC)" by (ATW) Graham Warwick, June 30, 2015."

Boeing (TBC) is to collaborate with Embraer (EMB) to fly a test bed for environmental technologies in Brazil in 2016, as a follow on to the (TBC)’s series of ecoDemonstrators.

The unspecified Embraer (EMB) airplane will be flown as part of Boeing’s ecoDemonstrator program, which was begun in 2011 and so far has involved flight tests of more than >60 technologies, first on a 737-800, then a 787-8 and most recently on a 757, which is just wrapping up flights.

The technologies to be tested on Embraer (EMB)’s demonstrator are being assessed and will be announced at a later date, said Boeing (TBC).

The companies announced a collaboration in 2012, under which they have developed runway situational awareness tools to prevent incursions. Boeing (TBC) has provided support for Embraer (EMB)’s KC-390 military airlifter program, and in January they opened a joint biofuel research center in Brazil.

Under the ecoDemonstrator program, Boeing (TBC) flew the 737 in 2012 and 787 in 2014. This year, the 757 demonstrator has tested an active-flow-control vertical tail, insect mitigation for laminar-flow wings, dimmable windows powered by harvested energy and other technologies.

The three campaigns have included other agencies, companies and airlines including the (FAA), (NASA) (NAS), Honeywell (SGC), Panasonic, Rolls-Royce (RRC), American Airlines (AAL), Delta Air Lines (DAL), Japan Airlines (JAL)/(JAS) and the (TUI) Group (TUG).

July 2015: News Item A-1: The Boeing Company (TBC) raised the cost for the largest version of its updated 777X jetliner to US$400 million as it boosted 2015 airplane prices +2.9% across the board.

The redesigned 777-9X, a twin-aisle jet that will seat more than >400 travelers, debuted last year as Boeing's priciest plane at US$388.7 million. The second-costliest model this year is the 747-8F freighter, priced at US$379.1 million, according to updated prices posted on Boeing (TBC)'s website July 1st.

Looking at another major order placed at 2014 list prices, the 737 MAX 8 increased from $106.9 million in 2014 to $110 million in 2015. Last November, Irish lessor (SMBC) Aviation Capital placed an order for 80 of the single-aisle 162-passenger airplanes.

New to Boeing’s 2015 price list is the 737 MAX 200, the recently introduced higher-density 200-passenger version of the 737 MAX 8. In November 2014, Ryanair (RYR) ordered 100 of the type, which sells for $112.9 million at 2015 average list prices.

(TBC), the world's largest planemaker adjusts prices once a year to reflect an internal formula that takes into account increases in the costs of goods, services and labor, Boeing (TBC) spokesman, Doug Alder said in an interview. Prices rose +3.1% in 2014.

The catalog prices don't reflect the discounts that are customary in the industry.

Boeing (TBC) has 286 orders for its 777X series, which was introduced in late 2013 at the Dubai Airshow and won't begin commercial service until 2020.

Boeing’s manufacturing rival Airbus (EDS) released its 2015 average list prices in January, revealing an overall +3.3% hike in prices for Airbus’ commercial aircraft.

News Item A-2: Boeing (TBC) and the Japanese aviation industry stakeholders have charted a course to develop sustainable aviation bio-fuel for flights during the 2020 Olympic & Para-Olympic Games in Tokyo, when millions of people are expected to visit Japan. The Initiatives for Next Generation Aviation Fuels (INAF) (a consortium of 46 organizations including Boeing (TBC), All Nippon Airways (ANA), Japan Airlines (JAL)/(JSA), Nippon Cargo Airlines (NCA), Japan's government, and the University of Tokyo) laid out a five-year road map to develop bio-fuel by 2020 as a way to reduce aviation’s environmental footprint. Using sustainably produced bio-fuel reduces life cycle carbon dioxide emissions by -50% to -80% compared to conventional petroleum fuel, according to the USA Department of Energy.

News Item A-3: See photo - - "TBC-2015-07 - VIE 787-9 Near Washington DC.jpg"

Vietnam Airlines (VIE)’s first Boeing 787-9 soars near the Washington Monument on its way to Ronald Reagan Washington National Airport at an event that included H E Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam. At the event, the two companies also signed a memorandum of collaboration toward the goal of Vietnam Airlines (VIE)'s fleet replacement and expansion. Boeing (TBC) has offered (VIE) eight 787-10 Dreamliners and eight 777-8Xs, which (VIE) acknowledged. Boeing (TBC) and Vietnam Airlines (VIE) will work together and report to government authorities before coming to official cooperation agreements in the future.

News Item A-4: Boeing (TBC) donated the first 787-8 Dreamliner flight test airplane, (ZA001), to Centrair International Airport in Nagoya. (ZA001) is the last of three original flight test 787-8s Boeing (TBC) has contributed. Previously, Boeing (TBC) gave (ZA002) to the Pima Air & Space Museum in Tucson, Arizona, and (ZA003) to the Museum of Flight in Seattle.

News Item A-5: "Airbus (EDS) & Boeing (TBC) June 2015 Orders & Deliveries Round-up" by (ATW) Mark Nenesel, July 7, 2015.

Boeing (TBC) logged firm orders for a total of 160 commercial airplanes in June, following orders from Qatar Airways (QTA), (SMBC) Aviation Capital (SBC), AerCap Holdings (DEA), and at least five unidentified customers. Rival manufacturer Airbus (EDS) booked firm orders from seven customers for 134 commercial aircraft. As of June 30, Airbus (EDS) has logged 379 gross commercial aircraft orders year-to-date, compared to Boeing’s 322.

Boeing (TBC)’s largest order for the month came from Dutch lessor AerCap (DEA) on June 12. Subsequently announced at the Paris Air Show, AerCap (DEA)'s order for 100 737 MAX 8 airplanes is valued at approximately $10.7 billion at 2014 average list prices (note: Boeing increased its overall airplane prices +2.9% on July 1). Qatar Airways (QTA) also made a major commitment at the Paris Air Show, placing a firm order for 10 777-8X passenger airplanes and four 777F cargo airplanes, valued at approximately $4.8 billion at 2014 average list prices. Irish lessor, (SMBC) Aviation Capital added +10 more 737 MAX 8s to the company’s current standing order of 80 airplanes of the same model, a transaction worth approximately $1.07 billion at 2014 average list prices. Earlier in the month, on June 3rd, an unidentified customer ordered 17 737-800s, valued at approximately $1.58 billion at 2014 average list prices. Boeing (TBC) closed out the month with a June 30 firm order from an unidentified customer for four 787-9 Dreamliners, valued at approximately $1.03 billion at 2014 average list prices.

Dubai-based lessor International Airfinance Corporation was Airbus (EDS)’s biggest customer for the month, ordering 30 A320ceos and 20 A330-300s at the Paris Air Show on June 15. The aircraft are intended for lease to Saudia (SVA), which will become the launch customer for Airbus (EDS)’ regional A330-300 model; the order is valued at approximately $7.98 billion at current average list prices. Additionally, USA-Irish lessor, (GE) Capital Aviation Services (GECAS) (GEF) ordered 60 A320-family aircraft during the Paris Air Show (45 A320neo models and 15 A321neos) at a total value of approximately $6.65 billion at current average list prices. A pair of Asia-Pacific carriers also made significant commitments with Airbus (EDS) during the month: Indonesia-based Lion Air (MLI) ordered nine A320neos (valued at approximately $956 million) and VietJet Air (VJE) ordered six A321ceos (valued at approximately $661 million).

Boeing (TBC) posted an additional order in June from an unidentified private/(VIP) customer for a 787-8 Dreamliner; Airbus (EDS) logged an additional order for an A330-200 from its Airbus (EDS) Defense & Space business unit for use as a Multi Role Tanker Transport (MRTT) for the French military.

Boeing (TBC) delivered 69 commercial airplanes to 39 customers in June, contrasted with Airbus (EDS)’ delivery of 61 commercial aircraft to 38 customers. As of June 30, Boeing (TBC) has delivered 369 commercial airplanes year-to-date; Airbus (EDS) has delivered 301 commercial aircraft year-to-date.

Boeing (TBC)’s June deliveries included five airplanes each to China Eastern Airlines (CEA) (three 737-800s, a 737-700 and a 777-300ER) and Ryanair (RYR) (five 737-800s); four airplanes to Air China (BEJ) (three 737-800s and a 747-8); and three to Lion Air (MLI) (two 737-800s and a 737-900ER). Two 787-9 Dreamliners were delivered to Etihad Airways (EHD); Japan Airlines (JAL)/(JSA) also took delivery of two Dreamliners (a 787-8 and a 787-9). 787-8 Dreamliners (one to each customer) were delivered to Air India (AIN)/(IND) and Xiamen Airlines (XIA), while additional 787-9 Dreamliners (one to each customer) were delivered to AerCap (DEA), All Nippon Airways (ANA), Scoot (SCT), and Virgin Atlantic (VAA).

Airbus (EDS)’ June deliveries included five aircraft to China Eastern Airlines (CEA) (two A321ceos, an A330-200, an A330-300, and an A319ceo). Three aircraft each were delivered to Aegean Airlines (CRM) (all A320ceos); American Airlines (AAL) (two A321ceos and an A319ceo); China Southern Airlines (GUN) (two A320ceos and an A330-300); Qatar Airways (QTA) (an A380, an A350-900 XWB, and an A320ceo intended for (QTA)’s new domestic carrier subsidiary Al Maha Airways); Turkish Airlines (THY) (two A330-300s and an A321ceo); US Airways (AMW)/(USA) (three A321ceos); and Wizz Air (WZZ) (three A320ceos). Additionally, an A350-900 XWB was delivered to lessor AerCap (DEA) (intended for Vietnam Airlines (VIE)) and an A380 (one to each customer) was delivered to Asiana Airlines (AAR) and Emirates (EAD).

News Item A-6: Boeing (TBC) has confirmed an order from China Eastern Airlines (CEA) for 50 Next-Generation 737-800NGs as stated in its public disclosure to the Hong Kong Stock Exchange. The order has been valued at $4.6 billion at current list prices.

(CEA) will take delivery of the 737-800NGs between 2017 and 2019. According to Boeing (TBC), the airplanes will be operated by China United Airlines (CUL), a wholly owned subsidiary of China Eastern Airlines (CEA), and other branches and subsidiaries of (CEA).

News Item A-7: VietJet Air (VJE) announced its intention to collaborate and expand (VJE)’s future fleet with Boeing airplanes. The Memo of Collaboration (MoC) signing event was hosted by the USA Chamber of Commerce and witnessed by H E Nguyen Phu Trong, General Secretary of the Vietnam Communist Party, along with other Vietnamese and USA government officials.

News Item A-8: China Airlines (CHI) is seeing improvement in yields on its North American routes since introducing the Boeing 777-300ER, replacing the four-engine 747-400, Chairman & (CEO) Huang-Hsiang Sun said.

News Item A-9: Xiamen Airlines (XIA) has committed to purchase another 4 Boeing 787 Dreamliners from Boeing (TBC), to further expand its long-range fleet, the "Xiamen Daily" reported on July 15.

(XIA) will launch its first ever European service to Amsterdam on July 26, using 236-seat 787-8 Dreamliners. Meanwhile, it is scheduled to deploy the 787 Dreamliners on a new Xiamen - Tokyo route starting August 6 and is planning to fly nonstop flights to Australia. (XIA) is expected to operate 50 regional and international routes by the end of this year, boosting its global network.

With the entry of the global long-haul market, (XIA) wants more long-range jets. Since its first Drealiner joined in August 2013, (XIA) has taken delivery of five of six 787s it has on order.

(XIA) has decided to purchase another four 787 Dreamliners, with talks to acquire +10 more 787s, according to a source familiar with the matter.

Besides, (XIA) has signed a wide-ranging code share agreement with its Skyteam (STM) Alliance partner, (KLM), allowing it to expand its coverage in Europe.

(XIA) will code share on this route, and passengers from Xiamen will have the opportunity to connect to a range of European destinations with (KLM), via Amsterdam. Destinations covered by the agreement include London, Manchester, Rome, Venice, Florence, Madrid, Barcelona, Copenhagen, Zurich, Brussels, Stockholm, and Vienna.

In return, (KLM) will code share on a series of (XIA)-operated flights in China, connecting Xiamen with Beijing, Guangzhou, Hangzhou, Nanjing, Wuhan, Qingdao, Chongqing, Kunming, Changsha, Shenzhen, Zhengzhou, and Ningbo.

News Item A-10: Boeing has passed the critical design review (CDR) for the 787-10 program. So far, the 787-10 development has stayed on schedule for delivery and entry into service in 2018. The 787-10 backlog is 140 airplanes.

News Item A-11: "Boeing (TBC)'s Seattle Seahawks-Themed 747 Is Back for an Encore!" By Ben Mutzabaugh, "USA TODAY" July 19, 2015.

For the second time in as many years, Boeing (TBC) has painted one of its 747-8F Freighters in the colors of the National Football League's Seattle Seahawks. Boeing revealed photos of its latest Seahawks 747 on Sunday July 19.

Boeing (TBC)'s first Seahawks 747 rolled out in January 2014 to help celebrate the team's National Football Conference Championship and appearance in Super Bowl XLVIII. The Seahawks logo has since been removed from that 747. The 2015 livery appears on a different 747.

Boeing (TBC), of course, was long headquartered in Seattle and retains deep ties to that area. (TBC) moved its corporate headquarters to Chicago in 2001, but still remains one of the biggest employers in "greater Seattle." Many of the (TBC) employees work at Boeing's Seattle-area assembly lines for its 737, 747, 767, 777 and 787 Dreamliner models.

As for the Seahawks, Boeing (TBC) is a sponsor of the team and has partnered with the team on local programs for more than a decade.

The 2015 version of the Seahawks 747 is similar to the 2014 version, though Boeing says there have been a few updates to the livery.

The paint scheme features the Seahawks logo as well as a "12" on the tail (a tip of the hat recognition of the imposing home fans that turn the Seahawks' stadium into a "twelfth man" on game days).

Boeing says the 2015 747-8 will take part in "Seahawk-related activities" during the year. And even though the National Football League (NFL) regular season doesn't start until September, Boeing (TBC) says it unveiled the Seahawks livery early so it can take part in a flyover during the Boeing Seafair Air Show over Lake Washington on August 2.

News Item A-12: "Boeing (TBC): World’s Airlines Need to Hire 28,000 New Pilots (FC) Annually" by (ATW) Aaron Karp, July 20, 2015.

Boeing (TBC) has increased the number of pilots (FC) and maintenance technicians (MT) it forecasts will be needed by the world’s commercial airlines, reflecting a bulging order book for new airplanes.

In its latest "Pilot (FC) & Maintenance Technician (MT) Outlook," Boeing (TBC) projects the need for 558,000 new commercial airline pilots (FC) globally over the next 20 years, up +4.7% from its forecast last year. It also boosted its 20-year forecast for maintenance technicians (MT) by +4.3% year-over-year, to 609,000. Boeing (TBC) noted that this means the world wide airline industry will need to hire “about 28,000 new pilots (FC) and more than >30,000 new maintenance technicians (MT) every year,” for the next 20 years.

The Asia-Pacific region will, by far, have the highest demand for new commercial pilots (FC) and maintenance technicians (MT) from 2015 - 2034, according to (TBC). Asia-Pacific airlines will need to hire 226,000 pilots (FC) and 238,000 maintenance technicians (MT) over the next two decades, (TBC) said. North America’s airlines and Europe’s airlines will both need to hire 95,000 pilots (FC) over the forecast period, with Europe requiring 101,000 maintenance technicians (MT) and North America needing 113,000 maintenance technicians (MT).

“The challenge of meeting the global demand for airline professionals will not be solved by one company alone. Airplane manufacturers, airlines, training equipment manufacturers, training delivery organizations, regulatory agencies, and educational institutions are all stepping up to meet the increasing need to train and certify pilots (FC) and maintenance technicians (MT),” Boeing Flight Services VP, Sherry Carbary said.

News Item A-13: "Boeing (TBC), (EVA) Air Finalize Order for 5 777F Freighters" by WCARN.com July 21, 2015.

Boeing (TBC) and (EVA) Air have finalized an order for five 777F Freighters. The order, valued at more than >US$1.5 billion at list prices, will represent the first 777F Freighters to join (EVA) Air's fleet, and the first to be delivered to a Taiwan-based airline.

Boeing (TBC) first announced (EVA) Air's intent to order the five 777F Freighters at the 2015 Paris Air Show last month.

"Airfreight is an important link in global trade," (EVA) Air, Chairman, K W Chang said. "We are investing in the most advanced airplane and committing ourselves to continuing to ensure efficient, reliable service. Quality service and flight safety are our top priorities at (EVA), and we apply the same high standards to cargo services. We are determined to make (EVA) the world's best airline for both passenger and cargo services."

The Taiwan-based airline plans to use the new freighters to bolster its fleet on trans-Pacific and Asian routes in an effort to meet growing demand in the air cargo market.

"As (EVA) Air continues to modernize their world-class freighter fleet, we are honored that they have selected the 777F Freighter to maintain their position as one of the largest cargo airlines," said Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner. "This order further validates the strength of the long-term partnership between (EVA) Air and Boeing (TBC) over the last several decades."

(EVA) Air currently operates more than >35 Boeing (TBC) airplanes, including 20 777-300ERs. With 13 additional 777-300ERs on order (both direct purchased and leased) (EVA) will become one of the largest 777 operators in the world. (EVA) plans to grow its operational twin-aisle fleet to more than >60 airplanes by the end of 2025.

"We are pleased to be the first airline in Taiwan to introduce Boeing 777F freighters," (EVA) President, Austin Cheng said in his remarks. "(EVA) participated in development of the Boeing 777-300ER and became a launch customer. We now fly 21 Boeing 777-300ERs and have +13 more on order. We have made the right choice as our experience with this airplane's advanced technology, and excellent performance indicates what we can expect from the 777F freighters. These freighters will be the backbone of our air cargo service for the next decade."

The 777F Freighter is the world's largest and longest range twin-engine freighter, capable of flying 4,900 nautical miles/9,070 kms with a full payload at general cargo market densities. The airplane's range capability translates into significant savings for cargo operators: fewer stops and associated landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter cargo delivery times.

According to the Boeing World Air Cargo Forecast, global air freight traffic is forecast to grow at an annual rate of +4.7%, doubling the cargo traffic over the next 20 years.

Boeing (TBC) is the undisputed air cargo market leader, providing over 90% of the total worldwide dedicated freighter capacity.

News Item A-14: "FedEx (FED) Orders 50 767-300F Freighters", by Dominic Gates, Seattle Times Aerospace Reporter, July 22, 2015.

FedEx (FED) announced July 21 it has agreed to purchase 50 Boeing 767-300F freighter airplanes, with additional options to purchase +50 more of the jets.

The firm order is worth about $4.2 billion after standard discounts.

The first 50 airplanes will be delivered between 2017 and 2023. (FED) now has a total of 106 of the 767 freighter jets on firm order.

The 767 is produced at a rate of 1.5 jets per month and Boeing plans to increase that rate to 2 per month next year.

The 767S will replace (FED)'s aging MD-11 tri-jets.

"Acquiring additional 767F airplanes . . . will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network," said David Bronczek, (CEO) of FedEx Express (FED), the freight carrier's airline unit.

News Item A-15: Air Canada (ACN) took delivery of its first Boeing 787-9 (C-FNOE), a larger version of the 787-8 Dreamliner. The 787-9 begins revenue flights later in August linking Toronto with Vancouver. It will then make its international debut on services from Toronto to Milan and Munich.

First designated routes for the 787-9 are nonstop services from Toronto to Delhi beginning November 1 and to Dubai beginning November 3. (ACN) took delivery of its first 787 Dreamliner in May 2014 and will receive a total of 29 new 787-9 Dreamliner airplanes by 2019, in addition to eight 787-8 airplanes already in operation.

The 787-9s are equipped with 298 seats in a three-class layout, an increase of +20% over the 251-seat 787-8s. The remaining 787-9s will be delivered by 2019.

News Item A-16: Boeing (TBC) appointed Mark Jenkins, VP & General Manager 787 Program, replacing Larry Loftis, who is retiring.

News Item A-17: Boeing (TBC) remains confident that it will not have to cut its 777 production rate as part of the transition to the 777X and maintains that overall demand for its commercial airplane line continues to be rock-solid, dismissing unevenness that saw first-half orders lag behind deliveries.

News Item A-18: "Boeing Strikes Deal with Japanese Partners for 777X Production" by Juliet Van Wagenen, Avionics Today, July 24, 2015.

Boeing and Japanese partners have signed a formal agreement for significant work on Boeing’s new 777X airplane. The agreement finalizes last year’s announcement by Boeing (TBC), Japan Aircraft Industries (JAI), and Japan Aircraft Development Corporation (JADC) of a Memorandum of Agreement (MOA) to provide approximately 21% of the major airplane structure components for the 777X. The contract includes fuselage sections; center wing sections; pressure bulkhead; main landing gear wells; passenger, cargo and main landing gear doors; wing components and wing-body fairings.

(JAI) consists of Mitsubishi Heavy Industries (MHI), Kawasaki Heavy Industries (KHI), Fuji Heavy Industries (FHI), ShinMaywa Industries (SMIC), and (NIPPI) Corporation. (JADC) is a non-profit foundation established to enhance the competitiveness of the Japanese aircraft industry. Boeing (TBC) has previously partnered with Japanese aerospace companies to develop and manufacture multiple airframes, including the 787 Dreamliner.

“The signing of this contract is an important milestone for (JADC) and (JAI),” said Shigeru Murayama, (JADC) Chairman & President of (KHI). “The (JAI) companies are investing in new facilities and introducing robotic and other automated systems to ensure they deliver high-quality products on time every time. This is a measure of their commitment to the success of the 777X.”

Production is set to begin on the 777X program in 2017, with first delivery targeted for 2020.

News Item A-19: "Boeing to Continue Work on Developing XS-1 Reusable Hypersonic Unmanned Spacecraft" By John Keller, Military & Aerospace Editor, July 28, 2015.

USA military researchers are pushing forward with a project to design a reusable hypersonic unmanned spacecraft able to carry and deploy 3,000-to-5,000-pound satellites to low-Earth orbit (LEO) for less than $5 million per launch - - see attached "TBC-2015-07 - XS-1 Hypersonic Spacecraft."

Officials of the USA Defense Advanced Research Projects Agency (DARPA) in Arlington, Virginia, announced a $6.6 million contract to the Boeing Company Defense, Space & Security segment in Huntington Beach, California, for phase IB work on the hypersonic Experimental Spaceplane (XS-1) program.

The (DARPA) XS-1 program seeks to design a reusable spacecraft to support not only next-generation launch for government and commercial satellites, but also as a global-reach hypersonic and space-access airplane.

(DARPA) announced the XS-1 program in 2013, and in 2014 chose three teams to compete for an eventual XS-1 flight contract. The program still is in its first phase.

The three XS-1 company teams chosen last year are Northrop Grumman Corporation (GRU) in Falls Church, Virginia, Scaled Composites in Mojave, California, and Virgin Galactic (VGC) in Pasadena, California; Masten Space Systems Inc in Mojave, California, and (XCOR) Aerospace in Mojave, California; and Boeing plus Blue Origin in Kent, Washington.

The reusable hypersonic airplane is expected to return to Earth, land, and be prepared for the next flight. Key XS-1 technical goals include flying 10 times in 10 days, achieving speeds faster than Mach 10 (7,600 miles per hour) at least once, and launching a payload to orbit. The program also seeks to reduce the cost of access to space for small payloads by at least a factor of 10, to less than $5 million per flight.

XS-1 would complement the (DARPA) Airborne Launch Assist Space Access (ALASA) program, which already is researching satellite launch systems that aim to be fast, more convenient, and affordable. (ALASA) seeks to propel 100-pound satellites into orbit for less than <$1 million per launch using low-cost, expendable upper stages launched from conventional airplanes.

On this contract modification, Boeing (TBC) will do the work in Huntington Beach, California; Titusville, Florida (5%); St Louis; and Ridley Park, Pennsylvania, and should be finished by August 2016.

For more information contact Boeing Defense, Space & Security online at www.boeing.com/space, or (DARPA) at www.darpa.mil.

August 2015: News Item A-1: "Alaska Airlines (ASA) (RNP) Procedures Produce Better Fuel Economics in Seattle" by Avionics Today, Woodrow Bellamy III, August 11, 2015.

Research from a June 2015 Boeing (TBC) report on the Seattle "Greener Skies" initiative, shows that Alaska Airlines (ASA)'s use of NextGen flight procedures at Seattle-Tacoma International Airport (Sea-Tac) can yield massive fuel and emissions savings per landing. The seven-year "Greener Skies Over Seattle" project was launched in 2010 as a collaborative project under the (FAA)’s "NextGen airspace modernization" initiative to add 27 new Performance Based Navigation (PBN) procedures and expand the use of Optimized Profile Descents (OPD).

The report from Boeing (TBC) compared the airplane descent arrival of a typical (ASA) 737-800W using the Required Navigation Performance (RNP) procedure featured for Seattle-Tacoma's runway 16R to the standard earliest approach vector turn, the standard typical approach vector turn, and the standard bad weather approach turn procedure for runway 16R. Results from the comparison showed that the use of the (RNP) procedure reduces -87 gallons of fuel and -1,858 pounds of carbon emissions compared to the standard approach procedure.

(RNP) provides computer-plotted landing paths by using a combination of on board navigation technology and the Global Positioning System (GPS) satellite network. It improves safety and reliability in all weather, and reduces reliance on ground-based navigation aids.

Using the (RNP) approach also reduces the overall flight time by nearly -9 minutes, according to the report. An estimated 80% of (ASA)'s fleet of 137 airplanes are equipped with the avionics required to fly the "Greener Skies" procedures. Airplanes using large airports such as Sea-Tac are traditionally required to maintain vertical separation of 1,000 feet or three miles of lateral separation until they’re lined up with the runway. As of April of this year, most of (ASA)’s fleet has been able to land at the airport with just 1.5 miles of lateral separation, because controllers know that they can rely on the airplanes to stay precisely within their assigned NextGen approach paths.

Captain Oscar Zela, Chief Technical Pilot at Alaska Airlines (ASA), told "Avionics Magazine" that the use of (RNP) at Seattle and other airports throughout the National Airspace System (NAS) yields “incredible” fuel savings.

"The profile has been built efficiently, where (with very few interruptions) the pilot (FC) can start the descent at 35,000 feet and end up at around 6,000 feet without too many interim level-offs," said Zela. "Whereas, if you were in the conventional profile, the pilot (FC) would descend to about 12,000 to 14,000 feet, and then the controller would give you instructions to constantly descend and level off. At Seattle, it would be 10,000, 7,000, 5,000 and 3,200 feet, and then you get turned in and you just leveled off five times. When you watch the fuel flow meter for an idle plane versus an airplane flying level at 5,000 feet, it's a tremendous difference."

Zela said (ASA) originally started equipping its airplanes with (RNP) technology and using the procedures to help with landing at remote and geographically challenging airports within Alaska, prior to the (FAA)'s official launch of the NextGen program. The (FAA) and European Aviation Safety Agency (EASA) on board avionics requirements for (RNP) operations incorporate multi-mode receivers included in the basic airplane configuration.

To fly (RNP) (AR) 0.30 nm Final and 1.0 nm missed approach, Boeing (TBC) recommends a dual Flight Management Computer (FMC) configuration and speed, plus altitude intervention activation as a retrofit for its 737-300/-400/-500 models, as well as for its Next-Generation 737s, 757s, 767s, 747-400s, 777s and Boeing McDonnell (MD) family airplanes.

Within the next two to three years, (ASA)'s entire fleet should be equipped to fly (RNP) procedures at Sea-Tac and throughout the (NAS). (ASA) estimates that the use of (RNP) in Seattle is producing savings of -$200 per flight. "We’re going to phase out our Boeing 737-400s and go with all Next Generation (NG) and MAX configuration airplanes shortly," said Zela. "We currently have some regional jets, older Boeing 757s and (MD)s that aren't equipped, but those will be phased out soon enough. Every pilot (FC) at both (ASA) and Horizon are trained to fly them, as we want to take advantage of those fuel savings on every flight that we possibly can."

News Item A-2: See video on 747-8F Seahawks airplane:
http://www.king5.com/story/entertainment/television/programs/evening/2015/08/03/seahawks-boeing-frieghter-plane/31067377/

News Item A-3: El Al Israel Airlines (ELA) has signed an agreement with Boeing (TBC) to purchase and lease up to 15 787 Dreamliners, with purchase rights for 13 additional airplanes. The airplanes are part of (ELA)'s fleet renewal plan.

News Item A-4: "Airbus (EDS) & Boeing (TBC) July 2015 Orders & Deliveries Roundup" by (ATW) Mark Nensel August 7, 2015.

Boeing (TBC) has booked 423 commercial airplane orders as of July 31, while Airbus (EDS) has booked 405 orders.

(TBC) booked firm orders in July from three customers for a total of 101 commercial airplanes, valued at $15.56 billion at list prices. By contrast, (EDS) logged firm orders in July from two customers for a total of 26 commercial aircraft, valued at $3.07 billion at list prices.

(TBC)’s largest order for the month was from FedEx (FED), which on July 21 ordered 46 767-300F freighters, at a total current list price value of $9.17 billion. An unidentified customer ordered 50 737-800s on July 9, valued at $4.8 billion. The customer, while still officially labeled as unidentified on (TBC)’s month-end orders and deliveries tally, is likely to be China Eastern Airlines (CEA), which announced its decision to purchase 50 Next-Generation 737-800s in a public disclosure to the Hong Kong Stock Exchange on the same day. Boeing recorded an additional firm order in July from Taiwan’s (EVA) Air, for five 777F freighters at a total value of $1.59 billion.

On July 31, (EDS) gained its biggest order of the month as an undisclosed customer ordered 25 A321neos, valued at $2.84 billion at current list prices. Additionally, on July 10, the French corporation Group Dubreuil purchased an A330-300 in a 242-metric-ton maximum take-off weight configuration for use on the company’s new low-cost long-haul airline, to be called "Sunline" and is expected to begin flight operations in June 2016, on delivery of the aircraft. The order has a list price value of $254 million.

Boeing (TBC) delivered 56 commercial airplanes to 34 customers in July, contrasted with Airbus (EDS)’ delivery of 48 commercial aircraft to 30 customers. As of July 31, (TBC) has delivered 416 commercial airplanes year-to-date; (EDS) has made 345 commercial aircraft deliveries year-to-date.

Boeing (TBC)’s July deliveries included four airplanes to China Eastern Airlines (three 737-800s a 777-300ER) and three airplanes to Air China (BEJ) (two 737-800s and a 777F freighter to Air China Cargo (CAO)), Air Lease Corporation (ALE) (three 737-800s), FedEx (FED) (two 767-300Fs and a 777F), Lion Air (MLI) (all 737-800s), United Airlines (UAL) (two 737-900ERs and 787-9 Dreamliner) and Xiamen Airlines (XIA) (all 737-800s). Additional July 787 Dreamliner deliveries included: Air Canada (ACN) (a 787-9), Air New Zealand (ANZ) (a 787-9), All Nippon Airways (ANA) (a 787-8 and a 787-9), American Airlines (AAL) (two 787-8s), Etihad Airways (EHD) (a 787-9), Qantas (QAN) (two 787-8s), Scoot (SCT) (a 787-8) and Vietnam Airlines (VIE) (a 787-9).

Airbus (EDS)’ July deliveries included four A321ceos each to both American Airlines (AAL) and the (LATAM) Airlines Group plus three aircraft each to Turkish Airlines (THY) (two A321ceos and an A330-300), and Vueling (VUZ) (all A321ceos). Emirates (EAD) took delivery of two A380s during the month.

News Item A-5: Boeing (TBC) and All Nippon Airways (ANA) announced that they will partner to provide Boeing 787 "GoldCare" customers with an airline’s perspective on the entry into service (EIS) process.

News Item A-6: See "TBC-2015-08 - ETH-787-Fire Report-A/B.jpg" which covers the British Accidents Investigation Branch (AAIB) findings regarding the July 2013 fire aboard an Ethiopian Airlines (ETH) 787 Dreamliner parked at London Heathrow (LHR) Airport.

News Item A-7: See attached "TBC-2015-08 - 1st 727 Last Flight.jpg."
It shows an August 19, 2015 sketch by Seattle Times news artist, Gabriel Campanario of the "First 727 readied for one last flight on route to the air museum's collection."

The first 727-100 has sat idle at the Museum of Flight Restoration Center in Everett for more than >2 decades. But this fall, the old 727, the first one that rolled off the assembly line in Renton in 1962, is slated to fly again.

The short but historic journey from Paine Field, Everett to Boeing Field, Seattle, will bring the 727 to its final resting spot at the museum's air park.

To make the flight possible, museum volunteers have had to restore hundreds of deteriorated mechanisms and electrical systems. Volunteer crew chief Terry "TC" Howard said the process is not unlike building Frankenstein's monster, referring to many parts that have come from "organ-donor" airplanes, most of them donated by FedEx (FED) from discarded 727 cargo airplanes. The last of those parts are the three engines that arrived just recently.

Although the volunteers are used to restoring airplanes, "TC" said the level of excitement about the 727'S final flight is a big deal. The first models of the 737 and 747 are already at the museum's air park adjacent to the museum's main entrance facing Boeing Field, and this one will complete the family of historic jetliners.

News Item A-8: Boeing (TBC) remains on track to meet production targets it has set for its 737 MAX jetliner, a company spokesman said on August 21, following a report on industry concerns that slow output at supplier (GKN) could cause delays.

(TBC) expects to roll out the first 737 MAX before the end of 2015, fly it in early 2016, and deliver it to customers on time, beginning in the third quarter of 2017.

On August 20, "The Wall Street Journal" reported concern among industry executives that the process could be slowed because of problems at (GKN) producing the jetliner's engine thrust reversers.

Boeing (TBC) is attempting to hit record production speeds for the popular 737 jetliner program, often called a "cash cow." It aims to build 52 per month by 2018 versus 42 currently.

(TBC) shares were down -2.8% on the New York Stock Exchange.

News Item A-9: Norwegian (NWG) will lease two additional Boeing 787-9s, due for delivery in summer 2017, which it will use to extend its long-haul network.

“In order to make our long-haul operation even more competitive, we are dependent on more brand new, cost-efficient airplanes. Our long-haul routes have been very popular and I´m very satisfied to have secured more 787 Dreamliners. This will enable us to launch even more routes to existing destinations all over the world,” (NWG) (CEO), Bjørn Kjos said.

The pair of 787-9s will be new-build and configured with 35PY seats in premium and 309Y economy-class seats. (NWG) will lease the airplanes through its asset company, Arctic Aviation Assets (AAA), although the name of the supplying lessor was not disclosed in the August 27 announcement.

“We can confirm that (AAA), an asset company fully owned by Norwegian (NWG), is the lessee. The lessor does not want to be disclosed at this time.”

Norwegian (NWG) currently has eight Boeing 787-8s in service, plus commitments for 11 787-9s. It will take delivery of four 787-9s in 2016, five in 2017, and two in 2018.

With this latest agreement, Norwegian (NWG)’s long-haul fleet will grow to 19 787s by 2018.

News Item A-10: "Boeing (TBC) Completes 777-9X Firm Configuration" by (ATW) Aaron Karp, August 27, 2015.

The 777-9X will seat approximately 400 passengers and have a range of more than >7,500 nautical miles. It is slated to enter service in 2020, followed by the smaller 777-8X in 2022. “The firm configuration milestone marks the completion of configuration trade studies required to finalize the airplane’s capability and basic design,” Boeing (TBC) said. “Wind tunnel test results, aerodynamic performance and structural loads are also evaluated to ensure the airplane meets requirements. This allows the 777X team to begin detailed design of parts, assemblies and other systems for the airplane. As detailed designs are completed and released, production can begin.”

777X Program VP & General Manager, Bob Feldmann added, “The program is right where we want it to be. We have an airplane and production system that are on track and on schedule, and we remain laser focused on meeting our commitments to our customers.”

Orders and commitments for the 777X currently total 320 airplanes from six customers.

News Item A-11: Boeing (TBC) said it has recorded eight new orders for 737 jets (six from Singapore's SilkAir (SLK) and two from unidentified customer(s). Overall, however, its net 737 order book has been reduced by eight.

USA logistics giant, FedEx Express (FED) was also identified as ordering one 767-300F.

News Item A-12: "Boeing (TBC) Receives $1.49 Billion Contract for 13 P-8A Poseidon Airplanes" by (ATW) Rob Vogelaar, August 28, 2015.

US Navy orders 2nd full-rate production lot, including first airplanes for Australia.

Boeing (TBC) will provide the first P-8A Poseidon maritime surveillance airplanes for Australia and additional P-8As for the US Navy, following a $1.49 billion contract award from the Navy for 13 airplanes.

The order includes nine airplanes for the US Navy and four Poseidon airplanes for the Royal Australian Air Force (RAAF) (RAA), a long-time partner to the US Navy on P-8A development.

“By working together since the early stages of P-8A development, the USA and Australia have created one airplane configuration that serves the needs of both countries,” said Captain Scott Dillon, US Navy P-8 Program Manager. “The USA and Australian P-8As will be able to operate with each other effectively and affordably for decades to come.”

This latest award puts Boeing (TBC) on contract to build the Navy’s second lot of full-rate production airplanes, bringing the US Navy’s fleet total to 62 P-8As. (TBC) has delivered 28 Poseidons to date.

“Delivering premier airplanes on schedule and on cost has become a hallmark of the P-8 program,” said James Dodd, Boeing VP & General Manager of Mobility, Surveillance & Engagement. “We look forward to building on (TBC)’s long-standing relationship with Australia by providing the quality, value and capability of the P-8A.”

Based on Boeing’s Next-Generation 737-800 commercial airplane, the P-8A offers the worlds’ most advanced anti-submarine, anti-surface warfare and intelligence, surveillance and reconnaissance capabilities. The Navy has deployed the first two P-8A patrol squadrons since operations started in 2013.

Australia’s participation in the P-8 program began in 2009 when the government signed the first in a series of memorandums of understanding to work with the US Navy on system design and development. The US Navy and the (RAAF) also established a joint program office that operates at Naval Air Station Patuxent River, Maryland.

Production of the first Australian P-8A will begin later this year, with delivery to the (RAAF) scheduled for 2016. Boeing (TBC) will also provide the (RAAF) with a complete training system for the P-8A, using simulators to train pilots (FC) and mission crews to operate the airplane, its sensors, communications and weapons systems without relying on costly live flights.

September 2015: News Item A-1: "Airbus (EDS) and Boeing (TBC) August 2015 Orders & Deliveries Roundup" by (ATW) Mark Nense, September 9, 2015.

Airbus (EDS)’ year-to-date order book for commercial aircraft soared to a gross total of 748 as of August 31; Boeing (TBC) has booked orders for 462. (TBC), however, retains the lead in the total value of its commercial airplane gross orders year-to-date, with sales of approximately $116.39 billion, compared to (EDS)’ year-to-date total of $94.86 billion.

Indian low-cost-carrier IndiGo (IGO)’s August 14 order for 250 A320neos, valued at $26.55 billion, is by far the largest single-customer commercial aircraft order either Boeing (TBC) or Airbus (EDS) has seen thus far in 2015.

(EDS) booked firm orders in August from four identified customers and five undisclosed customers for a total of 343 commercial aircraft, valued at $41.51 billion. (TBC) secured firm orders in August from four customers (one unidentified) for a total of 39 commercial airplanes, valued at $4.38 billion.

(EDS)’ other major orders from the month came from an undisclosed customer, which on August 14 ordered 32 A320neos valued at $3.4 billion. A separate order from an undisclosed customer was logged on the same day for 18 A330-300s, valued at $4.57 billion. On August 6, both British Airways (BAB) and Vueling (VUZ) placed orders for ten A320neos (20 total), valued at $2.12 billion. On the same day, Iberia (IBE) firmed an order for 11 aircraft (eight A350-900 XWBs and three A330-200s) valued at $3.13 billion.

Boeing (TBC)’s standout transaction for the month was the August 28 confirmation of a $3.3 billion order from China’s Ruili Airlines (RUI) for 30 737 MAX 8s, originally announced at the Paris Air Show in June. Additionally, Singapore’s SilkAir (SLK) ordered six 737 MAX airplanes on August 13, valued at approximately $660 million.

(TBC) delivered 72 commercial airplanes to 41 customers in August, compared to (EDS)’ delivery of 48 commercial aircraft to 35 customers. As of August 31, (TBC) has delivered 488 commercial airplanes year-to-date; (EDS) has made 393 commercial aircraft deliveries year-to-date.

(TBC)’s August deliveries included four airplanes to China Eastern Airlines (CEA) (two 737-800s, one 777-300ER and a 737-700) and three airplanes each to Dutch lessor AerCap (DEA) (a 787-9, a 787-8 and a 737-800), Air China (BEJ) (two 737-800s and a 777F to Air China Cargo (CAO)), American Airlines (AAL) (two 787-8s and a 737-800), Lion Air (MLI) (all 737-800s), United Airlines (UAL) (a 787-9 and two 737-900ERs) and Xiamen Airlines (XIA) (all 737-800s). Additional 787 Dreamliner deliveries were made to (CIT) Leasing Corporation (TCI) (a 787-8), Scoot (SCT) (a 787-8), Air Canada (ACN) (a 787-9), Air New Zealand (ANZ) (a 787-9), All Nippon Airways (ANA) (a 787-9), (LATAM) (LAN)/(TPR) (a 787-9) and Vietnam Airlines (VIE) (two 787-9s).

(EDS)’ August deliveries included three A321ceos to Turkish Airlines (THY) and two aircraft each to American Airlines (AAL) (both A321ceos), Chinese lessor, (CALC) (A320ceos bound for Air India (AIN)/(IND) and Shenzhen Airlines (SHZ)), China Southern Airlines (GUN) (both A320ceos), Etihad (EHD) (an A380 and an A321ceo), Hainan Airlines (HNA) (both A330-300s), Canadian lessor (ICBC) (an A320ceo bound for Tigerair Taiwan (TTW) and an A321ceo bound for Transaero (TRX)) and (LATAM) Airlines (LAN)/(TPR) Group (both A321ceos). Emirates (EAD) also took delivery of an A380 during the month.

News Item A-2: UK leisure airline, Jet2 (JT2) has finalized an order for 27 Boeing 737-800s, valued at $2.6 billion at list prices.

Jet2 (JT2) already operates 60 Boeing (TBC) airplanes, but this is the first time it has ordered directly from (TBC). The airplanes will be deployed on its charter and scheduled network, which includes European cities, as well as destinations in the Canary Islands and the Mediterranean.

News Item A-3: "World’s First All-Electric Propulsion Satellite Begins Operations", by aviationnews.eu September 10, 2015.

Boeing (TBC)-built 702SP satellite transitions to customer (ABS) ahead of schedule at El Segundo, California, September 10, 2015. The world’s first all-electric propulsion satellite, built by Boeing (TBC) for Bermuda-based (ABS), is now operational after an on-orbit handover on August 31. The ABS-3A, a 702SP (small platform) satellite, expands (ABS)’ communications services in the Americas.

News Item A-4: Nippon Cargo Airlines (NCA) scrapped orders for 4 747-8Fs worth $1.5 billion. The cancellations come as Boeing (TBC) prepares to cut output of the 747-8s to one airplane a month amid waning demand for four-engine airplanes and an air cargo market struggling to gain lift amid China's current economic turmoil.

News Item A-5: See - "TBC-2015-09 - CHINA 737 Center-A/B/C.jpg"
which describes how Boeing is close to reaching a deal with the Chinese Government to open a 737 jet completion and delivery center in China.

News Item A-6: Later in the month, with the three day visit by Chinese President Xi Jinping, Boeing (TBC) confirmed 300 airplanes orders/commitments from Chinese companies and said it will open a joint venture (JV) 737 “completion” facility in China.

The announcements were made as Chinese President, Xi Jinping toured 787, 777 and 747-8 final assembly lines in Everett, Washington.

The 300 orders/commitments are divided among Chinese leasing companies and Chinese airlines; specific customers and destinations for the airplanes were not available. Wide bodies comprise 50 of the orders/commitments while 250 are for 737s. The 300 airplanes are valued at $38 billion at list prices.

Boeing (TBC) also said that it has entered into an agreement with the Commercial Aircraft Corporation of China (COMAC) (CCC) to open a joint venture (JV) facility in China for “interiors completion, paint and delivery of Boeing 737 airplanes to Chinese customers.” The airframes will still be built in Washington state, before being flown to China for the completion work.

Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said, “Boeing (TBC) is expanding our longstanding relationship with Chinese industry to meet vital goals for our company: We are bringing the Boeing 737 closer to our Chinese customers, supporting rising 737 production rates and enhancing our access to China’s dynamic and fast-growing aviation market. The 737 will be a cornerstone of the Chinese fleet for years to come, and we look forward to delivering 737s to Chinese customers in China.” Ray Conner noted that “China is our largest international market, accounting for about 1 in 4 of our deliveries so far this year. Going forward, China will be the largest commercial aviation market in the world.”

News Item A-7: Oman Air (OMR) is to take 11 new airplanes (three Boeing 737-800s, seven 737-8 MAXs and one 787-9) as well as three used Boeing 737s on long-term lease from the Air Lease Corporation (ALE).

The airplanes will be used for fleet renewal and growth, with deliveries scheduled to run from 2015 until 2019. The used airplanes comprise one 737-700 (33103) and two Boeing 737-800s (33104 and 34242).

“Our expansion plan will see Oman Air (OMR)’s fleet expand to 57 airplanes by 2018 and to 70 airplanes by 2020. This agreement represents a significant step towards achieving our strategic aims,” Oman Air (OMR) (CFO), Japeen Shah said.

(OMR) currently operates 39 airplanes to over >48 destinations across the Middle East, Europe, Asia, and Africa.

Over recent months, (OMR) has added new routes to Manila, Jakarta, Goa, and Singapore. “Further new services will be announced closer to the time of their launch, and are expected to include, amongst others, destinations in Bangladesh and China,” Oman Air (OMR) said.

News Item A-8: Boeing Commercial Airplanes (BCA) plans to roll out the first completed 737 MAX by the end of the year. (BCA) has begun the final assembly of the first 737 MAX at the new production line in the Renton factory, including new advanced-technology split wingtips that Boeing (TBC) says will improve fuel efficiency by another +1.8%.

See "TBC-2015-09 - 737 MAX Final Assembly-A/B/C/D.jpg." The last photo (D) shows the new Advanced Technology (AT) winglets. The one on the left is the first production (AT) winglet for airplane 1 and the winglet on the right is a test article.

News Item A-9: See "TBC-767-2015-09 - 767 Work Increase-A/B.jpg" describing result of 767F FedEx order and Military Tanker production.

News Item A-10: Boeing has selected Rockwell Collins to provide a server security system for the new 777X wide body.

Rockwell Collins announced the selection at this month's APEX Expo in Portland, Oregon. Its Avionics Gateway secure server router enables the safe transfer of data between the flight deck, cabin crew and airline operations on the ground.

“Next-generation aircraft will offer incredible on-board networking capabilities and airplane makers like Boeing are investing in sophisticated, secure solutions to ensure the networks are protected from malicious threats,” Rockwell Collins VP & General Manager, Flight Controls & Information Systems, Greg Irmen said.

Rockwell Collins was previously selected to provide large-format cockpit flight displays and an integrated surveillance system with MultiScan weather radar for the 777X. Rockwell Collins’ head-up guidance system will also be an option for airlines (a first for 777 airplanes).

Also at (APEX), Rockwell Collins announced that its (PAVES) on-demand (IFE) system is being offered for the new, re-engined 737 MAX narrow body. Rockwell Collins said it expects to announce additional (STC)s for (PAVES) Wireless in the coming months.

See "TBC-2015-09 - 777X Contract-A/B.jpg" describing local contractor "Electroimpact" involvement with new giant wing.

News Item A-11: "Boeing, US Air Force KC-46A Tanker Completes Successful First Flight" by "aviation news.eu" Rob Vogelaar, September 27, 2015.

The flight paves the way to aerial refueling and Milestone "C" testing. See - - "tbc-2015-09 - 1st KC-46A Tanker Flight.jpg."

The Boeing (TBC) and US Air Force team successfully completed the first flight of a KC-46A tanker airplane, taking off from Paine Field at 1:24 pm (PST) and landing four hours later at Boeing Field in Seattle. This was the first flight of a KC-46A tanker-configured airplane, following ongoing flights of the program’s first test airplane, a 767-2C. During the flight, Boeing (TBC) test pilots (FC) performed operational checks on engines, flight controls and environmental systems, and took the tanker to a maximum altitude of 35,000 feet, prior to landing.

“This first tanker flight is a key milestone for the program and we’ll now begin free air stability tests and flight controls of the boom and wing aerial refueling pods (WARPs), before conducting aerial refueling tests, where the KC-46 will make contact with other military airplanes down the road,” said Colonel Christopher Coombs, US Air Force KC-46 System Program Manager. “Today’s flight reinforces that we are moving in the right direction and are on track to begin planned Milestone "C" testing later this year,” said Tim Peters, Boeing KC-46 Tanker VP & Program Manager. “This is an aerospace industry first and the culmination of a lot of hard work by the team, including Boeing (TBC), our suppliers, and the US Air Force.”

The Boeing (TBC) team now will conduct a post-flight inspection and calibrate instrumentation prior to the next series of flights, during which the tanker boom and (WARP)s systems will be deployed. Before the end of the year, the KC-46 will begin conducting aerial refueling flights with a number of US Air Force airplanes. Those flights, along with the mission systems demonstrations, and a recently completed ground cargo handling test, will support the planned Milestone "C" decision in 2016.

As part of a contract awarded in 2011 to design and develop the US Air Force’s next-generation tanker airplanes, Boeing is building four test airplanes (two are currently configured as 767-2Cs, and two KC-46A tankers). The KC-46s will fly as fully equipped tankers through the (FAA) and military certification process, while the 767-2Cs enter flight test, prior to receiving their upgrade to the KC-46A configuration and the addition of their aerial refueling systems.

The program’s first test airplane (EMD-1), a 767-2C, has completed more than >150 flight test hours to date, since making its first flight in December 2014. The KC-46A is a multirole tanker Boeing (TBC) is building for the US Air Force, that can refuel all allied and coalition military airplanes compatible with international aerial refueling procedures, and can carry passengers, cargo and patients. Overall, Boeing (TBC) plans to build 179 KC-46 airplanes for the US Air Force.

News Item A-12: "Cathay Receives 70th Boeing 777" - see photo "TBC-2015-09 - Cathay 70th 777.jpg" in (ATW) Linda Blachly Photo Gallery, September 3, 2015.

Boeing (TBC) delivered Cathay Pacific Airways (CAT)’s 70th 777 airplane, which is also the last and 53rd 777-300ER (Extended Range) of its confirmed orders. With this delivery, (CAT)’s 777 airplane fleet comprises 53 777-300ERs, 12 777-300s and five 777-200s.

(CAT) is one of the launch customers for the 777X with 21 777-9s on order.

News Item A-13: All Nippon Airways (ANA) rolled out its Star Wars R2-D2 Boeing 787-9 airplane from the Boeing Everett Factory on September 14. The "R2-D2" (ANA) 787-9 jet is the first of three airplanes to be decorated with Star Wars characters as part of an agreement between (ANA), Japan’s largest airline, and The Walt Disney Company (Japan).

See photos - "TBC-2014-10 - ANA Star Wars Airplanes-A/B/C/D/E.jpg from "(ATW) Photo Gallery -(ANA) Star Wars' 767, 777, 787"
by (ATW) Linda Blachly, September 14, 2015.

Photos A, B, C, & D show the Star Wars R2-D2 787-9 being rolled out from the Boeing Everett Factory.

Two additional airplanes decorated with "BB-8," a brand new character from "Star Wars: The Force Awakens" will take to the skies following the R2-D2 (ANA) jet. The first, a Boeing 767-300, will begin flying domestic Japanese routes in November and then, in March 2016, a Boeing 777-300ER is scheduled to start serving international routes principally between Japan and North America. See photo E showing all three Star Wars 767, 777, and 787 jets.

Fans can see these Star Wars airplanes’ schedules at www.ana-sw.com.

News Item A-14: See video - - "TBC-2015-09 - 777X Foldable Wings.jpg"

October 2015: News Item A-1: Boeing (TBC) posted company-wide 2015 third-quarter net income of +$1.7 billion, up +25.1% from a net profit of +$1.36 billion in the 2014 third quarter.

Boeing’s Commercial Airplanes (BCA) division had a strong third quarter, with revenue increasing +9.8% year-over-year (YOY) to $17.69 billion on “higher delivery volume and mix.” The division’s operating margin during the quarter was 10%, down -1.2 points (YOY), “reflecting higher (R&D) and the dilutive impact of higher 787 deliveries partially offset by strong performance on production programs,” Boeing (TBC) said.

(BCA) delivered 199 airplanes in the third quarter, including 126 737s, 37 787 Dreamliners, 27 777s, five 767s and four 747s.

“By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow,” Boeing (TBC) President & (CEO), Dennis Muilenburg said.

Based on its current level of higher commercial airplane deliveries, Boeing (TBC) announced a $500 million increase in its revenue guidance for 2015 to between $95 billion and $97 billion. “Three quarters of solid results and confidence in our continued operating performance enabled us to raise our revenue, earnings per share, and operating cash flow guidance for the year,” Muilenburg said.

Boeing (BCA) booked 166 net orders for commercial airplanes during the quarter; the company’s backlog now stands at nearly 5,700 airplanes valued at $426 billion.

On August 27, Boeing’s Commercial Airplanes (BCA) division completed the firm design configuration for the 777X airplane, Boeing’s expansion of its 777-8 and 777-9 family. Additionally, on September 15, the Commercial Airplanes (BCA) division began final assembly of its first 737 MAX airplane at Boeing’s Renton, Washington, factory; (BCA) intends to roll out the first completed 737 MAX by the end of the year and will fly it in early 2016.

Boeing (TBC)’s company wide third-quarter revenue rose +8.6% (YOY) to $25.85 billion; company-wide operating profit increased +21.8% (YOY) to 2.58 billion.

News Item A-2: "Airbus (EDS) and Boeing (TBC) September 2015 Orders & Deliveries Roundup" by (ATW) Mark Nensel, October 8, 2015.

Wizz Air (WZZ)’s September 14 order, which was previously announced at the Paris Air Show in June, was the “biggest single order ever” for the A321neo, according to Airbus (EDS); it is valued at $13.68 billion. Airbus (EDS)’ other firm orders in September came from lessors (BOC) Aviation (SIL) and Standard Charter Bank for four A330-300s split evenly between the two companies, all to be leased to (EVA) Air and valued at $1.01 billion; RwandAir (RWA), which ordered an A330-300 and an A330-200, valued at $483 million; Croatia Airlines (CRH), which ordered four A320neos, valued at $425 million; and Groupe Dubreuil, which ordered an A350-900 XWB, valued at $305 million.

Boeing (TBC)’s major September order came from British leisure travel carrier Jet2.com (JT2), which finalized an order for 27 NG 737-800 airplanes on September 2, valued at $2.59 billion. Boeing (TBC)’s other commercial airplane order for the month came from an unidentified customer: two 787-9 Dreamliners, valued at $529 million.

In September, Boeing (TBC) delivered 73 commercial airplanes to 40 airlines and lessors, plus two unidentified customers. Airbus (EDS) delivered 48 commercial aircraft to 36 customers during the month. During the year-to-date, Boeing (TBC) has delivered 560 commercial airplanes, compared to Airbus (EDS)’ 441.

Boeing’s September commercial deliveries included five airplanes to China’s Xiamen Airlines (XIA) (four 737-800s and a 787-8 Dreamliner); four airplanes to United Airlines (UAL) (two 787-9 Dreamliners and two 737-900ERs); and three airplanes each to Dutch lessor AerCap (DEA) (all 737-800s), Air Lease Corporation (ALE)-all 737-800s); American Airlines (AAL) (two 737-800s and a 787-8); China Eastern (CEA) (all 737-800s); FedEx Express (FED) (two 767-300Fs and a 777F); Hainan Airlines (HNA) (all 737-800s); Lion Air (MLI) (all 737-800s); and Norwegian Air Shuttle (NWG) (all 737-800s). Additional 787-8 Dreamliner deliveries were made to Switzerland’s PrivatAir (PTS), Qantas (QAN), and Qatar Airways (QTA). Additional 787-9 Dreamliners were delivered to All Nippon Airways (ANA), British Airways (BAB), the (LATAM) Airlines Group (LAN)/(TPR) and Virgin Atlantic (VAA).

Airbus (EDS)’ September commercial deliveries included six aircraft to China Eastern Airlines (CEA) (two A330-200s, two A320ceos and two A321ceos) and two aircraft each to American Airlines (AAL) (both A321ceos), Singapore-based lessor (BOC) Aviation (SIL) (an A321ceo bound for Asiana Airlines (AAR), and an A320ceo bound for Vistara Airlines (VST)), Chinese lessor (CALC) (CHD) (A320ceos bound for Air India (AIN)/(IND) and Sichuan Airlines (SIC)), American lessor (CIT) (TCI) (an A350-900 XWB bound for Vietnam Airlines (VIE) and an A330-200 bound for Sichuan Airlines (SIC)), Emirates (EAD) (two A380s), (SAS) (two A330-300s), China’s Spring Airlines (CQH) (both A320ceos) and Turkish Airlines (THY) (both A321ceos).

News Item A-3: Boeing (TBC) has opened a new Research & Technology center in St Louis, Missouri that will serve as (TBC)'s regional hub for collaborative technology development with academic institutions and research partners in systems technology. The Boeing Research & Technology (BR&T) Missouri center was first announced in 2013 and has more than >180,000 square-feet devoted to the creation and development of technologies for use in current and future Boeing (TBC) products.

New labs and capabilities in Missouri include the non-destructive test (NDT) lab, the human systems integration center, a polymer synthesis lab, and the soon-to-be-built collaborative autonomous systems Lab. An estimated 700 engineers, technicians and staff at (BR&T)-Missouri will develop a variety of other technologies that include systems, digital aviation, and support technology, rate-independent production, and next generation materials.

News Item A-4: Boeing (TBC) has teamed up with Pegasus Airlines (PGS) to implement operations improvements for current and future 737NGs. Boeing Professional Services (PBS) teams will analyze historical maintenance data and develop a maintenance program focused on reducing scheduled maintenance labor costs, lowering materials costs and improving airplane maintenance ground time.

News Item A-5: Malindo Air (MXD), which introduced new destinations at Amritsar and Kathmandu earlier this year, has expanded operations significantly in recent months. In addition to Australia, it now flies to eight international destinations in Indonesia, Malaysia, Thailand, India, Bangladesh, Nepal, and Singapore.

(MXD) is to take delivery of four more 737s by the end of 2015, to give a fleet of 11 ATR72-600s and 16 Boeing 737s. (MXD), a joint venture (JV) between Indonesian (LCC) Lion Air (MLI) and Malaysia’s National Aerospace & Defense Industries (NADI), says it is targeting a fleet of 100 airplanes by 2023.

News Item A-6: Oman Air (OMR) has taken delivery of the first of six Boeing 787-8s from a November 2011 order.

The arrival of the first 787 Dreamliner in Muscat marks the next stage of (OMR)’s ambitious expansion plans, which will see its fleet grow from around 40 airplanes to 70 by 2020.

(CEO) Paul Gregorowitsch said the “decision to invest in this game-changing airplane underlines our confidence in the 787 and the value it will add in terms of reliability, operational efficiency and comfort.”

Oman Air (OMR) has announced it will deploy its first 787 Dreamliner on services to Saudi Arabia and Europe. (OMR) has ambitions to use its Muscat International Airport base (which is also being expanded) as a new Arabian Gulf hub for transit traffic.

“We’re proud to have Oman Air (OMR) join our growing base of 787 customers in the Middle East and around the world,” said Boeing Commercial Airplanes President & (CEO), Ray Conner.

“Our partnership with (OMR) dates back almost 15 years during which time the airline has been operating the 737 family. We’re delighted to help introduce Boeing twin-aisle airplanes into its growing fleet.”

Boeing has also been contracted by Oman Air (OMR) for a suite of services to support the entry into service (EIS) of its 787s and to ensure ongoing efficiency and cost savings for its fleet. These services will help (OMR) minimize the time and cost of maintenance, while increasing airplane availability.

Boeing (TBC) said it has eight 787 customers in the Middle East, operating 175 of the type, with a further backlog of 140.

News Item A-7: (EVA) Airways will buy up to 24 Boeing 787-10s and two additional 777-300ER airplanes, in an order valued at more than >$8 billion at list prices. Boeing (TBC) said the Taiwanese carrier will “join the 787-10 launch customer team and will be one of the first airlines to introduce the newest member of the 787 Dreamliner family.”

(EVA) Airways continues to modernize its long-haul fleet by replacing aging airplanes and these new airplanes will allow (EVA) to expand into new markets, particularly in Southeast Asia, Oceania, and North America.

(EVA) operates 21 777-300ERs. With its intent to purchase two additional 777-300ERs as part of this deal, (EVA) Airways will have unfilled orders for 15 777-300ERs and five 777F freighters, as well as 24 787-10s (both direct purchased and leased, according to Boeing (TBC)).

News Item A-8: Ethiopian Airlines ((IATA) Code: ET, based at Addis Ababa) (ETH) is going for the 777X from Boeing (TBC) to cover its future long haul needs, (ETH) (CEO), Tewolde Gebremariam has told "The Wall Street Journal." (ETH) recently announced it aimed to double its fleet to 150 aircraft by 2025.

Following studies, which compared the 777X and the A350-1000 from rival Airbus Industrie (EDS), Gebremariam said (ETH) would order between fifteen and twenty 777-8Xs to form the backbone of its future ultra-longhaul fleet. The 777-8X, which is reportedly better suited to Addis Ababa's "Hot and High" conditions, is a replacement for the 777-200LR, six of which (ETH) currently operates. An official announcement is expected to be made before year-end.

The news comes after the airline warned the recent de-funding of the USA Export Import Bank (ExIm Bank) may impact existing Boeing orders as well as future orders. Traditionally, (ETH) has secured financing for its Boeing fleet purchases from the bank and has enjoyed a strong relationship throughout.

With production of the 777X family set to commence in 2017, the first airframes are also expected to arrive in time for the opening of the new Addis Ababa International Airport (a four-runway megahub, capable of handling up to 120 million passengers per annum once complete).

News Item A-9: Norwegian (NWG) has doubled its third quarter pre-tax profit and ordered 19 Boeing 787-9s, plus 10 options, in a deal valued at more than $5 billion at list prices.

The Oslo-headquartered carrier operates eight 787-8s and has 11 787-9s on order. With this latest commitment, Norwegian (NWG)’s long-haul fleet will grow to 38 787s by 2020.

“This order of 19 new 787-9 Dreamliners is a major milestone and enables Norwegian to offer a wide range of new routes to consumers worldwide. The order is also essential to further strengthening the company in the global competition,” Norwegian (CEO), Bjørn Kjos said.

(NWG), which launched long-haul, low-cost operations two years ago, said the new 787s will be used to launch new services and expand its network. Kjos said (NWG)’s long-haul load factors have “averaged in the nineties,” proving there is demand for budget flights from Europe to the USA and Asia.

Boeing (TBC) said that the Norwegian (NWG) deal is the largest single 787-9 order from a European airline. “(NWG) has led the way in utilizing the exceptional performance of the 787 to develop a successful low-cost long-haul operation. The addition of 787-9s to the Norwegian (NWG) fleet will enable it to grow its route structure, while providing more range and capacity with outstanding passenger comfort,” Boeing Commercial Airplanes (BCA) VP European Sales, Todd Nelp said.

(NWG)’s order backlog now stands at more than >150 Boeing airplanes, including 100 737 MAXs, as well as 100 Airbus A320neos.

News Item A-10: The Japanese Defense Minister, General Nakatini announced that Japan will buy three Boeing KC-46A air-refueling tankers for its air force. "Kyodo News" reported that the contract is worth $173 million per tanker. This is the first overseas sale of this Boeing tanker.

News Item A-11: "US Air Force Selects Northrop Grumman (GRU) as Partner on Long-Range Strike Bomber" by www.aviationnews.eu Rob Vogelaar, October 28, 2015.

The US Air Force (USF) has selected Northrop Grumman Corporation (GRU) to deliver the nation’s new Long-Range Strike Bomber (LRS-B). This selection continues (GRU)’s 35-year partnership with the US Air Force (USF) in providing the world’s most advanced long-range strike systems.

News Item A-12: El Al Israel Airlines (ELA) has signed a firm order for three Boeing (TBC) 787s. (ELA) is finalizing a contract for six direct from (TBC) and will lease a further six of the type.

Announcing the deal on October 29, Boeing (TBC) valued the nine directly sourced airplanes at more than >$2.2 billion at list prices.
The airplanes will be used to replace and grow El Al (ELA)'s long-haul fleet. (ELA) has entered into exclusive negotiations with Roll-Royce (RRC) to power the 15 787s with (Trent 1000) engines, supported by a TotalCare maintenance agreement.

(ELA), which is an all-Boeing (TBC) operator, has a fleet of 22 737s, seven 747s, seven 767s and six 777s.

November 2015: News Item A-1: "Boeing to Upgrade Radar Systems on 46 Air Force (USF) F-15C/D Jet Fighters & F-15E Fighter-bombers" by John Keller
www.militaryaerospace Editor, November 6, 2015.

WRIGHT-PATTERSON (AFB), Ohio, November 6th, 2015: - Jet fighter experts at the Boeing Company (TBC) will install 46 upgraded radar systems in US Air Force F-15 combat jets under terms of a $281.7 million contract announced earlier this month.

Officials of the Air Force Life Cycle Management Center at Wright-Patterson Air Force Base, Ohio are asking the Boeing Defense, Space & Security segment in St Louis to install the upgraded radar systems on Air Force F-15C/D jet fighters, and F-15E fighter-bombers.

Boeing (TBC), the original manufacturer of the F-15C/D and F-15E combat jets, will install the Raytheon (RAY) (APG-63(V)3) radar on 17 F-15C/D jet fighters, and the (Raytheon AN/APG-82) radar systems on 29 F-15E fighter-bombers under the terms of the contract.

The F-15, built by Boeing predecessor, McDonnell Douglas Corporation, is a twin-engine, all-weather tactical air-superiority jet fighter. It was designed in the late 1960s and first entered service in 1976. The F-15E is a ground-attack version of the original F-15 that first entered service in 1989.

The Raytheon (RAY) (APG-63(V)3) and (AN/APG-82) radar systems use active electronically scanned array (AESA) technology, which is a phased-array radar approach that can steer the radar beam without mechanically moving the radar transceiver antenna.

(AESA) radar use many solid-state transceivers in an antenna array. It steers the radar beam by emitting separate radio signals from each module. This kind of radar is difficult to detect over background noise and enables F-15 combat jets to broadcast powerful radar signals, while still remaining somewhat stealthy.

The Raytheon (RAY) (APG-63(V)3) is a more modern variant of (RAY)'s (APG-63(V)2), and applies the same kind of (AESA) technology that Raytheon (RAY) uses in the company's (APG-79) designed for the Navy Boeing F/A-18 Hornet fighter-bomber. The (APG-63(V)3) has been in service since 2006.

The Raytheon (AN/APG-83) radar for the F-15E, meanwhile, combines the processor of the (APG-79) radar with the antenna of the (APG-63(V)3) (AESA) being on the F-15C/D. This radar upgrade is part of the F-15E Radar Modernization Program (RMP). The new radar includes a wideband radome that enables the radar array to operate on more radar frequencies, and has improvements to environmental control and electronic warfare (EW) systems.

On this contract, Boeing (TBC) will do the work in St Louis and should be finished by early 2019.

For more information contact Boeing Defense, Space & Security online at www.boeing.com/defense, or the Air Force Life Cycle Management Center at www.wpafb.af.mil/aflcmc.

News Item A-2: "Boeing and Tata Announce Aerospace Joint Venture (JV) in India" by www.aviationnews.eu Rob Vogelaar, November 8, 2015.

Boeing (TBC) and Tata Advanced Systems announced a joint venture (JV) that will manufacture aero structures for airplanes and collaborate on integrated systems development opportunities in India.

The (JV) will initially create a manufacturing center of excellence to produce aero structures for the AH-64 Apache helicopter and to compete for additional manufacturing work packages across Boeing (TBC) platforms, both commercial and military defense. (TBC) and Tata Advanced Systems intend to grow the (JV) partnership in the future, with a focus on opportunities to collaborate on development and selling of integrated systems.

“This partnership will capitalize on India’s industrial capability, innovation and talent to contribute to Boeing (TBC)’s long-term competitiveness and position us for future growth in the global marketplace,” said Chris Chadwick, President & (CEO) of Boeing Defense, Space & Security. “It is a demonstration of our commitment to further accelerate our partnership with one of the world’s fastest growing economies.”

“This agreement to establish a (JV) will propel the growth of the Indian aerospace sector by leveraging the world-class competencies of Tata Advanced Systems and its supplier eco-system, as well as provide access to India’s world-class manufacturing capability, skilled talent and competitive cost structures,” said S. Ramadorai, Chairman of Tata Advanced Systems.

“Over the last 12 months, we have doubled our sourcing from India and are committed to continue that journey,” said Pratyush Kumar, President, Boeing India. “This was demonstrated by our Chairman, Jim McNerney’s presence at the recently concluded Innovation Summit in New Delhi and is a clear example of Boeing’s long-term commitment to ‘Make in India.”

Boeing (TBC) and the Tata group companies have established partnerships in India to manufacture aero structures for Boeing’s commercial and military airplanes. Tata Advanced Materials has delivered composite panels for the power and mission equipment cabinets and auxiliary power unit (APU) door fairings for the P-8I long-range maritime surveillance and anti-submarine warfare airplane.

(TAL) Manufacturing Solutions is manufacturing complex floor beams out of composite materials for the Boeing 787-9, the most modern airplane with exceptional environmental and fuel efficient capabilities. (TAL) Manufacturing Solutions has provided ground support equipment (GSE) for the C-17 Globemaster III strategic airlifter.

News Item A-3: Etihad Airways (EHD) has exercised two options for Boeing 777F freighters, (EHD) announced at the Dubai Air Show.

The decision to exercise the options, which were part of Etihad Airways’ $67 billion order for 199 airplanes at the 2013 Dubai show, was unveiled on the opening day of this year’s event.

The additional airplanes, valued at $637 million at list prices, are due for delivery next year. They will be part of Etihad Cargo, which currently operates three Boeing 777Fs, three Boeing 747Fs and four Airbus A330 freighters.

Etihad Cargo serves 11 freighter-only destinations worldwide from its Abu Dhabi hub and also has underfloor cargo capacity on Etihad (EHD)’s fleet of 109 passenger airplanes.

(EHD) President & (CEO), James Hogan said the decision to exercise the two options demonstrated (EHD)’s confidence and commitment to both Boeing (TBC) and the global freight market.

News Item A-4: "Boeing (TBC) and Jet Airways (JPL) Confirm Order for 75 737 MAX 8 Airplanes" by (ATW) Rob Vogelaar, November 9, 2015.

Boeing (TBC) and Jet Airways (JPL), India’s premier international airline, announced an order for 75 737 MAX 8 airplanes at the 2015 Dubai Airshow.

The announcement marks the largest order in (JPL)’ history and supports (JPL)’s replacement strategy to have the most modern and environmentally progressive airplane fleet. The order, previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 airplanes.

“Incorporating the latest design and technology features, the highly efficient 737 MAX will allow us to drive our operational efficiency and reaffirms our commitment to providing a best-in-class full service travel experience to our guests,” said Naresh Goyal, Chairman of (JPL). “This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which reflects the positive forecast for the country’s economy and offers tremendous potential for growth and development.”

The 737 MAX incorporates the latest technology (CFM) International (LEAP-1B) engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

The new single-aisle airplane will deliver -20% lower fuel use than the first Next-Generation 737s and the lowest operating costs in its class –8% per seat less than its nearest competitor.

News Item A-5: "(EVA) Air Takes Delivery of First 777-300ER with New Livery" by (ATW) Mark Nensel, November 12, 2015.

(EVA) Air took delivery of its first re-branded Boeing 777-300ER at Boeing (TBC)’s delivery center in Everett, Washington, USA on November 11.

While being the 22nd 777-300ER in (EVA)’s fleet, the new 777-300ER debuted (EVA)’s new livery design and corporate identity - - see photo - - "EVA-777-300ER New Livery - 2015-11.jpg." The 777-300ER’s simplified tail design features a compass as its focal point, borrowed from (EVA)’s corporate parent, the Evergreen Group; the 777-300ER's underbelly is now a dark-green, with a curved orange borderline.

The 777-300ER is the first delivery in a series of 12-year lease agreements between (EVA) and Air Lease Corporation (ALE); two additional 777-300ERs are scheduled for 2016, and the fourth will be delivered in 2017. By the end of 2016, (EVA) expects to have seven new 777-300ERs and six new Airbus A321-200s in its fleet, bringing (EVA)’s fleet to over >80 airplanes. (EVA) will fly its new 777-300ERs on North American routes; (EVA) plans to increase its North American frequency to 77 flights per week by the end of 2016.

Boeing VP, Jeff Klemann, (EVA) President, Austin Cheng and Air Lease Corporation (ALC) (CEO), Steven Udvar-Házy participated in the events as “keys” to the new 777-300ER were handed over to (EVA) Chairman, K W Chang.

Chang piloted (EVA) Air’s new 777-300ER back to Taiwan from Washington state. Before departing, Chang, a certified pilot (FC), inspected the airplane accompanied by executives from (EVA) Air, Boeing (TBC), and (ALC) (ALE).

“(EVA) was a launch customer for the 777-300ER in 2005 and the airplane has become the backbone of our long-haul fleet,” Chang said, adding (EVA) will operate over >30 777-300ERs by the end of 2017. “We launched our new generation Boeing 777-300ERs [in 2014] and significantly upgraded our in-flight services and cabin environments.”

Later, (EVA) Airways finalized an order for up to 24 (GEnx-1B)-powered Boeing 787-10s and two (GE90-115B)-powered 777-300ERs, valued at more than >$8 billion at current list prices.

(EVA) announced a commitment for the airplanes on October 15 and firmed up the order during an official ceremony in Taipei on November 24. “These planes will support our growth well into the future,” (EVA) President, Austin Cheng said.

The 26 airplanes will be delivered between 2017 and 2022, helping (EVA) Airways hit its objective to operate more than >100 airplanes by 2020. They will be used to gradually replace older airplanes and to add new frequencies and destinations.

“These new 787-10 Dreamliners will allow (EVA) to expand into new markets. They will be deployed on medium-range and long-haul flights and will be operated in tandem with the 777-300ERs to form the backbone of (EVA) Airways' fleet,” Boeing (TBC) said.

(EVA), which was involved in the development of the Boeing 777-300ER, became a launch customer for the variant in 2005. It is the eighth largest 777-300ER operator worldwide and the fourth largest in Asia.

“From that first delivery through today, we operate 22 of these high-performance long-haul airplanes. We believe the future of the airline industry will be built on fuel efficiency and cabin comfort. The new Boeing 787-10 Dreamliner’s high fuel efficiency and long-range flying capabilities meets these requirements and our operational needs,” Cheng said.

Along with the new engines, (GE) Aviation (GEC) said (EVA) signed 12-year "OnPointSM" solution agreements for the maintenance, repair and overhaul (MRO) of its (GEnx-1B) and (GE90-115B) engine fleet. The new engines and OnPoint solution agreements are valued at more than >$2 billion at list prices for the engine and over the life of the service agreements.

(EVA) Airways operates more than >40 Boeing airplanes and this order increases its backlog to 37 units: 14 777-300ERs, five 777F freighters, and 18 787-10s.

(EVA) currently operates 67 airplanes to 22 countries, to 64 destinations, on 86 routes and 147 daily flights.

News Item A-6: "Boeing (TBC), (KLM) Royal Dutch Airlines Celebrate Delivery of Airline’s First 787 Dreamliner" by www.aviationnews.eu Rob Vogelaar, November 14, 2015.

Everett, Washington, USA, November 14, 2015 /PRNewswire/: — Boeing (TBC) and (KLM) Royal Dutch Airlines are celebrating the delivery of (KLM)’s first 787-9 Dreamliner. Over the coming years, the 787 will play a key role in (KLM), the Dutch flag carrier’s fleet renewal and expansion. (KLM) acquired this airplane through leasing company AerCap (DEA).

“We are very proud to welcome our first Boeing 787 Dreamliner,” said Pieter Elbers, (KLM) President & (CEO). “This airplane symbolizes a new phase in the future of (KLM). Investment in our customers is one of our priorities. This efficient airplane is part of that investment. It’s testimony to the great work of 33,000 (KLM) employees, who are committed to giving their best for our customers every day.”

In addition to this delivery, the Air France (AFA) - (KLM) Group has 19 787-9s and six 787-10s on order and will lease 12 787s through AerCap (DEA). (KLM) will operate its first 787-9 on its Amsterdam – Abu Dhabi – Bahrain service.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 6 meters/20 feet over the 787-8, the 787-9 can fly up to +20% more passengers and +23% more cargo farther yet with the same exceptional environmental performance (-20% less fuel use and -20% fewer emissions than the airplanes they replace.

“The (KLM) brand is synonymous with innovation, reliability, and outstanding customer service, which will be perfectly complemented by the addition of the 787 to (KLM)’s fleet,” said Todd Nelp, VP European Sales, Boeing Commercial Airplanes (BCA). “We are honored that the 787 is now proudly flying in the famous (KLM) blue livery and are confident the airplane will play a key role in this historic carrier’s continued success.”

The 787-9 leverages the visionary design of the 787-8, offering passenger-pleasing features such as the industry’s largest windows, large overhead bins with room for everyone’s bag, modern (LED) lighting, air that is cleaner, more humid and at a higher pressure for greater comfort, and technology that senses and counters turbulence for a smoother ride.

(KLM) was founded in 1919, and is the oldest airline still operating under its original name. Based at Amsterdam’s Schiphol Airport, (KLM) is part of the Air France (AFA) - (KLM) Group and serves 135 destinations worldwide. Over the past half century, (KLM) has taken delivery of more than >200 Boeing airplanes.

News Item A-7: Boeing (TBC) delivered two 747-8Fs to AirBridgeCargo Airlines (ABC), part of the Volga-Dnepr (VDA) Group. The airplanes are the first to be delivered as part a memorandum of understanding between (TBC) and the (VDA) Group at the Paris Air Show in June 2015.

The airplanes will be deployed on the expanding network under winter schedule 2015/2016, between Asia and the USA.

AirBridgeCargo (ABC) Executive President, Denis Ilin said, “For the Volga Dnepr Group, adding more new generation 747-8Fs will allow us to secure further development of the Group’s scheduled business, (ABC) Airlines, and keep (ABC)’s high growth rates.”

Including this delivery, (ABC)’s fleet comprises eight 747-8Fs, five 747-400ERFs, and two 747-400Fs.

The agreement signed at the Paris Air Show also adds the Antonov An-124-100 aircraft to the long-term logistics support for Boeing (TBC) and its partners.

News Item A-8: Boeing (TBC) has signed a Memo of Understanding (MOU) with Dubai South outlining (TBC)’s intention to establish its Middle East headquarters in the city’s Aviation District.

News Item A-9: (TASS) reported that the agency that oversees civil-aviation safety in Russia is seeking to ground all Boeing 737s in Russia, but Russian regulators denied this agency can ground the planes. Then the Interstate Regulatory Committee suspended all flying certificates for 737s operating in the country, citing concerns about tail-control surfaces. (TASS) wants (FAA) guidance on safety of the airplanes. Boeing (TBC) plans to meet with Russian officials.

News Item A-10: (BOC) Aviation (SIL) has placed an order for 11 (CFM56)-powered Boeing 737-800s and 11 (LEAP-1B)-powered 737 MAX 8s, scheduled for delivery between 2018 and 2021.

Announcing the deal on November 24, (BOC) Aviation (SIL) said the airplanes would be used to boost its order book and meet customer demand. “This order demonstrates our continued confidence in the Next Generation 737 airplanes for its proven high performance, reliability, and asset value. The Next Generation 737 economics are very attractive to our customers. With the 737 MAX, we are investing in new technology airplanes to meet our customers’ long-term fleet planning requirements,” (BOC) Aviation Managing Director & (CEO), Robert Martin said.

This latest deal marks a follow-on from the 50 737 MAX 8s and 30 737-800s that (BOC) Aviation (SIL) ordered in August 2014, along with a pair of 777-300ERs. Its first 737 MAX from the 2014 order is due to arrive in 2019.

On September 30, (SIL) had committed to acquire 203 airplanes, to boost its existing portfolio of 253 owned and managed airplanes, operated by 59 airlines worldwide.

In addition to this latest announcement, (SIL) has ordered 167 737s to date, including 50 737 MAXs and 16 777s.

Both companies referred to the deal as an “order,” although Boeing (TBC) said it would be posted to its website “once finalized.”

News Item A-11: "Final Boeing C-17 Globemaster III Departs Long Beach Assembly Facility" by www.aviationnews.eu Rob Vogelaar, November 30, 2015.

Long Beach, California: – The final Boeing (TBC) C-17 Globemaster III military airlifter at the company’s plant in Long Beach, California departed on Sunday, November 29, marking the official end of aircraft production in Long Beach.

The airlifter flew over a crowd and the facility, before heading to the company’s San Antonio location, where it will remain until delivery to the Qatar Emiri Air Force, early in 2016.

With the completion of C-17 production, Boeing (TBC) will continue the Globemaster III legacy, providing support, maintenance and upgrades to the worldwide C-17 fleet under the C-17 Globemaster III Integrated Sustainment Program (GISP) Performance-Based Logistics agreement.

The decision to end production of the C-17 production program was announced in 2013. Since the first C-17 took to the air on September 15, 1991, the C-17 fleets for the US Air Force and international partners have amassed more than >3 million flying hours supporting airlift of troops and large cargo, precision airdrop of humanitarian supplies, and lifesaving aeromedical missions.

Boeing (TBC) has been a part of California and its rich aerospace legacy for more than >90 years, with more than >15,000 airplanes (military and commercial) produced at Boeing (TBC) facilities, including those run by Boeing legacy companies McDonnell Aircraft Company, Douglas Aircraft Company and North American Aviation. Today, Southern California occupies a diversified footprint of Boeing (TBC) operations including commercial aviation; satellite manufacturing and new markets such as cyber security. (TBC) has more than >16,000 employees in California and remains committed to defense and commercial business in the state.

News Item A-12: See Boeing 787 Dreamliner video - -
http://dreamlinergallery.comGallerySiteBoeingDreamlinerPossibilities.pdf

News Item A-13: 100 years of Boeing - - see video - -

December 2015: News Item A-1: News Item A-3: "Congress Reauthorizes Ex-Im Bank Through 2019" by (ATW) Aaron Karp December 4, 2015.

The more than five-month lapse of the USA Export-Import Bank’s (Ex-Im) authority was brought to an end by the USA Congress, which has overwhelmingly voted to reauthorize Ex-Im through 2019.

Ex-Im’s authority lapsed June 30, and it has been unable to extend export credit loans since; Boeing (TBC) and other USA aerospace manufacturers were highly critical of Congress for allowing the 81-year-old agency to lose its authorization. After months of legislative wrangling (during which a group of Congressional Republicans were able to keep the agency unauthorized despite wide bipartisan support for re-authorization) the Ex-Im was revived late December 3, when both the House of Representatives and Senate passed a $300 billion surface transportation bill that included an Ex-Im re-authorization provision.

The House voted for the highway bill, including Ex-Im re-authorization by a 359 - 65 margin. The Senate followed with an 83 - 16 vote. President Barack Obama is expected to quickly sign the bill into law, putting the Ex-Im back in business.

“By reopening the Export-Import Bank, Congress has taken strong action enabling American exporters and the skilled workers they employ, to compete successfully in tough global markets,” Boeing (TBC) President & (CEO), Dennis Muilenburg said. "We commend the bipartisan majorities in both the House and the Senate that recognized the Ex-Im Bank’s value to the USA economy by voting several times in recent months to reauthorize.” He added that the Ex-Im helps support “1.5 million workers at nearly 15,000 USA companies that help Boeing (TBC) design, make and support America’s aerospace exports.”

USA Aerospace Industries Association (AIA) President & (CEO), David Melcher said he was “relieved and delighted that the [highway] bill served as a vehicle for a four-year re-authorization of the Export-Import Bank of the USA. The Ex-Im Bank is a valuable tool supporting exports in the aerospace industry (the leading export industry in the USA manufacturing sector with a trade surplus of nearly $62 billion.”

But Melcher noted that “one last item remains for the Ex-Im Bank to become fully functional again.” He said the Ex-Im currently lacks “the required number of directors on their board to approve any transaction over >$10 million,” adding, “Filling the other seats requires the cooperation of the USA Senate and the White House. We urge President Obama and Senate leadership to nominate and confirm new members to the Ex-Im board expeditiously.”

Representative Stephen Fincher (Republican - Tennessee), who led the fight in the House to reauthorize Ex-Im, said, “Since June, the future of the Ex-Im Bank has been in limbo. While other countries have been securing large export deals, American companies have been placed at a competitive disadvantage (forced to compete globally with one hand tied behind their back. [The Congressional] vote puts us one step closer to ensuring our exporters have a seat at the table and are able to compete on a level playing field with other nations).”

Senator Marco Rubio (Republican - Florida), a candidate for USA President, vowed to continue working “to end the Export-Import Bank,” calling Ex-Im’s re-authorization “especially offensive to taxpayers, who want to end corporate welfare handouts and let the free market finance overseas investments by American companies.”

News Item A-2: "Boeing, Canada Consortium to Partner on Biofuel" by
(ATW) Linda Blachly, December 3, 2015.

Boeing (TBC) announced it will collaborate with the University of British Columbia and SkyNRG (with support from Canada’s aviation industry) to turn leftover branches, sawdust and other forest-industry waste into sustainable aviation biofuel.

Canada, which has extensive sustainably certified forests, has long used mill and forest residues to make wood pellets that are used to generate electricity. A consortium that includes Boeing (TBC), Air Canada (ACN), WestJet (WJI), Bombardier (BMB), research institutions and industry partners will assess whether forest waste could also be harnessed to produce sustainable aviation biofuel using thermo-chemical processing.

This project, announced during the 2015 Canadian Bioeconomy Conference in Vancouver, was recently awarded funding by the Green Aviation Research & Development Network (GARDN) of Canada as part of a portfolio of investments in technologies to reduce aviation's carbon emissions.

The consortium is led by (UBC) and (NORAM) Engineering and Constructors, Ltd of Vancouver. Project partner, SkyNRG, based in the Netherlands, is the global market leader for sustainable jet fuel, having supplied biofuel to more than >20 carriers worldwide.

News Item A-3: Boeing (TBC) and Alaska Airlines (ASA) are partnering to power all flights by all airlines at Seattle-Tacoma International Airport (Sea-Tac) with sustainable aviation biofuel. The two companies have signed a memorandum of understanding (MOU) to launch a $250,000 Biofuel Infrastructure Feasibility Study that will assess costs and infrastructure necessary to deliver a blend of aviation biofuel and conventional jet fuel to airplanes at the airport.

According to Boeing (TBC), Sea-Tac is the first USA airport to lay out a long-term roadmap to incorporate aviation biofuel into its infrastructure in a cost-effective, efficient manner. “As leaders in aviation biofuels, this will send a signal to airlines and biofuel producers that Sea-Tac Airport will be ready to integrate commercial-scale use of aviation biofuels,” Port of Seattle Commissioner, John Creighton said. “Biofuel infrastructure will make Sea-Tac airport an attractive option for any airline committing to use biofuel, and will assist in attracting biofuel producers to the region as part of a longer-term market development strategy.”

The partners’ longer-term plan is to incorporate significant quantities of biofuel into Sea-Tac’s fuel infrastructure, which is used by all 26 airlines and more than >380,000 flights annually at the airport. Sea-Tac is the 13th busiest airport in the USA and will serve over >42 million domestic and international passengers this year.

See attached - "TBC-2015-12 - Biofuel at Sea-Tac-A/B.jpg."

News Item A-4: "Boeing (TBC) Completes Detailed Design for 787-10" by Aaron Karp, December 2, 2015.

Boeing has completed the 787-10’s detailed design, paving the way for assembly to begin on the largest airplane in the 787 Dreamliner family in 2016.

The milestone, which Boeing (TBC) said was achieved nearly two weeks ahead of schedule, “means the information needed to build parts and tools for assembly has been completed, and released for fabrication or procurement,” according to the manufacturer. The 787-10, which will be 18 ft/5.5 m longer than the 787-9, is expected to achieve first flight in 2017. First delivery is scheduled for 2018 to United Airlines (UAL).

Boeing (TBC) noted that the 787-10 is a “straightforward stretch” of the 787-9, which entered service in 2014 with Air New Zealand
(ANZ). VP 787 Airplane Development, Ken Sanger said (TBC) is “building upon our experience and the 787-9 design itself” on the 787-10. (TBC) added that 95% “of the design and build of the 787-10 and 787-9 will be identical, reducing complexity, cost and risk across the production system and providing operational benefits to customers.”

The 787-10, which will be built exclusively at Boeing’s North Charleston, South Carolina facility, will have a range of 6,430 nautical miles. (TBC) has booked 164 orders for the 787-10 from nine customers, which comprises 14% of all 787 orders.

News Item A-5: "Boeing (TBC) Rolls Out First 737 MAX 8" by (ATW)
Linda Blachly, December 8, 2015.

See photo - "TBC-2015-12 - 737 Max 8 Rollout.jpg."

Boeing (TBC) has rolled its first 737 MAX 8 out of the Renton, Washington, final assembly facility.

(TBC) said the airplane will now undergo pre-flight preparation in the factory before continuing flight test readiness from Renton Field. The airplane is on track for first flight in early 2016, according to Boeing (TBC).

“With the second and third 737 MAX 8 flight test airplanes currently in final assembly and the fourth (and final) in sub-assembly, the 737 MAX remains on track for first delivery to launch customer Southwest Airlines (SWA) in the third quarter of 2017,” Boeing (TBC) said.

According to Boeing (TBC), the new single-aisle, (CFM) (LEAP-1B)-powered airplane will deliver -20% lower fuel use than the first Next-Generation 737s and claims the lowest operating costs: -8% per seat less than the Airbus A320neo.

The 737 MAX 8 is the first member in (TBC)’s new family of single-aisle airplanes (the 737 MAX 7, 737 MAX 8, 737 MAX 200 and 737 MAX 9) to begin production.

The 737 MAX family has nearly 3,000 orders from 60 customers, Boeing (TBC) said.

News Item A-6: "Air India to Turn Profitable on Cheaper Fuel Prices, 787 Dreamliner Operations" December 15, 2015.

Ailing Air India (AIN)/(IND) is likely to turn profitable for the first time in more than >4 years, helped by a reduction of costs due to a slew of factors like cheaper fuel prices and increased capacity from 787 Dreamliner operations, among others.

News Item A-7: China Postal Airlines (CPZ) has ordered 10 Boeing 737-800NGF freighters to extend its fleet of express air cargo airplanes. The order also includes an option for seven Boeing 757-200 passenger airplanes that (CPZ) will convert into cargo carriers.

The order will be the first next-generation narrow body output from Boeing’s 737 converted freighters (BCF) program, which take existing airplanes and retrofit them for cargo use. (CPZ) uses a mix of Boeing 737-300 and 737-400s for its 26-strong fleet.

(CPZ) President, Yufeng Li called it a historical order for both companies. Li said the airplane’s lower operating costs and better efficiency would help “to ensure (CPZ)’s continued success in the [express freight] industry.”

Boeing (TBC)’s first 737 BCF will be converted from Boeing 737-800s, and will be followed by an order for 15 of the same airplanes from recent express cargo startup, (YTO) Airlines, based in Hangzhou.

Both carriers are hoping to tap into the rapidly expanding express cargo market in China, supplying cargo services for high tech firms and e-commerce suppliers in second-tier cities across China.

Boeing (TBC) said the airplanes would address “a growing need in the market,” and said it was working closely with multiple customers in China on similar orders.

(TBC) has forecast that the Chinese cargo market will grow by +6.7% by 2035.

News Item A-8: China Southern Airlines (GUN) has committed to 30 Boeing 737NGs and 50 737 MAXs, valued at $8.4 billion at current list prices, and its Xiamen Airlines (XIA) subsidiary is to take 30 Boeing 737 MAXs.

News Item A-9: "Jet2 Parent Orders Three More Boeing 737-800s" by (ATW) Victoria Moores, December 17, 2015.

The Dart Group, the parent of UK budget carrier, Jet2 (JT2), has placed a follow on order for three Boeing 737-800s, valued at $288 million at list prices.

This boosts Dart Group’s recent orders to 30 airplanes, following on from it finalizing 27 Boeing 737-800s on September 3, 2015.

A Boeing spokesman said these are newly ordered, rather than the firming of options from the September deal.

In a stock market disclosure, the Dart Group said the 737-800s have been acquired under “substantially” the same terms as the original 27.
“The company has negotiated significant discounts from the list price. The airplanes, which will assist the company in meeting the future anticipated growth of its leisure travel business and planned fleet replacement, are expected to be funded through a combination of internal resources and debt,” the Dart Group told the stock exchange.

The additional three 737-800s will be delivered between September 2016 and April 2018, the same time frame as deliveries from the September 2015 order.

Jet2 (JT2), which launched operations in 1983, already operates more than >60 Boeing airplanes. It serves 55 destinations from five bases in the north of the UK and carries over >3 million passengers annually.

News Item A-10: "Boeing Adds Hangar in Everett to Complete KC-46 Air Force Tankers" by Steve Wilhelm, Staff Writer Puget Sound Business Journal, December 22, 2015.

Boeing (TBC) is preparing additional hangar spaces for completion of KC-46 tankers, even though (TBC) has yet to deliver any of the first 18 airplanes the US Air Force (USF) has ordered.

To meet the tight August 2017 deadline for deliveries (something that will likely prompt the (USF) to order +179 more of the tankers) Boeing (TBC) is simultaneously testing the tanker systems and the airplane’s flight systems. The program eventually will be worth $50 billion to Boeing (TBC).

News Item A-11: "Boeing Pays $12 million Fine as Part of Safety Settlement with the (FAA)" by (ATW) Aaron Karp, December 22, 2015.

Boeing (TBC) has agreed to pay the US government $12 million as part of a safety compliance settlement with the (FAA) that also includes a pledge by (TBC) to improve its certification processes.

The (FAA) does not allege that “unsafe conditions” were created by Boeing (TBC), but the (FAA) had initiated two safety compliance cases against (TBC) and also had “11 other matters [with (TBC)] that were opened during the last several years,” it said. The “comprehensive” settlement resolves all issues with (TBC), the (FAA) said.

Boeing (TBC) will face up to $24 million in additional penalties over the next five years “if it fails to implement its obligations under the agreement,” the (FAA) said.

One of the cases the (FAA) had initiated against (TBC) “involved tardiness in developing information for the installation of fuel tank flammability reduction equipment on Boeing 747 and 757 airplanes,” the (FAA) stated. “The second initiated case involved (TBC)’s insufficient corrective action after discovering that a supplier had been providing incorrectly shaped fasteners.”

In the other 11 outstanding matters, (TBC) allegedly was too slow in submitting safety information and had what the (FAA) deemed “production quality control problems” that were not corrected.

USA Transportation Secretary, Anthony Foxx said: “This agreement is an important step toward ensuring that Boeing (TBC) fully meets all applicable compliance standards going forward.”

(FAA) Administrator, Michael Huerta added, “Compliance requires all certificate holders to develop and implement internal controls that ensure they’re operating according to the highest standards. Boeing (TBC) has agreed to implement improvements in its design, planning, production and maintenance planning processes, and has already implemented several of these improvements.”

Boeing (TBC) said the agreement with the (FAA) reflects its “commitment to safety, quality and compliance (a commitment that has helped make travel on large commercial airplanes the safest means of transportation in history)” (TBC) added, “(TBC) believes that this agreement not only fairly resolves announced and potential civil penalty actions (most of which date back years, and two of which were previously announced in 2012 and 2013) but also will further enhance (TBC)’s self-correcting quality and compliance systems.”

(TBC) said many of the improvements it has promised to make “have already been implemented or are in the process of implementation.”

Part of (TBC)’s agreement with the (FAA) involves enhanced monitoring of the many companies in the supply chain providing components to (TBC) to build commercial airplanes. Boeing (TBC) is required “to determine whether incomplete work is being accepted, conduct an initial set of audits of its suppliers, analyze the results, and consult with the (FAA) on audit findings,” the (FAA) said. “Based upon risk analysis, [(TBC) may be required to] conduct a second, more extensive set of audits, again reporting the results to the (FAA) and providing the (FAA) with a summary of any corrective actions.”

News Item A-12: Boeing's Heidi Capozzi, 46, was elected on December 16, 2015, to replace Tony Parasida as Senior VP of Human Resources for The Boeing Company upon his retirement in 2016. Tony announced his intent to retire this spring after 38 years. Heidi is currently a member of Boeing’s Executive Council. Effective March 1, Heidi will assume responsibility for Human Resources (HR) including leadership development, training, workforce planning, employee relations, compensation, benefits and diversity initiatives.

Most recently, Heidi served as VP of Leadership Talent Management Organization Effectiveness, the group responsible for identifying and developing emerging leadership talent, as well as running the company's leadership center in St Louis.

Prior to her current position, Heidi served as Director of Human Resources (HR) for the Airplane Programs division of Boeing Commercial Airplanes (BCA), where she supported the 737, 747, 767, 777 and 787 programs. Before joining (BCA), Heidi was Director of Human Resources (HR) for the Surveillance & Engagement (S&E) division of Boeing Military Aircraft.

Heidi joined Boeing (TBC) in 2009 following the acquisition of Insitu, a company in the design, development, production and operation of unmanned aircraft systems, where she served in multiple leadership roles including VP of Internal Services & Quality and VP of Human Resources (HR). As a member of the Insitu executive team, she led multiple functional areas and guided the development of one of America’s fastest growing technology companies (Inc Magazine, 2006, 2007, and 2008).

Heidi has also served in leadership roles in human resources, compensation and communications at both Northrop Grumman (GRU) and (TRW)’s automotive and defense business.

She holds a bachelor's degree from Oberlin College in Political Science & Asian studies and earned a master's degree in Human Resources & Industrial Relations from the University of Minnesota.

News Item A-13: Boeing South Carolina rolled out its 100th 787 Dreamliner. The 787-8 now begins system checks, fueling and engine runs on the flight line. The 787-8 will be delivered to American Airlines (AAL) next year.

See attached - - "TBC-2015-12 - 100th 787 at S Carolina.jpg."

News Item A-14: Air Lease Corporation (ALE) announced a long-term lease agreement with Far Eastern Air Transport (FEAT) (FAT), an international airline based in Taipei, Taiwan, for one Boeing 737-800. The airplane is presently on lease to a European carrier since early 2012 and will deliver to (FAT) in June 2016. This is (ALE)’s second 737 lease placement with (FAT), the first being a new 737-800 delivering in the second quarter of 2016, which was announced earlier this year.

News Item A-15: (EVA) Air has agreed to lease four new Boeing 787-9s and two new 787-10s from Air Lease Corporation (ALE).

News Item A-16: Camair-Co ((IATA) Code: QC, based at Douala) (CAM) has signed a support agreement with Boeing (TBC) Consulting wherein the American firm will help finalize a turnaround plan for (CAM), the loss-making carrier.

During the signing ceremony in Yaounde last week, (CAM) (CEO), Jean Paul Nana Sandjon said Boeing (TBC) would first assess a recovery plan that has already been devised by (CAM)'s management, modifying it where necessary. "Together we will prepare Camair-Co (CAM)'s business plan for the period 2016 - 2019," he told the "Cameroon Tribune. This document will be submitted to the Government for approval before its implementation."

The plan covers the state-backed carrier's investment needs, fleet and route requirements, and estimates of profitability among others. Boeing (TBC) personnel will also visit the Central African nation on a quarterly basis for the next year and a half to assess adherence to the plan and to assist in upgrading the airline's Information Technology (IT) and Maintenance Repair & Overhaul (MRO) infrastructure. Overall, Camair-Co (CAM) is expected to turn cash-flow positive in two-to-three years.

Having secured a XAF30 billion/USD50 million loan from Pan-African financing house, Ecobank, earlier this year, Camair-Co (CAM) set about devising a recovery plan, its third since its creation in 2011. Under the current version, (CAM) will now supplement its sole wide body jet (a 767-300(ER)) with a 777 while acquiring 737 Classics for its regional and domestic operations. The two MA-60s also feature and are expected to make their commercial debut on December 29 on flights between Douala and Yaoundé Nsimalen.

News Item A-17: "Amazon to Set Up Own Air Freight Unit" by www.ch-aviation.com, December 21, 2015.

Online retail giant Amazon is in talks with Boeing (TBC)) over the proposed acquisition of "at least" 20 freighter airplanes, "Cargo Facts" has reported.

Following weeks of speculation in the cargo community, informed sources told "Cargo Facts" that Amazon is indeed pushing ahead with plans to set up its own air freight operation, specializing in overnight deliveries throughout the USA. As such, talks with Boeing (TBC) reportedly focus on the 767-300F with deliveries to be spanned over three years.

In preparation for the logistics unit launch, Amazon has partnered fellow USA firm and parent to (ABX) Air ((IATA) Code: GB, based at Wilmington, Ohio, USA), Air Transport Services Group Inc, in trialing freighter operations. Thus far, Amazon has set up bases around the USA including Seattle Boeing Field and Wilmington, Ohio. At the former, Amazon has chartered a 737F freighter from Northern Air Cargo ((IATA) Code: NC, based at Anchorage Ted Stevens) (NAC) for use in serving Seattle, San Bernardino (close to a large Amazon fulfillment center), and the small city of Boise in Western Idaho.

The multi-billion dollar firm's move into the logistics market is expected to have serious repercussions on the global air freight market, given that the majority of its parcels are shipped using third party operators such as United Parcel Service (UPS), FedEx (FED), and the United States Postal Service.

News Item A-18: See attached - - "777X Future of Flight" - -

January 2016: News Item A-1: "(TBC)’s 2015 Net Profit Falls -5% on KC-46 Tanker, & 747-8 Charges" by (ATW) Aaron Karp, January 27, 2016.

See attached - - "TBC-2016-01 - KC-46 Tanker Test.jpg."

Boeing (TBC) reported net income of $5.18 billion for the full-year 2015, down -5% from a net profit of +$5.45 billion in 2014, as significant one-time charges related to two programs (the KC-46 tanker and the 747-8) hit the bottom line.

(TBC) President & (CEO), Dennis Muilenburg, however, pointed to a “solid core operating performance” driven by “record deliveries and revenues in commercial airplanes.” He added that Boeing is “well positioned for profitable growth.”

(TBC)’s 2015 revenue was $96.11 billion, up +6% from 2014 and a full-year record for the company. Operating profit was essentially flat year-over-year at +$7.44 billion.

Boeing Commercial Airplanes (BCA) posted a +10% year-over-year rise in revenue in 2015 to $66.05 billion as 762 commercial airplanes were delivered, up +5% from 2014. But the unit’s operating profit fell -20% to $5.16 billion, owing to the charges related to the 747-8 production rate slow down and the tanker (the majority of the second-quarter tanker charge was absorbed by (BCA) because the KC-46 is based on the 767 platform).

(BCA) booked 321 net orders during the 2015 fourth quarter, including 203 737 MAX orders. Net commercial airplane orders for the full year totaled 768. Boeing ended the year with an order backlog of nearly 5,800 commercial airplanes valued at $432 billion.

News Item A-2: "Airbus (EDS) & Boeing (TBC) December 2015 Orders & Deliveries Roundup" by (ATW) Mark Nensel, January 13, 2016.

Airbus (EDS) delivered 79 commercial aircraft to 31 airlines and eight lessors in December 2015; Boeing (TBC) delivered 50 commercial airplanes to 28 airlines and seven lessors.

For the entirety of 2015, Boeing (TBC) delivered 735 commercial airplanes to 78 airlines, 13 lessor companies, and 13 unidentified customers. Airbus (EDS) delivered 628 commercial aircraft to 69 airlines and 14 lessor companies.

Boeing (TBC) logged orders for 219 commercial airplanes in December, approximately $22.1 billion in sales. Boeing (TBC)’s biggest order for the month came from an as yet-officially unidentified customer (but very likely China Southern Airlines (GUN), according to a December 17 statement from Boeing (TBC)) for 50 737 MAX 8 airplanes and 30 737-800 airplanes, valued at $8.38 billion.

Airbus (EDS) firmed orders for 59 commercial aircraft in December, worth $10.66 billion combined, from eight airlines and two undisclosed customers. A December 23 order from AirAsia X (ASX) for 11 A330-900s (converted from an initial order for 11 A330-300s) was Airbus (EDS)’ biggest order financially for the month, worth $3.13 billion. The next largest was Turkish Airlines (THY)’s December 1 order for 20 A321neos, valued at $2.49 billion.

But the biggest news was Airbus (EDS)’ first firm order in 2015 for the A380; an order for three of the aircraft was logged by an undisclosed customer, valued at $1.28 billion.

For commercial airplanes (not including business jet/(VIP) orders, private customer orders and military/government airplane orders) Boeing (TBC)’s gross firm order total for 2015 was 857, valued at approximately $123 billion. However, accounting for 110 cancellations and changes registered over the year, Boeing (TBC)’s net order total for 2015 came to 747 airplanes, valued at approximately $106.61 billion. Airbus (EDS)’ gross firm order total in 2015 came to 1,131 commercial aircraft, valued at approximately $152.7 billion. Accounting for 103 cancellations and changes over the year, Airbus (EDS)’ net order total for 2015 was 1,028 aircraft, valued at approximately $136 billion.

Boeing’s December commercial deliveries included four 737-800s to Beijing-based Dragon Aviation Leasing and three aircraft each to Dutch lessor AerCap (DEA) (two 787-9 Dreamliners and a 737-800), American Airlines (AAL) (two 737-800s and a 787-8 Dreamliner) and Southwest Airlines (SWA) (all 737-800s). Additional 787-8 Dreamliners were delivered to Avianca (AVI) and Singapore-based Scoot (SCT). Additional 787-9 Dreamliners were delivered to Virgin Atlantic (VAA), which received two of the airplanes, and Air Canada (ACN) and the (LATAM) Airlines Group, both of which received one.

Airbus (EDS)’ 79 commercial deliveries in December included 10 aircraft to Singapore-based lessor (BOC) Aviation (SIL) (four A330-300s bound for AirAsiaX (ASX), four A321neos bound for Capital Airlines (DER) and two A320ceos bound for Tianjin Airlines (GCR)); five aircraft each to lessor group (CIT) (TCI) (two A321ceos bound for Air Canada rouge, an A330-300 bound for Fiji Airways, an A330-300 bound for Sri Lankan Airlines (SRL) and an A350-900 bound for Vietnam Airlines (VIE)) and Avianca (AVI) owner, Synergy Aerospace (ONE) (three A320ceos and two A330-200s); four aircraft to (LATAM) Airlines Group (three A321ceos and an A350-900) and three aircraft each to Emirates (EAD) (all A380s), lessor (GECAS) (GEF) (two A320ceos bound for airberlin (BER) and an A320ceo bound for Qingdao Airlines (QDO)), lessor Intrepid Aviation (INL) (three A330-300s), Saudi Gulf Airlines (all A320ceos) and China’s Spring Airlines (CQH) (all A320ceos).

Boeing (TBC)’s other firm order December customers included Delta Air Lines (DAL), which ordered 20 737-900ERs, valued at approximately $2.04 billion and Turkish Airlines (THY), with 10 737-8 MAX airplanes ordered, valued at $1.1 billion. Additionally, on December 21, an unidentified customer ordered 33 737-800s, valued at $3.17 billion; and three other unidentified customers ordered a total of 31 737 MAX airplanes and 12 737-800 airplanes (nearly $4.7 billion in sales).

Airbus (EDS)’ other firm orders in December came from South African Airways (SAA), which ordered five A330-300s, valued at $1.27 billion; (IAG) airlines group: British Airways (BAB), Iberia (IBE) and Vueling (VUZ), which all ordered five A320neos each, valued at $1.59 billion total; Chinese lessor (CALC) (CHD), which ordered two A320ceos, valued at $194 million; and Air New Zealand (ANZ), which ordered a single A320ceo, valued at $93.9 million.

News Item A-3: Boeing (TBC) delivered 762 commercial airplanes in 2015, up +5.4% from 723 airplanes delivered in 2014. Its Next-Generation 737 program set a new annual delivery record in 2015, with 495 of the single-aisle airplanes delivered, up +2.1% from 2014. The Next-Generation 737 family dominated Boeing (TBC)’s delivery total for the year.

Boeing (TBC) delivered 267 of its wide body family of airplanes in 2015, up +12.2% from 2014, including 135 787 Dreamliners, up +18.4% year-over-year (YOY); 98 777s, down -1% (YOY); 16 767s, up from six delivered in 2014; and 18 747s, down -5.3% (YOY).

(TBC) booked 768 net orders in 2015, valued at $112.4 billion at list prices. As of December 31, (TBC)’s backlog for unfilled commercial orders stood at a historic high of 5,795 airplanes. Compared to 2014, (TBC)'s net order total was down -46.4% year-over-year (Boeing’s net order total in 2014 came to 1,432 commercial airplanes, valued at $232.7 billion at then-current list prices).

“We had a solid year of orders in 2015,” Boeing Commercial Airplanes (BCA) President & (CEO), Ray Connor said. “[We are] maintaining a strong, balanced backlog that will help ensure a steady stream of deliveries for years to come.”

“Global passenger traffic in most key regions is increasing,” (BCA) VP Marketing, Randy Tinseth said. “Worldwide demand for air travel has continued to be robust.”

The majority of Boeing’s net orders in 2015 were for 737 family airplanes, with orders for 588 of the model, 76.6% of the yearly total; orders for 737 MAX models dominated. Other yearly net order totals included 71 787 Dreamliners, 58 777s, 49 767s and two 747s.

Overall fourth-quarter deliveries were down -6.7% (YOY), with 182 commercial airplanes delivered, compared to 195 in the year-ago December quarter.

See attached: "TBC-2015-Performance-A/B.jpg" and comparison to Airbus in "TBC-2015-12 - vs Airbus-A/B.jpg."

News Item A-4: FedEx Corporation commits to buy 16 Boeing 777s
Updated January 4, 2016,

News Item A-5: "Air China (BEJ) Orders 6 Boeing 777-300ERs" by (ATW) Katie Cantle, January 7, 2016.

Air China (BEJ) has ordered six Boeing 777-300ERs, worth $2.051 billion at list prices, according to a statement released by the Shanghai Stock Exchange. The new 777s, which will be used for international expansion, are scheduled to be delivered between 2016 - 2017. The deal is subject to Chinese government approval.

(BEJ) noted the deal would increase (BEJ)’s capacities by +5% in terms of (ATK)s as of December 31, 2015.

According to the Civil Aviation Administration of China (CAAC), (BEJ) the Beijing-based carrier has applied to open six international routes in 2016, comprising 3x-weekly, Beijing - Zurich, 7x-weekly, Chengdu - Sydney, 3x-weekly, Chongqing - Dubai, 5x-weekly, Shanghai (Pudong) - San Jose, 4x-weekly, Shanghai (Pudong) - Manchester, and 4x-weekly, Shanghai (Pudong) - Barcelona service.

With this new order, Air China (BEJ) will increase its unfilled airplane orders with Boeing (TBC) to 90 units, which include orders for new 787-9 Dreamliners.

News Item A-6: Boeing (TBC) and All Nippon Airways (ANA) celebrated (ANA)’s 100,000th revenue flight with the 787 Dreamliner during a gate ceremony at Sea-Tac International Airport. (ANA) has become the first airline in the world to reach 100,000 787 flights.

News Item A-7: "United (UAL) to Order 40 Boeing 737-700s to Replace Regional Capacity" by (ATW) Aaron Karp, January 21, 2016.

United Airlines (UAL) said it has reached an agreement to acquire 40 new Boeing 737-700s, which will be used to replace a portion of (UAL)’s domestic capacity now being operated under contract by regional airlines.

The planned order appeared to be a serious blow for Bombardier (BMB), which had hoped (UAL) would choose the CSeries for its smaller, domestic narrow body needs. (UAL) executives have said they want to become less reliant on regional carriers for domestic flying and were looking at airplanes in the 100-seat size range. The 737-700 can fit about 118 seats in the configuration (UAL) will likely use, which will include domestic first-class (F) and premium-economy (PY) seats.

However, (UAL) (CFO), Gerry Laderman left the door open for more mainline airplane orders to replace regional capacity, telling analysts that (UAL) is “continuing to pursue additional airplanes.”

The new 737-700s will begin entering (UAL)’s fleet in mid-2017. “These airplanes will replace a portion of the capacity currently operated by (UAL)'s regional partners, as the company expects to reduce by more than half the number of 50-seat airplanes its fleet by 2019,” (UAL) said.

News Item A-8: Gulf Air (GUL) has announced major new and adjusted orders, as expected, at the Bahrain International Air Show. The new deals will see (GUL) expand again in coming years after a period of retrenchment.

Speaking on the first day of the Bahrain International Air Show, acting (CEO), Maher Salman Al Musallam said (GUL) would switch its original plan to buy “12 to 16” Boeing 787-8s for an order of 16 larger 787-9 versions, in a deal worth $4.2 billion at list prices.

Engine choices for both orders have yet to be decided, Al Musallam said. The choice for the 787, between the (GE) (GEnx-1B) and the Rolls-Royce (Trent 1000), is expected to be made in early February.

Financing options are also still under review, acting (CFO), Sahar Ataei said. Its current fleet is financed equally through leases and financing, and Ataei said, “We don’t want to put all our eggs in one basket.”

The first 787-9 is scheduled for delivery in April 2018.

(GUL) has been through a major restructuring since early 2013, a process that has seen its fleet shrink from 40 to 28 as it battled to reduce huge deficits.

(GUL) has increasingly focused in recent years on high-yield, high-frequency point-to-point regional services, whereas it previously concentrated on transit passengers through its Muharraq hub.

News Item A-9: Boeing (TBC) approved the Monterrey laboratory of Exova to conduct specialist metals testing for its global supply chain. The approval enables Exova to deliver testing for Boeing’s suppliers including undertaking specialist processes: metallurgical, liquid penetrant inspection (LPI) and mechanical testing. Exova Mexico is now one of two approved laboratories in the country for these services, as well as the only commercial laboratory with Boeing (TBC) approval for mechanical testing.

News Item A-10: "Cargo Market Weakness Drives Boeing to Reduce 747-8 Production" by (ATW) Aaron Karp, January 22, 2016.

Boeing (TBC) will reduce the production rate of the 747-8 to 0.5 airplanes per month (or just six per year) starting in September 2016, citing softness in the global air cargo market.

The 747-8 is now being produced at the rate of 1.3 airplane per month and the rate was previously slated to drop to one per month in March.

Boeing Commercial Airplanes (BCA) President & (CEO), Ray Conner said that the “air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8F freighter.”

(BCA) VP Marketing, Randy Tinseth said, “The 747-8 and its future are tied to the cargo marketplace, and frankly, this is a market that’s been up and it’s been down over the last few years. Unfortunately, in the middle of 2015, that market started to soften.”

He added that the “lower rate allows us to capture the [slower] growth in the market we expect over the coming years. In addition, it allows us to bridge to an upcoming replacement cycle of older 747 airplanes. Today, there are more than >200 old 747F freighters in operation. The 747-8 is the perfect replacement for those airplanes and the replacement cycle should begin later this decade.”

(BCA) will take an $885 million pre-tax charge tied to the 747-8 rate slowdown. “The earnings charge will not affect the company’s 2015 revenue or cash flow,” Boeing (TBC) said.

News Item A-11: "Boeing to Boost 737 Production, Cut 777 Build Rate"
by (ATW) Aaron Karp, January 27, 2016.

Boeing (TBC) will further increase the 737 production rate to 57 airplanes per month in 2019, citing robust demand for narrow bodies, but the manufacturer is also cutting 777 production to seven airplanes per month in 2017.

The 777 rate cut to be implemented next year, which will bring production down from the current rate of 8.3 777s built per month, follows on the heels of (TBC)’s decision to cut 747-8 production to just 0.5 airplanes per month starting in September 2016. The 777 production rate slowdown will occur as (TBC) transitions to 777X production (the first 777X is expected to roll out in 2018 with service entry (EIS) slated for 2020.

But as wide body production rates come down, (TBC)’s narrow body build rate will continue to rise. (TBC) had already planned to go from building 42 737s per month currently to 47 per month in 2017 and 52 per month in 2018. The announcement of the rise to 57 per month in 2019 comes on the same week (TBC) expects to achieve first flight on the 737 MAX program.

News Item A-12: See - "TBC-2016-01 - TBC Gloomy Outlook-A/B.jpg."

News Item A-13: "Boeing 737 MAX Completes 1st Flight" by (ATW) Aaron Karp, January 29, 2016.

The first Boeing 737 MAX flight test airplane landed at Boeing Field in Seattle after a 2 hr 44 min first flight.

The (CFM) International (LEAP-1B)-powered 737 MAX 8 took off from Renton, Washington at 9:48 am local time on January 29 as hundreds of rain-soaked onlookers cheered. According to Boeing (TBC), the airplane first ascended to 15,000 feet altitude for a series of tests. It then rose to as high as 25,000 feet.

See video:

(TBC) plans to add three more airplanes to the 737 MAX 8 flight test program, with the second flight test airplane expected to fly for the first time in the next 3 - 5 weeks. It is hopeful of getting the first flight test airplane back in the air again as soon as January 30.

The 737 MAX 8 is slated to enter service with Southwest Airlines (SWA) in mid-2017. (TBC) will also produce 737 MAX 7 and MAX 9 variants of the re-engined narrow body.

Airbus (EDS), which delivered the first Airbus A320neo to Lufthansa (DLH) on January 24, offered congratulations to its rival on the 737 MAX’s first flight. “Great to see the global single-aisle fleet expanding with [the] latest technology engines,” Airbus (EDS) said on Twitter.

Watch the landing here: https://www.youtube.com/watch?annotation_id=channel%3A7029229a-50c3-4e3a-b0f0-05120b16faee&feature=iv&src_vid=LuT7bUXZtxs&v=WTy45Bi7HCw

See attached - - "TBC-2016-01 - 737 MAX-A/B 1st Flight.jpg"
thanks to Seattle Times' Dominic Gates' excellent coverage.

See attached - - "Top Boeing Videos of 2015" on - -
https://www.youtube.com/playlist?list=PL2jATyVdY-7Ha4e6yOaHR5NfKNm2stb8Z

February 2016: News Item A-1: Boeing Aerospace & Defense is deliberating manufacturing its F/A18 Super Hornet multirole fighters in India as part of the "Make in India" initiative, (CEO) Dennis Muilenburg said.

News Item A-2: Saudi Arabia's national airline, Saudia (SVA), took delivery of two Boeing 787-9s and a 777-300ER. A third 787 Dreamliner will be delivered to Saudia within the next week. (SVA) ordered eight 787-9s in 2010.

Saudia (SVA) will now have 48 Boeing airplanes in its fleet that currently includes 747-400s, 777-200ERs, 777-300ERs and 787-9s. Over the last 55 years (SVA) has taken delivery of over >130 Boeing airplanes including 707s, 737s, MD-11Fs, DC-9s and MD-90s.

Since entering service in 2011, the 787 family is flying more than >350 routes and has established more than >75 new nonstop routes around the world. More than >60 customers (including Saudia (SVA)) from around the world have placed orders for more than>1,000 787S, making the 787 Dreamliner the fastest selling twin-aisle airplane in Boeing history.

News Item A-3: "Boeing to Provide P-8 Poseidon Training Systems to Royal Australian Air Force", by aviationnews.eu, February 3, 2016.

The Royal Australian Air Force (RAAF) has selected Boeing (TBC) to provide service with P-8 maintenance training devices. This is the first international sale of P-8 maintenance training equipment currently used by the US Navy (USN) for its P-8A Poseidon fleet.

The (RAAF) virtual tr4ainers were purchased through the US Navy and (RAAF) Cooperative Program and will be used to train P-8 maintenance personnel (MT) starting in early 2018. "This provides the (RAAF) with the ability to train its maintainers on more than > 1,400 maintenance procedures using the Boeing provided suite of devices," said Tom Wagner, Boeing's P-8 Maintenance Program Manager. (RAAF) maintainers will be able to practice at great length before they are required to perform maintenance on the actual P-8A airplanes."

The maintenance training devices provide interactive, high fidelity simulations based on actual mission systems software, while the hardware-based trainers are full-scale replicas of airplane components.

Earlier this year, the (RAAF) ordered a Boeing P-8 aircrew training system for training pilots (FC) and mission crews to operate the airplane, its sensors, communications and weapons systems.

In February 2014, the Australian government approved the acquisition of 8 P-8A airplanes with an option for +4 more. That contract included training and initial spares and support equipment. Boeing plans to begin delivering the airplanes in late 2016 and the P-8 training system in 2018.

Boeing Aerostructures Australia manufactures ailerons for 737 series airplanes and their derivatives, including the P-8.

News Item A-4: "Boeing (TBC) Electronic Logbook on Air New Zealand 787 Dreamliner Fleet" by aviationnews.eu, February 8, 2016.

Boeing (TBC) announced the full integration of its Electronic Logbook (ELB) within Air New Zealand (ANZ)'s 787 Dreamliner fleet, replacing paper logbooks with electronic records that improve operational efficiency and reliability.

"Advances in digital technology such as the (ELB). provide a more data-driven predictive maintenance process. With this capability we can proactively troubleshoot and quickly solve maintenance items, further driving improvements in reliability and on-time performance - which is great news for our customers," said Captain Dave Morgan, (ANZ) Chief Flight Operations & Safety Officer.

(ANZ) is among the initial airlines that have gained operational approval for use of the (ELB) application with the 787. (ANZ) currently operates a fleet of 6 787-9s with an additional +6 on order.

The (ELB) runs on the 787'S Electronic Flight Bag (EFB) and onboard server system to collect airplane flight data and crew-observed fault input, sharing that information with maintenance technicians (MT) and maintenance systems on the ground while the 787 is still en route. Ground crews, along with needed parts and documentation, can then be stationed at the gate to perform needed maintenance as soon as the 787 lands, maximizing maintenance process efficiency and minimizing passenger delays.

(ANZ) worked with the New Zealand Civil Aviation Authority to verify and validate (ELB) operations to gain the operational authorization needed to use the tool across the airline's 787 fleet.

News Item A-5: (GE) Aviation (GEC) said final assembly is well underway on the first full (GE9X) engine that will test in the first half of 2016, four years before the (GE9X) engine enters service on a Boeing 777X airplane.

“The first engine to test (FETT) wraps up the extensive technology maturation program for the (GE9X) engine program, which began almost five years ago and has included component-level, system-level and core demo testing to validate the advanced technologies and materials in the new engine,” (GEC) said. “(FETT) brings all the technologies together to demonstrate their operability as a complete propulsion system as well as provide early information on the engine’s aerodynamic and thermal characteristics.”

(GEC) said the second (GE9X) engine is scheduled to test in 2017, along with flight testing on (GE) Aviation’s flying test bed. “This timing assures all learnings from (FETT) will be captured in all certification engines. Engine certification is anticipated in 2018.”

(GEC) said it has nearly 700 (GE9X) engines on order.

Other participants in the (GE9X) program are: (IHI) Corporation, Snecma and Techspace Aero (Safran), and (MTU) Aero Engines AG.

News Item A-6: Boeing 737 MAX/777-X/787 Innovations for a Better Planet:
http://www.boeing.com/innovation?cm_mmc=corp-innovations-_-native-_-outbrain-_-777_performance-aut/#/commercial/better-wings-for-a-better-planet

News Item A-7: "Boeing Engineers Overwhelmingly Back New Labor Contracts" bBy Alwyn Scott, "Reuters" February 18, 2016.

Boeing Company (TBC)'s engineers' union ratified six-year labor contracts by a wide margin on February 17, a vote that ensures stability during a period when (TBC) is bringing out new versions of its two most profitable jetliners, the 737 and the 777.

More than >70% of voters backed the agreements for two bargaining units of the Society of Professional Engineering Employees in Aerospace (SPEEA) that cover 20,100 workers, the union said. The deals mark a sharp shift from contentious negotiations over the last contract in 2012. The agreements take effect immediately, replacing a contract due to expire in October. They govern 14,100 professional engineers and 6,000 technical workers, mostly in the Puget Sound area, but including some in California, Oregon, Utah, and Florida. The new contracts expire in October 2022.

Professional workers voted 6,085 to accept and 2,460 to reject, while technical workers voted 2,825 to accept and 1,030 to reject, the union said.

The new contracts improve wages, vacation, layoff and retirement benefits, the union said. Boeing agreed to pay +15% more than the national average of wages for professional engineers, as determined by a Mercer benchmark for high-tech workers. Technical workers will be paid >22% above the benchmark, with the percentage falling to 17% by 2022.

The agreements "grew from a strong desire on both sides to find common ground and negotiate contracts that work for (SPEEA) members and Boeing (TBC)," said Ryan Rule, President of the union. "It was a unique opportunity that allowed these early contract talks," he added. "We're glad it worked."

Boeing (TBC) thanked the workers. Commercial Airplanes (CEO) Ray Conner said the agreement "helps position us for continued success in a highly competitive landscape". Conner oversaw the contract talks, (TBC) said.

The agreement is seen as signaling a change in tone from two years ago, when former (CEO) Jim McNerney quipped on a conference call that workers would "still be cowering" after he turned 65 later that year, a remark for which he later apologized.

Asked about the new relationship with labor, current (CEO), Dennis Muilenburg said in January that the company faces tough competition. "And at the same time, we want to recognize this great team and treat them with the respect they deserve."

News Item A-7: Boeing (TBC) delivered 47 commercial airplanes to 23 airlines and five lessors in January.

(TBC) logged orders for 63 commercial airplanes in January, valued at approximately $9.76 billion at current list prices. (TBC)’s biggest order for the month by number of airplanes came from United Airlines (UAL), which on January 20 firmed an order for 40 737-700s, valued at $3.22 billion. Monetarily, (TBC)’s biggest January order came from Bahrain flag-carrier Gulf Air (GUL); (GUL) ordered 16 787-9 Dreamliners, valued at $4.23 billion.

Boeing (TBC)’s January commercial deliveries included six 737-800s to Ryanair (RYR), three airplanes each to Air Lease Corporation (ALE) (two 737-800s and a 777-300ER) and Xiamen Airlines (XIA) (all 737-800s) and two airplanes, each to American Airlines (AAL) (both 737-800s), Delta Air Lines (DAL) (both 737-900ERs), (GECAS) (GEF) (both 737-800s), Lion Air (MLI) (both 737-800s), Saudia (SVA) (two 787-9 Dreamliners), Southwest Airlines (SWA) (two 737-800s), Turkish Airlines (THY) (a 777-300ER and a 737-800), and United Airlines (UAL) (a 737-900ER and a 787-9 Dreamliner).

Additionally, a 787-8 Dreamliner was delivered to Japan Airlines (JAL)/(JAS); British Airways (BAB), International Lease Finance Corporation (ILFC), and (LATAM) Airlines Group (LAN)/(TPR) each took delivery of a 787-9 Dreamliner during the month.

Boeing’s other commercial orders for the month came from Air China (BEJ) (six 777-300ERs, valued at $2.04 billion) and Air Lease Corporation (ALE) (a 787-9 Dreamliner, valued at $264.6 million).

A review of Airbus Industrie (EDS) order numbers for the month of January 2016 show (EDS) recorded an order for fourteen A330-900neo twinjets from an unidentified customer.

It also saw, as expected, Garuda Indonesia (GIA) cancel outstanding orders for seven A330-300s.

News Item A-8: Beijing-headquartered, Okay Airways (OKA) is set to become the Chinese launch customer for the Boeing 737 MAX 9, after committing to take 12 737 family airplanes and eight options, valued at $1.3 billion at list prices.

The agreement, which was announced at the Singapore Airshow on February 17, covers eight MAX 8s, three MAX 9s and one 737-900ER. The deal remains subject to Chinese government approval, before it can be logged as a firm order.

“We have been using 737 family airplanes since we launched operations in 2005. They have made (OKA) profitable for many years,” (OKA) (CEO), Wang Shusheng told media at the air show. “We have committed to 20 airplanes and I am sure these are going to be a great asset, supporting (OKA)'s future development.”

The new airplanes will be used for fleet modernization. Okay operates 14 737-800s, three 737-900ERs and one Boeing 737-300F freighter, which serve more than >100 domestic and international routes.

Privately owned (OKA) is planning to add Beijing as its seventh operating base, growing to eight by 2020. “Through (OKA)’s long-term strategic partnership with Boeing (TBC), we are very confident that we will become the best privately-owned airline in China,” (OKA)’s (CEO) said.

News Item A-9: "(GE9X) Engine for 777X is "Coming Together Nicely"
said Bill Millhaem, General Manager (GE90) & (GE9X) Programs" by Stephen Trimble, flightglobal.com, February 16, 2016.

(GE) Aviation (GEC) said final assembly is well underway on the first full (GE9X) engine that will test in the first half of 2016, four years before the (GE9X) engine enters service on a Boeing 777X airplane. “(FETT) brings all the technologies together to demonstrate their operability as a complete propulsion system as well as provide early information on the engine’s aerodynamic and thermal characteristics.”

(GEC) said the second (GE9X) engine is scheduled to test in 2017, along with flight testing on (GE) Aviation’s flying test bed. Engine certification is anticipated in 2018.”

(GEC) said it has nearly 700 (GE9X) engines on order.

Boeing (TBC) plans to start flying the engine on the first 777-9 test airplane in 2018, followed by certification the following year, and entry into service (EIS) in 2020.

The (GE9X) improves high-pressure technology to achieve a fuel burn advantage over the (GE90), with a compressor pressure ratio of 27:1.

News Item A-10: Boeing (TBC) and Swiss International Air Lines (SWISS) (CSR) have signed agreements for several Boeing solutions to increase efficiency and streamline maintenance performance tasks. The Boeing tools, Airplane Health Management, Maintenance Performance Toolbox and Loadable Software Airplane Part (LSAP) Services, will use real-time information to optimize SWISS (CSR) maintenance on new 777s. SWISS (CSR) is the first airline to integrate Boeing Software Distribution Tools, a component of (LSAP), with 777s.

News Item 11: Boeing President & (CEO), Dennis Muilenburg will take on the additional role of Chairman of the company’s board of directors from March 1.

Muilenburg succeeded Jim McNerney as Boeing’s (CEO) on July 1, 2015, but McNerney remained Chairman of the board, a role he has held since 2005. When the (CEO) transition occurred, McNerney also said he would retire from the company at the end of February 2016.

Boeing (TBC) said February 23 that its board has voted to make Muilenburg Chairman upon McNerney’s retirement.

Kenneth Duberstein, the Boeing board’s lead Director, said in a statement that Muilenburg “has proved that he has the leadership skills, energy and vision to build on the strong foundation that Jim established.”

Muilenburg was Boeing (TBC) President & (COO) prior to ascending to the (CEO) position last year. He has warned of a slight year-over-year decline in (TBC)’s revenue and commercial airplane deliveries in 2016, but projects resumed growth in 2017 and beyond.

Leanne Caret has been named President & (CEO) of Boeing's Defense, Space & Security business, which is based in St Louis, effective March 1. She succeeds Chris Chadwick, who is retiring after 34 years at Boeing (TBC).

Leanne, a 28-year company veteran, leads the Defense, Space & Security unit's Global Services & Support business, which has about 13,000 employees in 295 locations around the world.

Ed Dolanski will take Leanne's post as President of Global Services & Support. He was President & (CEO) of Boeing subsidiary, Aviall.

News Item A-12: "Boeing Says 787 Production Will Ramp to 12 Per Month by Summer" by Harriet McLeod, Reuters, February 16, 2016.

The Boeing Company (TBC) is ramping up total production of its wide body 787 Dreamliner to 12 planes a month from ten, Beverly Wyse, VP & General Manager of Boeing South Carolina said February 16.

Boeing (TBC) delivered the 100th 787 Dreamliner wide body commercial jet from its South Carolina plant to American Airlines (AAL) on February 16. (AAL) now has 14 787-8s, all on international routes, said Terri Pope, Charlotte Hub Manager. This autumn, it will take delivery of its first 787-9, a larger version of the original Dreamliner, she said. (AAL) has ordered 22 of those, she said.

(TBC)'s South Carolina plant delivered its first 787 in October 2012. "We'll do the next hundred in half the time," Wyse said. South Carolina builds about three complete 787s a month. The 787s are also built in Everett, Washington State.

(TBC) plans to boost total 787 production to 12 planes a month before the middle of the summer, a spokeswoman said.

Wyse said she does not anticipate reducing the number of direct Boeing employees at the South Carolina plant. "On a per airplane basis, our employee base will come down, but we cover that with natural attrition and having temporary workers, plus contract workers," Wyse said, adding that she could not completely rule out layoffs.

The South Carolina plant will be the exclusive builder of the newest "stretch" version, the 787-10, which (TBC) calls the "Dash 10." Design work for the 787-10 is complete, first flights will take place next year, and first deliveries will be in 2018, Wyse said.

News Item A-13: Air Niugini (NIU) has ordered four Boeing 737 MAX 8 airplanes at the Singapore Airshow. The previously unidentified order adds to the Papua New Guinea national carrier’s fleet of Next-Generation 737s and 767-300ERs.

“Papua New Guinea is like no other place on earth and the 737 MAX will allow us to economically and efficiently connect our beautiful country with the rest of the world. The superb economics of the 737 MAX will enable us to increase flight frequencies and develop into new markets which offer significant opportunities for Air Niugini (NIU),” (NIU) Chairman, Frederick Reiher said. “As our region continues to grow, the 737 MAX is the perfect choice for (NIU) positioning us for success and ensuring we continue to provide our customers with the best experience possible. We look forward to receiving our first airplanes in 2020.”

Air Niugini (NIU) flies a domestic network of more than >25 destinations from its Port Moresby hub, as well as numerous international routes across Asia-Pacific, including Australia, Singapore, Indonesia, Fiji, Philippines, Solomon Islands, Hong Kong, Vanuatu, Japan, and in the near future, China.

News Item A-14: "Boeing Teams Up With Aeromexico, Mexican Government on Biofuel" by Linda Blachly, February 25, 2016.

Boeing (TBC) said it will collaborate with Aeromexico (AMX) and Mexico’s Airports & Auxiliary Services (ASA) on a biojet program supported by Mexico’s Sector Fund for Energy Sustainability (SENER-CONACYT) to advance research and development of sustainable aviation biofuel in Mexico.

The initiative, coordinated through the Mexican Bioenergy Innovation Center, will support Mexico’s aviation sector as well as its environmental and socio-economic goals, according to Boeing (TBC).

Executives at Boeing (TBC), (AMX), (ASA) and the Potosinian Institute of Scientific & Technological Research (IPICYT) formalized the initiative at a ceremony in Mexico City.

Boeing International President, Marc Allen said sustainable jet fuel will “play a critical role in reducing aviation's carbon emissions and will bring a new and innovative industry to Mexico.”

Through the agreement, (IPICYT) will lead a broader aviation biofuel development effort involving 17 institutions, including (AMX) and (TBC); nine (CONACYT) research centers; Mexican companies Pemex, (QENER), and Tratamientos Reciclados del Sureste; the Mexican Petroleum Institute; Masdar Institute of Science & Technology in the United Arab Emirates (UAE); and the USA Joint BioEnergy Institute.

According to Boeing (TBC), the Mexican government and participating institutions will fund the effort for four years, aiming to develop a self-sustaining business model. Research will be conducted on biomass sourcing, fuel production, sustainability and life cycle assessment, and aviation biofuel market development.

Aviation biofuel feedstocks in Mexico are expected to include jatropha, salt-tolerant Salicornia and sewage sludge. The initiative’s projects are expected to meet sustainability criteria established by the Roundtable on Sustainable Biomaterials.

(TBC) said it has been active biofuel projects on six continents, including in the USA, Australia, Brazil, China, Europe, Middle East, South Africa, and Southeast Asia.

News Item A-15: "Safran Opens Mexican (CFM56) Parts Repair Center" by MRO-Network.com February 02, 2016.

Safran has opened a new 10,000m² facility in Querétaro, Mexico dedicated to the repair of (CFM56) engine components. The center will operate as Snecma America Engine Service and becomes Safran’s 10th Mexican facility.

The firm said the facility will provide repairs for engine parts which were previously replaced, while helping it maintain competitiveness in the component repair segment.

Paris-headquartered Safran also confirmed it plans to use Mexico as the location for a third composites plant alongside material specialist Albany, citing demand for the forthcoming (LEAP) engine and the rise in 737 MAX production.

The plant will start producing 3D composite fan blades from (Q4) 2017 with a ta