Friday, June 28, 2013

"June Is Busting Out All Over" Monthly Blog Summary

Week One: Oh My, this is going to take a while!

Many may say, having an order for 30 for the  787-10 30, coming in from SIA, is a grand thing for a launch customer. However, if you are going the Paris dance, its like taking your 1st cousin to that dance, since SIA also asked Airbus along too, tagging along with 30 more A350-9's. So with a bucket of cold water on hand, Boeing receives a shot, by not having an exclusive order with SIA, but instead a split order. They must share the glamor and ceremony with Airbus when announcing the 787-10 launch customer. Maybe SIA is not the official 787-10 launch customer? Even though Boeing stockholders like the order news.

The 787-9 begins Its Factory Promenade ( June 2, 2013)

The cut to the chase Link

Position 1 "June Is Busting Out All Over" Position 787-9 in building 40-24

Boeing's Press Release
 on the -9 assembly.

It's 20 feet longer, which sneaks in, looking like an -8, until it stands side by side with the -8. This -9 will fly 300 miles farther on 20% less fuel than comparable models now flying. The length gains are smoothed in the forward and aft areas of the body centering off the wing box area. Stretching occurs, placing the nose further forward, and the vertical tail fin further back of center, than found on -8.

Airplane Wars 2013 (June 3, 2013)

The sales teams are dispatch with military precision and both duopoly are engaged in each other's backyards.  Lobing in sales pitch under orders of fire for effect.  Airbus is hanging out in Japan sensing a wounded warrior over batteries, tape on sensors and length of time receiving its Boeing aircraft, since the 2007 rollout of a shell for the 787.  Boeing is touting commonalities up through the Boeing family of aircraft which it neglected to do since 1995 when Airbus started its "Joy side stick techno ride", through the world of flying.  Now the giants are going toe to toe with its arguments and laser pointers with a ferocity not seen for a while for aviation sales, trench warfare. 

"We like launching aircraft but not every aircraft. We are not a supermarket," Chief Executive Akbar Al Baker told Reuters.

  • The real Gem has longer legs. A 6,500 mile aircraft is not the apple of Qatar's eye and will not use its considerable marketing capital on the -10X.  
  • I believe its a sign that they will place a substantial order for the 777X-8, 9 series in the coming months, as the -10X will launch in Paris with other customers.  
  • Yes, they are interested in the 787-10X, but it will wait until other considerations and priorities are checked off first before buying-in. 
A 787-10X will complete a strategy that goes beyond the mid -east center. Qatar is filling the Mid-East market with luxury and high standards for an airline business. That same standard can expand into new markets not just serving the world with Qatar as its hub. During its next expansion is when it will need the 787-10X.  Launch customers are probably a done deal at this point in time, and Qatar will not crowd in on the current offering.  The plan could be an expansion of routes not centric to the region's needs, but chasing economic opportunity in various parts of the world offering the Qatar standard of excellence that travelers seek.  

Bundles of 737 Max ( June 4, 2014) Busy day.

Bundles of 737 Max

What's going on with everything not 787 or 777X. I am remiss and forgotten to say that the 737 Max has a sales Juggernaut.  So here comes some more stories developing.

TUI Books Over $6 Billion in Boeing Jets. "reference article"

Okay that means 60 aircraft with another 50 last month from an undisclosed customer terms.

737 Increases use of Titanium on Its Engine. ( June 4, 2013) One more time.

But First a Salute To The Titanium Bird

So the Max takes on advancements from the SR-71 with new titanium engines aspects.

Last December 14, 2012, Boeing was in Qatar's performance cross hairs for the 787-8 program. Today they reap the sour grapes of that relationship with Mr. Akbar Al Baker. Qatar will not be a 787-10X launch customer.  This is not disturbing, but understandable for Qatar to hang back. Please refer to my December 14, 2012 link on LiftnDrag  (and its updated comments in Blue font), tying that article with Qatar's backing- off today as a 787-10x Launch customer. They are tired of Boeing's delays on its new Aircraft, until it settles down another year, when all the new airplane problems are solved.  This is not to say that Boeing is building on a continuation of problems with the 787, but it is more on a strategic shift by Qatar, of standing back for a period on the -10, and wait for the "new airplanes" inappropriate burps to cease. They (Qatar) cannot and will not allow anymore disruptions concerning the 787.

Boeing is robustly following through with orders on its 737 program in total. As established in an earlier feature, it has become a Juggernaut of orders. Here is Boeing's own order scorecard.

Order DateCustomerModel SeriesOrders
07-May-2013KLM - Royal Dutch Airlines777-300ER1
13-May-2013Southwest Airlines737-8005
13-May-2013Southwest Airlines737-MAX30
08-May-2013Turkish Airlines737-80020
08-May-2013Turkish Airlines737-MAX50
21-May-2013Unidentified Customer(s)737-80040
07-May-2013Unidentified Customer(s)737-900ER2
21-May-2013Unidentified Customer(s)737-MAX61
30-May-2013Unidentified Customer(s)737-MAX5
06-May-2013Unidentified Customer(s)777-300ER2
May Total232
Today's Big Boeing 787 News Is Singapore Airlines ...  (June 7, 2013)

Today's Big Boeing 787 News Is Singapore Airlines (SIA), Engines From Rolls

SIA have selected its 787 Engines from Rolls Royce. A Victory for the engine builder from England. Its a real good selection, performing 99.9 percent of the time at an optimal level. The SIA aircraft and engine selection tells me that this 787 Aircraft order has been in the works for a very, very long time. Once Boeing had the battery problem was well in-hand, and thrown into the glitch trash bin after several months. The A350 order announced simultaneously with the 787-10 order demonstrates SIA is concerned with a guarantee of delivery on time.

Week Two:

The A350 is going to debut in test mode on Friday. I welcome this offering as a new technology engine will power a very formidable aircraft. It will fly with or without parachutes on boards. This flight is just before the big show in Paris and it hopes to steal the Buzz from this year's air show for Paris. They may just do that with a successful flight over Paris.  The A350 will compete against Boeing's family of aircraft. The initial test may bend customer appeal towards the A350. However, as always the devil is in the details. The details are coming forward with actual performance, testing and no snags!

Juggernauts, Jugheads, and Juggling

I like alliterations to make a point. It summarizes  where you want go with a topic in a provoking manner. The big ideas are now on the table with two roads traveled. The Boeing 787 program and Airbus A350 who has thrusted into plastic airplane building. There are three categories up for grabs in this winner's take all contest of aircraft orders, production and performance. Each idea has an overarching approach, defined constraints, and challenges that temper the product. "A test of fire makes the product, oh so fine". So each manufacturer has employed the risk and reward approach from the boardroom down to the factory floors and its suppliers.  Keep that in mind as you proceed through this gauntlet found in a tale of two aircraft giants.

Week 3:

Here Comes the 787-10 (June 16,2013)

Here Comes the 787-10

Launching the 10 has been long awaited. Recently, I speculated they would launch when 150 orders where in hand.  However, today's article speculates about 100 orders are in hand for the Paris Air Show. I still believe it will be more and above the 150 I first speculated. Perhaps options will shape it up north of 200 orders on the books.

-10 Has A Launch Customer For The Paris Air Show Prior Blog

AIRSHOW-UPDATE 1-Boeing to launch 787-10 with $30 bln order haul

Paris Has Arrived Before A Large Crowd Of Airplane...  ( June 17, 2013) The Grand city always at events.

The Arrival of Paris before a multitude of airplanes, airplane types and airplane hypes is on time. Boeing will dutifully plod through the week without much ado about something and slowly announce it way through the week following up with Randy Tinseth Journal etching out what is accomplished. An order here and there will make people wonder how this will play out when infact Paris and John Leahy are not the main show. The main show happened in the last six months, this is more of a cast party after a movie is released. The new announcements will cause beverage glasses to be raised and cheers, much like a Political convention in the US when it is announced, "The great State of Maine cast its delegate votes for candidate Smith or Jones".  The crowd cheers from the respective camps.

Airbus bags 20 A380 orders overshadows the Korean Air 747-800 with five craft.


"LE BOURGET, France—Airbus got a boost for the flagging fortunes of its A380 superjumbo, as German leasing company Doric GmbH placed a preliminary order for 20 of the two-deck jetliners.
If confirmed, the order would increase by roughly 13% Airbus’s backlog of orders for the giant plane. Doric is the first new buyer of A380s in one year and the announcement is the first A380 order since October, when Singapore Airlines Ltd. raised its order for 19 A380s by five planes.
Monday’s deal carries a catalog price of $8 billion, but large customers can receive discounts exceeding 50%. The companies said that they aim to finalize the contract in coming months."

I Love Showoffs, 787 At The Paris Air Show, Showing off

Hats off for Airbus For Waiting on Paris announcing its plethora of orders during Paris, why not? The illusion is complete, the orders are real. The illusion, is that one part that troubles Boeing from Paris Air Show to Paris Air Show. A subliminal message crafted in front of everyone. How Airbus can annonce so much at Paris yet lose the annual count, which is a truer picture of a company's sales performance. Boeing has taken the low route, announcing only when customers are ready. Airbus may take the high route of incentivizing customers and wait for Paris to beat Boeing at the world's largest aircraft show. I have alluded to PT Barnum before and may mention him again in the same paragraph with Airbus.

Week 4:

"The Secret Is In The Sauce", Ala "Fried Green Tomatoes" Fame

Remember that subtle little movie a long time ago, "Fired Green Tomatoes". Kathy Bates (1991), actress, was the star who concocted the secret sauce that eliminated a big problem.  Boeing is now the Kathy Bates of Aviation spinning a special tale and sauce to its competitors.  Motley Fool a favorite site, expounds on the secret nobody talks about in this article. Boeing Stock Has a $10 Billion Secret Weapon !

Please take stock in this secret item making Boeing a saucy buy..  Its the Chinook 47 helicopter. Who wants one? Those who don't like the Likes of Osama Bin Laden. You know the zero dark thirty entourage that flew into Pakistan and swooped up seal team six, secret materials and OBL.

Houston, We Have A Problem (June 24, 2103)

United Airlines has had its 3rd mishap as it seems in as many days, but not that often. However, the frequency is often for oil systems , and oil indicator sensors. Its too early for knowing what's the problem. Out of all the airlines currently flying the 787, its United who has a rash of indicators circling Houston, Seattle and ... oh well here is the list:

  • On June 24, a United Airlines Flight 94 returned to Houston shortly after takeoff Sunday because of "a brake indicator issue."
  • On June 20, a United flight from London to Houston was diverted to Newark, N.J., because of a low engine oil indicator. 
  • On June 18, a United flight from Tokyo to Denver was diverted to Seattle, Washington, because of an oil filter problem. 
  • On June 12, an All Nippon Airways flight was canceled when an engine would not start. 
  • On June 11, a Japan Airlines flight to Singapore returned to Tokyo because of a deicing problem.
Okay, I see a pattern here: these are not excuses, but mere observations.

Save $$ and Go 787-9 Air New Zealand With A Friend... (June 25, 2013) Get a room edition...

787 Cost Accounting For Dummies (June 26, 2013) Stoned Edition

Cost accounting is an important tool in deciding which make of airline should be purchased, otherwise you could drive the operation under water filling seats with dead weight. This offering won't explain cost accounting in detail, because textbooks start at 600 pages long in business school.  This is just one book per class taken on cost accounting for that matter. But I will hope to explain the strategic importance of knowing what airplane to buy for what business plan in play. That decision has the element of cost accounting and revenue tracking in a seat/unit relationship selling airplanes to airline customers. Its not about the bigger is better, or smaller is cheaper, its more of lining up the line graphs for one seat and finding the sweet spot for profitability. The secret is finding the right tool for the right job.

Its all about the seats not the wings when Cost Accounting is in play.

Posting 101, Is Not A Class Title for School, But A Reflection of This Blog.

This is my 101st post since November 2012. An attempt to reflect upon Aviation's progress from observing the Boeing company and its product. Like the 787 and a million working points of engineering, there are faults and glitches in an unforgiving business, as it should. Because the lives of its customers ride on everything when boarding Boeing's aircraft.

However, I don't have that enormous responsibility of riding passengers on this blog. I only  try to reflect upon information using my own background and observational skills to weigh in on points of view, using the information available and coming up with logical conclusions.

Flightaware Has A New Friend, Boeing's 787 Flight ... (June 27,2013)

A new way to track all 787 flights at the same time will make you day go by faster when you are hard at work wondering where you can  make time fly. This is short and sweet link to help navigate to the New page.