Monday, September 30, 2013

Boeing Offers The 787 Apology

Whether its landing in Iceland or hanging out in Oslo the 787 is not your Dad's airplane, even though your dad maybe assembling it. This introduction is not an apology but an observation of the 787 Aircraft operations. It would be easy to assign blame on parts is parts people or some kind of statement relating to customer incompetence, since customers the globe over suffer in silence and others squawk, as Norwegian should. Some let the performance do the talking by landing in Iceland when targeting a Polish touchdown. Either way you want to slice it or  not couch the 787 with a soft landing comment. The "787 should not" be treated like the prior generation aircraft, even though your father may be building it.  This complexity should be treated like a moon shot and not like a bus ride.   The 787 has so many new systems, parts and features that almost all are connected to some light, message or alarm. It would drive the director for "The Institute For The Very Very Nervous" ( ala Mel Brooks fame) just plane crazy.

The big question! Will Boeing get its arms around this rascally Monkey in time for the the technocrats getting it back into the Zoo? The Zoo being an airport near you.  Since no apology is adequate for all the squawks from airlines and peeps from the press, Boeing needs to up its game leaving lack luster promises off the table, and picking up the mantel of an aviation giant that it is. They are doing the politically correct thing by announcing they will do more, better, and thorough job of sending forth trouble free 787. They have no other choice but to say that line, if they want to continue to play the game.

So in comes this humble and sarcastic blogger to add on the pile of Boeing's woes. Even though being  a big fan of Boeing, I try to be realistic as my Doctor has so ordered, "stay realistic and not make fantasy your new reality".

"Doctor, its done" is my response. "Now let's go back to my child hood and airplanes".

LOT Over Iceland
Camp fires help the Boeing Chill


When things go bad, things go bad. Its a small comfort when 300  of your friends are experiencing the things go bad cockpit alarm, because some pump has over anxious detectors following every burp. In my fathers aircraft, the flying pilot used to tap the gauge checking for a stuck reading, and finish the punch line to the co-pilot as some off beat joke. Now the pilot lands in Iceland of all places, and Boeing sends its Code Blue team to Iceland for Fish and Chips.

After-all each time a 787 takes off its a "Moon Shot", not a bus ride.

I wonder out loud this question. "What are all the Airlines experiencing as a percentage trips taken, where they receive a computer generated squawk during operations? Boeing knows that answer! ANA/Japan has 23+11 flying copies and have had its share of complaints, but have since become a quiet customer for the most part. The Japanese will not tolerate poor performance without a fight. The extent of Norwegians problematic two aircraft sounds like the aircraft were delivered without a thorough check out. The technology is too complicated for the customer's ability of resolving a continuous stream of problems. Norwegian didn't build it and can't fix it, as they are currently situated, and should be unsure of how to address this complexity. Norwegian  wants Boeing to come over and make this airplane fly because its just out of the shrink wrap. I would want to take a new TV back to the store if some circuit breaker shuts the TV off every time I watch it. Norwegians request is just that, "A give me one that works request at the service counter!"

Norwegian Park And Ride


"Peeps", are what the press makes of every issue because they love to sell rumors and mishaps as a way of making money. If a 787 hits a bug its news. Not only that the wire service will replicate the "splat" for several days and in hundreds of news outlets. Its the nature of the news business. Worn out shoes are a thing of the past. Copy/paste is the new oxford shoe. Hence, the press, "Peeps", the squawks. A big Boeing perception problem! The peeps are more annoying than hornets at a picnic. What is really the bigger picture for the 787 is missed. That is why customers are staying with it and are still ordering it in quantity to this day even though the peeps litter the front page. That reality my Doctor said to embrace is as follows:

The 787 Big Picture:
  • Millions of Passengers
  • More and More millions of Miles
  • Systems, annoyingly keep it safe (Squawks to peeps)
  • Two Years in service having catastrophic problems (battery), everything worked
  • Superior performance
  • The Moon is in sight
  • Boeing needs to up its game from your fathers airplane to a complex aircraft.
  • and so forth
Now for the Faux Apology From Boeing for The 787:

This great airplane requires our greatest effort for its valued customers. We have underestimated the nature of the 787 and now have learned to harness its true potential. The customers deserve our every effort to make it fly perfectly and they will receive that attention.

Unidentified Board Room Comment:

We underestimated the true meaning of "Teething pains" or the Boeing slogan "I'm not going if it ain't a Boeing", ask Norwegian Air! An Airbus replacement lease is a slap in the face for the 787.

Thursday, September 26, 2013

Out Side Boeing's Camelot

 Place InvestorPlace Stocks Stocks to Buy Stocks to Sell Dividend Stocks Penny Stocks Funds Mutual Funds ETF Investing 401k & Investing Tips Retirement Financial Advisor Center Trading Trading Advice Trade of the Day Trading Experts Trading Report Trader’s Talk Forum How to Trade Options Market Insight IPO Playbook Hot Stocks Market Outlook Gadgets, Smartphones & Tech Weird Street InvestorPolitics Premium Services IPO PlaybookHot StocksMarket OutlookGadgets, Smartphones & TechWeird StreetInvestorPolitics Hot Topics Trade of the Day Best Stocks of 2013 Dependable Dividends Best & Worst CEOs IPOs More Home > Market Insight: Financial Articles > Hot Stocks > 3 Signs Boeing Could Be Headed Into Turbulence Facebook Placeholder LinkedIn Placeholder Twitter Placeholder Google Plus Placeholder Email Print 3 Signs Boeing Could Be Headed Into Turbulence Challenges, potential distractions loom on the horizon Sep 26, 2013, 10:42 am EDT | By Susan J. Aluise, Aviation, Auto & Transportation Writer What do you say about a stock like Boeing (BA) which has soared to record heights and delivered a one-year return of 75%? Savor that gourmet meal in first class, but buckle up in case of turbulence. Boeing (BA) shares have outperformed even the highest hopes in 2013, soaring 75% in the past year. This defense/aerospace giant has flown through a series of storms that would have crashed lesser companies: chopped defense budgets with a side of sequestration, a record four-month long grounding of its flagship 787 Dreamliner and increased competition from its European rival Airbus (EADSY). But while Boeing has weathered those storms with apparent ease, investors should remember the time-tested adage: “Past performance is no guarantee of future returns”. And from that perspective, now’s a good time to be cautious. Here are three signs Boeing could be headed into turbulence now: Inexplicably Losing the South Korea Fighter Jet Deal South Korea rejected Boeing’s bid for an estimated $7.7 billion contract to build 60 fighter jets on Tuesday, shocking the markets. The move even surprised BA, which had been the sole remaining bidder after Lockheed Martin’s (LMT) F-35 and Eurofighter’s Typhoon came in over budget. South Korean military leaders nixed Boeing’s bid for F15s, noting that even with the upgrades, the F-15 did not meet their needs. They noted that South Korea needed a true “fifth-generation fighter” with advanced capabilities, particularly in light of the threat posed by North Korea’s nuclear weapons capability. Now, BA’s hopes of extending F-15 production until 2020 are greatly diminished — and LMT’s F-35 is back in the hunt, too. The bigger issue, however, is that any lost international defense business is bad news for BA — international sales account for 30% of the company’s defense revenue. Airlines Are Losing Patience With Dreamliner Glitches Boeing’s first variant on its Dreamliner — the larger 787-9 — might have flown a trouble-free maiden flight last week, but the “teething troubles” keep coming for the 787-8s currently in service. Norwegian Air Shuttle summoned BA’s senior management to Oslo on Wednesday to explain glitches with its two new Dreamliners. The airline grounded one of its 787s last week because of problems with the cockpit oxygen supply; another Dreamliner had to leave behind 70 ticketed passengers in New York because a hydraulic pump problem caused a weight limitation. What makes these glitches different from other “teething problems”? In a break with the typical airline-manufacturer code of silence, Norwegian Air has taken the fight public. “We have not had the reliability that we had expected from brand new planes, so something must happen, fast,” company officials said last week. “Clearly Boeing has not had good enough operative quality control.” Those are code phrases for serious compensation — a tactic that if successful, will have other 787 operators lining up to imitate. It also could steal the thunder of the new 787-9 and raise questions about how realistic production targets are for BA’s jets — including major new launches like the 737 MAX and the 777X. Airbus Sales Are Soaring in Asia If Airbus had deliberately wanted to pour salt into Boeing’s wounds, it couldn’t have picked a better time to announce $15 billion worth of aircraft orders to Asian carriers. On Wednesday, Airbus announced several deals including a $6 billion, 70-plane order from companies in China alone . The lion’s share of the orders were for A320 series narrow-body aircraft — which will include the A320neo, Airbus’ fuel-efficient workhorse jet that directly competes with BA’s 737 MAX. These deals are particularly significant because Asia is the fastest-growing air travel market, and existing and start-up carriers will need to buy tens of thousands of new aircraft in the coming two decades. Bottom Line Let’s be clear: Boeing is not poised on a precipice. Its fundamentals are strong, and there’s a lot to like about the way the company has thrived despite the slings and arrows of 2013. That said, there are too many storm clouds on the horizon for this stock to escape turbulence indefinitely. And Boeing must get a handle on the Dreamliner glitches now or risk customer goodwill — and future orders. The Sword of Damocles is not suspended over BA Chairman and CEO James McNerney’s head yet … but it will be if he can’t find a way to stop the bleeding. As of this writing, Susan J. 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The world outside Camelot has some ugly monsters approaching Boeing's Castle
The Article from Investors Place outlines this thesis: http://investorplace.com/2013/09/3-signs-boeing-could-be-headed-into-turbulence/

The following article outlines   three Boeing rough spots developing outside its walls in the Northwest stretching clear to Chicago's golden vaults. Not all is well at Sundown out beyond Camelot.  Use the link above or read below the article by, 


Sep 26, 2013, 10:42 am EDT  |  By Susan J. Aluise, Aviation, Auto & Transportation Writer

"What do you say about a stock like Boeing (BA) which has soared to record heights and delivered a one-year return of 75%? Savor that gourmet meal in first class, but buckle up in case of turbulence.
Boeing (BA) shares have outperformed even the highest hopes in 2013, soaring 75% in the past year.This defense/aerospace giant has flown through a series of storms that would have crashed lesser companies: chopped defense budgets with a side of sequestration, a record four-month long grounding of its flagship 787 Dreamliner and increased competition from its European rival Airbus (EADSY).
But while Boeing has weathered those storms with apparent ease, investors should remember the time-tested adage: “Past performance is no guarantee of future returns”. And from that perspective, now’s a good time to be cautious.
Here are three signs Boeing could be headed into turbulence now:
Inexplicably Losing the South Korea Fighter Jet Deal
South Korea rejected Boeing’s bid for an estimated $7.7 billion contract to build 60 fighter jets on Tuesday, shocking the markets. The move even surprised BA, which had been the sole remaining bidder after Lockheed Martin’s (LMT) F-35 and Eurofighter’s Typhoon came in over budget.
South Korean military leaders nixed Boeing’s bid for F15s, noting that even with the upgrades, the F-15 did not meet their needs. They noted that South Korea needed a true “fifth-generation fighter” with advanced capabilities, particularly in light of the threat posed by North Korea’s nuclear weapons capability. Now, BA’s hopes of extending F-15 production until 2020 are greatly diminished — and LMT’s F-35 is back in the hunt, too.
The bigger issue, however, is that any lost international defense business is bad news for BA — international sales account for 30% of the company’s defense revenue.
Airlines Are Losing Patience With Dreamliner Glitches
Boeing’s first variant on its Dreamliner — the larger 787-9 — might have flown a trouble-free maiden flight last week, but the “teething troubles” keep coming for the 787-8s currently in service. Norwegian Air Shuttle summoned BA’s senior management to Oslo on Wednesday to explain glitches with its two new Dreamliners.
The airline grounded one of its 787s last week because of problems with the cockpit oxygen supply; another Dreamliner had to leave behind 70 ticketed passengers in New York because a hydraulic pump problem caused a weight limitation. What makes these glitches different from other “teething problems”? In a break with the typical airline-manufacturer code of silence, Norwegian Air has taken the fight public. “We have not had the reliability that we had expected from brand new planes, so something must happen, fast,” company officials said last week. “Clearly Boeing has not had good enough operative quality control.”
Those are code phrases for serious compensation — a tactic that if successful, will have other 787 operators lining up to imitate. It also could steal the thunder of the new 787-9 and raise questions about how realistic production targets are for BA’s jets — including major new launches like the 737 MAX and the 777X.
Airbus Sales Are Soaring in Asia
If Airbus had deliberately wanted to pour salt into Boeing’s wounds, it couldn’t have picked a better time to announce $15 billion worth of aircraft orders to Asian carriers.
On Wednesday, Airbus announced several deals including a $6 billion, 70-plane order from companies in China alone. The lion’s share of the orders were for A320 series narrow-body aircraft — which will include the A320neo, Airbus’ fuel-efficient workhorse jet that directly competes with BA’s 737 MAX.
These deals are particularly significant because Asia is the fastest-growing air travel market, and existing and start-up carriers will need to buy tens of thousands of new aircraft in the coming two decades.
Bottom Line
Let’s be clear: Boeing is not poised on a precipice. Its fundamentals are strong, and there’s a lot to like about the way the company has thrived despite the slings and arrows of 2013. That said, there are too many storm clouds on the horizon for this stock to escape turbulence indefinitely.
And Boeing must get a handle on the Dreamliner glitches now or risk customer goodwill — and future orders. The Sword of Damocles is not suspended over BA Chairman and CEO James McNerney’s head yet … but it will be if he can’t find a way to stop the bleeding.
As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned stocks."

----------------------------------------------------------------

Excellent talking and discussion points. I don't want to spin this as a no problem issue with logical sounding and plausible rational from a Boeing point of view. Facts are facts and the organization must address these concerns objectively and soundly. 

The loss of the F-15 is a public image defeat in Boeing's military and defense end. It was a bonus to have the F-15 Silent eagle under consideration, but is a harbinger of things to come with an old military frame even with upgraded systems going against the troubled F-35. A scaled down F-35 may be  better than a enhanced F-15 SE. That is Korea's answer! They are willing to wait for fifth generation fighters, than use a much studied replacement from the F-15 stable. The F-15's shorter delivery time is not as important, since the US navy fleet hangs out near Korea with its finest until the cows come home. 

Epic Teething Problems for an Epic Airplane. 
I don't know what else to add here for the discussion. Yes, the Dream-Liner problems are a disappointment for both customers and Boeing. No excuses here for realizing the inherent risks of quantum technology leaps coming true. Boeing had hoped that due diligence carries the day in side Camelot. But does its suppliers exercise the same capital investment for gaining those same assurances of shared risks? Both Boeing and its suppliers are busy at the fix-it board making the 787 fly everyday much to the chagrins of its paying airline customers. That is that reality outside Camelot's walls, customer disaffection with glitches is a bad taste of soured grapes from Camelot's vineyard.

Finally those pesky China orders, I knew the day would come when Airbus would crack the Great Wall of China with NEO's. It comes back to Capitalization value is better than the  economy of operation in a close horse race. Someday, no matter how well prepared the product is, the customer goes another way. The NEO is competitive even though I believe the Max is a better aircraft. Ryan Air bought 175 737 NG's for quick delivery and a low price ignoring the Max. Why, because cost of money is lower for the NG selling at a lower price, out weighing buying the more expensive Max and placement in-line would be shorter in receiving one. What about the long NEO line, China just got into at this time? Answer: Price is worth the wait, Airbus must have offered China a price it couldn't refuse in light of waiting for aircraft much later. The later time slot pleased the customer, and was in no need of instant gratification of having NEO's. This is not just rational to appease Boeing thinking,, it is the reality outside the castle walls. 

It’s the three purchasing principals: price, price, and price; Plus what can you do for me. It’s not a testament of who has the best airplane or the best fuel economy. It’s a result of the backroom deal who played it best. Boeing and Airbus are played against each other, for the benefit of China. All the crowing frame builders make on every deal, is a smoke screen for the financial reality behind closed doors.

Back to Camelot and Boeing, whether it’s a trend line for turbulence or an accumulation of intersecting news events that run contrary to Boeing's Camelot state of mind, the troops of both Boeing and Airbus are engaged in the Market Place Wars. The customer always wins when they get what they want, much to the disappointment of the other guy. The other guy, this week, is Boeing. Next week it may be Airbus. The main thing Boeing has become relevant again in the world’s largest game. China needed this Airbus order to get what they want from Boeing. Split orders are littering the battle field in the Market. Like 25 to 787 vs 25 A-350 to the same customer and so forth. Leverage is the only tool for victory for the customer, because they too, have competitors.

The admonition above from the investor article brings into view big business, and rightly so. I agree with the outlook as it brings back to reality the turbulence of the market place, innovation has a price as well as stale product (F-15) and that reality hangs heavy at times when your competitor makes a march on the market,  not because of product, but because of price. That summary is true for both Airbus and Boeing. The strongest castle wins in the game of reality.



Wednesday, September 25, 2013

Boeing Goes Toe To Toe With Airbus

For the last ten years Boeing has assembled an effort to over-match its giant competitor, Airbus. Just as found in tennis, the serve and volley is rapidly reaching final deciding set, of who has the best game in this match duopoly. As of August 31, 2013, the game has tightened with momentum climbing high for Boeing. First-up is the brief recap of how the airline industry has come to this point in this match of
serve and volley.

  • Boeing announces the 7E7 project on December 16, 2003
  • Airbus  returns service with shrug of shoulders, and a "Meah"
  • Airbus trips and falls out of Bounds orders redesign of just announced project
  • Boeing punches Back in 2005,  naming it the 787 as a family of aircraft
  • Airbus scrambles to the corner with a desperation return announcing the A-350
  • Boeing Rolls Out plastic not paper on July 7, 2007
  • Boeing 787-8 first flight December 15,, 2009
  • Boeing starts flying product off the shelf September 2011
  • Airbus first flight of A-350-9 in Paris 7-2013
  • Boeing is fine with the dash-9 in September 2013

The devil is in the details


  • Fire and mayhem beset the 787-8
  • Glitching and more glitching 787
  • All Quiet in the French trenches, no bragging here at this time


The main point at this time, is that Boeing is pacing the building of aircraft.
Airbus stays quiet on purpose not advertising every little fix or problem, since they don't need to do that. The Boeing first campaign came to ground from mishaps is working for Airbus.

Boeing fell into a prideful marketing pit of announcing everything about the 787 million parts assembled. When a problem occurs with any one part the press now auto paste the headlines. What has gone wrong with the A-350 project, we don't know, it just doesn't seem to gain press traction. Airbus, clearly stayed within the technological  envelope of proven systems taking the most conservative approach on the new design. They have advanced working with plastics and modified proven systems and   staying safe within that proven techno world of lower risk. Meanwhile, Boeing went way beyond that envelope and is paying for it in public perception of glitching aircraft. The good girl reputation of the 787 is now smudged  with hiccups and a fiery past. Airbus is keeping its girls in finishing school until at least 2014.

Here is the prior mentioned  pacing.

Lead service is the 787-8 followed by Airbus flinching I can do better with a less technology response. They were behind at this point and had to do better with less to catch Boeing. The A-350-8,-9,-1000 hit the papers with  a play by ear approach, based on what Boeing was going to do. Next Airbus turned and moved closer to the net with the NEO in its short game. Boeing was caught flat footed and the Airbus Customers stood up and cheered. The Boeing team called time out and discuss "how are we going to to deal with this in the bigger picture". Answer: "A strategy change is the only way we can beat Airbus with the short game."  So, Boeing getting clobbered with the NEO offering, needed not just a way to the net, but a way to ultimately defeat Airbus. Note here that the 787 was already launched and flying by 2010 when the short game started to beat Boeing.

The bigger picture offense came on board. Boeing said to its engineers, "that Airbus has a one year lead on us. What can we do to mitigate the NEO problem?" Good question and key to the strategy. The generals from the Boeing board of directors were brought in to the battle. The shortest distances between two  points is a straight line and Airbus has launch its NEO missile at our markets. This is a serious business as 2000 orders stacked up for the NEO.  So Boeing not ducking the Airbus Missiles proposed that straight line of defense. They called it the MAX line of offense. Boeing used what they had spent billions on maturing the 787 (flying aircraft) and infused into the Max where possible. The 737 already had some good points over the A-321 as in more seats than the NEO version looking at the 737-800 NG.  Those seats come across to the Max. Boeing needed an engine upgrade comparable to the advances made during the 787 project. A new 68 inch diameter engine came forward. The Max needed plastic where it would modernize losing weight. It would take on new wings from the lessons learned 787 workshop. Engineering would also move engine placements and adjust center of gravity on the aircraft and add Advanced Wing Technology on flight surfaces from its wing tips inward. I like to call them "Dual Flight Feathers".

Structurally, they will extend the nose gear to gain clearance off the ground for its new engines. The strengthen wing box of a composite nature, and an abundant use of plastic used in concert with the latest generation of high tech low weight aluminum will make this aircraft build-able, sooner than later,, with the affect of beating the NEO is the short game Dogfight, in airspace and gate assignment at all airports. The 737-7,-8,-9 will compete , and will demonstrate out of Airbus' own play book it can build it better with less.

The final straw from the 737's flight bag, is in its systems and the new flight deck. Finally, Boeing got the memo from its customers, when it started the 787 project. Build something great and give it to every Aircraft that follows from this day forward. The Max flight deck, and its maintenance points will operate similar to the the 787 and 777-X in feel and nature but remain uniquely different for its mission.  In fact, there should be some flight deck points and similarities found on the 747-8i with the Max. Airbus does observe these types of moves that Boeing is completing, and it worries its own sales staff. Airlines  like the concept of the operation suite. Microsoft explored the commonality of its suite of programs, from Excel to Word and continuing on with PowerPoint, and its data base programs. Now Boeing is striving that same recognition from airline's flight crews and ground teams for recognizing key functions in the operation of the aircraft. One example is the 777 feels like flying the 787 and vise verse. The Max will come forward with its 787 like yoke and flight systems, matching the flight panels and operational procedures of the 787. If you fly the Max as a pilot then at least under 30 days later you are able to fly the 787.

Boeing's, strategy is not a secret, its embedded into every aircraft it builds. The technological benchmarks set by the 787 program will now embed into the 737, 777, and the 747-8i. Here is the ploy, that Boeing is using at this time. Airbus launches the A-350 and the A-321 NEO, Boeing comes back with the MAX. Airbus flies at Paris sealing the Billions in development and the commitments it has received.  Boeing comes back with the 777-8X and 777-9X in Dubai. The A-350 -1000 is trapped by Boeing's 777 plan and the A-350-9 becomes a marginal aircraft by both the 787-9 and -10. Boeing truly achieves its goal of commonality with its customers and upgrade its aircraft that will beat the competition.

Set 1 Boeing 787 Announcement
Set 2  Airbus NEO Annoncement
Set 3 Boeing 777-X at Dubai

Game, Set, and MAX  goes to Boeing

Monday, September 23, 2013

Boeing Has The Suite Spot

Baseball culture has always referred to a place on the bat or ball in that game of hard ball, as the "Sweet Spot". The player trains his eyes on the ball so he may read the ball trajectory, speed, and the spin. In an instance, relying on his twitch muscles at lightening speed, he reacts. The bat tracks to the ball and smacks it with all the energy of muscle and inertia. A millimeter high on the ball contact, its a grounder, and little low its a pop-up and out. A further complication is where on the bat does the ball make contact. The swing catches the ball near the handle its a broken bat grounding. Hitting the ball with the end of the bat will likely sail out of bounds. Hitting it right on the sweet spot on baseball bats, golf clubs and the like (equipment); its a home run, or becomes a short putt from a long drive. Finally, a strong man winner at the county fair, swings the mallet on top of the lever propelling the lead weight to the top for a prize. That my friends, is hitting the Sweet Spot. The precise energy exerted on the right spot at the right moment at the right part of the equipment.

Now Part II is Boeing's Suite Spot. Subtle change in spelling makes a different meaning of significant proportions. However a clever juxtaposition of meaning make an intriguing observation on what has occurred with Boeing's strategy in competitive products. The "bat" = equipment, and the "ball" = The market. Long (2003) ago, Boeing claimed to have a plan no matter what Airbus would do in response to a Boeing hostile take-over of the market place. Step one was a bold move by announcing the 787-3  787-8 with a family suite follow-on.  Boeing held for a long time, an Achilles heal, exposed by Airbus through implementing its own common avionics format for its family of aircraft. Customers really liked that idea and Boeing lost sales. Boeing built one model at a time that flew significantly different from model to model. It took a "real" fighter pilot to master the 727 or 737 or 747 back in the day. Each one was different enough, that a promotion may require up to six month of additional training for qualifying on the next model up and a different maintenance team trained for years to service the aircraft. The Boeing 787 was the "die" that was cast, to make all future flight decks and systems fly similar, becoming a true suite of aircraft into the future. They are all to fly the same whether its a 737 or a 777-X. The only visible tradition remaining is the flight input yoke. Airbus went with the video game type side stick. Systems are what make the aircraft fly today when being called the Next Generation.

Part III: The Suite spot or sweet spot metaphor is that bat, the twitch muscle and vision guiding the ball over the fence, but with a whole team of aircraft. Going the distance, whether its short and far, it carries the crowd sitting in the bleaches, to every destination. My rhetorical question, did Boeing dupe Airbus, by Boeing throwing  the 787-8 forward after which Airbus went for the fences with the A-350 family of Aircraft?

Now Boeing is coming back with the 787-9, 10 and 777-X9 and 777-X8.  Please add on the 737-7-8-9 where they all share commonalities of the flight deck. Commonalities is what Boeing is taking to the market place from top to bottom. It is its, "Suite Spot". The home run is the swing of the Boeing bat hitting the ball on the fat part of the market clear over the fence. Airbus may have built bigger bats, swinging at smaller balls (A-380) or lock into a three plane market with its A-350 family. Now Boeing will propose a true efficient mini jumbo after Airbus starts flying its A-350-9 around the French country side in response the 787-8 from five years ago. Boeing brings out the the right sized mega beast that flies  like a 787-8, which flies similar to the 737 Max. The Boeing tool box has important tools from small to large, servicing the world market, you know, those people sitting in the bleachers catching home runs each time Boeing takes off and hits the Suite Spot.

Batting order:           1         2         3         4         5           6          7           8           9
The line -up: 737-7  737-8  737-9  787-8  787-9  787-10 777-8X  777-9X  747-8i

The Commonality Factor Flow Chart Starts Below:

The 737 Max Family of Aircraft

The 787 Family of Aircraft


The 777-X Family of Aircraft

The Queen Of The Skies 747-8I



From the line-up, 1-9 are commonalities that can train-up crews quickly, additionally it sets standards that models will adhere to when passengers board an aircraft. Maintenance will know what to expect, and the flying public will know they are on a Boeing the minute they are seated. Commonality is a powerful selling point for broad and wide fleets. Fortunately Boeing has caught up with that message received from Airbus, and now is beating it at its own game. Game score, Boeing is up in the 9X inning with the lead.

Sunday, September 22, 2013

787-8 -Jet Star - Seats With Built in Room

Jet Star its first Dream)Liner. The secret is in the seat, foregoing the sauce in this model. The customer pitch is 31-32 inches depending on the ticket. What is not only proposed, but is in the works is 335 revenue centers over the jet Star 787-8 wings.
Math skills come into play= 21 premium economy +  314 economy. The magic for comfort is gained by the Recaro Slimline seats

The weapon of choice for customer loyalty Link: Australian Business Traveler




"Jetstar Boeing 787 business class

The pointy end of Jetstar's Boeing 787 will be fitted with 21 of these leather-clad
Recaro business class seats arranged in a 2-3-2 layout.
They bear more than a passing resemblance to Qantas' own premiumeconomy seats (also manufactured by Recaro), and as AusBT first revealed earlier this year, they're generous recliners rather than angled flat-beds.
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Since I could not find a Jet Star 787-8 seating chart, refering to the Norwegian Air Chart on Seat Guru, would come closer to the packing of Human freight comfortably. Seats design is the tool to do this magic. Recaro has done its research, by making space inside the passenger containment area.  A thin line seat, lighter in weight, and more ergonomically correct; makes the 31-32 inch the most efficient area a passenger could want. Recaro design gives  passengers more room than a similarly over stuffed seat in 34 inch pitch zone. A thicker seat, stretches space out space with fewer configured revenue seats for its pitch allotment. Recaro has designed a seat by not giving away comfort but creating more space within the 31 inch pitch. This is Jet Star's secret weapon. They can place 335 revenue units on the 787-8 comfortably and fly it with a reasonable fuel load in the South East Asian market.

This is what plastic is doing for airline carriers. It allows it to innovate its business plans through various configurations within the same models. The lighter weight composites and new "lighter weight" management constructs, which allows for airline innovation while leveraging revenue seats into greater profitability, chasing off the A-330 in numbers out of the market.

The second article worth exploring is... 

Qantas and Jetstar change 787 strategy to support Asian growth and unit cost improvement

Credit is given to CAPA

"Jetstar will be able to better match capacity with demand by operating the smaller 300-seat B787-8, whereas its low-cost long-haul pan-Asian competitors AirAsia X and Scoot will primarily operate 370-seat aircraft, equivalent to the B787-9. Keeping the B787-8 will allow Jetstar to fit out the aircraft to its specification rather than a common spec Qantas could operate with a simple change in seat covers. This has implications for seating density, type of seat and whether or not to install a bulky and expensive in-flight entertainment (IFE) system, which affects unit costs."


s unit costs.

Dual Jetstar fleet type targeting frequency and unit costs


“With the alignment of the B787-8 and B787-9 deliveries and the -9s not too far off from the -8s, Qantas is going to take the B787-9s directly into their business. We’re going to take 15 B787-8s,” Jetstar CEO Bruce Buchanan told CAPA exclusively. The Qantas Group’s previous B787 strategy was formed when the B787-8 was expected to be delivered to the group in mid-2012 and the B787-9 from 2014. The B787-8 is now expected in mid-2013 and the B787-9 from 2014.

Previously B787-9s would replace Jetstar’s B787-8s, which in turn would be handed down to Qantas. That strategy would have allowed Jetstar to immediately gain the B787’s economics and then achieve greater improvements when the longer-range and higher-capacity B787-9s became available. Jetstar would have likely operated a single-type wide-body fleet comprised of B787-9s for most of this decade. Now Jetstar sees value and opportunity from operating both B787 variants..

“There is advantage in having the ability to deploy both just like we do with the 320 and A321. There are markets where frequency will benefit from the -8s. There are markets where the economic unit cost advantages are better with the -9s,” Mr Buchanan said. Jetstar’s B787-8 will seat approximately 300 in a two-class configuration while the B787-9 will seat approximately 350 in Jetstar’s two-class configuration. Boeing’s official range figures give the B787-8 7650-8200nm and the B787-9 8000-8500nm.

Boeing has acknowledged the B787-8 is overweight and has performance shortfalls, but Mr Buchanan is not fazed about the B787-9 being more competitive than the B787-8. “It doesn’t really matter. This aircraft provides a step change from everything else in the market today,” he said. “It’s going to be more competitive than what any of our competitors fly today. That’s going to be a real game change to allow us to deploy capacity and go after market share in a much more aggressive way.”

Boeing’s proposed stretch -10 variant, which the airframer says is a matter of when not if, will give Jetstar another 40-50 seats of capacity than the -9 but with slightly less range, which Mr Buchanan said would provide “another step change in economics”.
“You’ve got a family starting to emerge there, so see where it’s going, use all those products, and it will be a very efficient suite of products for Jetstar to use,” Mr Buchanan said, all but signing a contract for the -10.

Qantas and Jetstar still plan to evenly split the 50 B787s on order, but the breakdown of how many -8s and -9s each carrier will take remains in discussion and will likely be revised as delivery dates near. There are 15 -8s and 35 -9s on order.
Qantas CEO Alan Joyce (left) and Jetstar CEO Bruce Buchanan (right) received commemorative carbon fibre plaques from Boeing VP Mike Sinnett during the B787's visit to Australia earlier this month



Asian, not European, focus for Jetstar


While the immediate years after Qantas’ 2005 order for 65 B787s (later reduced to 50) saw the carrier wax and wane about how the B787 would enable Jetstar to return to cities like Athens and Rome from which Qantas withdrew, the more immediate focus for the B787s is Asia, not Europe.
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“The initial B787s are just A330 replacements. All they’ll do initially is give us a better cost base than the existing business platform. They won’t give us opportunity for new network structures,” Mr Buchanan said. “You’ll see them go into Singapore,MelbourneSydney – all the existing routes.” Mr Buchanan affirmed weight issues were not driving the decision to have B787s takeover existing routes rather than open new ones. “No, nothing to do with weight issues or performance issues. The A330s are going back to Qantas to retire B767s.... It’s a fleet issue.”
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Qantas will remain the premium carrier, by spacing seating in a pandering mode and will fly anywhere any day.

Jet Star will stay in the South East Asia region accessing the market of  billions under 7,000 miles as an example. Europe is not its purpose as the market wains. Its Asia, the emerging giant that Jet Star prepares for, in its Recaro seats. 

Thursday, September 19, 2013

787-10 Is Coming Home To Roost

Two recent signings in as many of days have come home to Boeing as lease companies finalize commitments for 787-9 and-10's. These aircraft, first had hand-shakes deals at the Paris Airshow this last summer.

Today's Flight Aware tracking for the 787-9 for 9-19-2013

787-10 Point Of Sale



Boeing, ALC Finalize Order for 30 787-10 and 3 787-9 Dreamliners

The second part fell into place today as ALC has put ink down on its Paris Airshow participation with 30 more 787-10's. Over-all, a good week for the Boeing's order book, considering the Lufthansa's placement move, through its signal of 34 777-9x's, commitment, not yet given the ATO until later this fall. Gecas, not to be out done, closed in on another 10, dash 10's. The airplane wars and market share monopoly, are now engaged. There is only so much long legged thin route power available. The 787-10 will fill the gap between the long thin lines and the fat shorter distances as a bridge to the 777-9X market.

GECAS Finalizes Order for 10 Boeing 787-10 Dreamliners

Score Card these last two days:

Buyer         Model     Ordered   
ALC             787-10        30
ALC             787-9            3
GECAS        787-10        10
Lufthansa  777-9X       34 * committed

Totals by  Model   787-9         3
                                 787-10     40
                                 777-9X    34
                                  Grand TTL    77 wide bodies in two days.

The paper tiger awakens, as almost one years worth of production is put to ink in the form of Billions USD. In November 2013, will be announced a launch customers for the 777-X's after the ATO announcement formally launches the 777-X program with orders. Al Baker will be one of those launch customers, and rightly so.

Favorite Things Part III: Lufthansa Order Is In



Well its here, splitting hairs with Airbus and Boeing. The order is in, and its 34 777-9X for Boeing in 2020. Airbus registers 25 A-350-9 for delivery in 2019 and after. Bloomberg and others report  the deal as a split. However Boeing takes the lion share on its unannounced (ATO for the 777X), expected later this fall in Doha.

The 19 Billion dollar order packs a wallop as a hedged order for both framers with Boeing appearing to have the larger dollar value than Airbus.

The purchase, Lufthansa’s biggest to date, is for 34 Boeing 777-9X Boeing aircraft and 25 Airbus A350-900s, the Cologne-based airline said in a statement today. Deliveries of the A350s will start in 2016, while the first Boeing 777 will be delivered in 2020.
Via Bloomberg:
"Lufthansa’s fleet renewal is part of an overhaul initiated under Chief Executive Officer Christoph Franz, who announced his surprise departure this week to join Swiss drug maker Roche Holding AG next year. Lufthansa already unveiled the purchase of new narrow-body Airbus aircraft this year, and the addition of the long-distance jets would help replace older Boeing 747-400 and Airbus A340-300 four-engine airliners that are more fuel intensive."
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With that being stated and commonality of fleet thrown aside, Airbus keeps its front office perch near Lufthansa. Meanwhile Boeing has made a significant in-road into the European Market. Talking heads will interpret the order as a trend towards competitive bidding, and market adjustments for Lufthansa's new upcoming Inventory. I had hoped Boeing would have made a clean sweep of product line ordering, but that was not to be, since Lufthansa has a already strong order book with Airbus. 25 A-350 is respectable, but still opens the door for Boeing to make a case later, as wait time decreases for new 787 orders for all models. Airbus still needs to prove out the A-350 under market conditions. Airbus has taken a lower road in its technology approach and expects few glitches and set back during introduction of its models. The mid stretch in development may favor Airbus in the Markets as it may not experience those types of set back Boeing has for the last five years. If Boeing continues refining the 787 line and develops the new 777-X line built on lessons learned, it will win the long developmental race into 2030. 
The 787 has more over arching and robust technological advances than the A-350. It has just finished the critical period of proving its quantum leap through commercial flight. Glitches are diminishing with smaller scale and severity. The 787-9 test flight is the promised execution of a plan on time, where the 787 -8 promises stumbled for 5 years since 2007. The -10  will fold into the Boeing market with a solid suite of aircraft for every operation in passenger and cargo service. 
Lufthansa  appears to have held back on ordering  more  Airbus types and went for a game changer in the 777-X9. The expectations for the 777-X9 are phenomenal, otherwise, the A-350 1000's wouldn't have sat on the sidelines during this go around of orders. Boeing is starting to turn heads in Europe, much to Airbus' chagrin. Even though Airbus has made inroads in the American market, it appears that Boeing can and will compete in every market. The ticket paying customer's satisfaction will start purchasing the new aircraft, instead of framer loyalty, as now found at this time. Split orders are a sign that airlines really want to know who has the best airplane and services that will keep them flying.


Special Notation:
 Lufthansa is Airbus' largest customer with 19 A-380 in its fleet and many Airbus product on order and flying at this time. Its not a small thing that Boeing opened this door further as the German customer sits near its Airbus production for the giant A-380. Everybody in the know from both Boeing and Airbus, understands a sea change is coming, since Boeing is making good of its own aircraft future projections and Airbus didn't match it.

Wednesday, September 18, 2013

777-X Rumor Has IT, Shh Lufthansa May Order 34 -9X

I was just going down the half way when I heard this conversation between the janitor and the security guard on "coffee break", so they told me! That Lufthansa makes a play it safe order for 34,  777-9X orders and moves on 20-25 A-350's.

Warning, this could be all wet, because the janitor and the guard are good friends and they really know what's going on at Lufthansa(?).  Since, they have postponed the announce until tomorrow morning US time.

I will expect a mixed Boeing-Airbus order book.  Wouldn't it be neat if the 20-25 A-350-9's turn out to be 20-25 787-9's for commonalities sake adding to the 34, 777-X--9's, hinted at by the security guard. I don't really know, so this is a teaser for tomorrow's wake-up call.

I know Boeing has a dog in this fight and will make significant gain in the European Market place. Either way meet the game changers. It won't be the Lufthansa or the A-350-9 as a dance pair.