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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
21-May-2013SWISS777-300ER6
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
13-May-2013WestJet737-80010
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.

WSJ:

"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 airplane.com page.


Thursday, June 27, 2013

Flightaware Has A New Friend, Boeing's 787 Flight tracking,

Boeing's New Flight Tracking Link 

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 airplane.com page.

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.

The Boeing 787 has come to the point long awaited, The shake out of all its  bugs, and glitches. Not unlike ones own brain this aircraft has more opportunity to glitch than any other aircraft produced, simply because of its vast and complex system of protecting the passenger and its crew.  The irony is not lost on what has happened to the 787 these last weeks. The systems protecting the aircraft are showing its bugs. Indicators, messaging where the operators are grounding the aircraft, and rightly so as designed. This complex aircraft won't fly unless its right with all its systems and parts.

Seventy years ago a pilot would tap on a analog indicator dial to check if  the aircraft fuel reading is really on empty, or the oil pressure is really is low. Remember all those old movies where the pilot was tapping dials when the airplane was going down on fire! Its a little late to tap dials if something is that catastrophic happening to an aircraft. Today's 787 has the capability to find more faults that may have been previously missed on prior generation aircraft.  A mechanic had to find errors through testing during maintenance checks. Now sensor and computers are checking everything before it lands or takes off, sending mechanics  to meet the airplane before it takes-off or lands. Its a great innovation for Boeing and its passengers.  Now after a year's worth of travel and a four month lay over, the airplane flies with a bunch of indicated faults with its various systems from Brakes to air conditioning. Oil filters under performing and deicing included. Mechanics show up with the right tools and parts. No instrument dial tapping found on the flight line to get an oil pressure reading.

Boeing, like all manufacturers have installed super sensitive and redundant  systems which keep the airplane flying or placing it back on the ground. It does not, unfortunately indicate how safe the the airplane really is, when an indicator goes off. Fortunately for the passengers and crew it errors on the side of caution and doesn't fly until the indiction is reconciled for safe flight. This is far greater advancement than of a tap on the analog dial for a redundancy check.

There are no excuses for the 787 when indicators are working to keep it safe. It is better to land it or not take off until the problem is fixed. They, Boeing won't dumb down the indicator to remove embarrassing moments that the press loves to report on with this aircraft.  If you were at home and your CO2 alarm keeps going off, you don't remove the battery to fix the problem. I once camped in a trailer at a campground where the CO2 alarm kept me up all night because it was going off every half hour. So I opened the window a crack and got a nights rest starting at 4 am. I am alive because the indicator made me a genius by solving a problem by opening a window. The trailer needed fresh air, so I could breath and didn't assume a permanent sleep. Passengers need A/C systems checks continuously for safe comfortable flights.

Aviation has turned a corner because it now has at its disposal the building of smart airplanes that continuously reports its aches and complaints. The indicator is not at fault and needing a finger tap. The system has worked according to design. Its not an indicator fault, but a system fault that the press should be reporting on at this time. Why is the oil light on? What's up with the brakes? The light may be on but don't change the light bulb.

Wednesday, June 26, 2013

787 Cost Accounting For Dummies

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.


Analogy: Equipment is the key. If you have a landscaping business what will you buy, a Backhoe, Bobcat, or Bulldozer? Probably a Bobcat, which is a small piece of equipment that can do many things in a client’s back yard. No Bulldozers needed here, for making piles of cash.

Back to cost accounting and Revenue units:

Each Airplane has seats that drives the mechanism for revenue and profit. What diminishes the earnings margin are costs flows against the revenue stream. The question then arises, how much does it cost to fly each seat weather it’s filled or not? A two hundred seat 787 fly's empty for..., what cost? Finally, how many seats sold where the variable cost plus fixed cost are paid for by the margin? There are some variable cost found in the breakeven model such as fuel, maintenance and direct cost related to the flying activity. At this point, bean counters are just opening up briefcases sorting out the financial mechanism of flying the 787. The next question is what are the fixed cost on a 350 seat Airbus vs a 323 seat 787-10?  So far more questions before even one answer.

Fixed costs are defined by my "dummy definition", as a cost of operating that airplane whether it operates or not. Such as salaries, space costs, Administration and so forth. Variable cost are defined as those costs associated with flying those seats every time the 787 leaves the ground on a revenue flight. The variable is seat space or the number of tickets sold, as measured against cost of flying all seats. A filled 200 seat 787 has costs accruing from crew by the hour, fuel as it burns, and maintenance when it lands, and so forth. The complexity deepens as the book turns its pages in cost accounting. This is why accountants always talk to CEO's with the broad stroke of saying "The Bottom Line", or what falls out in the plus column every time we fly a certain route filling 200 seats. That brings it back to what an airplane can do as a profit engine when we fly on a certain route? Do we fly the Bobcat, or the Bulldozer, The 787-10 or the A350-9. Many airlines are buying both types from the two manufacturers to hedge the bet.

Example, a one aircraft airline:
Airline Fix Cost = $1,000,000 a year whether it flies or not.
Variable Cost = $250 per seat. Or the actual cost of flying that seat from point A to B
Ticket Price = $300 value per seat
Contribution Margin (CM) for each seat.= $50. Revenue (Ticket Price)- Variable Cost (VC) of each flight = CM. Or R-VC=CM.

So, if 250 seats sold at $300 each = $75,000
Contribution Margin towards a profit= $12,500 on this flight and for every flight when sold out ($50 x 250 seats) or in formula mode (75,000 R)-($62,500 vc) = $(12,500 cm)

Or using a calculator you figure the $50 CM will take 20,000 seats sold in a year at $300 to breakeven on the fixed cost of 1 million. The airplane must make 80 fully loaded flights to reach its breakeven point in this example, and start making a profit. If the airline doesn't fill to capacity or lowers its seat price in this model, then the big spreadsheet will change progress to a profit at different rate.  Airline ticket prices on an extremely efficient, fuel savings of 20% and maintenance cost reductions of 30% could allow airlines to beat the competition on lower airline ticket prices and make more money than its competitors. The 787-10 will make a dent on competing Boards thinking and its strategy making, which should come in form of 2014 787-10 Order's Books. That should be a great year for the 787-10 on orders, commitments, and options.

Anybody asleep yet? Back to Seats:

Airlines want to know how many gallons of Jet A burned per seat. Boeing claims a 30% maintenance cost reduction in operating the 787 overcurrent aircraft. It reports a 20% fuel reduction compared to current aircraft. This is what the bean counters listen to before inputting information to the CEO's on what aircraft they should buy. The question then becomes how much money do we want to make? A silly question, but one that is answered anyways.

The 600 page book on cost accounting needs to boil down to a one blogger page in a hurry.

All the accounting/cost accounting and revenue accumulation is broken down into little tiny accounting pieces, and then summed up on one gigantic spread sheet. The kind I used to make. Reduce one tiny piece down by 1% and the big spreadsheet's bottom line changes by .00001%  Change a thousand combinations of cost inputs whether fixed or variable, the operations numbers change dramatically by  X%. Bean counters get onto engineering's necks, imploring for financial efficiencies on design parts and innovation. Engineers don't like bean counters! CEO's and VP's are referees between these groups and types of company people. In the meantime buyers listen to the sales spiel on and on.

The thing that makes a difference on the 787-10, as in: Which A350 will it nullify on the cost function, and what is the right size for the right route filling seats? This will take some time to prove out. However when the 777X comes on it will complicate Airbus' sales team or simplify Boeing's sales team job with its Big spreadsheet presentation.

Remember A Seat Is Just Not A Seat. It’s a revenue source towards the Contribution Margin driving the company past Breakeven on a flight. Total Fixed Cost Operations + Total Variable Costs (in seat Units) determines when that point is reached and profitability starts.

The Break Even Point is shown "in a seat that has a green line painted on the floor” for Akbar Al Baker on his 787.



Caption added: (Every seat forward of this keyboard is pure profit (CM) on this aircraft. Everything behind you pays for the flight)

Tuesday, June 25, 2013

Save $$ and Go 787-9 Air New Zealand With A Friend

KIWI Sky couch in Economy Cabin (No showers available)

The Four Styles  of ANZ travel on 787-9

From Australian Aviation  Headline:

Air New Zealand confirms 787-9 destinations and cabin configuration


  • The Business Premier cabin will feature Air New Zealand’s signature chalk-coloured luxurious leather armchair that converts to a lie-flat bed complete with memory foam mattress, duvet and two full-size pillows.
  • In the Premium Economy cabin, the airline has worked with US seat designer Zodiac on a customised seat best described as ‘Business-lite’.  The leather seat will have a 41” pitch, a generous 5” wide armrest and a leg rest and extendable foot support which will allow passengers to really stretch out and relax.
  • The Economy cabin will feature 16 rows of Air New Zealand’s unique and highly popular Kiwi-designed Skycouch seats.  This is a row of three seats that converts into a sofa-like flat surface for both rest and relaxation.
  • The standard Economy seat in the 787-9 feature a slimline seat-back to enhance the feeling of space, sculpted upholstering and a more flexible headrest.
Premier Business Air New Zealand
One is a lonely number, so is Business flying the Airways. Room for a Teddy Bear



 
Looks like an ANA photo

Its all About New Zealand Air's, Marketing Pitch. They will give you 41" to digest on long trips instead of the competitions 34". 


Back to Standard Economy, do you need pictures?  I sure would fly there using a technologically conceived comfort fit in a small space from Zodiac.

Monday, June 24, 2013

Houston, We Have A Problem

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.

ANA has the most 787's and should head the list by mere numbers of aircraft by volume. Japan Airlines has the second most 787's and should come in some faults for a new aircraft. United has a good group of aircraft, but three in a row of faults with sensor's, indicators and filters points to bad luck, faulty maintenance checks, or not understanding all the million parts going into the overly sensitive aircraft.

The good news for United, is that everything is doing what its supposed to do. Tell the operator what it needs to know for safe operation. A cold engine that won't start is a "no duh" big problem. The sensor was, it didn't start! Deicing not working is it simply failed. But sensor indicators flashing messages consistently with one airline, suggest many options could be in play.

  • Faulty performance of part
  • Faulty Part like an oil filter
  • Faulty System as in brakes
or

  • Supplier quality control
  • Maintenance oversight could not detect non performing sensor or part.
  • System anomaly hitting just one airline
  • Bad Luck
I don't believe in bad luck but statistical weirdness can happen.

Since United has the smallest fleet of the above mentioned 787 operators, I would as a United employee would want to examine all protocols for maintaining, setting systems parameters or procedures concerning the affected areas. Boeing and United will find out what happened in every instance.  The glitches, except the engine no start can be classified as annoying new aircraft problems that can occur in normal operations. Boeing doesn't want to go there with a press release of that ilk. They want to remain proactive with due diligence and clean-up of system issues even if everything falls on just one customer like United. Statistics say it is unlikely an airline would bear the burden of glitches, but not impossible. So they will go forward of checking and rechecking until they isolate the problems that occur as individual events, regardless of why United got hit for three in a row in a short time. Hence the rule of threes. "Bad things seem to happen in groups of threes". A very non scientific or statistical conclusion. A belief no one should establish for safe flying.

United will continue to seek answers with Boeing, one incident at a time. Until answers come forward as part of the 787 maturation process for operations. A new book is being written by customer operations over the world for this extremely complex aircraft. This will be true for the A350 when it starts service. Hopefully all the debugging is found in testing.

 

Saturday, June 22, 2013

"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.


Source: Wikimedia Commons.
Motley Fool Credits and Quotes:

"The best offense is a great defense businessOver on the other end of its business model, Boeing stock has a secret weapon that's getting far less attention than the vaunted Dreamliner -- and far less attention that it deserves.


That business is the business of building helicopters -- the CH-47F Chinook heavy-lift helicopter in particular. Over the past week, Boeing has received two blockbuster orders for its big bird. First the U.S. Army granted Boeing a contract to buy 177 Chinooks over the next several years, at a total cost of $4 billion. The Army says it may up that buy by a further 38 helos, potentially pushing the contract value past $4.8 billion.
But that's not all. Within days of receiving the Army contract, Boeing landed a second multibillion-dollar contract -- this time to build an unspecified number of Chinooks for the militaries of Turkey and the United Arab Emirates. Boeing's base contract here is quoted at $3.4 billion in value. If "optioned" helos are ordered on top of the base number, however, the value could rise to just under $5 billion.
Result: close to $10 billion in new revenues for Boeing."
It ain't the A400 but it doesn't have to be a cargo lifter, or troop deployer, or mission compliant tool. Because its much more and in smaller packages with Mission flexibility on a changing battle field. The case of Osama Bin Laden. A super secret stealth helicopter crashed at the compound and battlefield dynamic changed in seconds. The Chinook was held off station somewhere secret, new orders, go in and support the mission hauling out secrets, people and provide cover for evacuation. Everything the A400 could not do in a heavy lift capacity.
Now several countries are wanting the Chinook including the US wanting more. The changing battlefield needs its versatility with a common Rapid Battlefield Management lift.

"Long story short, these are big revenues, and high-margin revenues, that Boeing has coming down the runway. The more Chinooks Boeing can sell, the better it will be for Boeing stock.
Boeing operates as a major player in a multitrillion-dollar defense market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. The Fool's premium research report on the company provides investors with the must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.
Back to the secret in the sauce theme. This saucy Chinook looks like a flying warehouse, has no masculine looking gun pods or rocket launchers. But what it does is ensure mission success under a hostile changing field of war. Going into battle with stealth copters and coming back with the Chinooks is the secret. Boeing has positioned its helicopter as the needed battlefield "Game Changer".

ITS GO TIME

Thursday, June 20, 2013

On Home Turf Show, Airbus Steals Boeing's Thunder

KOMO News Headline and Article

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.

The illusion is the excitement Airbus tries to generate in making its case, that they are the World's Largest Aircraft manufacturer at every Paris Air Show. What is not known is how long in the making are these "timely order announcements"? Just focusing on Paris as Airbus does, is marketing hype. End of year numbers should have its own Airshow, Perhaps in the The US down in South Carolina!

Boeing's March To Paris:

   January 2013 Orders Detail
737Total
22

February  2013 Orders Detail
1261142179
737777787Total
March 2013 Orders Detail
737747777Total
283839
 April 2013 Orders Detail
737777Total
50151

 May 2013 Orders Detail
737777Total
2239232
Total Boeing Pre Paris Show Orders from January 1, 2013

 2013 Orders Detail as of May 31, 2013
737747777787Total
42932942503
Now Add Paris Air Show Numbers

ALC
30, 787-10
3, 787-9

SIA
30-787-10

United
20,787-10 * (10 conversions)

British Airways
12, 787-10

GECAS
10,787-10 

CIT
30, 737-800

Ryanair
175, 737-800

Qatar
9, 777-300

Korean Air
5, 747-800
6, 777-300

              Adding Paris June 2013 with OCO's (Orders, Commitments, Options)
737747777787Total
634844144*830
*Does not net the account from a prior year swap on the order books with United's 10 -9's changed to 10 United 787-10 order, at the Paris Air show in 2013. This is how United got to 20 with 10 new orders and 10 swapped orders from -9's in a prior order period.

This fall will add more orders from Dubai. Clark has stated he doesn't want the 787-10, a Red Herring statement. Boeing is silent on this Clark effort, where he mentions the -10 several times, where the 787-10 is not his cup of tea. Strange he keeps mentioning it?  Is that code for something big is coming in the way of the next airshow? Maybe! What he really wants is the 777X! That would "Complete Boeing" this Year. Paris is incomplete work, since the 777X is unresolved in the order book. I can't wait for Dubai. Airbus has emptied the order tank at Paris, Boeing has not. No predictions here, just a hunch. The Arab nations region is a Big Airplane Type Place to announce orders, and the 777X is a big airplane type. "I don't want the 787-10, its not big enough", is Clark's statement! Translation decoded, ("I want the 777X its as big as I want it to be in two models.")  Boeing gets another 4 months to present its X case for final configuration and customer specs, then we'll see.

So now we know how the year is going for Boeing from its Paris perspective. I admit I may have missed some orders, but this week's Airplane exchange has been hectic, and some smaller orders may have fallen through my mental cracks. Boeing.com, will do my head checking by the end of June. I will update when the smoke clears, thanks for patience. Airbus puts all its eggs in one basket when announcing orders giving high excitement on the biggest stage. If the US did an Airshow in December, it may finalize its books Airbus style, and make a big deal on its own home turf. Every Two years in Charleston might make Paris just a pit stop in the airplane race.

Wednesday, June 19, 2013

I Love Showoffs, 787 At The Paris Air Show Showingoff


The sound you hear is a noisy A400 parked in the foreground with engines running blotting out the silent 787 flying by.  Towards the end of the video you can hear the 787 flying in low tones, gracefully by under 200 naughts. Enjoy the sky dance over Paris as the 787 moves around the airfield only, airspace at Le Bourget. What a ride you won't get when buying a ticket on Air India's flights.