Fifty unidentified 737's added to Boeings Order Book

It must be Shandong Down For Fifty mention last week.

Hot Dog Its Shandong Down For 50 Link

Out of respect for its a customer's wishes, Boeing won't mention who booked the order. I am just a good guesser and its a Chinese airline, Shandong Air. see the above link and then you may agree or not.

The Boeing Report

My kind of news is happening too fast when a corner that Boeing has just rounded comes. Scott Fancher announces a consolidation of fleet design starting from the 787 and everything forwards on all programs. Exciting news from the 787-9 as it goes unnoticed with many tidbits that are churning out of Everett, WA. The dash 9 has achieved lighter weight than planned, as an opposite result than the 787-8's plight during the same point in its development five years ago. The 787-9 has configured a laminar flow design working on its flying copies. Slipping through the air better, cleaning up the drag coefficient. Its better than the 787-8 once again. Remember the 787-8 is 20% more fuel efficient than others in its class.

787-9 Milestones:

• Lighter
• More Slippery in Air
• More passengers
• Improved lessons learned from the initial -8.
• Improved Engine technology over five years ago

The improvement on the -9 pumps up the 787-10 as it has an establish goal for 7200 mile range. Expect an Increase from 7200 mile range not from fuel increased on board but from the 787-9 implementations given to the 787-10 for its advancements over the 787-8. These advancements may or may not trickle back to the 787-8. However, it affects every model that Boeing is bringing on as a new model. Expect some new advancement implemented on the 787-10 not currently on the 787-10. Commonality, Consistency, and Continuity are Boeing's 3 C's. It’s easy to sit in on a Boeing management meeting if you use these three words at every meeting, you are a Boeing Rock Star as a Boeing Word Smith.

Read below for your enjoyment as your keep up with the Boeing Renaissance:

Pivotal Period for Boeing as Civil Programs Progress On Cue

by  GREGORY POLEK

Airways News Photo 7/17/2013

Characterizing the Boeing 777X program as “stable” and the 787-9 as “lighter than projected,” Boeing Commercial Airplanes vice president of airplane development Scott Fancher issued an upbeat assessment of virtually all he surveys during press briefings at the company’s Everett, Washington, facilities on Tuesday. Estimates cited by Fancher suggest that aircraft under development right now will account for more than half of the company’s commercial airplane sales over the next two decades, meaning the very future of the Boeing division rests on the successful execution of program goals today and in the coming few years. According to Fancher, the market has already spoken and “loudly” in support of Boeing’s approach and execution.

Now approaching the end of its development and testing program, the 787-9 represents the company’s next big test following an admittedly painful process of entry into service of its smaller sibling, the 787-8. In terms of the 787-9’s flight-test program, Fancher reported “no show stoppers” as Boeing prepares to deliver the first airplane to Air New Zealand this summer.

“Engineering on the 787-9 was released ahead of schedule,” said Fancher. “So the system that we put in place is beginning to make a difference.”

The system to which Fancher referred traces its genesis to the formation about a year and a half ago of the new airplane development organization he heads. “Along with that we brought a single integrated management system to our development efforts, a management system that’s really focused on executing with discipline, developing the talent needed to carry through these developments over the next ten years, and a very consistent management system so that we’re able to translate talent from program to program in order to ensure consistency of execution,” said Fancher.

That consistency, said Fancher, resulted in a lighter-than-expected 787-9 airframe, in part due to items such as a change from what program head Mark Jenks described as a “built up” titanium surround structure originally designed for the 787-8 cockpit windows to a simpler, one-piece aluminum structure for the 787-9.

Meanwhile, the biggest Dreamliner—the 787-10—“is coming along as expected,” drawing orders for 132 units from six customers, all of which Fancher called industry leaders. A “simple” stretch of the 787-9, the 787-10 carries an exceptional level of commonality with its smaller sibling and, in fact, the same exact maximum takeoff weight. “But stretching the airplane still presents us with a challenge for maintaining this commonality,” said Fancher. “And to date we’ve achieved and actually exceeded the degree of commonality we targeted for the airplane.” Not only does that characteristic translate into lower maintenance costs for the customer, explained Fancher, it theoretically means fewer disruptions in Boeing’s production system.

The need for production system efficiency applies especially to the 737 and what will become the 737 Max, as Boeing prepares to raise rates to 47 airplanes a month in 2017, right around the time it starts the transition from the NG to the re-engined narrowbody. Full assembly of the first Max starts later this year, flight testing in 2016 and entry into service during the third quarter of 2017.

Finally, the 777X, scheduled for entry into service in 2020, continues to progress through preliminary design phases as Boeing maintains what Fancher called a very stable configuration. “The airplane that we launched last fall is the airplane we have today, and it’s the airplane that we began offering a year earlier,” said Fancher. “That allows our teams to really focus on the preliminary design phase without a lot of variability, without a lot of churn.”

The 777X, featuring “fourth generation” composite wings and new GE9X engines, will employ the same wing design team that worked on the 787, said Fancher, meaning that many of the same engineers will bring lessons learned from their Dreamliner assignments. “There’s some things that you try in any complicated development program that don’t work out so well, and we’ve learned from those as well and made adjustments to our detailed plans based on those learnings,” he noted.

Apart from GE, Boeing has named only landing gear maker Héroux-Devtek as a supplier for the 777X. Nevertheless, said Fancher, Boeing “is well along” in the process of choosing suppliers. “We have plans for the entire airplane,” he said. “That doesn’t mean we don’t have alternatives we’re considering; we do. That doesn’t mean we won’t be conducting competitions; we will. But we have a game plan, a roadmap, through all of those questions and answers that we need, and we have for quite some time.”

New Boeing jets hold key to more than half of future sales

Reuters) - Boeing Co (BA.N) said it expects to finish flight testing its stretched 787-9 Dreamliner in the next two months and deliver it around mid-year, one of six new jets the world's biggest plane-maker aims to get into service by the end of the decade.

Boeing will start fabricating parts for its 737 MAX jetliner this year, keeping that new development program on course for final assembly to start by mid-2015 and service entry in 2017, company officials said in media briefings made public late on Wednesday.

The company also is "well along" in choosing suppliers for its 777X wide-body jet, due to enter service in 2020, though officials would not elaborate on the extent of selection.

The three jets are part of a major overhaul of Boeing's product lines that is "harvesting" technology and lessons from the its original high-tech 787 Dreamliner and adding efficient new engines to make 737 and 777 models that burn less fuel, fly more easily and provide passengers with more comfort.

Chicago-based Boeing is fiercely competing with new models from European rival Airbus Group NV (AIR.PA) to capture its share of a world jetliner market estimated at $4.8 trillion over the next 20 years.

The three jetliner families will account for more than half of Boeing's commercial plane sales over 20 years, said Scott Fancher, senior vice president for airplane development.

"What we have in work today really is the future of Boeing Commercial Airplanes," he said.

Boeing is redesigning the 777X and 737 MAX cockpits to make them mirror the 787 design, including larger displays and other features, making it easier for pilots to move from one aircraft type to another and reducing airline costs.

Boeing said it will seek a common pilot type certification for the 777-300ER, the 787 and the 777X, allowing pilots to fly all three aircraft with as little as five days of additional training.

Here are capsule summaries of the status of the three programs:

787-9 and 787-10

Boeing said the Hybrid Laminar Flow Control system on the tail fin and horizontal stabilizer of the 787-9 produced "significant" reduction in aerodynamic drag in testing, but the company declined to be specific. Boeing plans to use HLFC on the 787-10 but has not decided if it is worth putting on future 787-8 models, said Ed Petkus, deputy chief project engineer for 787 airplane development.

Fancher said Boeing assembly lines in North Charleston, South Carolina and Everett, Washington, would provide flexibility about where to assemble 787-9 and 787-10s, although he declined to say if North Charleston would build either model.

The 787-10, which is undergoing detailed design, will cost 10 percent less to operate than the Airbus A350-900 on a per-seat basis and will have at least 26 more seats, said Jim Haas, Boeing's director of product marketing.

Airbus said in response that the A350 offers 6 percent better fuel efficiency than the current 787-8.

737 MAX

While still under development, the 737 MAX is "meeting or exceeding our performance targets," including 8 percent lower fuel consumption than the Airbus A320neo on a per-seat basis, when configured with 12 more seats, said Keith Leverkuhn, 737 MAX general manager.

Boeing said it will build the air inlet for the engine itself, capturing what is typically a high profit-margin component. The current supplier of part is United Technologies (UTX.N).

The production will be "highly automated and done in South Carolina," Leverkuhn said.

The Airbus A320neo family was launched nearly a year before the 737 MAX, and has garnered about 58 percent of total single-aisle sales of the two jets. But Boeing says the 737 MAX has outsold its rival since coming to the market, garnering about 55 percent. Currently, Airbus has firm orders for 2,667 A320neos versus 1,939 for the 737 MAX.

Boeing said the 737 MAX will be 14 percent more efficient that its current 737. It said 11 percent of the gain comes from the engine and airframe combination, and the rest from aerodynamic improvements. The jet is due to enter service in the third quarter of 2017, Leverkuhn said.

In designing the MAX, Boeing is trying to retain the jet's high reliability and also make it easy to build, because even as the company introduces the new MAX version, it plans to raise the production rate to 47 a month in 2017 from 42 a month currently.

777X

Design of the 777X, a new version of Boeing's top-selling widebody jet, is "very stable," Fancher said.

The design will try to replicate the low noise, higher humidity and higher cabin pressure of the composite-body 787 in the aluminum fuselage of the 777. Boeing also wants to keep the reliability of the 777.

While Boeing continues to refine the 777X in response to customer requests, the company is "not seeing any major configuration changes that would disrupt the development or put risk on the schedule," he said.

Boeing is trying to get the plane certified under an amended type certificate of the current 777, rather than as a new design. The Wall Street Journal reported late Wednesday that the Federal Aviation Administration said it had agreed to Boeing's request.

Boeing did not respond to a request for comment and FAA could not immediately be reached for comment.

Boeing says the 777-9X will have 10 percent lower cost per seat than the A350-1000, will carry more than 50 more passengers and will have more range.

Boeing is widening the interior of the cabin by about 4 inches (10 centimeters) at passenger level by whittling structural frames in the fuselage. That will allow seats to be about two-tenths of an inch wider in 10-abreast configuration, Haas said.

The 777X may be renamed as the 797 and may get a name like the Dreamliner did. But Haas would not be drawn on what that might be.

(Editing by Christopher Cushing and Stephen Coates)

Commonality Is Boeing's Thrust.

Last year LiftnDrag expressed a thought that Boeing was changing tack with a commonality theme for its family of aircraft. "All Flight Decks have a continuity with each other, no matter the airplane type or class."

Investors Daily

Boeing is changing the 777X and 737 Max cockpits so they are similar to the 787's, making it easier for pilots to switch between planes without investing as much in training.

 View Enlarged Image

Midday, shares were up 0.08% to 129.12 in the stock market today.

Boeing's new jets will feature more fuel-efficient engines as airlines look to save on fuel expenses and reduce carbon emissions. Fuel accounts for nearly one-third of airlines' expenses.

According to Reuters, the global aircraft market is estimated to reach $4.8 trillion over the next 20 years.

Read More At Investor's Business Daily: http://news.investors.com/business/050114-699211-boeing-sees-timely-arrivals-for-new-planes.htm#ixzz30Ue9eNRo
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Investors Business Daily

Boeing has just recently announce they have turned its ship in that collective port of commonality. The 737, 787 and 777X will have a smooth transition from flight deck to flight deck, The designs are frozen starting with the 787 and moving onto the 737 Max. Even though the 747-8i is not mentioned, it is a four engine behemoth different than the  two engine decks but is recognizable to 777 through the new Max layouts, and it functions like its smaller siblings, They all have the same Boeing DNA. This is really a return volley to Airbus, and Boeing has put some top spin on that return with new technology suites that make the Boeing more formidable. MAX is well on its way to come out to play, promising it will beat the NEO in performance, capacity and per seat efficiency. The airplane wars comes down to the passengers as it should and Boeing knows that as well. Airbus is always playing Boeing with size, room and comfort. Boeing doesn't ever really note its own size, room or comfort talking point, but focuses on performance, efficiency and cost of operations. Two different tacking strategies for both Airbus and Boeing.

I tend to believe Boeing leaves configuration for its airline customers when it concerns its passengers. However, Boeing stepped over airlines seat cramming effort with bigger windows, better air, and lighting. The customer airlines still controls enterainment systems and seat space. Airbus can't or won't compete on the windows
but tries to force its customers with an 18" seat width, yet it allows more seat cramming than the next guy (see Russia's A380 proposal). Airbus sells over its airline customers straight to the public by selling what an Ideal Airbus should look like if you fly on one. Boeing sells what Boeing has put in place, and can't be changed by the airline customers, guaranteeing passengers will have a great travel experience. Two different tacks of its air ships. The 787-9 is on a sixty day journy for entry into service with New Zealand Air delivery.

Finally, Boeing has forced its will into the cockpit much to the delight of its airline customers. Making pilots able to proficiently fly any Boeing only after a short time at a different model's stick and systems. This leverages a pilots, thousands of hours of skill to every Boeing aircraft in a very short amount of time with consistent results. This enables Airlines to flex  its own operations rather quickly in a changing route, and craft type market. Saving that airline millions of dollars when reflexing in the changing market place, Boeing has caught Airbus at its game and passed it. The commercial aviation arms race is on. Boeing has announced that this is its strategy, and its now frozen in place. Airbus is reflexing, but its own A350 is frozen in second place. The NEO jumped the starting line by a year. Boeing can only catch the NEO after the MAX flies once people know its worth from that flight.

April Three Month Moving Average 787 Line. (updated)

3MM average                      (Prior Month projected)

Goal +/-                          02/2014  03/2014     04/2014         +/-   *Projected Month May 

Month Deliveries              4               10      8        (8)        0            10
3 M-M-avg                       6.3             6.0      7.33  (7)        .33           9.33
Production Goal             10              10.      10      (10)       0           10
Production Trend (+/- ) -3.7            -4.                -2       (-3)     -.67         -.67

Conclusions: If April stands at 8 delivered, then the analysis is Boeing is building a strong WIP count, since it rolls 10 a month out its doors to the flight line or EMC. The backlog of production completed models will break out during May and June. Whether Boeing can sustain a 10 a month delivery remains the goal. I would look at Boeings next ninety days as a gradual march towards ten deliveries on a continuos basis. There may be 11 delivered in June with a dip down to 9 on an alternate month. The accounting will have entries reducing accounts receivables through an average  @10 units a month (cash values) delivered by end of summer,  sometimes up to twelve units a month by September. The profit numbers for the 787 will jump by year's end as a contribution on Boeing's bottom line. The cash flow section of Boeings books will reflect this increase as well. Cheers from the accounting section will be heard later on with the WSJ reports.
Pressure will return to sales, as Boeing will seek more Back-log growth starting in January 2015.

Boeing Accounting For Dummies 1st QTR 2014

The flow of profitability for Boeing Flows like a watershed. The rainy season begins in the form of:

Marketing Rainfall called Sales.

Runs into a pond called Backlog Pond, with 5000 units backlog the outlet is running 161 Aircraft during the first Quarter, a key number of note.

Each unit run out of the pond pays the heat and lights that keep the pond sanitary and the backlog water fresh. Some evaporation occurs due to cancellation weather.

But the downward run to the bottom line is strong with 161 productions units. This Boeing water reaches the cash register called delivery (ka-ching). Boeing increases the flow of water by 1 billion over 2013 number, into its cash register from those 161 produced models delivered.

Boeing water is divided up past the cash register in the form of tips and corporate gratuity. This fork in the road is often called Earnings Before Interest/ Tax or the frog called "Ebit". Every unit delivered way back upstream coming out of the pond  makes Boeing money.

The Boeing pump in the pond, has been enlarged so more revenue booked can enrich its workers, government and executives, and I must not forget stock holders. So there is another set of areas dedicated to  stock holders, taxes and executives. Payroll handles everybody else somewhere back in the production cost center.

Cost centers is an important sounding name that some how is tied to a revenue center every time sales brings home the bacon. Cost centers is a chit collection box that spoons out water from the 161 delivery delivery stream. Now good accountants start to lose people in this flow chart at this cost accounting point. Stay with it, its quite simple.

Once in awhile a worker in production dares ask, how big is the pond? Because that's all they know is the pond. He wanted a transfer anyway, savvy?

What Boeing is doing is leading its stockholders by pond size. As size really does matter! The bigger the pond, the bigger the production stream, the bigger the stockholder satisfaction and so forth.

Cancellation is the chink in the armour as is a recession. As airlines prospers or don't. Sales spots become limited because of Preditors  competitors. Boeing has to mop those types of sales quickly, and dump it into its pond. Dry seasons are a bane, but Boeing could endure a slow rainy season once or twice but no more.

Back to cartoon accounting for dummies 101. Boeing moves plants and facilities in a continuous effort, and then watch if it increases the down stream flow past the cash register. The 777X project is an important indicator of how will...

• Boeing will increase its productivity pump
• It rely upon the most experienced and reliable suppliers in Japan
• it build wings across the rain gutter drain at the current 777 build site.
• it build both new and old in the same zip code.

Zip Code Dynamics (ZCD) is the new Boeing Blue "it", as it keeps "it" within a zip code, and how it expands its pond with the Northwest. The ZCD has seen a consolidation of customer ancillary functions moved to Southern California. Customers like SoCal in the winter anyways. Cartoon accounting 101 suggest keeping the animals separate, is best. The Zebras won't mixed with the production gorillas and so forth. So the Zebras (customer service) will save down stream water from any draught condition found at Boeing or SoCal. ZCD has moved pipe-line productions logjams out of the NW to SC? (huh). Chicago hasn't got the ZCD memo yet. Its better that the Penguins (suits) stay in Chicago since the last Madagascar movie.

I Smell Politics On Boeing's Big Deal With Norwegian

Boeing is on the cusp of making a 20 Dreamliner deal for its 787-9 with Norwegian. A funny thing happened on the way to market place. The DOT slowly answers and makes an approval for slots into US air space with Norwegian through an Irish registry. This slow process has scared Norwegian off and now its pulling back, not surprising since time and money are rare commodities in the cut throat business of aviation.

Like everything I have found out there are two ways government works or doesn't work. The way it works is when it follows a prescribed rule process and assures the public that it is doing its due diligence. Otherwise Norwegian should jump through the prescribed hoops with the DOT and get a simple answer.

However, the second process where government fakes work by having political powers and lobbyist pour money its way that would cause an agency like the DOT, to do its due diligence in a way of following administrative rules within said agency, that would align with political outcomes. The XL PIPE LINE, mystery denial, is clogged by bureaucrats from everywhere including the environmentalist who don't have a case. The Norwegian example may as well be another XL pipe line to America. They, Norwegian, tried using Irish credentials to punch through for its 787-9 type destinations in America. They, the DOT, has not figured out if they should do that little thing. I, me, believe there is some serious money avoiding this allowance into American air space where unions, government and other airlines have a dog in the fight. The 787 is a game changer and Norwegian is just finding out what that really means. Pressure is put on them and Norwegian is backing off by reconsidering an order with Boeing for 787-9.  The game changer is changing the aviation map in a way Boeing had not considered, where it is too effective and Governments are now just beginning to control flights in and out by controlling model types that are too effective in beating its own domestic markets. Its just because out-of-country airlines have a 787 market beater. Its another "The 787 Effect".

A second battle front has opened up in the area of commerce and Boeing will excerpt pressure there asking some embarrassing questions of its government. What is important in this case, 20 787-9 represent billions of trade dollars. The XL pipe line is also billions of construction dollars with many more billions of oil flow dollars. So the Norwegian case is of smaller national importance and will slide by DOT with not to much written about it. I am only commenting because free trade sometimes is a political myth as in this case. Norwegian is regrouping and exploring other options because it wants its 787-9's. It now has to find and assign a need for them. The skies are beginning to fill with 787's and Norwegian wants to put its routing foot in the door before others get its own 787's.  

Hainan Sells The 787 At Its Conference In China

Randy Tenseth is not leaning back in his chair thinking about where to go next in his constant pursuit of selling Boeing Aircraft. He is deviously planning taking  over the world  with nothing but, Boeing Aircraft. China is a burgeoning market with a few New 787's flying to and fro. Both Hainan and China Southern are making a Chinese splash. Something Airbus at this time cannot brag about, but will shortly try to brag upon as  entry into service is nearing with its newly minted A350's. 

Meanwhile back at the big shows, especially in China , Hainan is taking the lead sales position at the 2014 World Travel & Tourism Council (WTTC) Global Summit. The is a mouth full just saying it. Randy picks up a phone and  calls Chen Feng, HNA Group Chairman, and says, " How's it going, ...ah huh, .... Gnarly Dude!" No Randy doesn't talk like that, but I do, so I added my own speaking  font, just North of San Diego's speaking font. The point being is that Hainan knows it has become one of the leading Airlines in its region. Somehow, owning the 787 is so fashionable, because of what it brings to the table. So to the table they go, at the 2014 WTTC Global Summit. Randy, sits back and enjoys the ride. Randy's customers are selling 787's. Now he needs to go out and ask how many 787's, and tell them when to deliver those superb flying machines.

Actual News Reference: (I am doing the work)

Travel Daily News (South East Asia Reporting)

SANYA, China - The 2014 World Travel & Tourism Council (WTTC) Global Summit, the annual event for tourism organizations worldwide, was held from April 23 to 25, 2014 in Haitang Bay, Sanya, Hainan. To facilitate dialogue among the travel industry's decision makers, the event, themed "Changing world, new perspectives," focused on major issues facing the global tourism industry today. Diamond sponsor Hainan Airlines, a member of HNA Group, was a key participant. HNA Group chairman Chen Feng gave one of the summit's key speeches. The event, which brought together industry leaders and the media, hosted discussions on topics like development of China's and Hainan's tourism industries, demonstrating the vitality and prospects of their tourism sectors.

Hainan Airlines' booth at the summit attracted numerous visitors during the entire event through its booth design, route recommendations, and its on-site exhibit of cabin offerings. This demonstrated its many worldwide successes achieved in recent years as well as its plan to add new international routes going forward.

"As an important member of HNA Group and a SKYTRAX 5-Star Airline, Hainan Airlines is China's only airline that operates the Boeing 787 Dreamliner on the North American routes. We will also offer nonstop service from Beijing to Boston, beginning on June 20th, marking a further improvement of our North American routes network," said Hu Yi, general manager of marketing at Hainan Airlines. Hu further added that Hainan Airlines provides passengers with five-star services on its major flights, including Bvlgari amenity kits, molecular gastronomy offered by chefs from Taiwan, as well as the Spanish Torres Sangre de Toro wine, winner of the Best First Class and Business Class Wines on the Wing awards by Global Traveler.

With its growing fleet, addition of the 787 Dreamliner to its fleet, roll out of new international routes, and continued offering of The Beauty of the Orient service, Hainan Airlines has grown into an international airline with comprehensive routes throughout China that connect the country to Asia, Europe, and North America. As the diamond sponsor of the WTTC Global Summit, Hainan Airlines has demonstrated its commitment to the development of China's domestic tourism industry and transformation of Hainan into an international tourism destination, connecting travelers from China and around the world with this stunning and magnificent island.
----------------------------------Clip-------------------------------------------------------clip------------------------------------------------------

With electronic scissors in hand I will put this in my scrap book, Everyone else have a great day.

Now I am in a serious font of mind. (Not possible). Randy's team of hard workers is starting to really pay off when you have customers telling audiences "how we roll", with the 787. They are explaining they are unlocking "The West". Unlocking the Orient is so 1850. Hainan has supreme sailing ships happily taking customers westward for both vacations and business. Hainan can fly "Go West Yong Ming" or go East to get to the west. It doesn't really matter which way you go, Hainan will get you there, that is our secret (not). We have  Hot deals settling through the tea infuser and out comes the best fuel sipping West, erh, East of the Yangtze  river. The point is, we will reach the World in four directions. Flying West Europe is Just there, and Flying East you have North America. Flying South you have vacations with both Australia and New Zealand, "savvy"? A hand goes up in the back of the room, "What about North". Answered smartly, " I'm glad you asked that question, Yes We Can, next question!" The conference is lead by Hainan people and they are selling its leadership position from Hainan Provence, or in Randy speak, "The 787".

Terminate The Batch

Is it Richard Branson accent or did I spell Batch wrong and it needed an "i" instead of an "a" for the batch word? Richard Branson from Virgin (everywhere you name the region). Has reached a point of no return for Airbus and its A380. Back in 2000 he was an early order for 6 mega Buses. Nothing happened for quite a while. Then the favorites were played by Airbus with Singapore, Emirates, and BA to name a bunch. Branson then proceeded to defer on the first six and its second six A380 options. Several times no less! Anyways, Branson may terminate the batch for the A380.

I Bugged the Virgin Atlantic Deal

Richard and the calendar are enemies to his bank account as he building a gigantic aviation empire. On any given day no one can just write a check for 350 to seven hundred million dollars on that day of the week when the A380 needs a dance partner in Paris.

Every Month another 6-10 newly minted 787's take-off to everywhere, following the same  Branson theme,  once again he gets scorned by competitors in and around Australia.  "Why can't that be me", as Branson, bristles the hackles on his back of his neck, "I'm calling O'Leary at Ryan Air, he makes me calm down. You know what, that 787 hauls a bunch for less money and everybody seems to like it too. Do I have to be a PT Barnum fan and fly the A380? Well no, I don't! Somebody get me Randy's Phone number on the west coast."  Put Ryan on hold I'm calling Tinseth now. Hello Randy, I need a dozen 787-10 and those 16 787-9 I've already ordered, stat. Will gold bullion work or do you need a check?"

Randy then tells him that the 787-10 has only 132 units in line, and the 787-9 line is at 406 units waiting. However, "we have people who can't finance its way out of a wet bank bag". Branson responds, "Every time someone delays or pushes back, I want that spot. Here is my Swiss Airplane buying account, xxx-xxxxx-xxxxxx, Okay!"

Randy Tinseth then tells him that we will  have a new production list coming out for the 787-10 next month. "I can only promise you 3 spots near the front of the line on that first go around! Richard then answers, " that works fine, you got my Swiss Number?"

Randy, "Of Course and Boeing is ready and willing to be your new BFF from this point forward."

I had a hard time getting this super secret phone recording from office bugs and other clandestine efforts. Richard is moving forward while the A380 sticks on the flight line.

Boeing-Mc Nerney First Quarter Flight Line

Article Link

Boeing ‘Confident’ in Smooth 777X Transition

Article basis from AINOnline in bold font:
LiftnDrag Observations in Blue font:

Boeing CEO Jim McNerney seized the chance to impress upon securities analysts on Wednesday his confidence in his company’s ability to execute a smooth transition between production of the current 777 line and the 777X around the turn of the decade. Now delivering 8.3 of its flagship widebodies a month, Boeing expects some “feathering” of production once it approaches the point at which it fully integrates the 777X, said McNerney. 

Speaking during his company’s first quarter earning conference call, he also conceded the potential for some “pricing pressure” resulting from the introduction of the Airbus A350. Nevertheless, he stressed that the existence of a strong “pipeline” of what he called some of the biggest and most loyal customers in the Boeing stable will ensure that the manufacturer’s plan for the 777 will proceed with little or no interruption in the flow of deliveries.

Key statement, is the loyalty statement, that is what Boeing is building on relationships not just aircraft. Many customers have found ways for making money with its family of 777. Those grasping at straws have sold some 777-200, (Air India), and will buy Airbus A320's. The "Flow" of Aircraft will show no breaks in the continuous stream of the 777's when the X plane meets, McNerney's talking-flight -line. Second word of the day is "confidence". Boeing has learned a one-off lesson from its 787 hubris days when being overly giddy with statements like delivery to flight line during the 7-7-7, 787 festive speaches, that the 787 will fly in 9/30/2007.  Then came the three year wait. If the 777x even becomes one year late, both confidence and loyalty are on the line.

“Where do we get that confidence?” asked McNerney rhetorically. “It’s in airplanes sold to date, it’s in proposals accepted, it’s in campaigns that are ongoing today where, as in the case with [Japanese 777 customer] ANA, we’re selling both 777-300ERs as well as 777Xs. The requirement versus the alternatives still is favorable…There will be some pricing pressure associated with that…which is why the most aggressive productivity program we have right now in our factory is in the 777 model.”

Boeing customers have found a very lucrative way of making money for its family of Boeing aircraft. The ANA's of the world, and others have seen a jump on its bottom lines when introducing the latest Boeing products to its fleets. The customers are addicted to money, and will continue to order more aircraft even if they  don't have cash ready money. Results  equals Loyalty. Pleased customers are a secondary issue, but important, when airlines today, affix 11 across and craming 600+ onto the Airbus A380 (Russia). It is interesting to note that Airbus DEMANDS an 18"  width standard when Boeing has a 17.75" width on most aircraft. Then they gladly go for 10 seats across or eleven. That's gamemanship. McNerney recognizes the frailty of market sentiment and is hoping customers stay loyal to the bigger picture of better operations, performance and over-all airplane quality. McNerney hints at pricing will have casualties in the Airplane Wars. However, Boeing's better, "Waking Shoe", will win the war as passengers travel the world.

McNerney added that Boeing won’t begin delivering the airplane that directly replaces the 777-300ER, namely the 777-8X, until some two years after it introduces the larger 777-9X in 2020. “There is plenty of running room where [customers] can reap the economics of the base 777 in conjunction with buying 777Xs,” he said. “So it looks good as we talk to our customers…

Smart market shaping on McNerney's part. Because Boeing introduced the 787-8 first due to unknown risks, it had a big enough and great enough introductory model for a carry-forward to the 787-9. They hit the market in stride. The 787-8 had no competitor and still remains without a true competitor. However, in the 777-8's case, Boeing has recognized that the 777-300ER is its best seller and customers still hold value for that model. It is the 777 transition model. Going from a 777-200 to an 777-8 at this time would not make sense since the 777-300ER is the best seller. The 777-9 is the logical transition model. All other 777 models will template off this one, where they could service the tweener markets. Those are niche markets that specialize in distance and numbers that are scattered through out the world, I'll call tweeners as represented through the 777-8 is that champion for far reaching destinations where the 787-10 won't be flying. The 787-9 would have a larger capacity compared with the follow-on 777-8. Having a later  777-8 build and testing  schedule will assure the 787-9 will be well established with its intrinsic values well into a strong customer following.

“The pipeline gives us comfort…These are not discussions that are happening in a vacuum. These are with people that have both additional 777 needs in the medium term and then longer term would need the new model to significantly increase performance and productivity for themselves.”

McNerney further emphasized the existence of a large “overhang” of order options and other forms of commitments, quite apart from a firm order backlog that fills virtually all delivery slots into 2017.

That statement is hinged on customer confidence. The key point of the day. Customer's and Boeing's confidence is in partnership, or all else is lost.

McNerney is doing some production smoothing not to excite investors on overly optimistic promise, but pointing out Boeing's lessons learned will not be repeated once again on the 777X program. McNerney has changed the Boeing 

motto from; "We're reaching the stars just this afternoon" (so 2007), 

and where it has metamorphised in 2014, "Boeing says what it means and means what it says going forward." 

These statements in 2014 are all doable promises for its testing and production line-up. No more paper airplane promises of three years late. In fact I was so giddy in 2007, I believed in the 787 promise of a September 2007 787-8 delivery for its testing without checking into the Reality Motel.

McNerney’s comments came as Boeing announced what it termed strong first quarter results for its Commercial Airplanes division, which posted $12.7 billion in revenue on higher 787 and 737 deliveries. First-quarter operating margin improved to 11.8 percent, reflecting the delivery volume and mix and lower period costs partially offset by higher research and development costs.

Once again, McNerney reaches from the 787 lessons learned play book by avoiding saying, Boeing has achieved its original 787 like it promised three years late. The first quarter is a change as a result of corrective corporate actions for all its airplane building programs. Boeing has finally awaken, as if it were some sleeping giant. It woke-up after Airbus has been pounding Boeing senseless for the last twenty years. Airbus has been producing and selling 40 A320 a month. Then Boeing woke-up. After many years of just doing 32-34 737's a month the accounting office figured out that sales is not revenue and Boeing needed revenue from production delivery, and they then needed more sales. Boeing needed to get with if it wanted to survive. They watched Airbus come out with the NEO, they watched Airbus revenue grow and then sales grow. Everybody at Boeing got off their butts, and started to move. Here comes the Max, there went the 787, and now the 777X family is pinning down the A350 family to mediocrity. Nothing is more loyal than the fat bottom line in corporate world and its customer's. Boeing is going for it and is no longer a sleeping giant with only 32 NG's a month flying out from Renton. It has 42 a month just in these last few years and will go for more in the near future. Now they are 10 a month for the 787 which contains Space Shuttle like complexity. Airbus worries too, but can't match Boeing's executed plan. 

During the quarter, the 787 program reached a 10 per month production rate and completed preliminary design review on the 787-10. The company selected the Everett, Washington site as the location for a new composite wing center for the 777X. In April, the 737 program reached a production rate of 42 per month.

The awaken giant cannot stop for even investors, so they better get on the train before it leaves the station.  Boeing has a thirst for capacity as it becomes more centered on the United States participation. More specifically the Northwest and West coast at this time. A new wing plant at the Paine field arena. Offices moved to Southern California and a continuous renovation at Renton, WA. Everett is gearing up for a two types of 777 production. The old backlog with 777-300's and the New Orders of 777-9's. A new wing plant built adjacent to Boeing's giant factory, means Boeing is done shopping and experimenting with production. Boeing senses a kill shot is needed now, so they call all hands on deck at Everett, Wa. This by no means they are gong to slight its suppliers. Those who exceed expectations will continue and expand with Boeing. However Boeing will put its arms around those things that are critical potential show stoppers, such as the folding wing that they are the best in the world at doing. They also build fantastic 777's.

To conclude this thought, Boeing isn't messing around this time since its a kill shot on Airbus' aspirations.

Commercial Airplanes booked net orders for 235 airplanes during the quarter. The division’s total backlog stands at 5,100 airplanes valued at $374 billion.

I actually expected a greater number booked, but because of paper work, dickering and sales time taken through building aircraft relationships for forming a real partnership, it takes months if not years to book aircraft. Boeing has many outstanding promises not yet booked. It just sold another 50, 16 NG's and 34 MAX to Shandong Airlines that will not appear on the books until the customer is ready. ANA has not booked its 777 orders as of late April. Some other customer promises exist and are without turning out any other WIP work orders. Boeing has a continuous momentum in both the sales and production arm of the corporation. Production turns directly to revenue. Sales are like pawns on the chess board that blocks an opponents move. The more pawns in play the less the competitor has to play with reducing its own eventual revenue.

Prognostication:

If you were playing basketball in a corporate sense, Boeing has successfully put players in better position around the basket for a rebound. They have better offensive scoring from the guards. They are in a better position to win it all than its competitors. They are once again exceeding expectations.

Boeing Deftly Playing Two Markets

Long ago I made a prediction for Boeing, stating that Boeing would reach a break-even for the 787 project in late 2017 or perhaps early 2018. In order to break-even Boeing has to reduce the per copy production cost total below the expended investment for the 787 development bringing it to market. They, Boeing, felt that 2015 is obtainable for reaching the break-even production unit during that year.  What comes into play is Boeing two markets, the Sales Market and the Stock Market. The more 787's per month that Boeing can deliver to its customers off-sets the investor angst towards paying more for a share of Boeing in the financial market. By saying it will be in 2015, that every 787 delivered during time , will give Boeing profit dollars is an extreme goal.

After taking a glance at what Boeing has wrought in the form of set backs and change, it is well established that Break-even reality if farther out than sometime 2015. I gave it the 2017 or a little later proclamation, big deal huh? So with those divergent thoughts in mind let's ponder the process. Boeing needs an actual 10 a month delivery by years end, they can't keep piling up 787 at Paine field collecting sun light. Scattering some to Portland, California and Texas for residual work. The room at Paine will become a premium if they produce 10 units out of the factory each month when not ready for completeness and delivery. They say they will produce 110 this year, but will 110 units have its customer money prepared for that many deliveries?

• I think some will delay deliveries in blocks of several weeks until money is supplied. 
• I think some will not be ready for acceptance due to its own infrastructure and training issues.
• I also believe the strain of delivery preparation will overwhelm Boeing capabilities. 

At some point in time, the parking lot at all the aforementioned locations may reach grid lock as Boeing won't slow down its ten a month and then 12 a month at the factory door. Does that pace allow for room for the its door pace on the flight line, and enable it to reach the break-even point during the next 24 months? I am just saying there are too many moving pieces where Boeing needs some slack time written into its floor plan as units are brought forward. No two production 787's are the same nor do they achieve the same factory pacing speed. The slack is completed outside even though they go through those same big doors every Xth hour. Consider the millions of parts which arrive, and may not pass testing, or correcting systems during upgrades. The nebulous production issues  make each 787 a unique work of art and those units can tend to build up outside not ready for delivery.

Boeing has a strong mitigation team for those unique situations and have planned to handle each aircraft accordingly. They also work with its customers to gain assurances that its customer will ready for delivery. Boeing has grown-up as a 787 producer of the World's most advanced commercial airplane, including the A350 family of aircraft. Boeing also has matured the 787 from its problematic examples of glitching. The 787 is ready to take to the world aviation market by storm. The 787-9 will really be that dream that Boeing had hoped for during the 787-8 push out in 7-7-2007, when it could only muster a plastic shell for an aircraft. The dream delayed by three years of do-overs, mistakes and change management is a virtuoso in concert today. If Boeing made violins, the 787 would be a Stradivarius Violin. Airbus builds really big Tubas Worthy of October Feast.  Some days I'm tempted too, to take a shot at Airbus, I'm sorry for that digression.

Back to the flight line and the two markets. The markets are in a symbiotic relationship. The sales team has given Boeing a production backlog exceeding Break-even in spite of the cost of getting all the wrinkles out of the 787 family of aircraft grew. Airbus A380 has not sold enough A380's, and will lay up short on the A380 break-even until another decade clicks off on the clock. Counting on where they will eventually sell enough A380's is a risk. The A350 family through its 900 may reach Break-even for Airbus. Enough of Airbus already! The Boeing two markets will reach its apex in 2017. The break-even units will roll out the door during that year. Sales will energize in a second tier buying spree. The financials will no longer bother with any glitches or batteries as they will have long been put to rest. Airbus will change its battery by 2017 saying, "me bad".  They will brag they are the most advanced airline in the world with its NBO battery.  Boeing will be flying the 777X in tests gaining distance towards first delivery. The two markets in 2017 converge into one big realization that Boeing's 737, 747,787 and 777 are remarkable aircraft. Fantasy? No its not, its Boeing's goal for proven Boeing Technology. Its the continuous improvement slog through Boeing's stated goals. The only change from the script is that Boeing will not Break-even during 2015 but during 2017. Once this forecast die was set, it is a matter of execution for things Boeing does best. Build airplanes. However, its wishful thinking skills needs improvement.