Step Technology For The 777-300ER Until The 777X Arrives

Boeing has two different flight bags of technology. One is the step bag of advances for the current 777-300ER, the other is the 787 Bag of Technology for the 777X. Currently Boeing is plussing out the 777-300ER with refinements on its engines and improvement for its customers interiors. It cannot change the humidity or the approximate 8,000 foot air pressure in the cabin, nor it may not change that feature for its up and coming 777X design. But it will bring forward many improvements on the 777-300ER in the interim period before the 777X arrives. This is a gap filling effort of keeping the 777-300ER in-play for building 100 777 types a year going with both freight and passenger services.

If the 777-300ER remains formidable to Airbus' A350 introduction, As it  can do so with vastly improved interiors and amenities for its passengers. It will fly efficiently as always, against the A350 hopes. Customers who have gained profitability with the current 777 will have an enhanced version that will carry forward until 2020.  Airbus is locked-in production with serving all its customers with orders for the A350. Boeing can cherry pick the market offering current gratification of delivery soon after purchasing documents rather than later.

Order a A350 today it will arrive in 2020 when the 777X arrives. Order a 777-300ER or 200 today it arrives in the years 2016 or 2017 and will fly for three more years without any competition but from Boeing itself. Airbus will after-all have to ramp up production during those first three years of production (2015,2016,2017) for the A350. By 2020 they (Airbus) maybe in sync with its customers for delivery, by producing 70 A350 aircraft a year. Meanwhile back at Everett, Wa. , Boeing will have been relentless with both programs, the 777-300 enhanced and the 777X using the 787 play book bag of technology. That 777X bag which will never see daylight for the 300ER lists: laminar flow technology, plastic flight surfaces, and applicable 787 technology found throughout the airframe. The 77X will havea host of other innovations which will make the 777X more efficient than the A350 twins, the dash -900 and dash 1000. I didn't mention the newest in engine technology for the 777X.

However, by slight of hand Airbus adopts the A330neo into the A350 family of aircraft so it may battle the 787. The A350 already lacks 787 technology, where the A330 NEO will suffer a blight of technology when compared to the 787 benchmarks. Customers get to chose which airplane. Many will try the A330 off the bargain shelf to make up for inefficiencies against the 787. They will have some gratification on its choice, but it will play out later on at the ticket window.

A concluding thought for Boeing's two flight bag approach. One is for the 777-300ER and the other is for the 777X, is an indication that Boeing is taking serious everything in the market place, and is leaving no stone unturned. The old Boeing would have dismissed any threats from Airbus and moved ahead without regard to the market. Things have changed since those days and Boeing is attacking the market with pleasing options other than just calling something NEO.

Addicted To The 787-8 Fuel Burn Customers Push Back On Fixes

The 787-8 is performing soooh good that its airline customers don't want to interrupt schedules with any down time with Boeing updates. The giant aircraft producer has unloaded an army of engineers chasing and correcting any reported SNAFU's and glitches. The airline operators do not want a day or two down to fix those glitching squawks. After-all is just a slight inconvenience on fuel burn after-all. This a real jam up for Boeing and an irrational effect on customers who are addicted to the fuel burn.

The airline customer must bring in a less efficient aircraft in place of the 787 being fixed over-night. That means a whole tank of fuel operating at a loss on most routes flown by its replacement aircraft. Boeing is expending immense resources making the 787 as compliant as the 99% glitch free 777-300ER. The glitch list is shortening at a rapid rate and now airlines don't want to park the 787 for a fix. The 787 is saving airlines operating bottom line as it is making profits every hour it flies. These enthusiastic customers would like Boeing's team of Glitch fixers to go away for another day, because it would mean the 787 isn't flying that day during glitch fixing time.

The world is thirsty for this airplane now! This basis of thinking was found in an article today recounting this same premise. Don't Ground My 787 during my watch, cry comes from customers lip because it is turning around airlines at the same pace they can launch the aircraft.

By Gregory Polek: AINonline

Fast Pace of Boeing 787 Fixes Challenges Operators

July 3, 2014, 9:29 AM

Resistant to grounding their Boeing 787-8s for a even a short time, several operators have indefinitely deferred addressing fixes to some of the airplanes’ last remaining glitches, presenting the manufacturer with an “issue” as it marches toward its target dispatch reliability rate of 99.6 percent. Now seeing a three-month rolling average of roughly 98.5 percent, Boeing expects to reach its benchmark—established by the world’s 777 fleet—by the second quarter of next year, Boeing 787 vice president and chief project engineer Bob Whittington told reporters during a series of briefings the company recently held in the Seattle area.

787-9 Makes Farnborough Worth Going To This July 14th

Rainy Days and BOEING Always make Me Glad PHOTO op above signifies the beginning of the air show junket for 2014. Next year will kick-off in France. I would expect some proud owners of the 787-9 to show up there in Paris.

The Farnborough show will feature stretch as the theme. Stretch your seating plan stretch your bottom line in a front to back display of airline strength. What I want to see on the 787-9.

• "What difference does it make", not the political rhetoric difference making.
• Where will I sleep during 9,000 miles of continuous pampering?
• Who's type of seats goes here?
• Why so many people looking, Farnborough was suppose to be just for me?
• When do I have to exit the 787-9 during the airshow. Exhibit hours are too short.

Just a few W's are in order to make this a spectacular Boeing event. The main thing is that the 787-9 will be there in full regalia.  It doesn't matter if Airbus shows up or if John Leahy makes another obnoxious pontification about his A350 or A380. It does matter how the difference-maker plays in Peoria, England. Relax its just a metaphor from mid-western sensibility.

The 787-9 will be a brow lifter. mouth-causing-breather, and  an envy-boosting-smile-maker for those lucky enough to board her during the show.  Expect witnessing one Seminal Sea changing moment in your life, that you can tell your grand children, only if you are currently a teenager during this show. 

In two years time it will be the 787-10 time at the show. It will be the extended "you can see  Russia from here version". That one will stretch to your destination before take-off. Just kidding for those who have never read this blog before. Sarah Palin will ride in this model, because she can. 

Farnborough is the display of simultaneous aviation dreams and reality. The 787-9 is in the reality category. A new announcement from Boeing is the dream category. The possibility of saying something, anything about a single aisle extender is in the rumor bin. I would be willing to bet someones money on a 200 passenger, single Aisle 757-type-ER at Farnborough. We will see in about two weeks. The cat may have already jumped the sack from Air Astana last week when it said it was very interested on what Boeing had to say about the 757 type. New engines, new design and Max steroids for Boeing's popular "Hot Rod" in the sky, is the 757. Boeing has so much room to trick out the 757 design in a more powerful representation of airline progress since it quit building the 757 ten years ago. Since then Boeing achieved the 787 play book affecting the MAX, 777 and 747. What would that playbook do to a 757 type enhancement of its popular 757 aircraft since that customer has a difficult time letting go of its 757's.  They really like it no matter how it ages. Can 787 DNA find its way into a revived for a lower mid-sized single-aisle project?  

15 787's In June Caps Quarter

2nd Quarter Boeing Quips:

Boeing has delivered 15 787's in June, including one 787-9 delivered to Air New Zealand yesterday. The plane will fly out by July 9th to New Zealand. What does this all mean for Customers and Boeing? It means that Boeing during the second quarter in 2014 has achieved its 10 a month in deliveries as it has maintained it would do from the production floor. Currently it has delivered a total of 162 of its type provided by information from Allthings787 blog site, since 2011.

You may remember the KC-46 project, its still on track. The KC-Tanker project is moving tanker towards those big delivery doors, as the Air force is anxiously awaiting the new Tankers for deployment.

The 737 has received commitments for over two hundred 737 Orders in MOU intent from China alone as pointed out from Boeing's Randy's Journal entry during June.

The concerning position for 2014 orders, is that there are so few orders for the wide body types, where they only have 9 ordered in 2014 as of YTD point out. It appears the lull in WB orders is a market pause, as a battle is going on between those orders for both Airbus and Boeing. Emirates has canceled 70 Airbus orders for wide bodies, while reloading the bid process with both Airbus and Boeing in pursuit. Its a sea change effort in the market place. Boeing hopes to win it with its family of aircraft from the 787 and 777X options,  making the retooling Emirates fleets with like mannered aircraft. This is a strategic test for Boeing. When Emirates first ordered those 70 Airbus wide bodies, the Boeing 777X did not exist. However, since then. the 777X is rapidly becoming a reality. Emirates canceled the 70 Airbus A350's and reopened the bidding wars with Airbus and Boeing. Its a wise maneuver by Emirates, as the market offering has changed, since it made its original commitments to Airbus for those original ordered 70 WB's.

The second quarter report and summary has plenty of puff information for its stock holders. Several achievements have been made on the Military, Commercial and scientific fronts during second quarter as mentioned above. Boeing's association with space endeavors with rocket design on secret projects continues.

Summary: Boeing is poised for a market change after mid-year with Wide Body market orders. It should catch up its WB order book in the second half of 2014, after the A350 launch in late fall. Emirates decision will be made by the time A350's are flying with customers during late 2014. The December 2014 order book for Boeing will be an interesting feature regarding the WB market.  The house of Airbus cards could fall in that category against Boeing's offering of aircraft.

Will Boeing Announce the mid sized "bridge plane" from 737 to the 787 that would have long range legs? The answer is, yes it will! Long live the 757! The skinny on this venture points towards placing in everything 787, and then a rapid deployment project. Hence, a metal body Maxed out with 787 treatments, and beyond its skin which contains laminar flow motifs, and yes new engines taking it 9 hours on less fuel.  This 757 knock-off is a step child in the Boeing family, filling the gap between Max and the 787-8. Its the hope that the aborted 787-3 had, but now it can be fulfilled. Therefore, you heard it here first, The "757-300-ER", the globe trotting  sprinter single aisle.

The 787-9 Is Delivered To Air New-Zealand

Today marks the paper shuffle  completion for the Boeing 787-9 and Air New Zealand, who takes ownership of its newest aircraft from Boeing, for the first time of its type, anywhere for the 787-9. A Day of note indeed, this is a blogger notation for date and time of the event nf the 787-9 journey of Stardom.

Boeing completes legal delivery of 787-9 to Air New Zealand

By: STEPHEN TRIMBLE

WASHINGTON DC

Source: 

in 5 hours

Boeing has completed the legal delivery of the first 787-9 to launch customer Air New Zealand on schedule on 30 June, the company says.

The legal milestone comes 10 days before Air New Zealand accepts the new aircraft in a ceremony at the Boeing factory in Everett, Washington, on 9 July.

The Rolls-Royce Trent 1000-powered aircraft is the first of 10 787-9s on order by the Star Alliance carrier and the first of 413 aircraft ordered overall.

The 787-9 was one of three original variants in the Dreamliner family that Boeing launched in 2003. The short-haul 787-3 was cancelled in 2008, but the 787-8 entered service in October 2011.

Boeing passed the firm configuration milestone on the 787-9 nearly four years ago in September 2010.

The first flight test aircraft achieved first flight on 17 September 2013.

Desparates Times Call For Desparate Measures, The Airbus Decision

Airbus has gone to the Boeing play book. Taking older and formidable models and attempting to make it fly with customers. The 737 MAX and 777X are both Boeing examples of that play book.  The A350 is a dysfunctional family where only the A350-900 has gained general public acceptance and the A350-1000 has muted curiosity in the market place. The A350-800 is a no start at this time making an aborted take-off.

Dr. Leo Marvin on "What About Bob", movie, is quoted as saying, "Its a disaster Fay", screaming a quip to his wife during the airplane quality movie, making the passengers on board Laugh-Out-Load (lol first class)!


The answer is the 20 year old A330 NEO. Yes, another NEO. How many engine option does Airbus have to build its company on when you drop GE as a customer for the A330-NEO using only Rolls Royce. Perhaps the 787 should call itself the the 787-HO- HO! (Heavenly- Options, Happy Operations). It sounds like something out of Jeep is "Trail Rated 4x4". Then NEO or everything Airbus can cut an GE engine option out of the picture. Desperation is a odd motivational tool. Anything goes and hope something sticks. Airbus forgot one (several) major items in this nonsensical admission of 787 envy, and a A350 family counseling session, tt does not have the 787 tool box for its family chops of selling airplanes.

The Airbus has not achieved the technological  bench marks that Boeing has gained from 10 years or more of technological advancements that Boeing had gained. Boeing is currently parlaying those same gains into the 777X and 737 Max. What is Airbus proud of from the A350  erh (787) project?

• Core electrical technology-No
• Computer flight bag- haven't heard
• Dynamic 787 like wings-no
• Engines -yes spinning from 787 engine standards (sans GE as non option)
• All Plastic body- Not going on anything NEO
• Big windows-No
• Plethora of customized seats, yes

Where is Airbus stumbling towards? Seriously the A350 family dysfunctionals is far worse than I could write about,  judging from this "Crazy Ivan" turn of Airbus direction. The A330-NEO proves the A350-Family as a whole is a hopeless failure. This is a face saving maneuver taken by Airbus to appease its customer base and attract growing upstart airlines who will make do with an A330-NEO. Airbus needs about another ten years to catch Boeing as it too continuously surges forward with the 787 core technology for all it family types such as the 737, 777, and 747. Where family members such as 8,9 and 10's will prosper further after the A330 NEO hype settles down somewhere near reality in the natural order of the market.

Airbus was quoted as saying, (paraphrased quote) The A330 NEO would compete favorably on most Trans Atlantic Routes. I turn on the parse-omatic machine and it tells me that the A330 could compete within the mega hub system of travel. This bodes well for upstarts airlines and hub centric airlines such as a Delta Airlines.

The 787 is a hub buster as exampled by Tui from England. By not flying directly from a dependent Heathrow departure, it goes directly to Can-Cun Mexico on a twin aisle 787 from Lanchaster, England. A far different business plan than a bread and butter commuter routes within an already established hub system, that was built upon specifications of older metal aircraft complying with range and flight duration specifications. The A330 NEO would be good lower cost replacement of equipment. As in itreplaces any airlines older equipment currently flying within the Hub's domain. The 737 Max is also a Hub server. The 777X is a hub jumper or hub server with greater range and passenger capacity. The A330 NEO fits in there somewhere, but is not revolutionary in its proposed nature. The 787 will stretch out its purpose beyond the A330. More passengers with A330 is a Hub server. More passenger on the 787-10 is a hub jumper. Direct service within the world without going through a major hub is the "New Airline Black", you know it as the bottom line. The new black for upstarts and hub reliant routes is for the A330 NEO. Hub busting airlines buy the 787 because of Geographic need, New Zealand, Jet Star and Arab States (and Japan). The older equipment fell short in its day, hence the new technology 787. Now Airbus proposes the A330 NEO from its A350 Failures. Not a good technology spin-off. The 787 will not just fly most Atlantic routes effectively, but fly all Transatlantic routes efficiently and effectively. The A330 NEo is an Admission of an A350 failure to launch.

The Engine Of 787 Profitability Synergies

There are considerable contributors for Boeing to make the 787 profitable and retire cost associated from its inception and production.  This, the goal of every venture, is the business of passing  break-even investment with its new product. At some point the financial unit of Boeing will continuously seek out its cost accountants for the summation of sunk cost into a project, and production cost for each unit comparing receipts of money from customers for each sold unit. The marketing arm of Boeing must sell enough units of the 787 to over-come all cost associated with R&D and production of the 787.  Currently, it is estimated, Boeing loses $49 million dollars for each 787 delivered. Out of a per unit loss is a number that it pays out, entertaining a split ratio for production sunk cost of building per unit, and its contribution  towards retiring the R&D expended on creating the 787 in the first place. Some of these R&D expenditures are ongoing even after the first 787 was delivered.

Those current R&D hits come from continuos recoding of computer systems, improving production methods, and changing 787 items within the airplane, which improve all current delivered and future airplane to be built. That would be a financial anchor towards break-even, where the delivered 787 would contribute a net profit for each unit delivered.

Here is the conundrum for Boeing, will the change management on the 787 and early production cost cause Boeing to not reach a Break-even point on this aircraft in the next five years or after its 1031st 787 is delivered? The answer is a four fold event.

• Production cost drop and production efficiency increases.
• Boeing has sold 1031 Aircraft which 159 have been delivered.
• The 787-10 has not travelled out of the R&D hole in the pre-production state.
• Supplier chain cost continue to shrink to a lower percentage of the 787 cost.

These four  items are very important for Boeing to report during 2015 in strong numbers. 

First up is the production cost and efficiency Delta (change). Boeing is quickly moving towards making Charleston a reliable participant with Everett. The corporate instinct is that if Boeing keeps going towards 14  a month goal by 2020, then that number indicates it will have succeeded in optimization of  both productions floors. It will make the 787 for the lowest cost it can from both those floors.  Since increasing deliveries rapidly, will create greater inflow of revenue receipts, it still needs to refine the cost of process to open up more sales to its customers with lower manfacturing cost of airplanes. 

This will be a bulleted item above that it can control towards shrinking the "under" Break-even amount towards profitability.

The second item listed is the long order book. But is it long enough that 1031 orders give it strength to reach profitability, then all is well? However, the 787-10 has not been built and is part of that order book strength. Customers, then become the team that will pull Boeing out of the "loss" ditch at this time. In comes from an unlikely term from the thesaurus, synergy. Boeing needs the synergy of its product and customers to pull it into Break-even and profitability. To explain this concept, the existence of two different participants combine to make a greater affective action than it could separatly, is called synergy. Bringing the force of a flying customers and over preforming 787's, synergises the  20% better fuel economy each time it does fly. Enriching the bottom line of customers, and is admired by other airlines that have 787 envy. Where it also buys more 787's in order to compete. Hence the synergy from a well built production unit, synergizes the sales arm to go beyond 1031 ordered to date. The synergy of placing 159-787's, during the last two and a half years, also synergizes and incentivize its customers to add on more orders as airlines buildits own business model, before its envious neighbor airline also react and order. All this synergy will realize in 2015. Production, sales and customers will meet in the perfect profit storm. 

A 787-10 anchor is coming where more R&D money will be spent getting this aircraft into customer production and delivery. This problem has been mitigated greatly by the 787-9 program that has perfected its roll-out to production with no stoppers, as it seamlessly flew its test period. The bar has been set high for the 787-10 and there no reason to expect anything but a flawless repeat for the 787-10 as the 787-9 performed in tests. The 787 genies have been put back into the bottle with a cemented cork.

The last underpinning supporting the cost margins are its 787 suppliers. Boeing has wrangled in the supply chain as customers have received lucrative cash flows with balanced rejections of under preforming parts. The Boeing supply chain is tightening and squeezing down cost in a methodical manner. Technological design change for more efficient parts contribute to part's costs reductions. Supply partners are very competitive for Boeing contracts, as they too want to build its own company through the Boeing relationship. The bullet points listed above do feed each others for more efficiency as the 787 gains consistency and reliability. The Boeing 787 will make a profit sooner rather than later through these competing synergistic forces. 

Things That Are More Than A Whimsical $100.

The Wall Street Journal has an Excellent feature on the Cost of Boeing Airplane product. The Blog would like to use this space for cross linking the articles for your reference and reading pleasure. Next time look out an 777-300 ER window, its like riding on an expensive space shot. Enjoy every second of your ride as it could be arching over the Ocean or the North Pole! What goes into your Walter Mitty like slumber is a great quantity of Airline Dollars. Below will be a series of links transferring you, what goes on behind the scenes when an airline plinks down several hundred million dollars for purchasing one unit of 777 aircraft for your very own transition from here to there.

All cost are list prices for any Airline bold enough to buy just one. A $300 million dollar investment would build a 60 story high rise in most cities that would keep standing for 100 years, as a city Icon. An Airplane only has about 25 years to earn its keep in the ever changing market, and airlines must negotiate through those years in order to survive.


Below Wall Street Journal links: for your reading experience:

Why a Boeing 777-300ER Costs $320 Million

Why a Boeing 787-9 Costs $250 Million

Why a Boeing 737 Costs up to $110 Million

All Airlines don't necessarily pay those list prices, as discounts are taken from quantity, preferred status, or configuration considerations.  Some may pay considerably less as other contractual issues are added to a signed bottom line. However the capitalisation of just a single airplane order is immense. Its way more than a Holly-Wood mansion. When ANA ordered its 787, it represented the whole company had put its future behind that one untested Airplane. When Ryan Air ordered the 737NG  for a 176 units,  it "bet-the-farm", on its strategic plan. Now we are talking billions. One Boeing Airline Customer, Emirates comes to mind, is willing to pay 100 Billion on 777X and 777-300 ER's aircraft. This is more than what General Motors hopes to profit in 25 years by selling  millions and millions of cars. The numbers are astounding when considering what it represents in Blue collar terms. However, executives lose all fear of the number billion, when considering purchasing more aircraft. The emotional attachment for money is lost on purchases. The Board of Director's plot out a scheme with a monetary impact. The hand goes up in room asking, "Do we have access to capital resources to do this deal?" 

"Ah hummm, yes we do, let me show you", is coming from the end of the boardroom table. These 100 billions worth of aircraft will be delivered during the next generation in years. Let's commit to Boeing in 12 months where we can draw out of cash. Maybe, 10 or so billion to sign for the order. During the next ten years, after its first successful delivery, UAE, could manage multiple lump sums in advances for each block of 777X's,  in order for fleet absorption of 10 or more Aircraft a year until the order is filled. That is about 6 billion minimum and 10 Billion maximum, yearly, pacing from the balance sheet, from its liquid assets. That is not what you call Blue collar speak, but is just a number with very little emotion behind it. It does have the Emotional Intelligence (EQ) of self awareness, leadership, and inclusion of other board members. Ticket sales will drive the Boeing product as the 787 continues flying, next the Max, and then the 777X. Its where the billions come from except from a few oil wells pumping the cash flow out for an airline with a plan.

Three Month Moving Average Bears Its Fruit.

The lumpiness of monthly delivery where one month, 6 are delivered, and then 8 does not represent the pent up energy for deliveries. The flight-line gets crowed and then emptied on a periodic basis. The investor can lose track or become confused to what Boeing tells the stock holders. So a three month average is more soothing to the nerves than a month to month expression of fear. What does Boeing deliver during a three month period is more indicative than a Monthly count and average. Hence the quarterly report is on its cusp, as we all approach the end of June. The three month Moving Average for delivery will tell a lot at quarters end. It is the summation of all effort, trails and tribulations. I hope to answer one primary question does Boeing reach its 10 a month rate to its customers?

Goal +/-                          04/2014    05/2014          Projecting      June (actual)  Delta 

Month Deliveries               8               10              10              15                     5
3 M-M-avg                         7.33            8.33           9.33          11.                  +2.67

Production Goal               10               10.             10               10                    0
Delivery Trend (+/- )       -2.67            -1.67                   -.67             +1. /Target     >                

                                       *PM-Start      **M.A.P.                                   PM-End
*Progression Month
**Moving Average Progression

The quarter ending push has three more ready for delivery on the books and they should deliver.

This is a preliminary statistic before the end of the Month allowing the three remaining "ready to be delivered" aircraft counted since the Air new Zealand 787-9 will be delivered in June and the two other 787-8's that are ready, will be delivered by  Month end. The above chart will be updated, if delivery is not made by June 30th on those 3 projected June deliveries.

What does a 11 moving average means to anyone watching. 

• There were 33 787's delivered in the quarter.
• Boeing exceeds its promise of 10 a month during the 2nd Quarter
• Things are not as bad as the press would have it for Boeing.
• Every glitch expected or unexpected is solved in a continuous flow.
• Factory wrenches are accounted for each day.
• South Carolina or Charleston is a significant player.
• Boeing commitment to Charleston is paying off.

Invest forward is the common theme.

Is This A Misquote or am I missing Something?

Parsed out Quote from article:

"The group will add 100 Boeing 787 to its fleet at the end of 2015 and the first Airbus A350 in 2018. The aircraft will be equipped with completely new cabins."

The group is Air France/KLM group. Mary Kirby or somebody should help me on this one. AirFrance/KLM only have 25 787-9 on order at this time not a 100. Was this a Fruedian slip?

Here is the Link:

Air France Rolls Out Cabin Upgrades; Will Continue Across Partner Airlines

Something is coming from this massive investment in aircraft upgrades on all its massive fleets including 747's, 777, and 787's however many they will order, unless the 100 787's may have mentioned is in error. The article side slips to Delta shortly after the 100 787's mentioned.

"Delta President Ed Bastian said that the partnership with Air France is the most important collaboration Delta has. “Not only are we successful financially, but we're successful from a customer perspective,” he said, noting recent high rankings for the airline in Business Travel News."

Where Delta only has 18 787's ordered, which doesn't make it a hundred when combining 25 + 18 only =43, so what the article may reveal is something more important for the Air France/KLM group is something hanging on Boeing's order book is 75 more 787's yet to be ordered. I think its worth checking out. Freudian slip or mis-quote?