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Monday, July 13, 2015

Flightglobal announces CDR for the 787-10

Critical Design Review (CDR) means Boeing is over 90% complete with its 787-10. It means Boeing design team will turn over the bulk of design requirement to the construction planners. They will coordinate 787-10 part making for the first tests aircraft. The activity validates a 2018 target Boeing has for the 787-10. Please read Fightglobal's report for the original source. 

What Boeing has learned from the 787-9 project will have its carry forward technology which will increase first build efficiency. The 787-9 added multiple new concepts to the 787-9 not found on the 787-8. However, those added value advancements will not have to go through vetting when its placed on the 787-10 frame for first time and then on other 787-10 test craft. The main feature added to the 787-10 is the additional 17 feet body segment adding length to the 787-10. Even though certain upgrades from the 787-9 project and additional discovered in-service 787-9 -changes, will become majority of most change items incorporated on the 787-10. Boeing smoothly transitioned from the 787-8 to the 787-9 without any noted mishaps in initial product testing.

The expectation continues to grow for the 787-10, as it looks forward to a very clean process within the experience it has gained throughout the 787 story. 

However, an aircraft ordering pause for the 787-10 has emerged during the last few years. It is not due to the concept, but is due the heavy wide body orders occurring before the initial 787-10 offering. 

Boeing marketing concludes that backlog reduction and new financial sourcing will invigorate the 787-10 family line as it will gain additional 787-10 orders once initial delivery starts. The customer has time for recovering from all the wide boy orders made during the last ten years. 

With 1,105-787 ordered and 781-A350 ordered, an expansion for all wide bodies orders are in a paused state until backlog is reduced  and financing becomes available. In fact 169 A-350-10 are on order, and it has not even begun its first build. The total booked 787/350 type WB's equals 1,886 currently booked.

The 787-10 can expect more orders (Eva Air is ordering 24 787-10 before end of year), as Boeing has currently reduced its backlog approximately down to around 812 787 units out of 1,105 it booked. A scramble for 787-10 order may come once the 787-10 starts flying. 

In three years or by 2018, Boeing would have delivered an additional 360 787's of its two types. The backlog will be at approximately 452 787's, when using today's Boeing's order book totals. It is conceivable Boeing will take on another 250 787 orders in the next three years for all types including the 787-10.

The three factors pausing the order book is:
  • Backlog available slots
  • Financing Availability
  • Proof of Concept in testing, when the 787-10 exceeds current expectations


The 787-300 Lost But Not Forgotten

The 787-300 was lost in the file Cabinet back in 2010. It was proposed with a 3500 NM range. It could be the consummate High-Density inter-destination single-aisle masher. Boeing didn't want single-aisle encroachment on its lucrative 737 production and sales. It has just now rolled forward on the 737-9 Max. Boeing’s cry, “Keep that 787-300 in the box a little while longer!”

Depiction of a 787-300 Wikipedia Artist Impression

The 737-787 gap still exists as the 757 dies a very slow death. Even though Airbus came out with the A-321 NEO, that would be no match for a 787-300*. Let's look at the 787-300 promise before all that Boeing has accomplished with its 787-8.

*A 757 redesigned duo aisle replacement using lessons learned from the 787 program.

Winging It discussed it before during March 2015. However, more moss has grown since that brief mention on the 787-3. The 757 refuses to go away respectably since it is well loved by the owners flying the craft. Boeing could resurrect the 787-300 with all the lessons, advances and technology gained from doing the 8 through 10 series. 

In 2010 Boeing had a tremendous difficulty in making the 787-8 whole. It had supplier issues, including its "build" teething woes, and then the battery exploded. They were in no shape to do a follow-on 787-3 at that time when it hadn't even yet figured out how to do the 787-9 with a plausible degree of certainty. Boeing canceled the 787-3 project quickly until it could get its arms around the 787-8 for its initial delivery into the marketplace. Boeing chooses wisely to back off on the 787-3 concept until it finished its higher priority projects of completing the 787- corps of family progression.

Now has become the time for taking on its only 787 step-child, the 787-3 bridge model, while filling the retired 757 gap. I know the 757/787 remains on some CAD drawing boards. It is time to incorporate its stable supply chain, improved battery system, and all the refinements of success that it can be imbued towards a  787-3/757 type. A conceptualized 757 would be a low-risk venture rather than an extremely high-risk experiment Boeing had encountered and resulted in the 2010 announcement of program closure.  The do-over 787-3 isn't a moonshot as 787 has already successfully landed and has returned from the moon. It doesn't have to carry 330 passengers as Japan preferred. It can go further like a 757 does currently. It’s the ultimate bridge to Boeing's  "Dreams". Boeing has successfully constructed all the parts necessary for this aircraft, it didn't even deliver since 2010. 

All technical risks are retired since the 787-3 inception. It has become a matter of developmental execution. They can draw from sunk cost from developing both the 787-8 and 787-9 efforts. It won't have a huge sunk cost specific to the former 787-3, as it would have had if it proceeded in 2010. Since then, plant and facility have been constructed in Charleston, SC capable of opening up more production.

In fact, Boeing can now stand back and look at the market where it can custom fit the 787-3 into the 757 gap perfectly from all its market data. The 787-3 could be a 250 seat continental jumper. It could pair New York and Paris, or LA to New York without formulating severe weight constraints within its potential and basic load considerations. Boeing can add value to its already sunk costs in place from the original 787 program.

WIKIPEDIA SUMMARY information on the 787-3:
The 787-3 was targeted for high-density flights; it was designed as a 290-seat (two-class) short-range version with a fully loaded range of 2,500 to 3,050 nautical miles (4,650 to 5,650 km). Using the same basic fuselage as the 787-8, the wing was derived from the 787-8, with blended winglets replacing raked wingtips. The change decreased the wingspan by roughly 25 feet (7.6 m), allowing the -3 to fit more domestic gates, particularly in Japan. This model would have been limited in range by a reduced MTOW of 364,000 lb (165,000 kg).[248][note 1]
The variant was designed to operate on Boeing 757-300/767-200-sized regional routes from airports with restricted gate spacing.[249] Boeing projected the future of aviation as between very large, but close cities, of five million or more people; city populations may stabilize around the capacity level of the 787-3.[250][251]
Two Japanese airlines ordered 45 Boeing 787-3s; however, production problems on the base 787-8 model led Boeing, in April 2008, to postpone the introduction of the -3 until after the 787-9's introduction, but without a firm delivery date.[68] By January 2010, all 787-3 orders had been converted to the 787-8.[252] The 787-3 experienced a lack of interest by potential customers because it was designed specifically for the Japanese market.[253][254]Boeing canceled the 787-3 in December 2010 because it was no longer financially viable.[25

Boeing should come back in true workman manner.

  • Define the Market reality:
  • Refine the Model concept for the fit
  • Sign the initial customers
  • Design the new version as "Fill the Gap and beyond model".
All these activities could be ongoing at this time. What Boeing has learned about the 787-8 and 787-9 will influence the 787-3 design. All the unknowns existing in 2010 are now retired as former risks. The 787-3 is no longer the moonshot sent from Japan as it once was. It has a broader footprint in appeal as customers are conflicted on purchasing the 737-9 versus the A-321. The 737-9 Max is a perfect single-aisle tweener on many routes but lacks the full chops for going transcontinental as the 787 could do. 

Boeing executives may come back thinking a 787-8 erosion would come from the 787-3 at one end and with the other end, the 787-9. It only has to look at a load continuity of airline importance. Some 787-8 only hold 186 passengers. Some hold 334 passengers. The 787-9 will hold a minimal 221 passengers for BA. Seat overlap is an airline preference for its business use. The real dynamic for the airline is found in its ultimate purposeful use. Not in its ability to exceed its nominal design. A true gap filler will not adhere to a Japan-only design constraint but will reconfigure its 787-3 in a statistical means for airports, passengers, and destinations, found within the current proverbial "Gap" in the world. 

Japan had its shot with its custom built 787-3, and the concept was not ready until after the 787-8 was validated.  The risk of implementing a 787-3 on an unproven concept was just too high in 2010. Spreading out Boeing’s resources on four 787 model programs at the time would have sunk Boeing’s resources. It would have delayed a critical 777X program it was considering in 2010. It would be a show slowing for the 787-9, pushing it towards 2020 if it had endeavored forward with the marginally ordered 787-3. It became a roadblock for Boeing’s future. As it now becomes an anchor holding back progress towards Boeing’s family of aircraft completeness.

Boeing needs to make a drastic change by configuring it with a middle of the pack width sized body between the 757 and the 787 size, with up to seven across seating, and ultimate seating configurations of around the 200-250 range.

A redesign would give the 787-3 more range miles than first offered. Also, could incorporate its recent less drag advances, and refine more its critical wing dimensions for the sake of existing airports gates as first intended when the 737-3 was first proposed. The 787-3 goes all-in to the 757 gap as a duo aisle. 

Sunday, July 12, 2015

Boeing Feature Film Short

It is not talked about much in the news cycle. But it needs its own daily spot. The 737 Max project is behind closed doors and its hard to get a look. So Boeing. Com has provided pleasant movie clips of its airplanes and advances. In the middle of the entourage of its professional technology of self-commercials, one finds the lowly Max having its own slot. Below is the clip for your Monday Morning work stoppage with a cup of Seattle’s Best coffee.


What inspires the blogger is the continuous improvement mode Boeing has embraced from the very beginning of the 737 program. It wasn't so long ago that I remember the 737 having some stability problems with its very first models. The years went by and here we are today thinking why is Boeing trying to make that same 737 concept better? The answer is easy to find it in the NG. That particular generation actually captured and replicated its original vision for single aisle aircraft. Boeing did not want to change success. It wanted to build on success. In the video it talks about the original winglet, giving 3-4% more efficiency to the 737. The advanced technology winglet builds on another 1.5% efficiency to the 737.

The new upgraded 68" engine, the CFM Leap 1-B performance benchmarks, where not much specified, until it is officially confirmed from the  new Leap 1-B engine tests. It won't be until its developmental testing on the GE 747 test bed is completed and validated. 

However, what is known while flying under wing, it has achieve its promised benchmark claimed at the outset of the programs announcement. Boeing stated objective was a 6% improvement over the NG engine configuration. The current status of the test engine performance put the Boeing original objective statement with a big "achieved" stamped on the paperwork. Now its time to really refine the details with advanced technology winglets, and other projected benchmarks, which contribute to the over-all 737 Max efficiency. 

Boeing has increased the number of passengers it can carry on routes, having expanded during airline recent travel growth. The 737-8 Max can carry 189 passengers. A very important number of seats available for most busy travel pairs. In fact Ryan Air has ordered a plethora of 737-200C (100), which will make high density travel availability with the single aisle routes, a true value for the passenger. 

When Boeing completes the Max it will have optimized the 737 program since its inception. Boeing will continue its progression in the single aisle type with the next "big single aisle moon shot". It will incorporate all lessons learned from the 787 and 777X programs. In the year 2030, Boeing will be ready to announce a fast track program ready for delivery by 2035 of an all new single aisle that will please everyone including the basketball team.

Referenced Article


"Southwest Airlines will get the first delivery of the 737 Max in 2017 while flydubai may be the second or third airline to take its first 737 Max 8 same year. Photo by Abdul Basit

The 737 Max will deliver the big savings in fuel that airlines require for the future according to top executives of Boeing Company.

The 737 Max promises to be 20 per cent more fuel-efficient than the current 737 and to have operating costs that are eight per cent lower than its nearest competitor Boeing says.

When compared to a fleet of 100 of today’s most fuel-efficient airplanes this new model will emit 305000 fewer metric tonnes of carbon dioxide and save more than 215 million pounds of fuel per year which translates into more than 112 million in cost savings. The 737 Max 8’s fuel use is expected to be eight per cent lower than the A320neo per seat.

US aeroplane makers have started building its first 737 Max single-aisle jetliner on schedule which is an important milestone for a new plane model that accounts for nearly half of the Boeing’s plane orders.

“The first 737 Max is scheduled to be completed by the end of this year and begin flights tests next year. Customers will begin receiving the aircraft in the third quarter of 2017” Marty Bentrott senior vice-president of sales for the Middle East Russia and Central Asia told Khaleej Times recently.

Dallas-based Southwest Airlines will get the first delivery of the 737 Max in the third quarter of 2017 according to Bentrott.

Flydubai will be probably the second or third airline to take the delivery of the 737 Max 8. The Dubai-based carrier will get five 737 Max in 2017.

The first wing spars large structural pieces that run perpendicular to the fuselage were loaded into drilling and riveting machines on May 29 beginning the building process according to Keith Leverkuhn vice-president and general manager of the 737 Max programme.

The US Company is adding more automated machines as it begins assembly of the Max and as it prepares to increase production to 52 of its 737s a month in 2018 from 42 a month now.

Some of the newest machines which began making wings for current generation 737s in March automate about 90 per cent of the wing assembly process up from 70 per cent on older legacy machines that Boeing has used for decades Boeing said.

Boeing’s newest family of single-aisle aeroplanes — 737 Max 7 737 Max 8 and 737 Max 9 — will build on the Next-Generation 737’s popularity and reliability while delivering customers unsurpassed fuel-efficiency in the single-aisle market.

Last year the programme launched the 737 Max 200 a new variant based on the 737 Max 8 that can accommodate up to 200 seats increasing revenue potential and providing customers up to 20 per cent better fuel efficiency per seat than today’s most efficient single-aisle airplanes.

Maximum efficiency"

Saturday, July 11, 2015

Gorilla Buying Blocks Scramble Airline Planners

Airline planners and airline strategist have two camps. The planners are tasked with fitting in a Gorilla buy blocks of 100 or more aircraft ordered, when its current fleet size is half that amount. The first 50 ordered are possibly destined for fleet renewal, and the second 50 are destined for fleet expansion coming from the airline's Gorilla strategist. The purpose of a big order is twofold. One is for a big equipment order, buying at discount. The other is for leveraging airline growth with that buy. The second class of member are the planners taking the form of "chief", GM, or even a VP. These types must find a slot for aircraft purchased beyond its current fleet configuration. They are called the Guerrillas. The English language can confuse me at times, and that's a problem since it’s my main dialect, English!

Here's what happens when the strategist and manager collide. The planner is in a clandestine corporate camp plotting the execution of the strategist delusion of leveraged grandeur. It's Gorilla against Guerrilla. It was reported today on the CAPA News with the following summary:

CAPA: 7/11/2015

"Norwegian has admitted that it may not be able to use all of its planned aircraft and Wizz Air's order now provides an opportunity to review the data on the number, and types, of narrow bodies on order in Europe. Narrow body deliveries to Europe look set to rise, at a time of rising global deliveries. Success is not guaranteed for all. Meanwhile the expanding role of LCCs in both leisure and business markets continues to undermine the positions of legacy airlines on short haul routes.

Both Norwegian and Wizz-Air must turn to its Guerrilla team to find slots for all its leverage buys it had confirmed from its Gorilla actions. They must expand its upcoming fleet in advance of arrival with its current over-stretched equipment inventory. The Gorillas must say, "make it so #2", in true Star Trek tradition. The Guerrilla team must keep expanding routes with current older equipment when a route comes available, in its preparation for an overabundance of incoming newly framed bodies.  


Airplane wars is really complex, and it requires a modicum of luck, timing and performance. If all three are missing it could be disastrous for any airline. Stock holders could then expect to shoot its Gorillas who leveraged its buys, and then replace its guerrillas who did not manage the transition from a smaller to bigger fleet structure.

Friday, July 10, 2015

Iran Wishes To unhook The Airplane Buying Lynch Pin After Nuke Agreement.

To be honest, to be fair, and to be logical is appropriate phase Iran needs to go through when buying a re-purposed inventory before going all-in with new aircraft. The Nuke talks need to succeed for both Europe and North America, before even looking at an order book. If all goes well during a treaty signing for concerned factions then its back to catching up with the travel industry. Brand new equipment for Iran would be a disaster after flying 40-year-old aircraft. It would be as if everyone in Cuba gets a hybrid car without an owners manual.

The Iran talks will do more than just stop insane aspirations for nuking the world on religious principals. It will turn a trade conduit into a flood of Hybrid airplanes totally different than its 40 years old 747's it has in its fleet. Iran will need to develop its airplane infrastructure up to the 787 level of operation before buying that class of airplane. Even the A-350 would complicate Iranian operations to extent of missing some operational points and flying policy for operations. It would be better if they would order the 767 or A-330's for fleet renewal in the first five years and learn how to efficiently operate a solid standard, before leaping at the all new formats found in the duopoly's newest aircraft. Buying used is a high priority when renewing its commercial fleet.

However, pride once again influences decisions. A dual approach for Iran's new found purchasing access should not be hurried nor should it be an archaic expression for quality. They won't go old as in well just keeping old airplanes. They have an opportunity to buy recently replaced equipment from other airlines which has more life and value than what Iran needs for a fleet in the near term. I see the country seeking a middle ground in the purchase arena. Buying what it needs from used inventory for a fast start-up, and then placing orders at the same time anticipating they are at the back of the delivery line for the latest technology aircraft. Iran would expect to catch-up its operations during its transition from 1970's to 2015 during the next 10 years.

Iran is in a good place with so much used airplane inventory available for them to acquire at bargain prices where it may build its personnel up with relatively new equipment while waiting for Aircraft like the Max or NEO. It all depends on this Nuke negotiation currently under consideration. Iran's future is in its own hands at this time.

Holy Take-Off Batman, Another Fifty 767 300F For Boeing Is Hanging: NOW CONFIRMED (Updated)!!!!

Yes, you heard it hear first if you are an astute reader. Boeing is in talks with FedEx for 50 767 Freight types. The 767 has long been a FedEx stalwart for moving freight 24/7. It can hold tons and fly reliably as a FedEx package comes to your door. Because that package probably rode in a 767. Talks are ongoing at this time suggesting an announcement is in the offing.

UPDATED ADDITION INCLUDES THE BELOW Paragraph and ENDING ABOVE above the 767 photo:

Global Post Link for full article:

That's 50 confirmed 767F's and plus an additional 50 options on the 767 in the Fedex order play, Batman.

"SINGAPORE (Reuters) - FedEx Corp <FDX.N>, the world's largest cargo firm, has signed a deal to buy 50 additional Boeing Co <BA.N> 767-300 freighters in the biggest order ever for the plane, allowing the aircraft maker to extend its production line well into the next decade.
The deal, announced in a statement by the U.S. cargo operator, includes options for another 50 767Fs and is worth $9.97 billion at list prices. Customers typically receive an undisclosed discount off the list prices.
FedEx said the aircraft will be delivered by Boeing for its FedEx Express arm over the fiscal years 2018-2023. The latest deal brings FedEx's firm orders for 767Fs to 106 and extends the company's drive to modernize its fleet."



Image result for Fedex 767

I will now defer to the real report: 

Boeing Co Might Beat Airbus Group If It Signs FedEx Corporation Order Of 50 Jets

Remember these important facts about FedEx:

  • 767 trained FedEx mechanics, pilots and ground support
  • 767 reliability
  • Boeing's need for a 767 build process as it develops the KC-46 program
  • FedEx business model built around its Boeing equipment
  • A FedEx sweet price from Boeing

Fifty, 767 sounds like a fleet renewal and expansion jump, as freight market has begun a surge since freight growth continued being neutral during the last five years. The FedEx order can't come soon enough for either Boeing or FedEx. Boeing will sign the FedEx order request with a few caveat edits FedEx can live with.

Here are important “Bidness ETC” quotes:

"Boeing Co (NYSE:BA) is currently lagging in booking orders of commercial jets compared to rival Airbus Group (OTCMKTS:EADSY). However Boeing announced recently that it has received an order of 50 single-aisle 737 jets from China Easters Corp valued at approximately $4.6 billion.

Boeing also announced that it was in talks with FedEx Corporation (NYSE:FDX) to sign another deal of around 50 767 freighters valued at approximately $10 billion. If Boeing receives FedEx’s order of 50 jets it would beat Airbus in booking most commercial jet orders. FedEx operates a fleet of 378 jets including 102 Boeing 757-300s, 23 Boeing 767-300s with an additional 37 jets on pending order."

There you have it. A Boeing second half performance is starting to gain some steam. Not including some 787 yet to be announced, there will be some more surprises coming forward much to Boeing's style and its liking, as they remark, "I love it when a plan(e) comes together"!

Seatability: The New Parking Spot for Airline Customers

Winging It Definition: Seatability: “A process of seating more passengers per flight through attracting passengers through lower prices and gaining higher profits. This new describing noun is seatability, and airlines are filling more seats per aircraft with this endeavor for higher profits. The industry is trying to capture the single aisle profits similar to what Southwest Airlines has done in North America.

24/7 Wall Street Quote: "Parker’s remarks in May came in response to a challenge from Southwest Airlines Co. (NYSE: LUV), which had just changed its order for 31 Boeing 737-700s to an equal number of 737-800s, adding 32 more seats per plane. Southwest said at the time that it expects capacity growth of up to 8% this year. "

Image result for packed airline seats

Cause and effect of "Seatability" Prices: Everyone can Fly.
Typically nominal life style people won't afford airline tickets unless it is necessary for their lives to do so.  Flying is necessary investment for most people. The market hasn't been fully tapped, only with Southwest Airlines, since it has made its business model upon this market segment. The vast majority of North Americans can only fly to weddings, funerals and graduations. Dropping prices adds vacations, business, and maybe a Vegas trip. Legacy carriers miss much of this market from higher ticket prices. American Airlines has begun a pivot towards this market segment, as it sees Southwest's profitability model a doable advantage for its own overarching global scheduling. American Airlines wants to play too, in the continents travel sandbox.

"In late May, American Airlines Group Inc. (NASDAQ: AAL) CEO Doug Parker told Bloomberg News that his company would compete “aggressively” with discount carriers by adding more seats and cutting fares to keep flights full. Friday morning American said it would delay delivery of five new planes from Boeing Co. (NYSE: BA) and 35 new planes from Airbus. 

Aside from higher fuel costs, there is nothing that affects an airline’s profitability more than flying empty seats around.
Analysts almost unanimously target capacity as a profit signal, and adding capacity, especially at the legacy carriers, needs to be accompanied by increased routes in order to maintain profit levels. Friday’s announcement will be greeted with cheers from airline analysts." WS 24/7

The above description of American Airline order pause, signals it is maximizing it profitability and is adjusting its delivery timing while syncing with financials flows it has strained, during the last few years. It is increasing its "Seatability". By using a delay in delivery suggests that operational optimization of sources and uses is the action.  It is not to be read as a weakness, as most news report airline failures and a forthcoming delivery delay. American has indeed signaled it is in an opportunity zone, and is taking the pause for aligning financial and operational programs.

The more filled seats American Airlines has, the better efficiency and profits. This is straight out of the Southwest's playbook. However, Southwest has been in this position for a long time tapping the nominal market, and will continue whether American Airlines taps in or not at this point in time. American would have to feature this element of travel by expanding its destination footprint considerably beyond its current routes. It sounds like American Airlines would like to maximize seat and price affects within its current network initially.


Thursday, July 9, 2015

China Eastern Goes In For 50 737-800's

Boeing slipped another order by when everyone was thinking wide body and seats. The 737-800 is the choice. It signals a pause with COMAC confidence as China's favorite own home grown single aisle framer, as it falters at the development blocks. Adding the fifty to last year’s 80 single aisle also confirmed, it brings China Eastern's organization with 130 Boeing single aisle ordered in two years. It can't wait for home cooking to age. This also signals a long term development plan for China Eastern in the region. It is building its business plan on Boeing aircraft at this time suggesting a long term investment of major proportion with Boeing indicates COMAC is further away from its intended objective than China Eastern's current growth allows.

The Puget Sound Business Journal reported, "The Commercial Aircraft Corporation of China, also called COMAC, has delayed the first flight of its C919 — a 737 rival — until sometime in 2016, Reuters reported Thursday."  


Even though it was just announced regarding COMAC’s plight of its C919, it seems Boeing knew this for quite some time, and was waiting for the other COMAC shoe to drop. It did before Thursday having Boeing announce this order for 50, 737-800 NG's, with China Eastern’s organization.  This could be a bridge order for Boeing’s Max Program, as it gains another couple of months’ worth of production with NG’s while expanding its NG remaining backlog. However, both the Max and NG will build side by side in Renton, Wa. Eliminating any production gaps for single aisle.

Wednesday, July 8, 2015

Airbus Takes Orders On as if Taking Water On Like A Torpedoed Tuna Boat

Boeing knew about 10 years ago it had to ramp up its production with all frames of its airplane types. Even though Boeing was on par with Airbus at the time for receiving new orders. The key to its retaining world's largest Aircraft builder, was directly inclusive of airline production. Boeing retooled all its production plants and published the feat of plant renewal for its customers. The backlog of unfinished aircraft after the 787 start-up, grew beyond a customers planning range. Boeing realized this was a very dangerous condition for its future sales.

Airbus  sales hubris possibly ignored Boeing's own realization of a backlog, worry, yet gloated on its A-350 and  NEO sales, as Airbus main talking points. However, did Airbus do enough on its production side for stemming Boeing's expansive capability when it recapturing the Title of "World's Largest Framer"? The answer is obviously "no", as Boeing mid-year 2015 has outstripped the Airbus air frame building and delivery pace. The Airbus web page is a mess to read, as it has chosen to feature number of orders and aircraft since the beginning off time through Airbus' delivery on June 30, 2015. A reader needs to dig a little deeper to ferret out accurate numbers for the first half of 2015. Airbus delivered 304 frames in the first six months without my differentiation in monetary value or or class of aircraft.

Boeing on the other-hand delivered 381 frames which exceeded Airbus by 77 units. The number also represents about 13 units a month more than what Airbus produces. Boeing is now focused on lean production techniques in all of its massive plants. In fact they will increase its production in a continuous progression, even while constructing its plant capability in Everett, by adding the new 777X wing plant. It is also closing the 787 surge line in Everett since 787 production has met optimal output within its normal production space for the 787. Boeing can do this using both Everett and Charleston. The former surge line will accommodate 777-300 production as the 777X production floor is establish in the same facility. Boeing is juggling its space, during its march on the world of airplane manufacturing.

The internal production strategy makes it possible. Reduce the backlog and match customer demand is the obvious observation. The over-arching production theme was addressed at the beginning of the 787 program back in 2005. Boeing then lacked an ability for addressing its order book back-log. Now they have completed its initial stage for reducing backlog, while taking more orders in at the same time. Even though it lags behind Airbus at this point for 2015 orders, multiple orders are hanging out ready conformation, during the second half of 2015. The customer controls the announcement. Case in point, is the recent Vietnam Airlines meetings this week in DC. There are multiple 787's in play, possibly 777X orders hanging on approval with Vietnam Government oversight. Boeing has just tendered an offer on various aircraft types. Such as the 787-8 and 787-10 totaling sixteen additional 787's for Vietnam Airlines.

Additionally, as mentioned, there are talks of the 777X with Vietnam Airlines, and its government.

This one example is also repeated throughout the world, as customers need to Identify its own financial resources and approvals first, before stepping up for ordering. This could take time not in years, but in months. There is a lot more to come in 2015 as the time element moves forward. However, this matches Boeing's productivity model. It is making room for new orders faster than Airbus can build against its own backlog. An extremely huge talking point for airline customers. Boeing is seizing the backlog moment and shrinking it into a customers relevant range of need for ordering and planning. While Airbus has expanded its own backlog without achieving any significant production capability whether or not orders swell.

Boeing has achieved customer positioning for timely delivery, where Airbus has outpaced its capability to deliver aircraft to its customers within the customers own window of opportunity. The productivity emphasis has been a long time coming with Boeing, as it has made production a main focus for the last ten years. Airbus has only just begun this production journey, during the last few years. It may be too late for Airbus, as the Boeing 787 is now reaching its customers consistent validation with airplane appeal and timely delivery. Boeing's availability of production slots are more in sync with customer's own five year plans, than a competing Airbus A-350 can currently manage. The A-350 is the real "Late" aircraft not the 787.

Tuesday, July 7, 2015

Vietnam's Chief General Secretary of the Communist Party of Vietnam Nguyen Phu Trong Shakes Hands on Trade

Vietnam political arm has met the US on US home ground today in DC. The back drop happens to be Vietnam's Airline 787-9 sitting at JFK waiting for customer delivery after the big ceremony photo ops. More telling is the backroom discussion which needs Vietnam's government approval for its next big order in the offing. It is mentioned in talks, with inclusion of eight 787-8 and eight 787-10's for ordering by Vietnam Airline. The deal may have been already been struck during this event, as high government officials are present. Vietnam Airlines needs government approval before validating a deal with Boeing. All the participants are currently in DC this week. This is only unconfirmed speculation that another deal was struct with Boeing.

Spectacular Washington DC Fly-by for Vietnam Airline 787-9
Vietnam Airlines' first Boeing 787-9 flies past the Washington Monument. (Boeing)
   Photo Boeing

Already Vietnam Airlines have bagged confirmed deals for 19 787-9's of which one sits in DC during this auspicious occasion. It will be delivered later in July. The DC parked bird went to Paris and back thrilling the crown with its versatility in its air demonstration. This 787-9 also flew over DC showing everyone, its capability, with the same amount of awe for this dynamic aircraft.

A summary of everything Vietnam Airlines has accomplished so far:

19  787-9 ordered and one awaiting customer pick-up
8    787-10  sale not yet closing, awaiting Vietnam's approval for confirming
8    787-8    sale not yet closing, awaiting Vietnam's approval for confirming

Total Fleet alignment when all transactions are complete: 35 787's for Vietnam Airlines.