The Future Vertical Lift Kick-Off or known as Black Hawk Down.

Get to know these acronyms. FVL (Future Vertical Lift) and then the JMR ( Joint Multi Role).  Its going to replace the Apache and Black-Hawk programs.  This is the initial phase., before putting out an Request For Proposal (RFP) for a 100 billion life of program potential to replace 4000 aging design copies currently in the military. Multi role is a key title which begs for different configurations that would overlap to different frame builders, as the below article indicates from "The Defense News" article share, would indicate.

Linking the "Defense News" article as it is a reading assignment for those interested in the new Vertical Lift Command RFP implementation. By the time I have passed on, this FLV will have deployed. I am writing  about something which will occur beyond my own expiration date. However, Defense News makes this opening article a "Popular Mechanics" type of presentation about the future helicopter concept. A most interesting day dream for aviation. The military has caught that day dream bug since it needs to go beyond the Black Hawk. There are four primary future bidders pushing forward at this time, where only two will make the final cut for the RFP round. Here is my check list of things to do in an all new concept lifter on the battle field. I am sure the DOD has considered these bullet points way before and will be included within the RFP for all comers biding.

• Stealth (negative electronic detections, Aero designs)
• Sound (silent mode)
• Lift Capacity (exceeds current light VL capacity)
• Armament ( The Kitchen Sink options for attack and defense)
• People Movers level (Maximum 24 Combat, or 12 medical, or 3 crew per mission)
• Evacuation capabilities (rapid egress system or capability) a run up the ramp and go.
• Air Cargo system of modular configuration (on the fly payloads management)
• Mission Configuration ( Rapid Mission Change management within combat scenario)
• Range=field of operations 400 miles with refueling capabilities for indefinite flight.
• Electronic counter measures
• Satellite command and control-wing management on missions orchestrations.

This is fun I could go all-day Popular- Mechanics style. Okay Its Defense News turn:

Step by Step: US Army Slowly Nears Apache, Black Hawk Replacements

The new Black Hawk ?

The new attack Apache?

The New Combat and Rescue?

Captain Ron's Flight Lines

Its Cinco de Mayo today so I am left with the task of making "flight lines", you may know them as LiftnDrag sarcasm about what's out there today. I remember on the Movie "Captain Ron" played by Kurt Russell, he said to the wayward family on vacation when picking up a sailing sloop. "If its going to happen, its going to happen out there."  Okay Captain Ron its really happening out there.

Flight Lines:

• Breaking news the A380 has a one bedroom suite for mile high miles.
• More breaking news the A380 has a shower in that suit.
• Another breaking feature, Can you lend a guy $20,000 US for a ride?
• I am tired of hearing about the A380 "lost leader" suite.
• Qatar wants another terminal since it is about to receive 80 A350's
• Did you know the A380 filled its dead space with bed space?

These come from the news searching on Google using  "Boeing 787" search word for a google news search, whaaaat! I search using  787 Boeing  search words in the news search and got this Cinco de Mayo Tom Foolery during the last two days. Boeing is not in the news at the start of the week, but Etihad is with its first bedroom suite on all news outlets around the world.

Mean while back at the Boeing farm, a pivot point has occurred in the works. Boeing is on track for a very big year. It has its arms full with the 777X program. The 737 Max program, which began ahead of the 777X program the pair have already approximately garnered a 2,200 order back log of paper aircraft. If you throw in the DreamLiners, then Boeing is over the 3,000 mark in the back log department with just its new offerings.

Don't forget that old 767 lives another life as a KC-46. They are working on a fifth copy at this time while completing the first assembly of the structure. Consider all the systems works, fueling appliances it must now install, and you will appreciate they still have a ways to go before actual flight testing.

(Blog Selfie in words) "Don't be distracted by one Bedroom suites on the A380." Remember Captain Ron keynote advise. "If its going to happen, Its going to happen out there."  Even though being lost is not a critical issue, or staying afloat in this blog is that important or just plain adrift, keep looking out with Captain's Ron's wooden eye.





Watch what's not reported, not too apparent, or is just on the factory floor, then you will have a better sense of what's happening out there. Watch Captain Ron moves on the movie for your training film, and you will gain the LiftnDrag swagger and composition. The A380 suite on the Etihad is just for getting Frequent-Flyer Mile-High-Miles, with $20 grand as pillow stuffing.

Airbus says A330 "more challenging", supply base stable (Reuters)

Translation: The A330 will run as the leading actor in Airbus' play but not after 2016. Then it will run in a supporting role for the A350. By then the talking points for the A330 sales will center on Capitalization value instead of operational value, as it's now sold. Capitalization sales value has a different set of taking points than the 787 or A350.

• Lower Purchase Price savings Buys More Jet Fuel for a long time.
• Lower Interest cost from lower purchase price buys additional fuel
• Ground Operations Cost is already sunk with A330 vs the new 787.
• Renewing A330 does not have a training penalty cost as with a 787.
• Total savings will compete with 787 over its service life

Sounds good for some Airbus airlines, but at some point the spread of the 787 is going to be a bad rash for Airbus.

The Western Australian Take:

Airbus says A330 "more challenging", supply base stable

Until now, the 20-year-old A330 has had a particularly strong run as sales benefited from three years of delays to the Boeing's new 787 Dreamliner.

But that is winding down as Boeing catches up with 787 deliveries and Airbus prepares to bring out its own new A350.

A record rate at which Airbus is making the planes to take advantage of the market gap has also eaten into the backlog.

Confirming a timeline reported by Reuters earlier this year, Airbus said it faced growing challenges beyond 2016.

"The long-range programme (A330) presents no new challenges. However, managing the order book beyond 2016 becomes more challenging due to competition from A350 XWB and Boeing 787," the document said.

Industry sources warned in February the A330 faced a steep drop in deliveries beyond 2016 without new sales.

Boeing's Five Stages Of Team Building The 787

Many years ago I drank the "Kool-Aide" on Team Building, you may know as the five stages of building a management team in today's workplace. The question is now asked how does this model work for building the 787 Dreamliner? Does it follow this Model and where it will lead the Dreamliner project down the road? Finally does this Dreamliner project spin forward with the final stage in Airline Building as in Team Building? I hope to answer these question from the below outline.

The Five Stages Of Airplane (Team) Building The 787:

• Forming 2003
• Storming 2007-2013
• Norming 2014
• Performing 2015
• Adjourning 2016

Forming is easy to pin down. The announcement of the miracle 787, and its proposed way of thinking about wide bodies. The all electric, central core driven, and all plastic 787 was such a huge announcement since the wright Brothers first flight. Boeing turned its engines and engineers of production towards making this vision a reality. The mission was to launch a working copy for testing by fall of 2007 forming. Then mission creep worked into the next stage, storming period, and the 787 failed its original vision, but has since made it out during norming.

Storming has a long cycle which became unfortunate for Boeing. Starting at  the 2007 roll out falling short of the 787 Vision, and a three and a half years of delay had these stormy issues roiling in turbulent air as follows:

• In 2007, 787 was a Bridge Too Far, when the complexity of the show over-whelmed the forming stage with drastic changes to Boeing developments the following storms followed:

• Suppliers and supply chain  not meeting expectations
• Delaminations
• Bad fastener problem
• Early test fires in electrical panel
• Latter, Battery fires while in service
• Three Month shutdown from battery problem.
• Ethiopian-London Fire near the crown of its 787 
• Various systems failures
• Various landing gear problems
• Engine shutdown during flight

Its not over until the fat lady sings, as the latest storms have passed over Charleston on the production floor. Holes on the wing were drilled leaving weaknesses at the hole site on forty sets of aircraft wings. Boeing had to backtrack and correct both the Charleston production problems and the micro fractures from improperly tapped holes on the wings. Charleston production floor problems and reorganization.

The above list has shrunk down to only minor faults at this time as no battery fires or failed systems continue on the press radar at this time. Storming Bullets above have clearer skies. Charleston has just up paced Boeing's expectations at Charleston's floor, and is becoming a player in the Airplane wars.

Norming has just begun by the end of this year (2014), if Boeing pushes out 110 787's for 2014 then I would say this phase in Airplane Team Building has come, and is set in Boeing's future. Norming represents so many things as it builds 787-9's from lessons learned from the 787-8 debacle of storming. The Nine is allowed an opportunity to add new technology like the Laminar Air Flow project making the 787-9 less sticky going through the air, than 787-8, that's Airplane Team Building. The 787-9 doesn't step backwards to solve the 787-8 past problems.. The 787-10 should have a greater development experience than what the 787-9 has just experienced. That this has become norming at its finest moment.

Performing for both ground and air. 2015 will be a new sales team year for the 787. The ground game will be solid from production to its delivery day, and in the air, the 787 comes home to roost on every passenger airline's bottom line. The performance of all involved will be show cased in 2015. So much so, that this fourth stage should bring in another 150 Dreamliners on the books by that years end.

Adjourning is something I 'll try to understand just from the meaning of the word so I'll go back on the 777 project and pin point the 777 adjourning back from the early part of 2000. Everything is set from the prior four stages of Airplane Team Building during the 777 project. It had gone through Forming in 1990. Storming those heady first years in the air. Norming from 1995 onward until its performing evolved the 777-300ER, because of recognition from older models performances, and what Boeing could do better with its New 777-300ER, the old early builds were adjourned by the 777-300ER, as will it be adjourned by the New 777X family by 2020. Therefore, the 787 family will not adjourn until the 787-10 is with its customers and production is in continuous stage of repetition, much like the 737 NG  has experienced. Since the MAX is going through its forming stage at this time, and the storming hasn't begun, but the 737 NG has adjourned from its forming through performance enhancements. Airplane Building really does follow the team building model, as one can observe these stages from an arms length view. Its quite simple how the Team Building author laid out a brilliant progression of human accomplishment. It still is as valid model today while team building airplanes at every level from the conference room to the factory floor. Note: this is a very large group version.

About the Model

Psychologist Bruce Tuckman first came up with the memorable phrase "forming, storming, norming, and performing" in his 1965 article, "Developmental Sequence in Small Groups." He used it to describe the path that most teams follow on their way to high performance. Later, he added a fifth stage, "adjourning" (which is sometimes known as "mourning").

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
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook


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.