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Monday, July 28, 2014

McNerney Is Tired And Apologises

His "heart is still beating and the employee keeps cowering", sarcasm is the sign of a war weary General. It was like a slap in the face from General Patton during WWII in Sicily, Italy, where a service man received one when breaking down under a grueling ordeal of battle while recovering the medical ward. McNerney's slip was not meant to be funny nor encouraging. It was an exhale from a long battle from the Airline war with Airbus. Patton, in this example continued on, and lead his troops to victory over many battles after this action on that solder. The General ended his war unceremoniously in a Jeep accident.

McNerney, with all his accomplishment in decision making and leading, let it slip out he is ready to retire. Losing professionalism in a moment like his 65st Birthday contemplation, demonstrates its time to step back and not slap the soldiers. The workforce too says things on a daily basis while on the work floor, as they continue to grind out aircraft. Its part of the job and makes those paychecks tolerable. However, coming from McNerney it becomes a symbol of the corporate mentality from those who writes the checks. Now this apologetic leader affirms corporate cynicism in one statement. It fell flat, as it should.

How expensive is that McNerney exhale? That remains to be seen when labor negotiations comes up next. By then McNerney may sit on a board in an advising role. The workers are only as good as instructed by the chain of command. They don't cower and McNerney has a tired heart by making a tongue in cheek comment.  At my former work it was always known that a humorous statement was the conveyance of true thought. A form of communication is joking your message allowing a speaker flexibility for falling back into a position of "just joking". McNerney's just joking apology slips out from a tired heart. His sentiment is both a recognition of corporate hang-over and his own cowering struggles with the giant airline framer.

A lot can made from this slip of tongue, if reviewing his own company history and tieing it to his cowering statement.  Boeing needs fresh legs in the game for both its employees, and for its vigor towards advancements. The corporate attitude will always infect decision making, like the common cold. Labor restlessness will always be an inflammation of  its corporate muscles where it will need an analgesic application of benefits. Boeing will need a new found energy from its leadership that has the courage, strength and understanding. This combination of attributes is needed to continue its progression steps forward, and for a validation of the journey it just traveled.

McNerney's most recent exclamation is a career sigh and exhale guised within the frame work of sarcasm. There is a lot of corporate truth found within that McNerney sigh.


Sunday, July 27, 2014

IS Boeing's Correction Complete?

Many of the leadership principals at Boeing  during 2003 have retired or moved laterally to other industry, such as the likes of Allan Mullaly going to Ford. He happened to lead it resurgence on company money and not the Government. He "focused"  Ford. He also was part of Boeing's "Moon Shot" leaders when the 787 was introduced. Mullaly and others were present during the 7-8-7 roll-out of the first all plastic shell of an aircraft. This was the moon shot.  Seven years later Mullaly  has retired from the Ford Motor company. McNerney is at the controls in 2014 facing a mandatory retirement rule for Corporate leaders. Is Boeing retreating under leadership of new Generals in charge. Will it just play it safe on innovation as so many former leaders did when Airbus seized its strong position. Risk and reward is is the clever balance for Boeing at this time.

Will Boeing sit on its hard fought and gained position as Airplane innovator and builder or will rest on its achievements while solidifying its market place. I think McNerney and others feel its time just to cash in on the Boeing innovation dividend and makes its family complete with all the 787 attributes spread amongst the family members. The 787 is Boeing's Opus.  The other family members will pick its DNA bones for relevancy over the next two decades.

787 Dividends found in the following on aircraft design:

  • The Max: Engine advancements and 787 like avionics
  • The 777X Engine advancements, plastic wings, Laninar Flow Technology systems, 787 commonalities
  • The 747-8i  787 Engine designs, advanced wing technology, 787 like avionics,

Boeing is now like those great pastry bakers of the world preparing a fine desert or roll. Its letting the dough of ingredients rest over-night under refrigeration. Its also time to see what the competition can do. So far its been a hap-hazard response. The A350 is shrinking back to a role player not a leader. The A320 NEO has launched out well during a time where the 787 had gathered the attention of industry with 787 uncertainty, and the MAX was not yet announced. Airbus continues to reel in orders on the A320 NEO, even though Boeing continues to break ground with first time customers for its Max. Its good news for both on the single aisle market. The fact that Boeing has turned several customers toward the MAX during  head to head order battles with the A320 NEO, suggest that Boeing MAX specifications and performance measures meet and exceed the NEO constructs. Those new customers look at both aircraft makers without bias and then choose what makes sense for themselves.

The future of aviation in now under contemplation. Looking what each maker has done defines what may become for the next generation of aircraft. Will it become an incremental change over the next 20 years or another Moon Shot. The second moon shot could be taken by the company with the most certain ability backing it.

Concerning Boeing, I can speculate that with its current temperament from leadership, they will will seek risk taking once again on the military side of projects with its drone programs. In truth, Boeing is developing a platform for future commercial aircraft but would like to secure this knowledge through the military side. Currently fighter type drones are able to take -off and land on aircraft carriers. If Boeing can do this today, it very possible and feasible for massive blended Wing Bodies in 30 years will have made its entrance into aviation. Think about suites on board like the A380 is currently installing. A blended wing body aircraft could easily carry 600 passengers or provide a massive cargo holds accepting irregular sizes and shapes. The technology to do this project already exist in engine development, plastic body process and advanced electronic avionics. Moving all these capabilities into the military arena for the next 20 years is a safe haven for this advancement. Going into the commercial would be a progression of technology as in steps applied in non commercial programs. At some point, Boeing will necessitate another moon looking shot when it isn't that kind of program. Something so different will come out from Boeing that people will think its a quantum leap, when actually it will be a natural progression forward with consistent results and proven advancements before it appears into a perceived moon shot. Boeing will execute such an advancement as a part of its output proven technology portfolio. The 787 project could not gracefully migrate from an Idea to a flying copy without numerous glitches, which Airbus attempted not to try.

Incremental steps will occur from Boeing on the military project side. When those benchmarks are cleared up handling a Blended Wing Body concept or other drone flying bodies are accomplished, then Boeing will bring that technology rather quickly over to the other side of its vast commercial complexes in full scale.. The concluding thought Boeing is doing step technology behind the scenes, and no moon shots for the future. Its doing that step technology in the form of space exploration applications and military systems which can be readily applied to the commercial side after the next 20 years.

Friday, July 25, 2014

CargoLux, The Initiator, Gets 10th 747-8F

Cargo Lux loves it when a plan comes together with its Air Freight team. Air freight doesn't get much love on this blog. Because most readers are love to fly and freight does not like going above the airline floor unless firmly strapped or netted in. Cargo Lux received its 10th delivery out of 14 ordered. Its the new type of course, the 747-8F. It also holds onto 11 more 747-400F. The cargo version is a proven performer since its first delivery in 2011.

Number 10 and counting for Cargo Lux

Cargolux welcomes 10th Boeing 747-8 freighter 

Even if its cargo, it remains a beautiful airplane today. Here stands an example of what the A380 can't do. Haul freight efficiently and in all configurations within the hold. New avionics settles the beast in a composed orderly fashion no other can do in its class.  The second best freight hauler is the 777 class with its own enormous hold. However this one above has more dimensional space. It is the life blood of the 747-8 building project. The 747 lives because "nobody does it better" (James Bond reference).

From equipment to food this hauls it all. Recently, the 777 freighter filled it to the brim with Washington State Cherries to China. However, a 747 is best suited for irregular loads and anything you can image that will fit in its space. The 747 and 777 control the air freight world decisively. Neither model has been militarized. It has the C-17 and older C5A`s. The world freight business is just emerging out of a long slump from that last world recession. Boeing is counting on a pick-up in freight trade. The 747-8i is waiting for second large order during this interim time of the A380 order dominance. It may too late for that, as the 777X will breach the market and cause the A380 sales to completely stagnate. It most likely the 747-8F will be the Boeing bench mark for four engine configurations. The next phase promises to be gigantic blended wing bodies in 30 years. I won't be here to see it.

Thursday, July 24, 2014

While Dithering With The A350, Boeing Built A Family Of Aircraft

Airbus dithered its opportunity, capital and pride on the A350 concept, soon after saying the 787 is "inconceivable", it won't work and will cost too much. However, its a good idea just the same, to stick on some plastic panels on an airframe and make an attempt as a good sport with the A350. For that matter, we could build an "All New" A330NEO call it an A330-800 or 900. Rolls Royce is game for a Trent 7000 because the 7000 series number is available. We (Rolls) can take what we did for the 787 and stick it on the A330 NEO. You know it, as what Airbus claimed,  a 787 failure back in 2004.

Ten years later Airbus has relegated itself to reinventing the A330 and canceling the A350-800. The world wonders, "what's that suppose to mean after castigating the 787 as non-doable, going forward and coming out will a knock-off A350-family of aircraft, and then after-all, returning its youngest child, the A350-800, back to the drawing board?" Airbus goes and  re-adopts back into its family, the A330 step child, which was destined for the aluminum recycle bin late last fall.

Its the all new A330-never mind. Let's borrow 787 engine technology from Rolls Royce, because we can. Keep peddling the ghastly sounding "snarklets" and cram more people in it than makes any sense. Just because we need bragging points going 6,000 miles.

The A330 NEO Is....
  • Cheaper
  • Comparable to one of these 787-8, 787`9, 787-10
  • Cheaper
  • Rolls 7000 engine technology stolen (/transitioned) from the 787 TEN project
  • Cheaper
  • Has "cool looking", "Sharklets ?
  • It must be mentioned, CHEAPER (per John Leahy) Its priced only at 279 Million US.
  • Compared to The over priced 787-9 at 249 Million US

Here Comes The Motley Fool  Quotes: (vetted and researched by the Winging It ace reporting team)

"The mid size wide-bodied aircraft of Airbus would be available in two variants -- the A330-800neo seating 252 passengers, and the A330-900neo seating 310 passengers. It would compete with three variants of Boeing's Dreamliner -- 787-8, 787-9 and 787-10 -- seating 242, 280 and 323 passengers, 
respectively.

 It will come with the latest fuel-efficient Rolls-Royce engine, the Trent 7000, that would enhance the plane's range by nearly 740 kilometers and will be much quieter than its predecessor. In fact, this engine derivative is based on the TRENT-TEN (Thrust Efficiency and New Technology) that is powering the Boeing 787-10, and Airbus claims that it will lead to 14% fuel savings per seat over the aging A330."
-----------------------------------------------------------------------------------------------------------------------

1957 Chevy Nomad move over the A330 has "snarklets" on its points just like the fins on that 57 Chevy. "Fly Me To The Moon, Frank" The A330 has arrived again.

What would Boeing say about Airbus "Snarklets"?

"Don't bother me we are busy with another 10 787 this month." 

Airbus just introduced the brand new, all equipped, 1957 2017 A330NEO Nomad, built to save face from its A350 ms-adventures. Hurry, Airbus is slipping and doesn't have time catching-up its dithering campaign from the A350 slump project. 

The Airbus Board Of Directors have all agreed that dithering is in the dictionary, and it must be stopped before the A350 and A380 slips more investor billions into the money pit. They complained about the 787 "inconceivability" status in 2004, and then bragged about the A350 mastery of XWB size in 2007. Which we all found out, it was significantly smaller than the 777 family of 1990's aircraft. The XWB subterfuselage is astounding, it has deceiving lake of real size. 

What can you believe about the A330 NEO? The Rolls Royce Trent 1000 7000 will come quickly, off the engine racks straight from Boeing's testing regimen for engine building. What Boeing has not locked down as proprietary engine parameters, will show up as modification's on the Airbus 7000 Engine Block at Rolls, as will some other deviations coming from the Boeing 787 engine advancements. Rolls Royce holds an exclusive position for the A330 NEO, and must produce a new engine in 24 months, leaving one to think it will grab everything from its playbook, and quickly insert it into a exclusive Airbus Engine option for the A330 NEO.

Boeing couldn't even work out all the 787 glitches in three years, yet Airbus will roll out the NEO in less time than glitch time. Airbus couldn't produce a A350-900 in five years. However, Airbus needs a quantum leap of catch-up subterfuge, since it dithered away the last ten years with an A350 bluff charge. Its game on for Airbus, or just go home and lose. Airbus is in a very nervous position, using a 20 year old scheme for an answer to the 787 family. 

The A350-1000 is a lost leader. The A350-900 is a role player without help. The A350-800 was that help, and it was fired from the line-up. 

Play Ball

The pinch hitter is the 20 year old A330 where it was issued a new glove and uniform.  The A330-NEO will play well for one season, just for its own season ticket holders. These fans will go to the game, because of the stadium concessions provided. The management will see its profits margin slowly deflate, "most unnoticeable". Then it will find itself having to rebuild its business model with a "game changer". The A330 is not the "Game Changer" anymore or a "Difference Maker". It is a stop-gap  player until plan "B" develops out of the minor leagues.
 
The A3330 NEO is the same semi retired pinch hitter you find sitting on the bench at a Baseball game. All the old fans know how that hitter is, and will cheer as it steps up to the plate. The A350-800 is sitting on the bench and knows it too. Its out of the game and Airbus is behind Boeing in a Score of 5-1. The pinch hitter has to swing for the fences as the A380 and A350-900 are left on base. The next swing is game over.  

It sold 121 A330NEO (from season ticket holders, and renters) copies at its introduction. Nearly the same number of 787-10's sold, (Boeing airline customers in waiting, where 132 units of those types which are reserved) even so during a ballooned wide-body market. The stop gap account has been filled for Airbus. Now the test of time will reveal schemes, plans, and hype for who has the best airplane lined up after ten years of Airbus dithering around the 787 with its A350.

New Airbus Taunt From Its Advanced Wing Design Team


  • Snarklets
Comes from the slang word Snarky, Snark. Being obnoxious, and overbearing with simple things such as obvious new ideas (sarcasm intended) that are not original. Hence the wing tips from Airbus have Snarklets. Those snarky geniuses have it done again.




Wednesday, July 23, 2014

Boeing's Micro Stock Market Vs The Macro Stock Market

Its not a new economic term nor is it a deal breaker when the market reflexes on real conditions. The Micro Market serves those stock market players who hang on relative stock position in the day to day market or on quarterly report, leveraging its capital inputs by moving money around on a periodic maintenance plan. The Macro investor put in substantial investment for the long haul and throws the paperwork in a safety deposit box only to read during a last will and testament reveal.

Boeing this quarter has new adjustments to its military arm, as the KC Tanker program has significant write -offs. The investor has noted, Boeing is fixed into the new military procurement program, where Boeing bears a greater portion of project risk than prior procurement programs. The have bid with a fixed price and few loop holes on the KC-46 tanker program. If Boeing errors on the side risk, they would have a better chance of winning the bid for the KC-46 Tanker project, since its built on established commercial frame, the 767. Boeing from its military side of operations brings to the plate new technology as it stuffs its airframe with a series of military applications. In this case known, as an add on risk factor. The military applications coming from Boeing, per Air Force requirements, must merge with Boeing's commercial side. This adjustment is the high risk side of the fixed cost model. Boeing just recognized a huge write-off towards that end on the KC-46 tanker project.


Blogging The Blogger Link:

Why Wall Street is fretting over Boeing’s latest report


Article Quote Below:

"RBC Capital Markets Analyst Robert Stallard offered this take: “Although the headline EPS result looks impressive, we think investors will look through this and note a couple of things. The most obvious is the tanker charge of $425 [million] —  to us it is worrying that Boeing is booking a charge of this magnitude at a relatively early stage in this long-term program, particularly given recent assurances from management that everything was going to plan.”"

Quoting an old Reagan philosophy term of "Trickle Down Economics", the government or "We the People" are 18 trillion in debt", this too trickles down to industry. The number one expense line on the federal debt is the military, hence the new world order of paying for military acquisitions completed with Fixed Cost Procurements Installations. The military can only afford 186 KC-46 without a cost over-run. That is why they chose the low ball route of existing airframes from commercial aviation. The 767 beat the A330 from Airbus in a much contentious bid war, where Boeing ultimately won. The military oversight is holding Boeing's feet to the procurement fire. The old adage, "you break it you pay for it", applies here"; The foreseeable escape clause for Boeing is if the military requires a variance from the original bid plan, then they will pay for it. Sounds reasonable. The 425 million write -off on Boeing's books comes from the KC-46 project as it adjusts its program expenditures that are greater than its bid allows. In essence, Boeing will eat cost over-runs from this point forward, unless the military wants a change order on the aircraft development. This over-run write-off is early in the program. Boeing has some pad in its own bid price, which ultimately erodes profits for the program. This lump number, is a bench mark investment point. The Micro Stock Investor is now moving its position away during this news cycle. They can make money on other stocks and they will come back when programming triggers it.

The program, however, needs a better picture of what lies ahead. It will need to assure investors that this is a stage adjustment during initiation phase of the project. The second stage which it has now entered with flight, systems, and applications testings. All sub stages with inherent high risks of failure. When the rubber meets the flight line is sometimes messy. Boeing has a lot riding on the flight line. They are doing its due diligence to mitigate risks as we speak. The only projected thoughts offered for the investor, is this 2nd phase contains the nebulous or abstract inputs from the Air Force as systems are refined. Boeing could have additional funding as it modifies what they don't like or what doesn't work as ordered. However, Boeing will foot the bill if it doesn' t perform as promised. The second case is Boeing's financial risk. The first case will be on the Air Force tab. This is the New World Ordering or Procurement Process. A dicey game is played in phase II for who pays for what. That is the real risk that lays outside of failure. Phase I was infrastructure adaptations and program installments, or the set up of the whole process under R&D's over site. Hence the 425 million US write-off that scares away the micro investors for a month.

KC-46 Risk Stages:
  • Phase I: Program Establishment and initial build (-425 million risk cost paid)
  • Phase II: Military applications and Air Force Refinements installations (Shared Risk)
  • Phase III: Testing, and Evaluation, Change Delta (70/30 Boeing/Air Force Risks)
  • Phase IV: Entry into service (Nominal risks)



Tuesday, July 22, 2014

The Art Of (WAR) Blaming The Other Guy For MH17

The Evil shot was taken, bringing down the innocence on flight MH17 over Eastern Ukraine, where the Ukraine army has vacated. Russian troops are amassed on the Ukraine boarder by the thousands with its equipment, including Buk missile launchers. These are the same ones photographed deep in Eastern Ukraine on the day MH17 was shot down with 298 passengers and crew, all perishing. The chorus has been loud and long, "it wasn't me".  The love/hate triangle claims a no fault. Russia Putin says "Who-me?". The separatist, cry "here is the flight box" (wearing no mask). The Russian trained solders who wear masks, so as not to be identified, "no comment". Bingo, the mask wearing Russian soldiers did it under the orders of someone east of their position.

But what about the Ukraine Army who owns BUK launchers stored far to the west in reserve? That answer is a Ukrainian strategic military response they are ready when Russia launches its jets over the Ukraine. The Ukraine wouldn't want to sneak one into separatist territory when the separatist own no aircraft, unless Russia "lends" a few piloted jets and helicopters by its masked Air force. Russia could train the separatist over night to skillfully shoot down a 33,000 FL commercial aircraft, couldn't they? Russia claims the scarfs over the face is some kind of Crimean fashion statement spread to Eastern Ukraine. Meanwhile the separatist on the ground grumble,

"I didn't join the Russian missiliers to wear a scarf over my face just go to the Ukraine and kill innocent people. We already shot down a Ukrainian military cargo plane and a few other targets. Blame the separatist, Blame the Ukrainians, but don't blame Russia."

...This is insane!

I apologise to people who lost loved ones on MH17, for anything that may seem insensitive in this blog. It is not meant to be humerus or an over simplification of facts, it is meant to illustrate how stupid and horrendous an act of murder is, under the guise of war. When I heard the news, I felt grief for the those innocent people and wanted answers or a way to right the wrong.

No one wants to take responsibility, for a any reason, since it is not an act of war, but an act of mass murder for no apparent reason. When the facts are born out and the guilty are sought out this war will end, because it will have long lost any noble idea of its right in the first place. Russia may want to try and keep the Crimea or the Ukraine will want to restore its Eastern Frontier, but the Separatist who gave up the flight recorders will get stuck with the blame even though they don't know how to launch missiles on a target. Russia is too big to fail in the world scheme of things, and the Separatist are just pawns for the the big guys, like Russia, "who do no wrong"!

I will pray to God for the families that lost loved ones on flight MH17. It still grieves me.

Monday, July 21, 2014

Copy Paste The Emirates Deal In Cogent Language


Below is a great representation of what is out side the Farnborough orders extravaganza, and what it means to the Airplane market. Airbus scrambled once again to show up the Boeing order book, during the Farnborough affair. They pulled it off with 77 billion of paper sales over Boeing's 63 billion of like mannered sales. What missed the show is more important than the show itself. What's the order book at mid-year and what's the order book at year end, makes more sense than an Airshow order count. Finally, someone has written a solid presentation from this concept illustrating the big picture is more important than a four day blow out sale.

I would like to go on and on about the 787-9 because I'm actually the most excited than I have been about an aircraft since the the 787-8 flew from Paine Field, WA, around the world. 
  • Only landing in India ounce for a refuel (19hrs later) 
  • and then back across to Paine Field flying heading easterly 
  • completing all the way around the world after another 18 hours flying during the second leg.  (caution run-on sentence structure bullet points added)
That was fun to watch on Flight Aware charting.

Here below is a significant observation from Motley Fool publication as it deepens its understanding of the Boeing big game strategy. It breaks into the Boeing Psychic

Please click on headline below as Motley Fool has important advertising on its link, I don't. 

Below the link is the complete "copy/past edition", for lazy inebriated types.
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    What The Boeing Company's Historic Order Win Means for Aviation Stalwarts

    Boeing (NYSE: BA  ) recorded its biggest 777X order win of 150 jets from Emirates after the latter finalized the $56 billion deal last week. Emirates' firm commitment to the American aerospace major comes as another big blow to Airbus (NASDAQOTH: EADSY  ) . The Gulf airline cancelled an Airbus order for 70 A350s worth $21 billion at list price in June. Does this signal a deeper relationship between Boeing and Emirates, and a heightened rivalry between the American jet maker and the European major?

    Boeing 777-9X, Source: Flickr
    Boeing-Emirates relationship deepensThe Dubai-based carrier placed the order at the Dubai Airshow last November where the 777X program was unveiled, making it one of the best-ever launches in aviation history. The confirmation came in July. In addition to the 150 jets, Emirates has reserved purchase rights to order for 50 more. After cancelling its A350 order, chances are strong that Emirates will exercise the option.
    The airline would be purchasing both the 777X variants -- 115 of 777-9Xs and 35 of 777-8Xs. The 777-9X, which can haul 400 passengers, is the costlier version with a list price of $377.2 million, while the 350-seater 777-8X would cost $349.8 million at list price. The deal's value will increase to $75 billion if Emirates exercises its purchase right. However, plane valuation firmAvitas says that as there are massive discounts for big orders, the true price of the 150-jet deal should be around $31 billion. 
    The order makes Emirates one of the first airlines to be flying the GE-powered twin-aisle jet capable of carrying the same load as a jumbo. Emirates president Tim Clark said that with the 150 777X order, Boeing now has total orders for 208 777s that are yet to be delivered to the airline operator. Presently, the Gulf operator flies 138 777s. 

    Boeing 777, Source: Flickr
    The 777 edgeThe 777 family, dubbed as the mini-jumbo, has been Boeing's best-selling wide-body aircraft. With the next-generation 777X, the plane maker expects to usher in a new wave of growth.
    Boeing will start production of the 777X in 2017 and begin delivering the aircraft in 2020. This version is being developed on the tried and tested technology of the 777 and 787 Dreamliner that will not only help to integrate cutting-edge technology in the jet, but will also minimize development cost. Boeing claims that the 777-9X's engine is 12% more efficient than competing jets in this segment, while 777-8X offers 5% higher efficiency over contending aircraft.
    The Boeing-Airbus contest continuesDubai is an important air link, connecting Europe and Asia. This makes Emirates demand larger jets. It's the largest international airline operator by traffic and the biggest operator of Airbus' A380 and Boeing's 777. As Emirates operates in some of the busiest long-haul routes, it finds the ultra-long haul 777-8 and the 777-9 aircraft -- larger than A350-900 and the A350-1000, respectively -- to be better fits. 
    Emirates wants Airbus to overhaul the 500-seater A380s with the new Rolls Royce fuel-efficient engines by 2020, but the aero major has not committed so far. With Boeing's 400-seater 777-9X gaining traction with the airline, Airbus could be feeling the heat.

    Emirates A380, Source: Flickr
    However, Airbus can take heart from the fact that Emirates' move is part of the airliner's strategy of structuring its fleet. An analyst at Edison Investment Research says that Emirates is trying to organize its fleet, placing the A380 as its mainstay jumbo jet, followed by the 777X, and finally the 787 that will cater to routes that have less passenger traffic. The airliner is aggressively expanding to cater to increasing traffic, meaning that there is a huge avenue of growth for both Boeing and Airbus.
    The order cancellation has definitely spoiled Airbus' mood, but it isn't something new in the aviation industry. We've seen the 787 Dreamliner experience cancellations of 200 units. The fact that the A380 is central to Emirates' fleet strategy also ensures order flows in the future.
    Foolish takeawayThe competition between Boeing and Airbus to win higher wide-body orders is in full swing. Since most of the demand for these planes is coming from the Persian Gulf, carriers like Emirates, Etihad, and Qatar Airways are going to play a key role in the duo's wide-body backlog. Though Airbus saw Emirates withdrawing orders, it's not the be all and end all of the European plane maker's business. For Boeing, the huge order win is an unbelievable opportunity.
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    Finally Understanding Boeing and Airbus Wing Technology Since Farnborough 2014 (No spell check was on during headline making)

    After Farnborough, a great deal of time  was committed to understanding the two giant aircraft manufacturers approach for its vast (Boeing only) fleet of aircraft types. Then I watched the 787-9 fly for the 101st time over and over again at Farnborough. It struck me like a bolt of lightning. Boeing uses a different approach for wing development. It uses "live birds", and Airbus uses Popsicle sticks and tongue depressors in its wing development on its prototypical wing design models. The "Farnborough Climb" and the now banned "Dream Liner Touch and Go" are accompanied with The "787 Swan Lake (Music please) Turns" of a behemoth's debutant solo dance performance at the airshow.

    Turn up the sound and watch


    I didn't even see a tongue depressor swallowed at the show only gasping and envy. In fact the European contingent from England found a way to mute Boeing's performance, by banning its touch and go maneuver, "forever"!  Consolation prize, Airbus can't do it either even if it attempted it :<). I think they, the Farnborough airshow people, banned it because they were afraid Airbus would try stuff like this at the next airshow, causing some catastrophic disaster on its Paris turf. I agree with the the decision they made with the touch and go stunt. No airshow wants an Airbus disaster. Boeing will have to go do that flying around MT. Rainier, and then posting on its own web site. The coming of age for the 787 program has been a long awaited event. Some people just don't get it, and have no sense of class. John Leahy is a hard sell on Boeing advancements. I don't know why, but Airbus just acts that way? Boeing has really good airplanes when they behave at Airshows. However, they just go out out on the town (Farnborough)  and have a little fun. The Swan Lake stunt was just a little showing off and "showing the crowd the money".

    Can you blame Boeing that they stole the show in front of everyone? The fighter jocks standing along the flighline next to their high performance rides wanted a piece of that action. If you are lucky enough to be a 787 pilot then you must learn how to spell the word "perpendicular".  That's straight-up from the top, on my word.

    Back to Popsicle stick technology: A warning was missing from the video. "Don't try this stunt at home, these are professional wings flown by professional people and sold by professional people who are serious about aviation."

    Does that mean that Airbus is not serious about aviation? Or have they just been down graded, to the second tier lessee market with emerging airlines flying its NEO A330 "Tin Lizzy". Ouch!!  I've got more zingers, that's why I can't be fired. Bloggers don't get fired, they get sent to spell check land or "sentenced" to advanced grammar school punishment. Its A No Harm No Foul License (NHNFL).

    Tongue depressor wings are fantastic. They don't flex, bend, or curve. They just gag you during a flight as you bump along. The Boeing secret sauce are in its wings. The Boeing design folks are spot on and will continue, as they improve this profound technology. Airbus does lack this technology, as well as lacking Boeing's Proprietary Laminar Flow Technology (PLFT) concept currently flying on the 787-9. People may have experienced the, "Something I Didn't See At Farnborough Syndrome(SIDSAFS), unless you walked up to the 787-9 and petted its tail skin. Look close when you get close! The 787-9 is for real, as an advancement, over the most advanced 787-8. I can't wait for what is done to the -10 and the 7778X and 9X. A premium aviation gap has been established at Farnborough flying exhibition from the 787-9. The Airbus people have no answer.

    The Main Things:
    • Popsicles or Tongue Depressors Gag Customers
    • Swan Lake feature music for the 787-9
    • "The Farnborough Victory Climb" V
    • Farnborough Is Too Touchy with Boeing's GO;
    • Banning "Stunts"... Saves Airbus From Embarrisment In Future Shows
    • NHNFL; SIDSAFS; PLFT


    Friday, July 18, 2014

    The A330 NEO Subtrefuselage

    Rational is the driving force behind the A330 NEO non innovation. Airbus is taking what its sub-contractors come up with for: engineering design and Airbus' aversion to risk. By buying newly advanced engines and sticking it on the A330 NEO with a vast array of Airbus improvements just installed on the A350 family of Aircraft, they are attempting a 777X type move for its A330 line, sans folding wings, laminar flow technology and a plethora of 787 type innovations. The deception is in the Airbus fuselage, or in this case the Subtrefuselage body of Airbus work.

    If you can buy an airplane that can go the distance, but doesn't have to everyday, that statement becomes more formidable, than buying an all metal aircraft limited to mid- range Atlantic market or the Asia only routing. Its an obvious decision ,  starting at the end of the Airbus' nose in Paris. Draw the 5,000 mile circle from the Eiffel Tower. You have a New Engine Option (NEO)

    What if opportunity in growth arises when you own a similarly fuel performing A330 fuselage with the 787-8 ,only with limited to mid-range. That airline bought cheaper than the 787, but they got what they paid for, while an opportunity passes that equipment by. You may know it as an aircraft that thought it could, but can't. This definition is better stated by 787 flexibility in the market place as the A330 will become a fixed regional asset. Customers will notice that maybe a short route by the A330 NEO can compete on fuel burn with the 787's short routes in a limited arena. However, the market changes daily, seasonally and yearly. The A330 Neo will become a routing wall flower when change occurs. Airlines will have to go and buy a second airline type to fill the NEO gap limits, costing that airline hundreds of millions more than what it intended because of its bargain basement buy of the A330 NEO. Hence, "you get what you pay for". Once again you can fly the 787 on Mid routes equally with an A330 NEO, but the NEO gets left behind when a competing 787 switches towards an opportunity for a longer gigs during "the season".  The 787 is a better value on just this one point. There are many other points made concerning the 787. Wait until you see the numbers on the 787-9 and 777-10. More proprietary technological improvements will be added, that Airbus can't or won't touch. The A330 NEO becomes an airshow one hit wonder. The 787 has a better long playing and short route record. ANA uses the 787-8 on regional routes as well as to Frankfurt Germany or the US. They claim a 20-21 % fuel burn improvement. The A330 NEO compares itself with its own A330 and not the 787 family, by saying it will be a 14% improvement over the older A330. Its all relative.

    Boeing is gradually pulling away from Airbus' strategy because of its fractured family of aircraft falling short. Boeing made the A330 Blink as mentioned before in a prior blog. In a blink the 787 gets away cleanly as seen at Farnborough. The A330 NEO Subtrefuselage made over 105 unit sales at the event, much to the pleasure of its Airbus Board member thinking. The short game is a niche market where the A330 NEO exactly belongs. The short with long game now belongs to Boeing, as its customers will soon experience when all its family of aircraft will be in full bloom by 2020. The best thing about the A330 NEO is its cheaper and you can now buy more fuel for its operation.

    The Farnborough Effect

    Boeing chart  indicates updates for the current week.
    Changes since last update:  134 new orders 
    • (ALC 10 737s and six 777s, 
    • CIT Leasing Corporation 10 787s, 
    • Intrepid Aviation six 777s, 
    • MG Aviation Limited two 787s, 
    • Qatar Airways 50 777s, 
    • Unidentified Customer(s) 50 737s). 
    • Identified Air Algerie order for two 737s, 
    • ALC order for 10 737s 
    • and Okay Airways Company Limited order for 10 737s all previously listed as unidentified.

    Orders through July 16, 2014
    737747767777787Total
      2014 Net Orders.                                         
        550                  1                        219     13                   783