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Tuesday, February 10, 2015

Hey Boeing Do A 737-757 or 757-737 (Flash Update)

Update Link- Bolding:

UPDATE 1-Boeing says not studying reviving 757 with new engines


So the single aisle 757 is not on the docket. However a two aisle Goldenliner remains a consideration in the slot of the 757.

........................................................................................................
Original Article
Boeing needs to audible the "Gap". It is the Single-Aisle to Double Aisle Gap. They have an off-the-shelve concept in the 737-900 or "the in the bag 757", people mover. It should be called the 737-757 "GL", standing for a bridge going very far. A "Ranger", or something more sophisticated sounding like the "Goldenliner"AKA GL. It will link continental drift with a 5,000 mile range. The gauntlet has been thrown down. with the A321. Boeing could probably wait until Airbus orders are locked-in for the A321, but they won't. Boeing can move rather quickly with a 220 seat twin aisle, borrowing motif from the 787 and the metal from the 737. Maybe stick on the newly engineered carbon plastic wings hanging the latest generation engines, utilizing a cross-over theme from the 777X playbook. Its not a 787 or a 737 but it is the best of Boeing, taking from every invested idea it has made since 2005. It's everything new, since about the time they stopped making the 757.

Note this concept will not be a too lengthy 737-900 or a too stubby 787-800 it will be the Goldilocks of aircraft, that is just right, filling a gap Airbus has gone after. Slightly wider than the 737 and slightly narrower than the 787 where it will do 7 across in style with 2-3-2. with 31 rows or 217 MAX seats. Don't think Boeing has not gone here before, because it has, and it has a carefully measured its idea of how to get there quickly after the Max delivers in all its sizes. The Goldenliner is in the special spot where Boeing has built, tested and pondered ever since retiring production of the 757. Boeing only has so much resources dedicated to new technology and building new designs. Out of the Max,  out of the 777X  and foremost out of the venerable 787 ,comes the Goldenliner. The true gap filler. It will not be a family member for either the 737 or 787 but will sit in its own class leaving the designs of customers to come out and play. Ryan Air will have the 737-200C, along with the other market tampering airline competitors. This airplane has a dedicated niche from shuttle to transcontinental ranges. It will take people on Junkets far enough away without breaking the bank going for it.

The Max is about 118 inches wide (9'8")
The 787-8 is 215 inches wide (17'11")
757 is  139 inches wide or (11'7")
Goldenliner 757X- could be about 179" wide or about (14'.11") (two aisles) or less with one aisle.
Goldenliner 737-757 single aisle  would retain the old 11'7" dimension or 139 inches.

Estimations:
179" across
18" wide seats X  7 each = 126"  and two 26.5" aisles equaling 179"

This of course would require some engineering pencil erasers, as more configuration sketching is needed.

However the 757-737 Goldenliner would fall right between the 787 and 737 and not be too long or too short and its not too narrow, while not going wide. It would be the Goldilocks Goldenliner. Just done right.

The Ethiopian Gamesmanship

Ethiopian Airlines to order 20 wide-body aircrafts


Boeing will sweat this order because its not for the 20 dangling out in front of them but its for the relationship they have cultivated over the years as they have helped Ethiopian build its business with better equipment. Timing is a critical part of the deal. Who can deliver when Ethiopian will need the aircraft. They are looking potentially two suitors, the Boeing 777X and the A350-1000. Both models have not flown as of yet without Ethiopian getting overly excited by its own prospects during the near term. 

However, they have dangled a 20 unit wide body intent out in the air in hopes of snagging a competitive deal from either maker, so they say. One thing Boeing has to do is approach the sales junket to Ethiopian Air with an all out effort. They have the high ground with talking points. But what Ethiopian wants is some Boeing attention in the form of Boeing sugar, because most certainly Airbus is going after this one order as the obvious interloper.

A categorical talking point book from Boeing should grace an Ethiopian Exec coffee table. Including high glossy pictures and Gold leaf trim on the pages. Print at least 100 hundred for the whole board room, family and friends. Next send some Harvard Graduates straight from accounting over to Ethiopian for  helping them remember how the 787 changed the bottom line. All these 787 pilots can fly the 777X in a few days, how convenient. All your 787 mechanics can service the 777X is even more cost effective.

Now Boeing wants to talk about who has the better aircraft under all scenarios for Ethiopian. Rather than talk about the A-350 at all, Boeing should talk about the missing piece Ethiopian has going forward. If they only had a 777X, where will they be in five years from now? Leading the world?

Friday, February 6, 2015

The 787 Effect

Rarely do I repost an airline article verbatim. But this one speaks volumes as illustrating the Boeing Intent for thee 787 and its success. Without further harm, I will repost the article below:

Top Listed Airlines Flying The Boeing 787 Dreamliner


Boeing Delivers January

Fifty Boeing airplanes found its way to customers in January 2015. The interesting side bar is that it delivered in each of its sibling models from 737 through the 777 with accounts as follows:

Boeing Production,/Delivery for January
737-35
747-1
767-2
777-5
787-7

Total= 50

Airbus made orders in January for five whole airplanes, one more than Boeing during January. However the assembly and delivery department came away with 36 more aircraft short of Boeing numbers by 14 whole airplanes.

Airbus Production/Delivery for January

A320- 3
A330- 5
A380-1

Total=36

+ Let's talk some money. Boeing cashed more checks by beating Airbus by billions.
+ Orders from Airbus takes an early lead in  number and also in potential Accounts Receivable booking 5 A330-200.

Boeing has reduced by one 787, thus erasing its potential Revenue/AR off the books while adding 5 737's, totaling a net number of  4 after the 5 737 are added. It also booked less value than the Airbus' 5 A-330-200's ordered. It is all very  close in the game of  Horseshoes and Grenades for both. It means very little, since January is a regrouping month after 2014. It does show Boeing remains more robust than Airbus when manufacturing airplanes. Boeing is setting a significant tone for the year's production forecasts as Boeing exceeds Airbus easily, with  production numbers during the first 30 days.

Tuesday, February 3, 2015

Boeing's First Hang-over for 2015 Has Arrived

The Start of each month a chart is made for your own view of Boeing's big picture from 787 production and delivery  pace. Its averaged over 90 days as a moving average. This 90 day per view captures any anomalies of customer readiness or production show stoppers. The average takes this all into account as a moving average and can be wrapped into a quarterly number every 90 days. Its a how did Boeing does for any given point in time at the first of every month, or looking back on a quarter just completed. Here is the 1st of February's moving average numbers including the January production and delivery hang -over.

Goal +/-                          *11/2014    **12/2014         Projecting    January-   (actual) Delta 
Month Deliveries               6            **18              10              7.0                     -11
3 M-M-avg                      9.0          11..67              10             10.33                   -1.33
Production Goal               10              10              10              10                         0
Delivery Trend (+/- )       - 4.           + 8.0                      . 0              +.33      /Target       >                
                                       *PM-Start      **M.A.P.                         PM-End
*Progression Months
**Moving Average Progression

Notes: The drop of a negative, -11,  number over December's production does not affect the 90 day picture for maintaining an average goal of ten a month as it is steadied with a 10.33 average delivered.

However, Boeing needs 23 three more 787's delivered in the next 57 days to meet quarterly expectations of 30 787's delivered by March 31, 2015. Boeing is positioned well enough to complete the goal. It has sufficient 787 ready for customers, testing and preflight status. As follows:

January Delivery                  7
Customer Delivery Pick-up  2
Preflight finish work           15
Production Testing              6
Total primed for 57 days    30

One more note:

Approximately 15 more are on production floors found in both plants. Boeing should migrate at least half those during March into the final preparation stage. Adding a conservative six in number to this status, add it to the above list. As they  should be delivered by March ending, the overall outlook number is for 30 during the quarter. Since these are ballpark numbers. An actual push from the floor will start sooner rather than later, and Boeing will meet the 30 goal for this quarter in progress comfortably.  

Wednesday, January 28, 2015

The Bridge to The 777X Is on Solid Ground

Jim McNerney is confident about spanning time with the 777-300-ER order book. At least through 2018 and beyond during its transition to the 777X family of aircraft. Why, is a reasonable question anyone who doesn't believe anything coming out of Boeing? Sixty-three 777-300ER were ordered in 2014 because there is no comparable aircraft existing for its range, capacity and passenger comfort. This is a legacy aircraft worthy of another advanced protege. Referred to as the 777X project. It will reach fruition by 2020. Boeing simply needs a 300 unit backlog between now and 2020 for its current model 777-300ER. It now stands at only 237 orders to go since starting the count-down at the beginning of 2014. Watch 2015 and each succeeding year for 777-300ER orders or current customer reorders.

What an Airline would consider is its own transition period to the 777X from the 777-300ER. The classic model (777-300ER) is very efficient and has a proven capability that is unrivaled in today's airspace.

What about the A350-1000? Once built it may be optimistically equal to the older 777-300ER from its brochure pitch. That is what is driving the classic orders today. The A350-1000 has received about half as much ordered in five years than what the 777X received in one year. Once airlines factor in a new 777-300ER, they will see a bridge order from Boeing which will beat a new order from Airbus' largest A350. Boeing intends on about 407 seats on the 777-9X and 350 seats on the 777-8X. It's a Market crusher attacking both the A350 and A380 at the same time. The Boeing Aircraft tool kit will have more sizes in aircraft than Airbus. Each will exceed or meet airline expectation, when they structure its routes and services tuned to market demands. Or it will have the right equipment for piloting in a new or expanding routes with many Boeing airplanes available.

There is only one area Boeing needs to address in the next five years. It is either with the bottom end of the the twin aisle or the top end of the single aisle. The 737 200c is a consideration for trans continental or announcing a roomier twin aisle  787-300 seater for trans-oceanic travel of 5,000 miles. Boeing is already committed with Ryan Air on an order for 737-200C's for about 199 seats, but no more than 199 passengers. Many competitors are looking at its metrics and are waiting to see if Ryan Air clobbers them in Europe with this particular MAX. If they do, many more 737-200C's will follow. Probably in the Indonesia region. Boeing has not yet zeroed in on the low end of the twin aisle 787 until after the 787-10 is in delivery mode. It will be a easier effort to do so after the -10 moves through testing as the -9 had completed its testing with a no mishap in process. A four type 787 is Boeing's ultimate goals for this family of aircraft.

Now for Business meeting quotes from:

Boeing Identifies Order Bridge to 777X

McNerney about the 777 current orders:

We expect demand for the [current] 777 to remain healthy through the end of this decade,” said McNerney. “With the new airplanes scheduled to entere final assembly in the 2018 time frame, this transition will leverage new manufacturing processes and technologies being proven on the current 777 to optimize the 777X production system.” Boeing’s backlog for the current 777 stands at 217 airplanes, enough to cover more than two years' worth of production. Boeing delivered ninety-nine 777s last year."

I think it is a sign that the capability is an enduring capability and the competition is…I hate to say it this way, but there is not much competition with capability,” added McNerney. “So we’re in a fortunate position here, and it’s one we’ll shamelessly take advantage of.” 


The company saw further positive developments in the widebody sector with deliveries last year of 114 Dreamliners, setting a new record for any twin-aisle airplane. Company CFO Greg Smith reported that unit costs for the 787-8 dropped by 30 percent over the span of time it took to deliver the last 175 airplanes, and that he expected the program to turn “cash positive” this year, ahead of a production rate increase from 10 airplanes a month to 12 in 2016.
The commentary by McNerney and Smith came as Boeing announced an increase in fourth quarter profits of 23 percent on record deliveries of 195 airplanes, and $12 billion worth of orders driven mainly by strong demand for 737s. Boeing Commercial Airplanes saw a 15-percent increase in revenues to a record $16.8 billion during the period.


Sunday, January 25, 2015

The Cheaper Fuel Pyramid Leads To More Boeing 737's

Boeing is putting its best foot forward as Oil per Barrel prices plunge under $50 a barrel, Certain market elements are the free radicals driving more sales. These free radicals will drive the order market rather than impede its growth.  Conventional Wisdom (CW) makes the assumption cheaper oil will collapse order books as Airlines will sit on cheaper ticket prices flying older equipment, because the cheaper oil is a hedge against competition. Is it a fuel price opportunity where weaker airlines will sit on not making further capital investments until they squeeze the life out of its current airframes.

CW then proceeds forward with the Premium Airline Crowd where they are always thinking about sound airline purchases while taking a hold on capital investments, as it will take the "opportunity" binge by swapping out high tickets for lower ticket prices when riding the fuel price dump Bull. These two examples illustrated dynamics of CW marketing on low fuel prices. Its what everybody thinks, until you talk to a Boeing optimist.

Boeing suggest, that a free radical pyramid exist for the opportunist:

Just Order
Opportunity is low fuel prices
Rise in traffic benefits the Revenue stream
Lower Ticket prices from Cheap fuel increases Cash Flow
The purchase window not affected by capitalization during fuel price drops.
A continued growth model takes into account capitalization needs during fuel price drops.
Finally, the goal is stay ahead of the competitors through sustained growth and better equipment.  

The zig-zag of the fuel price chart line will make you crazy over a ten year chart. The airplane growth line is built on regression analysis which is not so Zig-zag, but more of a nice swooping straight line upward. It takes into consideration seasonality influences such as fuel cost. I would be willing to bet the airline cost factor has changed it coefficient a bit downward at the glee of those looking at the upward swing on the revenue line after offering slightly lower ticket prices. Its more than that. A traveler indeed has cost before they attempt a ticket purchase. It takes them half the cost to fill-up their car going to the airport. Tires go cheaper, food is cheaper and so forth. Bottom line, a customer has more spendable cash for a vacation going over seas. Hence, increased airline revenue. It rapidly becomes, "It's the oil economy stupid", for the Boeing speech to its own customers. The Airlines aren't blinking by canceling orders, but are beginning to pour it on the order book as the growth line keeps swooping upward.

The price of oil will go back upwards to $80 a barrel until next year. An Arab Oil Sheik told me so! The airlines won't have lost its place in the production line by staying tight with ordering more airplanes, an airline exec told me so. Economics is simple as long as someone tells you so.

The 787 Remarkable Seat Range

Before you get out your calculators and slide rulers here's the sum of it all. The 787 has a range of anywhere from 195 seats to 375 seats. In a prior Blog, The "Art of Seat Wars", the air space was ploughed through with the following seat range.

  • Japan Airline 195 seats slide into place on its newest 787-9, not a possible 375 passengers, 
  • Norwegian air seats 291 passengers on its smaller 787-8,
  • and Jet Star's "per passenger smaller" 787-8 seat 331 compliant passengers
The game has shifted from Boeing to the airline entrepreneurs everywhere. Let's face it Boeing, you have built a travel tool and those wise Guys of business are re-writing the travel books over its aircraft efficiency. Who wins is the traveler. Whether you pay $600 a seat or $199, a traveler is going somewhere fast. Much like the astronauts of old. The technology has shifted to a few cubic feet allotted each passenger. Seat technology has entered the Aviation Renaissance. Control what you can control", is the seat makers motto. So, taking ideas from early NASA they will bend a passenger into a very comfortable small space with plenty to do even sleep.

The space under your seat is up for grabs at this time. It is currently, the habitat for handbags, computers, and brief cases. Since overhead bins have grown substantially on the 787, it is expected the under seat world will become high price real estate for passengers. The pitch wars have begun in earnest. The passenger sitting behind you, kicks your seat back, cusses and gives out rude gestures freely as you recline. Here are some ideas under review.

Freeze the hard shell of a seat back which contains the behind passenger's, entertainment screen, food tray and magazine pocket. 

Take-away the under seat space from the passenger in front currently has, and reserve this space for seat pitch flexibility as a passenger adjust its seat from upright to recline.

Build a drop down a "glove box" from the overhead bin bottom where carry-ons reside. This is where you would store your purse, coat, case etc. for the trip. The "Glove Box" in measured to seat width and sits behind lighting and airflow controls, is 14 inches deep by four inches thick.     

Finally, is the seat mechanics itself. When going to recline option, the foot rest slides further forward under the seat in front in synchronization with the seats recline, and while the seats inner shell slides into recline position having the backs outer shell remaining in place. The fixed back is reserved for the passenger behind own entertainment system. No matter what the passenger does, front or back, it doesn't impede any other passenger space. It's that passengers space refined and limited to the cubic seat space, flexing within the space allocated. 

The end of borrowing space from another passenger when a passenger reclines, beckons a solution for ending passenger seat wars. Extending pitch geometry going under the seat in front will give all passengers comfortable space. When a window seater needs an aisle entry for doing his rest area work, a simple pop of the seat button, by each passenger, will upright them allowing this exiting window passenger room. 

A beveled angular seat back carved from knee level to ankle area forward is a permanent feature for the unmovable seat frame portion in front, allowing recline dynamics for seat behind and its passenger leg room.  When the reclining seat frame inside, rotates within the main fixed seat frame, its slides into recline position, the front lip of the seat pad will drop over the edge slightly, just as a roll top desk cover does when sliding up during opening.

Clever astronaut-like seat design keeps the passenger comfortable, within its space and private. Getting in or getting out is not a gymnastic floor exercise. The space they have rented is defined and impenetrable from children kicking from behind, and obnoxious sleep-overs reclining from the seat in front of them. It will provide a systematic corridor for co-passengers running to and fro in your row space. Push "upright" and give your seat mate a "Nice Trip".

All this seat research was done getting on and off the 737 single aisle and it made me think how could this be better when stacking cord wood for the fuel burn. Allocate space to others where others are not even aware of, and keep the monsters out of my assigned space. New seat rules need to written.

  • What's under their seat is my space.
  • What's behind my fixed seat back stays behind my fixed seat back.
  • A false bottom of the overhead storage is "ours" for carry-on private storage.
  • I'm an astronaut and I intend staying in orbit for at least one continent.

Okay Seat Makers, this is your challenge! "Just Do It"

Thursday, January 22, 2015

The Art Of Seat Wars

Japan Airlines is about to engage the customer in the "Art Of Seat Wars". Its 787-9 could hold easily 375 paying customers, but instead it chooses to artfully seat only 195 paying customers. One could ask, "how can that be and make money?".

Let's go into the study of seat wars a bit. If a max carrier of a 787-9 hauls 375 compliant tourist, business and fugitives from here to there, the ticket may cost $500 dollars one way. However, if you only load 195 passengers the cost of that same travel spot should go up accordingly per seat. The ticket should now become $962 US instead of $500. This would equal the total theoretical revenue of the 375 seat sold out airplane.

Since Japan Airline will not pay for the weight in travel as with 375 customers, nor does it buy additional fuel as needed for that weight. The 195 customers use less services than 375 customers use when eating, snacking, and sleeping on long trips. Japan Airlines can estimate its way towards an average ticket price into a relevant range of a great experience.

Consider the Motel-6 motto of: “We will leave the light for you", for $39.99". The proverbial 375 seat 787-9 will leave the Light on for you.  Japan Airline is going for the Hilton Crowd for $118.99 sleep-over, or should I say Seat-over. What do you get on Japan Airlines' move to travel treatments? Forty-four full flatbed business class Sky Suites. Premium Economy for thirty-five, and One hundred and sixteen economy that extend beyond traditional economy in a better 2-4-2 across set-up. This is juxtaposed against the nine across 375 economy seater in hockey arena seating.

The point, is Japan Airlines have gone to great lengths analyzing the business model for 195 seats. The mixture of business, premium and economy seat prices. Combined with fuel not burned or servicing costs of customers, Japan Airlines has reduced the risk of filling 375 seats for its "Premium" routes. I believe this to be a pilot hole drilled before the A350 arrives. I only see the A350 as a market tap into Europe, as it will be a pleasing European sentiment when flying the A350 to Frankfurt or London.

Premium routes are those high demand routes with little or no competition from others. Japan Airlines will, and now can assign the 787-9-195 seater maximizing the efficiency in operation and offering a reasonable price for its customers. A $700 dollar range ticket price for flying 12 hours in a spacious configuration is its target market. If you fly halfway around the world, you may as well go in the seat and space that is suited for twelve hours of travel.


Sunday, January 18, 2015

The A380 Is An Airbus Side Show.

It is not my want to dive into Airbus but in this case the A-380 needs some attention. It is the Airbus side show. The CEO stands outside the A-380 tent barking compliments on how wonderful the aircraft is and how much anyone with a thin little ticket stub can come in a see the "fat lady" sit on a "oh so small stool". Wouldn't you like to see its upper deck or walk through a vast space of vastness while flying at Mach .82? I would, but not until I see the main show with the 787-9 at center ring.

Much like the Ferris wheel at the fair, it has become the Icon of amusement in a sedentary repose since the 19th century. Even though it looks like a lost leader of aviation tickets, it will continue on in light of more exciting and pleasurable rides. People see the grand Canyon by the Millions because of its amplitude of bigness, color and depth. Not because the canyon is so efficient to cross over to the other side or does it have a level trail to the bottom. It's because PT Barnum said so.

The Airbus executives have announced break even in 2015. I take umbrage with that bravado since early prediction said the cost and contribution margins from sales would take over 260 A-380's delivered. Now that number is estimated at 460 A-380's delivered, even with crack wings fixed, and all. However, never underestimate French bravado. They will break-even at about 180 units, amazing. It all about who you hire in the business office. Accountants can do that little thing, by writing-off short electrical wires, cracked wings and engineering redo into another category, as it protects its mysterious static break-even point. It comes with a stamp of certified audit to boot. The real cost of the A-380 will deplete the stock price somewhere north of reality. It won't make real money in my lifetime. It still remains the Airbus side-show. The center show ring is for the 777X. The ticket price for that show will erode the "side-show" further back behind the carnival Ferris Wheel. People will come to the A-380  out of the need to have said, "seen it, done it, been there". Then comes the know it all snide self importance customer saying, "I rode on the A-380 enough. I don't like the A-380 crowd once disembarked, I prefer walking with my exclusive group from  the 777X."

All this before the A-380 reaches "Break-even Point". Eykes! The A-380 wants to be the center ring, and its relegated to somebody's "Bucket List" on a "to do" when at a side-show behind the Ferris Wheel. See where I'm going with this? Its big and its the Airbus fascination with everything big, wide and biggest. That is Airbus number one technological claim this century. "We are hooked on size matters". Just review the advertising billions. XWB,, Double Decks, Bigger looking windows that can fit inside Boeing's windows. I am beginning to think Airbus has a "Small Frenchman Complex". Egaads! Kind of creepy when they must go the extra inch all the time. But they have out done the market with the A-380 exposition. The show is winding down with the crowd who doesn't want to be in the crowd. It wants a fresh start with the 777X as it has sold in numbers.

I think Boeing manned up with the 747-8i, as its behemoth model was on life support, and remains so unless its repurposing campaign works for the 747. It is not trying to be bigger than the A-380 or have two decks the length of the body. Boeing went with what has been proven as a special design.Where it  lengthened it out efficiency not out of European-Like -Pride, as found on the A-380. They brought across the development canyon; 787 avionics, engines and systems. Now Boeing is waiting for the Jumbo market to sort itself out.The initial A-380 market push is over. The real question will emerge and be answered. What do people really want in this market segment?

Tim Clark of Emirates has boxed himself in with 140 ordered or flying A-380's. Here is another caveat for consideration from his order book.

The Boeing Company Online Data 

Emirates Customer Summary Through December 2014
Model SeriesEngFirst OrderOrdersDeliveriesUnfilledFirst Delivery
Emirates (United Arab Emirates)-Total28990199
777-200RR04-Jun-199233-05-Jun-1996
777-200ERRR04-Jun-199266-11-Apr-1997
777-200LRGE21-Nov-20051010-31-Aug-2007
777-300ERGE19-Jul-2004120714915-Feb-2006
777XGE08-Jul-2014150-150
777 Total28990199
Customer Total28990199
Model SeriesEngFirst OrderOrdersDeliveriesUnfilledFirst Delivery

Analysis of the  chart shows a propensity of 777X ordered in 2014. This is the A-380 tipping point for retirement. Emirates has received about 57 A-380's out of 140 ordered, having an actual remaining delivery schedule of 83 A-380's to go.

A total of 317 A-380's are ordered for all customers where Emirates have 140 of those numbers. Leaving the Airbus order book with the other 17 customers with 177 booked, many of which are delivered at this time. Not only will orders become scarce for the A-380, but its cancellations will dominate the book change.

The Tim Clark conundrum has been addressed with the 777X order. His business model will change in 2020 as he nears 140 A-380 delivered. He may cancel the balance of his A-380 order book when the 777X arrives in 2020, when it is operating as expected. He will be done with the Airbus side-show in 2020, as the market will be well satiated with A-380, subjecting it as the next Ferris Wheel.