Author: Jon Ostrower

Just spent the last two days traveling – finally back on the East Coast.

News broke yesterday afternoon of Airbus’ decision to offer a heaver A330-200 to take on the first 20 787 Dreamliners in 2010. The new 238t version of the A330-200 would have a range of 6,840nm

A higher gross weight, longer range A330 was studied for years as a response to the 787, though it went by a different name at first. It was called the A350. It eventually gave way to the A350 XWB which we see today in the three aircraft family of the -800, -900 and -1000.

In its earliest iterations, the dimensions of the A350-800 and A350-900 matched identically to the A330-200 and A330-300. Though shelved in favor of a all-new design, Airbus clearly didn’t opt to mothball the plan fully, instead waiting until now to call it a higher gross weight model A330 to take on those early 787s.

One has to wonder if a heavier A330-300 is in the works as well if performance issues on -8 carry to the -9. Though, the A350-900 will already be into final assembly by early 2011. Yet, a heavier A330-300 might make sense to offset the A350-800 which is due in 2013, a direct competitor to the 787-9 due in 2012.

There’s no indication currently as to whether or not there would be any engine changes to the new 2010 model, though the A350 mark 1 featured both Rolls-Royce and General Electric engines. The only reason why GE didn’t make it onto the XWB was because the passenger capacity of the -900 and -1000 would have put it in direct competition with the GE90-110/115B engines on the 777.

Finally, claims that the 787-8 is “tons” overweight and 2% over fuel burn targets are stunning to say the least. Airbus didn’t say by how much the 787 is overweight, but the impact as they see it is clear. Early 787s, Airbus claims, will only have a range of 6,720 nm, at least 1,000 nm less than the range Boeing advertises, and only about 800 nm more than the 767-300ER. Airbus cited “market intelligence” for its updated assessment. It’s worth noting that Boeing has not yet responded to Airbus’ claims about the 787-8 performance.

Though with Dreamliner Seven held in supply chain because of the strike, the aircraft will likely benefit from additional change incorporation aimed at bringing down the weight and boosting performance both on the airframe and for the engines.

The jury is still definitely out on this question until flight and static testing get underway fully.

EVERETT — Jetliner production is set to halt at 12:01 AM in Puget Sound, costing The Boeing Company as much as $100 million per day and further stymieing its struggling 787 Dreamliner program with the walkout of 27,000 machinists.

Negotiations between Boeing and the International Association of
Machinists and Aerospace Workers Union (IAM) collapsed after a 48-hour
contract extension yielded no new breakthrough.

Boeing says that for the, “787 in particular, a protracted strike
could risk the ability to fly in the fourth quarter,” adding
“mitigation plans are in place to minimize impact of work stoppage.”

The 787 programme is already fifteen months behind schedule.

All aircraft completed prior to the strike will be delivered on
schedule, and Boeing pledges continuing support for all aircraft in
service.

Boeing has estimated that it will deliver between 475 and 480
aircraft in 2008, a number that is likely to be impacted with the
strike.

For the Next Generation 737, Boeing’s highest production rate
aircraft, each day that the strike rolls on means one less 737
delivered to airlines, many in desperate need of fuel efficient
aircraft to replace aging fleets.

In the first half of 2008 Boeing delivered 187 737s.

For the widebody twin-engine 777 programme, every five days means
one less aircraft delivered. During the first half of 2008 Boeing
averaged a production rate of just under seven per month to deliver 39
777s to its customers.

Currently, Boeing has eleven 777 aircraft at various states of
completion on the flight line at its Everett, Washington facility,
including four for Emirates, two for Brazil’s TAM, and one each for
Cathay Pacific, Air Canada, Qatar Airways, Asiana Airlines and fledgling
trans-pacific Australian carrier V Australia, which is set to begin
service from Sydney to Los Angeles on 15 December.

In addition, the 777 freighter program is undergoing a certification
campaign with two aircraft based at Boeing Field in Seattle. The first
777F is set to be delivered later this year.

For Boeing’s lowest rate production aircraft, the widebody 767 and
747 lines, the first half of 2008 saw an output of roughly one per
month, delivering six and nine aircraft respectively.

An IAM strike also halts production for the 747-8F, which is scheduled for roll-out in February of next year.

On 3 September, 87% of the IAM membership–Boeing’s largest
union–voted to strike, with 80% rejecting the company’s best and final
offer. Later that evening, Boeing and the IAM leadership agreed to a
48-hour extension in the contract to negotiate with the assistance of a
federally appointed mediator.

“Despite meeting late into the night and throughout the day,
continued contract talks with the Boeing Company did not address our
issues,” said Tom Wroblewski, IAM district president, in an open letter
to the union membership.

Boeing also expressed its disappointment in the outcome of the negotiations.

“Over the past two days, Boeing, the union and the federal mediator
worked hard in pursuing good-faith explorations of options that could
lead to an agreement. Unfortunately the differences were too great to
close,” said Scott Carson, president and CEO of Boeing Commercial
Airplanes who was present at the negotiations.

This will be the first time the IAM has voted in favor of a strike
in back-to-back contract negotiations. The union’s 2005 strike lasted
for 28 days.

As IAM prepares to strike, both sides indicated it was the
responsibility of the other to step up and return to the negotiating
table.

“We are interested in speaking to the IAM,” said a Boeing spokesman.
“And when we hear from [the IAM] we’ll be able to [continue
negotiations].”

“If this Company wants to talk,” said Wroblewski. “They have my number, they can reach me on the picket line.

Photo Credit: FlightBlogger

I missed a bit this week covering the labor negotiations, so here’s a quick rundown. Discuss.

CRJ1000 First Flight

Mary Kirby broke the story of the first flight of the CRJ1000 earlier this week. C-FRJX took off from Montreal’s Mirabel airport of Wednesday at 10:02 for its maiden three-hour and 25 minute flight. Congratulations Bombardier!

900 for 787 (really this time)
On the 787 front, Gulf Air signed a letter of intent for 8 more Dreamliners, boosting
the total over 900. This is not official yet because the orders are not
yet firm, but once they are the 900 mark is officially broken.

Governor Palin’s Plane
Senator McCain’s Vice-Presidential running mate got a new plane this week. A jetBlue Embraer E190 registered N239JB. The aircraft was delivered as ‘Blissfully Blue’ in August 2006 to jetBlue, ironic really, because Governor Palin hails from America’s largest Red State.

Podcasting
Sat down with Addison Schonland for a podcast to discuss the goings on this week with the IAM and Boeing and what things are looking like heading into the weekend.

MRJ & Boeing

Boeing will serve as consultant
to Mitsubishi for the “marketing, development and post-sales
activities” of the MRJ. I’m still pondering this move – what do you
think?

Also, this was the scene on Wednesday from the Seattle Times. I was in the back of the room.

Saying Hello to the Dreamliners
The Boeing Factory Tour is a tradition of mine every time I come to Seattle.

Naturally, I checked in on the 787. Dreamliner One is surrounded by a gated red fence requires anyone working with the airplane to check in and state your purpose for working with the aircraft.

The aircraft was on its own wheels and its flaps (all installed) and spoilers were extended. Yellow testing lights were on signifying the on-going functional testing of all the aircraft’s systems. Another thing I noticed was that ZA001 had its nose cone attached and it appeared to be new! It was painted fresh white, not the shades of blue we saw at the roll-out.

I could also see some flight test equipment installed in the cabin. The engine inlets were shielded with red covers and the chevron-edged cowlings were installed.

Down the line, ZA002-ZA004 all had their nose cones tipped up, revealing the honeycomb radar underneath. Also, ZA003 was sporting a bright red rudder for Northwest. ZA004 was surrounded by tooling and the MOATT (mother of all tooling towers) which had been installing the vertical and horizontal stabilizers. I could also see the wings for ZA005 laying beside ZA004, as well as the tail cone and horizontal stabilizer in the aft soak area.

I’m going to Disneyworld!
Okay, I’m not going to Disneyworld, but Boeing and the IAM certainly are.

According to one veteran machinist deeply familiar with Boeing/IAM labor policy, had the IAM refused to accept the help of a federally appointed mediator and the 48-hour extension, immediate beginning a strike, the IAM would have been deemed negotiating in bad faith, opening themselves up to legal action.

Article 24 of the existing contract allows for a potential extension of up to 1 year if the union agrees to it. It has never been done for this long, though it was done for 5 days in 1986 to give additional time to the Union membership to see the changes to the contract and vote. The same could be done this time around to call for a vote later this weekend without going on strike. A simple majority (50%+1) is required to approve the new contract.

Right now, Boeing and the IAM are in a media blackout while the extended negotiations are underway.

777F’s Busy Summer
Flight Testing at Boeing is going as strong as ever. I spotted the second 777F for Air France weaving in tight turns in the skies above Boeing Field today while driving north on I-5 to Everett. Both aircraft are based at BFI.

One thing you didn’t know about the IAM contract
Reading the contract today I thought it was interesting was that Boeing has now added “or same-gender domestic partner” after group benefits were previously allocated only for spouses.

Twenty-three hours forty-seven minutes to go.

SEATTLE — At Flights Pub in Everett, a local bar in the parking lot of a shopping center not far from the Boeing’s widebody final assembly line, Machinists could be heard spontaneously chanting “Strike!” venting their frustration over the events of the evening.

It had been just over three hours since the IAM leadership and Boeing agreed to a 48-hour extension in negotiations to identify and resolve what vice president for Human Resources and chief Boeing negotiator Doug Kight called the “critical few details” remaining in the contract.

Though as one veteran business reporter asked of Kight at Boeing’s 10:45 PM press conference that, “it sound to me like there are probably as many issue as there are union members. What if they come to you with a list a mile long with issues?”

Kight responded:

“At this stage in the process, we’ve been talking for months and months, hours and hours and hours on all aspects of the contract, all subjects. When you get to this stage in the process you have to narrow the issues. It’ll be very, very challenging to make progress if this doesn’t occur.”

Though, the frustration by union members was not limited to management. The reaction at the IAM lodge meeting halls near Boeing Field captured the sentiment of the membership.

The announcement of Boeing’s desire to return immediately to the table was met with jubilant cheers, but moments later, the mood turned sour when IAM chief negotiator Mark Blondin informed his membership of the 48-hour extension in negotiations, even with 87% supporting a strike.

“They have 48 hours to bring a deal that’s acceptable to you, or it’s on,” said Blondin.

The announcement was met with very visible displeasure, including comments not suitable for print.

Many machinists were frustrated by what they felt was the IAM not supporting their overwhelming vote to reject Boeing’s best and final offer and go on strike.

“We stood in solidarity with them, they didn’t stand with us,” remarked one Everett-based machinist at Flights Pub.

Amid the frustrations of assembled machinists, Bondin attempted to get a word in edgewise over the loud protests of the machinists:

“We have told you all along that it is our job as negotiators to go to the table and negotiate you a contract that is acceptable to you, not to negotiate a strike.”

The following morning, there are indications across many Boeing factories that even without the formal commencement of a strike, jetliner assembly has ground almost to a complete halt. One machinist tells FlightBlogger that “droves” of staff at Renton, site of 737 final assembly, were sent home for inactivity and, “a lot of people didn’t go in at all.”

Even with the 48-hour extension, many machinists were defiant in the face of both the IAM membership and Boeing.

“I’m on strike,” remarked another machinist. “My contract expired yesterday at midnight.”

This is a breaking story and will be updated as more details become available.

SEATTLE — The International Association of Machinists, Boeing’s largest union, has voted to strike, rejecting Boeing’s “best and final” offer for a new three-year contract.

UPDATE 9:51 PM: IAM leadership has agreed to return to the bargaining table with Boeing to continue to negotiate a contract with a NRLB Federal Mediation & Conciliation Service appointed mediator in exchange for a 48-hour hold in the commencement of any strike. IAM members present angrily reacted and indicated that the 87% vote in favor of a strike and 80% rejection of the contract should stand initiating a strike at 12:01 AM. Currently, no strike is authorized.

UPDATE 9:45 PM: IAM leadership indicates Boeing is ready to return to the table, in exchange for 48 hour delay in strike. Union members present react with expletives, mostly of the four-letter variant.

UPDATE 9:41 PM: IAM votes 87% in favor of a strike. 80% reject contract. Jetliner production halts at 12:01 AM.

UPDATE 9:39 PM: “The Final Countdown” blares as Union Leadership enters the press conference hall.

IAM: “You don’t tell us what our members want, we tell you what our members want.”

UPDATE 9:27 PM: Official confirmation of a tally is not yet available.

This will be the first time the IAM has voted in favor of a strike in back-to-back contract negotiations. The union’s 2005 strike lasted for 28 days.

SEATTLE — The early ballots have arrived at the IAM 751 meeting halls near Boeing Field. Roughly fifty ballot counters are separating and counting ballots. Blue ballots represent votes supporting or rejecting the contract, red ballots represent strike votes. Counting of the approximately 25,000 ballots is expected to take several hours.

Cheers were heard earlier coming from another counting room; observers speculated that these signified early returns from IAM sites in Oregon and Kansas.

EVERETT, WA — I write from the just across the flightline at Paine Field at the Boeing Factory. The sound of airhorns can be heard blaring from the march of machinists taking place at the other side of the field at the world’s largest building right now.

Driving from Seattle to Everett, one quickly realizes just how intertwined The Boeing Company is in the fabric of the Pacific Northwest. A forty minute trip on Interstate 5 takes you past Boeing Field to the Everett Factory.

As I drove up the freeway and overlooked BFI, a brightly blue and white painted 777F sat on the ramp; it’s large cargo door open busily being worked on.

Approaching Everett, the doors to Building 40-23 were just slightly ajar revealing the static test airframe in its massive blue metal test rig.

Though on this day, where my eyes would usually be drawn to the new aircraft on the ramp, a large gathering of sign-carrying blue-shirted machinists is today’s purpose for being here.

Looking out at Boeing right now reveals just how much is at
stake. The result of the vote should be known by 6:30 PM PT.

Seven hours, twenty-three minutes to go.

The headline says it all really. I’m heading to Seattle this morning to cover the IAM vote tonight in person.

I’ll be twittering (tweeting), updates all day (and likely all night) as they become available. News of the vote will be instantaneously sent out via twitter the moment the result is known.

With that being said, I want to hear from you, Boeing employees, to get your viewpoint. To strike or not to strike? What do you think