Author: Jon Ostrower

In its third quarter 2009 earnings call, Boeing CEO Jim McNerney reiterated that his company remains on track for 787 first flight, adding that engineers will complete and validate the detailed design for the side of body modification later this week.

Boeing will then move toward completion of the installations of the structural fittings on the side of body. Once complete, ZA001 will go repeat some gauntlet testing and taxi tests before flying.

When asked about the schedule and the pace of the design, McNerney replied, “The schedule changes every day, problems come up, we have to deal with them.”

McNerney added that within those events, the schedule for 787 first flight remains on track for the close of 2009.

Boeing Reports Third-Quarter Financial Results
CHICAGO, Oct. 21 /PRNewswire-FirstCall/ —

• Third-quarter revenue was $16.7 billion, 9 percent higher than last year’s strike-affected quarter
• Loss
  of $2.23 per share reflects $3.59 per share of expenses related to
  previously announced 787 cost reclassification and 747 charge,
  partially offset by solid performance in other commercial programs and
  the defense business
• Operating cash flow increased to $1.2 billion
• Backlog at $320 billion – nearly five times current annual revenues
• 2009 guidance updated for 787 cost reclassification and 747 charge

    Table 1.  Summary Financial Results
                           Third Quarter               Nine Months
                           -------------               -----------
    (Dollars in
     Millions, except
     per share data)        2009      2008  Change     2009     2008  Change
    -----------------       ----      ----             ----     ----

Revenues             $16,688   $15,293       9% $50,344  $48,245       4%
    Earnings/(Loss) From
     Operations          ($2,151)   $1,147      NA     $403   $4,193      NA
    Operating Margin       (12.9%)     7.5%     NA      0.8%     8.7%     NA
    Net Income/(Loss)    ($1,564)     $695      NA      $44   $2,758      NA
    Earnings/(Loss)
     per Share            ($2.23)    $0.96      NA    $0.06    $3.76      NA
    Operating Cash Flow   $1,197     ($442)     NA   $2,391   $1,240      93%

The Boeing Company (NYSE: BA) reported a
third-quarter net loss of $1.6 billion, or $2.23 per share, as revenues
rose 9 percent to $16.7 billion. Current period results reflect the
previously announced reclassification to research and development
(R&D) of costs incurred through July for the first three 787
flight-test airplanes ($2.46 per share), spending on those planes for
August and September ($0.14 per share), and the 747 charge ($0.99 per
share), partially offset by solid performance in other commercial
airplane programs and the company’s defense business (Table 1). Last
year’s strike and supplier production problems reduced year-ago revenue
by an estimated $2.1 billion and earnings by an estimated $0.60 per
share.

ORLANDO — Following in the footsteps of last week’s 747-8I interior video, Boeing is featuring a 1:20 scale model of the 787 in VIP configuration here at NBAA. You may remember this very model from NBAA 2008 when I snapped a quick photo with my phone titled “Pimp My Dreamliner“. The video sequel gets you MUCH closer to the meticulous detail built into the model. Enjoy!

The business aviation industry is not out of the woods just yet, but General Dynamics executive vice-president, Joe Lombardo, is cautiously optimistic about the prospects for the future.

“We’re starting to see some favorable signs, I’m not going to tell you that we’re back on the upswing necessarily, there are some early signs that we’re starting to pull ourselves out of this,” says Lombardo.

Lombardo adds that reduction in service activities, the loss of skilled jobs, global credit crunch, jet fuel prices, as well as the negative public perception of business aviation have taken their toll on the industry.

Yet, in the last two to three months, Lombardo says he has seen a demand growing internationally in emerging markets for the company’s large cabin G550 aircraft.

Meanwhile, Gulfstream is pushing forward with its new twin airplane programs. The company’s large-cabin G650 is progressing toward its maiden sortie and is currently running through safety of flight testing checkouts before moving into higher speed taxi tests at Gulfstream’s Savannah, Georgia facility.

Pres Henne, Gulfstream senior vice-president of programs, engineering and test says that the G650 structural airframe is undergoing static testing, while the second test vehicle, designated T2, progresses through final assembly. Henne adds that T3 and P1, the first production G650, are already in the production system ahead of final assembly.

More than 6,300 miles away, Henne says that the super mid-size G250, which rolled out just days after the G650, is progressing at a similar pace to its large cabin sibling with safety of flight checkouts and static testing well underway in Tel Aviv, Israel.

Both aircraft are expected to fly by the close of 2009.

“When the ‘I’s are dotted and the ‘T’s are crossed,” says Henne. “We’ll be ready to fly,”

The first Airbus A330-200F, now fully painted, came out in the sunlight at Toulouse after departing the paint shop. The aircraft, registered F-WWYE (MSN1004), will head to the flight line toward the end of the month and will be handed over to flight test to begin ground testing ahead of its planned November 2009 maiden flight.

So you’re probably asking, “What’s up with that nose gear blister?”

From an April 8th article on flightglobal.com:

Images released by Airbus of the first A330-200F
on the move in Toulouse reveal the modification made to the landing
gear and forward fuselage to address the nose-down pitch that is a
characteristic of the A330/A340 and provide a level cabin floor during loading.

This has been achieved by lowering the nose-gear leg attachment
points to raise the nose height, in turn requiring a larger gear bay
that is faired by a blister on the underside of the nose.

Photo Credit Airbus

NBAA 09: Embraer joins the ‘650’ club
By John Croft

Embraer has revealed that it has successfully flown the first Legacy
650 large-cabin business jet, an upgraded version of its super-midsize
Legacy 600. The launch brings to seven the total number of executive
jets in the Brazilian airframer’s portfolio.

“One thing our
Legacy customers kept telling us is that the aircraft should have more
range,” says Claudio Camelier, Embraer’s vice-president of market
intelligence for executive jets. “The 650 is a response to that
demand.

Embraer began delivering the Legacy 600, a derivative
of the ERJ-135 regional jet, in 2002 and has produced more than 170 to
date. Embraer considers the Legacy 600 to be a super-midsize category
aircraft and the new 650 a large-cabin offering.

The company has
two 650s flying in Brazil, one prototype and one pre-series version
that flew within days of each other for the first time in late
September, says Camelier. The flight test programme is scheduled for
completion by mid-2010, with certification and service entry expected
in the second half of 2010. The company launched the programme
internally in first half of 2008, says Camelier.
Continue Reading

Follow @flightglobal and @flightblogger on Twitter for updates throughout #NBAA09

Boeing
This is going to be an interesting week coming up for Boeing. They’ve brought their BBJ Convertible to the show here in Orlando and are laying low with no announcements planned. However, the week will not be short on Boeing news with Wednesday’s quarterly earnings call with CEO Jim McNerney and CFO James Bell. The company has promised an update on the 787 wing fix, which has been the subject of much discussion in recent days.

Hawker Beechcraft
The HBC ‘military style’ press conference kicked off media day this morning here in Orlando. The black flight suit
clad executives struck a confident note as they expect the industry to
rebound in late 2012 or late 2013. The company expects to see a
“turbulent” 2010, but will have first flight of the Premier II in the
first quarter of next year and the company will deliver its first
e-enabled Hawker 750 and 900XP next year as well.

Embraer
Expect updates on the Phenom 300 flight test and Phenom 100
production, as well as news on development of the Legacy 450 and 500.
Word on the street is that Embraer may announce something new this
afternoon. Keep an eye out for big news from the Brazilian airframer around
1 PM.

Gulfstream
Gulfstream’s pair of new business aircraft – G250 and G650 – are rapidly approaching their maiden flights. Program updates for both
aircraft should be on tap from Gulfstream mid-morning Monday. Also,
keep an ear our for what the company has to say about the perenially
discussed vapor-based supersonic business jet.

Cessna
Needless to say, it’s been a rough year for Cessna,
with nearly a reduction in nearly 50% of its workforce and cancellation
of the Cessna Columbus program. CEO Jack Pelton will be leading a press
conference at 3pm and should provide an important indicator of the
health of both the city of Wichita’s aerospace cluster and the business jet industry
as a whole.

Airbus
For the first time, Airbus will display an A318 Elite on the NBAA static display this week. The aircraft is the 10th Elite delivered as part of a total 25 orders won by Airbus for the type. Look for the European airframer to continue emphasizing VVIP retrofits for existing A330 and A340 passenger aircraft, which Airbus believes will begin coming out of service when the A350 comes online in 2013.

Bombardier
Like NBAA 2008, Bombardier is focusing on its new composite mid-size Learjet 85. The airplane was on less-than-solid ground last year after Grob folded, but the program is making progress and represents the only major new aircraft program currently on tap for Wichita’s future. Bombardier will provide a program update on Tuesday afternoon.

While the installation of the 787 wing fix continues, Boeing engineers have returned to the drawing board to redesign part of the reinforcement, FlightBlogger has learned.

As a result, company and industry sources say the 2009 first flight target could be in jeopardy as engineers work to redesign the fix for four remaining wing stringers.

Boeing declined to discuss the modifications, saying that the next opportunity for an update will come on October 21st during the company’s third quarter earnings call. However, the company did reaffirm that 787 “will fly by the end of the year.”

Internal schedules, say several program sources, initially targeted October 15th for ZA001’s to return to ground operations with a first flight to follow roughly six weeks later, however the aircraft remains in the paint hangar as engineers work to complete the design and installation of the side-of-body reinforcement.

The structures in question are stringers 2 through 5, the shortest and highest load stringers positioned in the aft of the wing boxes. Each wing box has 17 stringers designated 2-18.

Program sources indicate that the initial fix design for stringers 2-5 did not meet certification margins in computer modeling.

FAA certification requirements dictate that the wing must withstand 150% of the maximum load the aircraft will ever encounter in service. Industry and company sources say that the wing withstood around 105% before the stringer delamination was encountered in static testing, however Boeing has never publicly disclosed the number.

One source familiar with the wing fix says that the solution will remain consistent with what Boeing originally envisioned, but adds that the reinforcements could vary in length and/or location.

In a message to program staff on October 12th, 787 vice-president and general manager, Scott Fancher indicated that the progress on the installation is paced by engineering development.

Fancher said, “we are making headway on the [side-of-body] modifications. Great progress being made on engineering releases by the design team. This allows us to continue with the installation of fittings on the initial airplanes. The pace of the modification is increasing and I am confident that this integrated team will lead the way to first flight”

The company is working day and night to install the modification deep inside the center wingbox and wing structure of the 787 test fleet. 

Sources add that installation of the existing design is progressing well, with ZA002 and ZA004 rapidly catching up to ZA001 and ZY997 as the learning curve for the installation has already begun come down.

Once the installation is complete ZY997, the static test airframe will undergo full-scale testing of the reinforcement that Boeing hopes will validate the design, clearing the way for the 787 to fly.

Amid the almost unprecedented upcoming demand for flight test resources, Boeing plans to reduce its flight test unit by 200-300.

The cuts will impact the Flight Operations Test and Validation Team responsible for for laboratory and flight test operations, in support of validation and certification of Boeing commercial and defense products.

The reduction is part the the 4,500 cuts already announced by the company’s commercial airplane unit, 10,000 company-wide.

Boeing announced the planned layoffs internally this summer, but the company says that 60-day layoff notices have yet to be distributed to the flight test unit.

Boeing says it is closely managing the reduction to avoid any disruption to the flight test schedules for the 747-8 or 787 programs, but emphasizes that it does not expect any disruption occur. The company says it will primarily focus the reductions on the overhead functions of the business, with the intent to limit staff cuts working directly with the aircraft.

The 200-300 cuts will come from the FOT&V team which currently employs 3,500 engineers, pilots, mechanics, and technicians, according to Boeing.

On December 18th, the FOT&V unit, formerly responsible for BCA flight test operations, will be consolidated into a single unit that will combine both commercial and defense flight testing into Test & Evaluations, which is part of Boeing’s Engineering, Operations & Technology (EO&T) organization. The Test & Evaluations organization will employ roughly 8,000 following the consolidation.

In an October 8th message to 747-8 program employees, Dennis O’Donoghue, vice president of Boeing test & evaluation and Mo Yahyavi, 747 vice-president and general manager, de-coupled the 787 and 747-8 flight test programs citing the lack of available capacity at the company’s Puget Sound airport locations to support the concurrent certification programs.

As a result, the 747-8 will conduct initial airworthiness testing at Moses Lake, Washington and then move to Palmdale, California for the remainder of the flight test program. The company adds that the of planning simultaneous flight test programs for the Boeing 787 and 747-8 has not caused the company to reconsider the decision to reduce FOT&V staffing.

Boeing has not run large-scale concurrent commercial flight test programs since 1982 when the 767 and 757 were being certified.

Boeing revamped its flight test methodology in 2008 to consolidate independent ad hoc units assigned to individual test aircraft to more effectively manage maintenance and support operations. The changes were initiated to support the flight test program for the 787, but was first put into operation in July 2008 with the 777F certification campaign.

Mr. al-Baker of Qatar Airways has become a human starting gun of sorts for industry discussion about re-engining the 737 and A320. His airline has been in (deadlocked) negotiations with Bombardier about the CSeries, while the prospect of such an order has provided Mr. al-Baker with a springboard to push the idea of a re-engined A320 as a potentially superior aircraft to the 120 to 149-seat CS300. Not to be out done, Boeing’s Randy Tinseth is openly discussing the prospect of a re-engined 737, addressing it as technically possible, but with strategic considerations at the forefront.

Pratt & Whitney, widely believed to be a lead contender for the engine selection for the A320 and/or 737, has been actively pushing its PW1000G geared turbofan engine, which has already been through flight testing underneath the wing of an Airbus A340-600.

On the other end, the 100 to 125-seat CS100 has quietly prompted Embraer to evaluate exactly how the new narrowbody would stack up against its largest 100-seat E-195. Tucked away on page 32 of Air Insight’s must read report on the future of commercial aerospace programs in Brazil, Canada, China and Japan and Russia, the Brazilian airframer delivered a noteworthy assessment of the CS100.

The real threat [to Embraer] comes from Bombardier. A proven competitor, Bombardier is taken seriously. However, Embraer points out that the CSeries wing is optimized for the larger CS300. That means the CS100 has a larger wing than needed, and as a result the CS100 will weigh ~5,000kg more than its E-195. Even with the [Pratt & Whitney PW1000G] geared fan, Embraer expects to see the CS100 only offer a 2% fuel burn advantage over the E‐195. Given that the CS100 is a new design with a program settling‐in period, Embraer believes it has some time before it needs to react to the new competition. Emphasis Added

Boeing and Airbus always promised a robust response to CSeries. Their turf is well established and with the prospect of a significant loss of market share (read: cash flow) Boeing and Airbus will fight new entrants tooth and nail. For Embraer, their assessment leaves the door open to significant changes to the E-Jet family. Would a next generation E-Jet leap frog a CS100 in the 100-seat segment? No matter how you fold it, CSeries represents a competitive threat to Embraer, Boeing and Airbus and we’ve only just begun to see the response.