This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
EVERTT — This is RC002, a Boeing 747-8I, which will be delivered to a completion center later this year for reconfiguration as a Boeing Business Jet.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
I guess we are sort of the odd one out here. I’m not going to spend the next 20 minutes trying to push you some great new engine technology, I want to explain to you what Rolls is doing, what it’s thinking, what it believes in, and why it thinks that actually these guys are doing the wrong thing, we are waiting this out.
Fundamentally, we don’t agree with re-engining as a business model. We can’t see value for us, we can’t see value for our customers, we can’t see value for the airframers. People are beginning to buy these airplanes, you’ve read about Virgin America, you’ve read about Indigo, but I ask you, would they still buy the A320 if it wasn’t re-engined. Is Boeing going to stop selling 737s because they don’t have a new engine on it yet? I don’t think so.
We don’t see the net financial benefit. Fuel burn, fuel burn is key, clearly. But the fuel burn benefit that this airplane is capable of brining is about wiped out with a net present value level at 15 years for the price Airbus is asking for the new airplane. The equation isn’t there, it makes no sense for us as an industry to invest precious resources, the billions of dollars to do this, we think we should be doing something else. We think it destroys value, and worst of all it is pushing off what we do, what all of us here, we do great new airplanes.
I don’t absolutely know yet how we are going to certify it, but I know it’s capable of much better fuel burn and much lower NOx then any product we’re talking about here, including the ones above. Is it low risk? Absolutely not. Is it really, really difficult? You bet. Are we going to ignore it? Never.
The second half of 2010 was about as miserable a time for Rolls-Royce as one could imagine with uncontained failures on both the Trent 900 and 1000, as well as A320neo advancing without IAE despite its objections. Though, Horwood, whose bold defense of Rolls-Royce should be put forward by the company in both increased frequency and volume, concluded this way:
Are we going to support re-engined airplanes, no? Do we believe that’s the right solution for our industry? No. But are we going to fight with every bone in our body and win the future of new airplanes, absolutely. I would put to you, ruling out Rolls-Royce in a sector, ruling out our technology when so much of our industry is defined by the state-of-the-art that would be pretty foolish.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
Developing – Speaking at Cowen and Co conference in NY right now:
“We’re gonna do a new airplane that will go beyond the capability of what the [A320]NEO can do.”
Update 7:46 AM PT:
“What we’ve seen so far is Airbus focused on their current customer base, which has shown some vulnerability to the CSeries. That doesn’t mean that as they get deeper in the development they’re not going to approach our customer base. I think they will. The NEO, on paper closes, the value gap that we have enjoyed on a typical cash on cash analysis, we tend to do better. And I think part of the rationale of the neo is to close that gap. Now, will that put some pressure on our margins. Yes. Maybe, but they’ve got to complete the development. We’re gonna do a new airplane. We’re not done evaluating this whole situation yet, but our current bias is to not re-engine, is to move to an all-new airplane at the end of the decade, beginning of the next decade.
“It’s our judgment that our customers will wait for us, rather than move to an airplane that will obsolete itself when they do a new airplane. I understand why they’re doing it, we haven’t seen the need for it yet. I feel pretty comfortable we can defend our customer base both because they’re not going ahead of us, they’re catching up to us and because we’re going to be doing a new airplane that will go beyond the capability of what the neo can do. I feel very good about our position there.”
Update 9:59 AM PT: Here’s my complete story on McNerney’s comments. Boeing sought to temper them a bit saying it’s “not a done deal”, but the rhetorical shift moves his individual belief on 737 replacement (as stated during the 4Q10 earnings call) to a collective opinion of the organization.
Boeing boss green-lights all-new next generation narrowbody
Boeing CEO Jim McNerney has given a rhetorical green light to replace the venerable 737, announcing the airframer intends to build a new aircraft to eclipse the re-engined Airbus A320neo, with a service entry around 2020.Speaking at the Cowen and Company Aerospace and Defense Conference in New York City, McNerney says: “We’re gonna do a new airplane. We’re not done evaluating this whole situation yet, but our current bias is to not re-engine, is to move to an all-new airplane at the end of the decade, or the beginning of the next decade.”
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
SEATTLE — The timing of this particular Movie Monday is very intentional. This coming Friday Boeing and Airbus will submit their bid to the Department of Defense to replace 179 KC-135 (Boeing 707) tanker aircraft. The on-going KC-X tanker saga has stretched almost a decade now and my colleague, Steve Trimble, has closely followed the competition through its strange twists and turns. As a quick reminder, Boeing is offering its 767 NewGen Tanker (adapted from the 767-200ER) and Airbus is offering the A330 Multi-role Tanker Transport (adapted from the A330-200).
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
Almost exactly a decade ago, Boeing Senior Technical Fellow, Dr. L. John Hart-Smith, presented a paper at the company’s third annual Technical Excellence Symposium in St. Louis Missouri. That paper, ten years later is the subject of a Seattle Times Sunday Edition article on the “prescient” warning to the company on the perils of outsourcing.
The basic problem with being only a systems integrator is that it does not cover a sufficient
fraction of the total work for a large company to remain in business. The engines and avionics
alone typically represent some 50 percent of the cost of producing large aircraft. There is simply
not enough structure involved for too much of it to be out-sourced. Surely even a 5 percent profit
on 25 percent of the total work is more valuable that a 15 percent profit on only 2 percent? The
latter goal is a guarantee that there will not be sufficient cash generated to ever launch new
products, not even derivatives that are perceived as costing less than new aircraft but which are
often found to cost just as much, for a product for which passenger comfort or performance
might have been constrained by legacy from the earlier design to be less than state-of-the-art. Is it really all that difficult to comprehend that, along with the work involved, the revenue and
profit associated with it have also been out-sourced?
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
Boeing rolled out its 1,000th 767 Wednesday, an aircraft that will soon be delivered to All Nippon Airways. This milestone is notable as it’s only the second time a widebody aircraft type has achieved this production milestone (after the 747). Yes, Airbus says they’ve delivered more than 1,000 A330/A340 family aircraft, as the European airframer has always counted combined serial numbers for each type, but data from Airbus puts the A330 around 755 and 375 for the A340.
Flight covered the roll-out of the first 767-200 – VA001 – in August 1981, by noting:
The standard 767 takes up to 289 charter passengers in an eight-abreast, 30in pitch configuration; the stretched version could be available from 1985 and All Nippon Airways of Japan has indicated a strong interest.
Yesterday’s unveiling of JA622A will be ANA’s 91st 767.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
Details are quickly emerging regarding a meeting held between Boeing Commercial Airplanes CEO Jim Albaugh and company employees about the future of company product development, according to those present at the meeting. The meetings, which are held periodically are known inside the company as an “Excellence Hour” connects senior leadership with employees in a large auditorium setting.
12:31 PM ET: Those at the meeting say that Boeing aims to begin design additional upgrades on the existing 737 starting in 2012 and continues to see re-engining as hit to the value of the existing 737 fleet. No specific timeline for introduction was given, though Albaugh says he sees updates to the cockpit more in line with the 787, as well as further improvements to engine fuel efficiency.
12:37 PM ET: Albaugh says he sees a tanker decision from the Department of Defense in February, though adds (speculates) that political scrutiny on whatever the final decision is will push a final award in 2012. Update: Albaugh told the media Wednesday he anticipated an award announcement in March.
1:04 PM ET: Boeing 777 will be around for at least 15 years more, according to those at the meeting, signaling a medium term investment to improve the big twin. Additionally, Albaugh says he likes the idea of a blended wing body aircraft for a future Boeing jet, though he says the FAA is not keen to the idea and the funds required to make a major research and development investment aren’t really there to answer the unknowns on issues such as pressurization.
2:53 PM ET: Albaugh said future orders for the 747-8 are on hold as customers wait to see the outcome of the rework related to the inboard aileron and modal suppression.
While Boeing declined to discuss a formal timeline for starting development on further updates for the 737, the airframer says “incremental improvements are going to happen
to the 737 no matter what” not withstanding a decision to re-engining or a build a new airplane. Further, Boeing says the expectation is that technology will be shared across all its airplanes.
Though company did say that yesterday’s RBC report saying “most” of the top 25 737s do not want Boeing to re-engine the narrowbody, was “consistent with what we’re hearing from customers.”
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
Consider this article tagged under “speculative”, but news from Qatar Airways that the carrier plans to start service to Montreal in June raised an eyebrow.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.