DIRS.INFO The most relevant business & tech news

Shares of the company rose 7% to hit a 1-1/2 year high after Boeing also posted second-quarter results above Wall Street expectations. The planemaker is now transitioning its 737 production line - including the MAX models that make up the vast majority of 737 production - to building 38 jets per month, up from 31, the company said. Calhoun later added the company is already in "prep mode" to raise monthly 737 production to 42, but wouldn't specify whether Boeing would do so in 2023, as Boeing Commercial Airplanes head Stan Deal said told Bloomberg TV in June. 'ENCOURAGING' RESULTS AMID CHALLENGESA photo of Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. Boeing expects to deliver most of the 228 MAXs in its inventory by the end of 2024, making it critical that Boeing step up production.

Persons: there'll, Dave Calhoun, Calhoun, Stan Deal, Brian West, Lindsey Wasson, Peter McNally, Refinitiv, Valerie Insinna, Abhijith Ganapavaram, Anil D'Silva, Nick Zieminski Organizations: Boeing, Boeing Commercial Airplanes, Bloomberg TV, Boeing Factory, REUTERS, Commercial Aerospace, Thomson Locations: Renton , Washington , U.S, West

☆ Boeing boosts monthly 737 production to 38, posts upbeat earnings
▼ + stars: | 2023-07-26 | by ( ) www.reuters.com time to read: +2 min

Shares of the company jumped 4% before the bell after the company also posted second-quarter results that beat Wall Street expectations. The push to build 38 MAXs a month comes amid heightened travel demand, as airlines seek to grow their fleets post-pandemic. Boeing Commercial Airplanes head Stan Deal said in June that the company would ramp up narrow-body production to 38 a month "very soon." Although Boeing set a deadline to ramp 737 production by the end of the year, executives signaled to its supply chain that the boost to 38 a month would begin in June. Those plans faltered in April when a supplier defect involving the improper installation of a 737 bracket was discovered, though Boeing maintained it would still ramp to 38 jets by year-end.

Persons: Dave Calhoun, Stan Deal, Refinitiv, Valerie Insinna, Abhijith Ganapavaram, Anil D'Silva Organizations: Boeing, Boeing Commercial Airplanes, Paris Air Show, Air India, Airbus, Thomson

[1/2] Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. Hawaiian Airlines warned it might have to adjust its capacity, but said it was too early to assess the impact. Spirit Airlines previously cut 2023 capacity estimates due to a lack of working GTF engines. A spokesperson said the New York-based carrier was working with Pratt to assess the impact of the latest problem. In a regulatory filing, the company previously warned it was "vulnerable to significant problems" associated with Pratt & Whitney's GTF engines.

Persons: Pratt & Whitney, Benoit Tessier, Pratt, Addison Schonland, RTX, Schonland, Peter Ingram, Scott Haralson, Whitney's, Wizz, Rajesh Kumar Singh, Tim Hepher, Valerie Insinna, Ben Klayman, Jamie Freed Organizations: Pratt &, International Paris Air, Le, REUTERS, Airline, Pratt & Whitney, Pratt, Airbus, Carriers, Spirit Airlines, JetBlue Airways, Hawaiian Airlines, Wizz, JetBlue, Thomson Locations: Le Bourget, Paris, France, PARIS, Pratt, Florida, New York, New York City, Chicago, Washington

Microscopic contaminants were found in a metal used in the engine's high-pressure turbine discs - part of the engine core. In an interview, Chief Executive Greg Hayes acknowledged the airlines' frustration over a spate of problems with the Geared Turbofan (GTF) engines over the last seven years. While the latest GTF issue could be the last straw for some, we suspect that the negative (share price) response is overdone". Low-cost Indian carrier Go First, which plunged into financial crisis this year, blamed "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. Announcing quarterly earnings on Tuesday, RTX increased its 2023 sales expectation from $72 billion to $73 billion to $73 billion to $74 billion.

Persons: Whitney, Pratt, Greg Hayes, Safran, RTX, Robert Stallard, Wizz, Hayes, Pratyush Thakur, Valerie Insinna, Mike Stone, Susan Mathew, Rajesh Singh, Tim Hepher, Shounak Dasgupta, Sharon Singleton, Nick Zieminski Organizations: Pratt, Airbus, U.S, RTX Corp, Raytheon Technologies, CFM International, GE, Reuters, Research, Spirit Airlines Inc, JetBlue Airways, Wizz, Thomson Locations: Paris, Bengaluru, Washington, Chicago

☆ RTX to take up to 60 days to fix each GTF engine with contamination issue
▼ + stars: | 2023-07-25 | by ( Valerie Insinna | ) www.reuters.com time to read: +3 min

[1/2] Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. Engines potentially affected by the metal powder issue will not be put through the entire overhaul cycle, which typically lasts four to five months, Hayes said. Hayes acknowledged that news of the latest GTF problem was a "disappointment" but added that he expects the share price to recover. According to data from CAPA - Centre for Aviation, Pratt & Whitney has retained a market share of about 45 percent since 2017. The PW1100G is the GTF model affected by the powder metal problem.

Persons: Pratt & Whitney, Benoit Tessier WASHINGTON, Greg Hayes, Hayes, Safran, RTX, Mike Stengel, Valerie Insinna, Marguerita Choy, Bill Berkrot, Jonathan Oatis Organizations: Pratt &, International Paris Air, Le, REUTERS, RTX, Airbus, Raytheon, Reuters, CFM International, General Electric, CAPA, Centre for Aviation, Thomson Locations: Le Bourget, Paris, France, Washington

☆ Pentagon has strategic germanium stockpile but no gallium reserves
▼ + stars: | 2023-07-06 | by ( ) www.reuters.com time to read: +3 min

WASHINGTON, July 6 (Reuters) - The Pentagon holds a strategic U.S. stockpile for germanium but currently has no inventory reserves for gallium, a spokesperson said on Thursday, after China announced export restrictions on the two metals used in semiconductors. "The (Defense) Department is proactively taking steps using Defense Production Act Title III authorities to increase domestic mining and processing of critical materials for the microelectronics and space supply chain, including gallium and germanium," the spokesperson said. Germanium is used in high-speed computer chips, plastics and military applications such as night-vision devices, as well as satellite imagery sensors. Gallium is used in radar and radio communication devices, satellites and LEDs. While major defense contractors like Lockheed Martin Corp (LMT.N) may not buy gallium and germanium directly, they likely purchase semiconductors from suppliers who source Chinese gallium and germanium, said Arun Seraphin, executive director for the National Defense Industrial Association’s Emerging Technologies Institute.

Persons: Arun Seraphin, ”, Dak Hardwick, Hardwick, Xi Jinping, Idrees Ali, Phil Stewart, Valerie Insinna, Rami Ayyub, Doina Chiacu, Mark Porter, Marguerita Choy Organizations: Pentagon, China, Defense, Department, Lockheed Martin Corp, National Defense Industrial, Emerging Technologies, Aerospace Industries Association, U.S, Shanghai Cooperation Organisation, Thomson Locations: U.S, China

☆ Spirit AeroSystems union workforce approves new contract, ending strike at Kansas plant
▼ + stars: | 2023-06-30 | by ( Valerie Insinna | ) www.reuters.com time to read: +3 min

REUTERS/Benoit Tessier/File PhotoWASHINGTON, June 29 (Reuters) - Spirit AeroSystems (SPR.N) said it would begin resuming operations at its plant in Wichita, Kansas, on Friday, after union workers on Thursday voted to accept a new contract and end a strike that led to a week-long work stoppage. The deal is a boon for Boeing, which is on the verge of increasing MAX production from 31 jets to 38 jets per month. Boeing Commercial Airplanes CEO Stan Deal said on June 18 the production ramp was set to occur "pretty soon." Although Boeing maintains some buffer inventory, analysts had warned a prolonged strike could have forced the company to slow or stop MAX production. The company has been the source of several high-profile production defects on Boeing jets, such the incorrect installation of a bracket on the 737's vertical tail.

Persons: Benoit Tessier, It's, Craig Martin, Stan Deal, Cowen, Cai von Rumohr, Michel Merluzeau, Valerie Insinna, Sandra Maler, Nick Zieminski, Jamie Freed Organizations: Boeing, International Paris Air, Le, REUTERS, WASHINGTON, International Association of Machinists, Aerospace Workers, U.S, Airbus, IAM's Southern Territory, Boeing Commercial, AIR, Thomson Locations: Le Bourget, Paris, France, Wichita , Kansas, Its Wichita, IAM's Southern, Seattle

☆ Spirit AeroSystems union to discuss new contract offer as strike continues
▼ + stars: | 2023-06-27 | by ( ) www.reuters.com time to read: +1 min

June 27 (Reuters) - Spirit AeroSystems (SPR.N) has presented a new contract offer to union workers at its plant in Wichita, Kansas, after what the Boeing (BA.N) and Airbus (AIR.PA) supplier said were "positive discussions" aimed at ending a strike. Spirit declined to answer questions about its revised offer but confirmed in a statement on Tuesday that it had delivered it "following days of positive discussions" with the International Association of Machinists and Aerospace Workers (IAM) union. The IAM union will hold a meeting on Tuesday at 1:30 p.m. local time to discuss the new proposal, IAM said on the Facebook page for its local unit in Wichita. The meeting will only be attended by union stewards, Spirit employees that represent the union. The company and union restarted negotiations on Saturday, and Spirit CEO Tom Gentile said in a statement on Monday that the parties were "making good progress."

Persons: AeroSystems, Tom Gentile, Valerie Insinna, Conor Humphries Organizations: Boeing, Airbus, International Association of Machinists, Aerospace Workers, IAM, Thomson Locations: Wichita , Kansas, Wichita

☆ Spirit AeroSystems to halt Wichita plant as workers vote to strike
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +3 min

Spirit will suspend factory production prior to the expiration of its contract with the International Association of Machinists and Aerospace Workers (IAM) which ends on June 24, it said. "We are disappointed that our employees represented by the IAM rejected our four-year contract offer and voted to strike," Spirit said. However, workers not represented by union should report to work on Thursday, it added. Workers at the plant, which makes critical structures for Boeing (BA.N) jetliners, will go on strike on Saturday, after rejecting a proposed four-year deal on Wednesday night, the IAM said. "The IAM's dedicated and hardworking membership at Spirit AeroSystems has worked without fail during tumultuous times, including a pandemic that saw everything grind to a halt.

Persons: AeroSystems, Valerie Insinna, Abinaya, Shivansh, Gerry Doyle, Jason Neely Organizations: IAM, Saturday Plant, Boeing, International Association of Machinists, Aerospace Workers, Workers, Spirit, Airbus, Thomson Locations: Wichita , Kansas, Wichita, Washington, Bengaluru

Spirit will suspend factory production prior to the expiration of its contract with the International Association of Machinists and Aerospace Workers (IAM) on June 24, it said. "We are disappointed that our employees represented by the IAM rejected our four-year contract offer and voted to strike," Spirit said. Although IAM and Spirit reached a tentative contract agreement last week, workers voted to reject the deal and strike. In May, Boeing CEO Dave Calhoun said it would be difficult to make contingency plans for a strike at Spirit. Starting on June 22, all IAM-represented employees will not report for work but will receive pay for their regularly scheduled work hours, Spirit said.

Persons: AeroSystems, Dave Calhoun, Valerie Insinna, Abinaya, Jason Neely, Mark Potter Organizations: IAM, Saturday Plant, Boeing, PARIS, Airbus, International Association of Machinists, Aerospace Workers, Spirit, Thomson Locations: Wichita , Kansas, Wichita

PARIS, June 22 (Reuters) - The first Paris Airshow in four years has clocked up billions of dollars in commercial jet orders and offered some respite for suppliers as air travel springs back sharply from the pandemic. The industry returned to Le Bourget with high expectations of commercial orders and low expectations regarding the supply chain, but generated a more balanced picture on both fronts. Announced orders reached near-record levels but were heavily dominated by two airlines leading the charge in India, the world's fastest growing market: IndiGo (INGL.NS) and Air India. A key focus of the show was how those planes will be produced after the pandemic disrupted supply chains. Several major companies said they had built up more buffer stocks and were seeing signs of improvement in supply chains.

Persons: Le Bourget, Christian Scherer, Pieter Elbers, Sash Tusa, Tim Hepher, Mark Potter Organizations: Air India, Airbus, Boeing, IndiGo, Aero Systems, Agency Partners, Thomson Locations: Paris, India, COVID, Ukraine

[1/5] Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. REUTERS/Benoit TessierSummarySummary Companies Pratt & Whitney sees 'solid progress' in supply chainSays groundings of GTF-powered fleet peaked in H1Airbus eyes post-show deal for 90 jets with Viva AerobusBoeing signs deals with Akasa Air and LuxairPARIS, June 21 (Reuters) - Jet engine maker Pratt & Whitney flagged "solid progress" in the aerospace supply chain on Wednesday, addressing a key area of concern for planemakers as they continue to rack up orders at the Paris Airshow. Pratt & Whitney President Shane Eddy, who has faced a backlash from airlines over durability problems and a shortage of spare engines, told the air show he was seeing "solid progress" in the supply chain. The European company, and U.S. rival Boeing, continued to sign new deals at the air show. Reporting by Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Persons: Pratt & Whitney, Benoit Tessier, Shane Eddy, Planemakers, Avolon, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Mark Potter Organizations: Pratt &, International Paris Air, Le, REUTERS, Viva, Boeing, Akasa Air, Luxair, Jet, Pratt, Whitney, Paris Airshow, Reuters, Airbus, Viva Aerobus, Air India, Raytheon Technologies, Aircraft, Airbus A330neo, Thomson Locations: Le Bourget, Paris, France, Luxair PARIS, Mexican, India

But it was surpassed on day one of the Paris show by Indian rival IndiGo's (INGL.NS) order for 500 Airbus narrowbody jets. Air India said it was worth $70 billion at list prices, though airlines typically get discounts on big orders worth at least half the headline price, analysts say. The Airbus part comprises 210 A320neo and A321neo narrowbody jets and 40 A350 widebodies. "Our ambitious fleet renewal and expansion programme will see Air India operate the most advanced and fuel-efficient aircraft across our route network within five years," Air India Chief Executive Campbell Wilson said in a statement. The mega-order will also put Air India on a stronger footing to compete with budget rival IndiGo, which has a majority share of the Indian market and a strong position in regional flights.

Persons: Royce, Campbell Wilson, LUDOVIC MARIN, Lars Wagner, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Aditi Shah, Mark Potter Organizations: India, Airbus, Boeing, Ethiopian Airlines, Paris, Air India, Air, Reuters Graphics Air, Visitors, International Paris Air, Le, Royce, Aero Engines, Tata, Emirates, IndiGo, . Leasing, Avolon, Philippine Airlines, Qantas, Thomson Locations: PARIS, India, Paris, Air India, France

That deal, sketched out in February, was at the time the largest ever announced by number of planes. But it was surpassed on day one of the Paris show by Indian rival IndiGo's (INGL.NS) order for 500 Airbus narrowbody jets. Reuters GraphicsAir India's provisional deal included 250 planes from Airbus and 220 from Boeing. The Airbus part comprised 210 A320neo narrowbodies and 40 A350 widebodies, while the Boeing deal was for 190 737 MAX, 20 787 Dreamliners and 10 mini-jumbo 777X. Together with another 25 Airbus jets to be leased, the overall acquisition reaches 495 jets, an Airbus executive said at the time.

Persons: Royce, narrowbodies, Lars Wagner, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Aditi Shah, Mark Potter Organizations: Air India, Ethiopian Airlines, Paris, Airbus, Boeing, Reuters Graphics Air, Royce, Aero Engines, Tata, Emirates, Air, IndiGo, . Leasing, Avolon, Philippine Airlines, Qantas, Thomson Locations: PARIS, India, Paris, Air India

☆ Exclusive: Lockheed raises concerns over L3Harris-Aerojet deal
▼ + stars: | 2023-06-20 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

PARIS, June 20 (Reuters) - Lockheed Martin (LMT.N) has raised concerns with the U.S. Defense Department and Federal Trade Commission (FTC) about L3Harris's (LHX.N) acquisition of Aerojet Rocketdyne (AJRD.N), Lockheed's chief operating officer said on Tuesday. Frank St John told Reuters that Lockheed, Aerojet's biggest customer, wanted L3Harris to ensure access to rocket motors, fair pricing and IP protections, adding it had received "little response" from L3Harris over its concerns. If L3Harris continues to be unresponsive, Lockheed wants the Defense Department or FTC to put in place a mechanism to guarantee access to technology, St John said. L3Harris, Aerojet Rocketdyne, the FTC and Defense Department did not immediately respond to emailed requests for comment. Lockheed had previously attempted to buy Aerojet in a $4.4 billion deal, but walked away from the acquisition in February 2022 after the FTC sued to block the deal, citing concerns that Lockheed could hinder competitors' fair access to Aerojet products.

Persons: Lockheed Martin, Aerojet, Frank St John, L3Harris, we've, St John, Aerojet Rocketdyne, Lockheed's, Greg Hayes, Chris Calio, Valerie Insinna, Mark Potter Organizations: Lockheed, U.S . Defense Department, Federal Trade Commission, Reuters, Paris, Defense Department, FTC, Aerojet, Thomson Locations: L3Harris, Ukraine

The world's largest air show, which alternates with Farnborough in Britain, is at Le Bourget for the first time in four years after the 2021 edition fell victim to the pandemic. On the civilian side, planemakers arrived with growing demand expectations as airlines rush for capacity to meet demand and help reach industry goals of net zero emissions by 2050. REUTERS/Benoit TessierIndiGo's deal highlights the growing importance of India, the world's fastest-growing aviation market, serving the largest population, to planemakers. In another key market, Airbus said Saudi budget airline flynas had firmed up an order for 30 of its A320neo-family narrowbody aircraft, confirming a Bloomberg report. France's Thales (TCFP.PA) also announced a contract from Indonesia for 13 long-range air surveillance radars.

Persons: Le Bourget, Emmanuel Macron, planemakers, Sash Tusa, Benoit Tessier IndiGo's, there's, Pieter Elbers, flynas, Avolon, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Aditi Shah, Julia Payne, Nandan Mandayam, Mark Potter, Jonathan Oatis Organizations: Airbus, Defence, Indian, Paris, Reuters, Air India's, Boeing, Farnborough, French Rafale, Industry, Partners, Air, REUTERS, Saudi, Bloomberg, Kyiv, Rafale, Eurofighter, Thales, Mexico's Viva, Thomson Locations: Paris, PARIS, Britain, UKRAINE, European, France, Germany, Spain, Le Bourget, India, Ukraine, Ukrainian, Belgium, Franco, Spanish, Indonesia, Air India

PARIS, June 19 (Reuters) - Ukraine is in negotiations with Western arms manufacturers to boost production of weapons, including drones, and could sign contracts in coming months, a Ukrainian minister told Reuters. Since Russia's invasion of Ukraine last year Ukraine has been scrambling to secure weapons ranging from munitions to rocket launchers to missiles. "That's why we think international partners coming to Ukraine, setting up production and making Ukraine part of the security framework for the free world is so essential." And some of the companies say that they are willing to come and invest and produce drones," he said. But Boyev is hopeful that the country can attract foreign drone makers and said the Ukraine government could offer substantial support.

Persons: Sergiy Boyev, Boyev, Volodomyr Zelenskiy, dronemakers, Baykar, Joanna Plucinska, Valerie Insinna, Olena Harmash, Susan Fenton Organizations: Strategic Industries, Kyiv, Reuters, Ukraine's, British, BAE Systems, Paris, Thomson Locations: Ukraine, Western, Ukrainian, United States, Germany, Britain, Italy, France, Europe, Paris, Kyiv, Turkish, Russia, Moscow, Turkey, Norway, European

[1/2] A model of a Future Combat Air System (SCAF), a European aircraft developed by France, Germany and Spain is displayed during the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 19, 2023. On the civilian side, planemakers arrived with growing demand expectations as airlines rush for capacity to meet demand and help reach industry goals of net zero emissions by 2050. In another key market, Airbus said Saudi budget airline flynas had firmed up an order for 30 of its A320neo-family narrowbody aircraft, confirming a Bloomberg report. France's Thales (TCFP.PA) also announced a contract from Indonesia for 13 long-range air surveillance radars. The planemaker is also close to a potentially large order for narrow-body jets from Mexican low-cost carrier Viva Aerobus, industry sources said on Sunday.

Persons: Benoit Tessier, Le Bourget, Emmanuel Macron, planemakers, there's, Pieter Elbers, flynas, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Mark Potter Organizations: Air, Paris, REUTERS, Airbus, Defence, Indian, Reuters, Air India's, Boeing, Farnborough, French Rafale, Industry, Saudi, Bloomberg, Rafale, Eurofighter, Thales, Qantas, Viva Aerobus, Thomson Locations: European, France, Germany, Spain, Le Bourget, Paris, PARIS, Britain, India, Ukraine, Belgium, Franco, Spanish, Indonesia

☆ RTX: Pratt & Whitney engines unit to take $500 mln free cashflow hit
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +1 min

PARIS, June 19 (Reuters) - RTX (RTX.N) expects to take a $500 million hit to free cash flow due to a supply chain problem with the GTF engine made by its Pratt & Whitney subsidiary, the company said during an investor day on Monday. GTF deliveries that are delayed in the second quarter will be recovered in the third quarter, RTX Chief Operating Officer Chris Calio said. The issue involves a part that a supplier wrongly installed on a number of GTF engines, said Calio, who declined to name the company involved or the total number of engines affected. "We have started to turn that corner and May was probably our highest output of the year," Calio said. "Our intent is to get the fleet into a much more manageable position in the second half of the year."

Persons: Chris Calio, Calio, RTX, Pratt & Whitney, Valerie Insinna, Sudip Kar, Gupta, Mark Potter Organizations: Pratt & Whitney, Raytheon Technologies, Airbus, Pratt &, Thomson

[1/2] A model of a Future Combat Air System (SCAF), a European aircraft developed by France, Germany and Spain is displayed during the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 19, 2023. REUTERS/Benoit TessierPARIS, June 19 (Reuters) - The Paris Airshow opened on Monday with last-minute jet order negotiations and supply chain headaches competing for attention with rows of missiles, drones and futuristic transport. France's Thales (TCFP.PA) announced a contract from Indonesia for 13 long-range air surveillance radars. On the commercial side, planemakers arrived with growing demand expectations as airlines rush for capacity to meet demand and help reach industry goals of net zero emissions by 2050. Airbus is also close to a potentially large order for narrow-body jets from Mexican low-cost carrier Viva Aerobus, industry sources said on Sunday.

Persons: Benoit Tessier PARIS, Le Bourget, Emmanuel Macron, France's, planemakers, Tim Hepher, Joanna Plucinska, Allison Lampert, Valerie Insinna, Mark Potter Organizations: Air, Paris, REUTERS, Farnborough, French Rafale, U.S, Rafale, Eurofighter, France's Thales, Airbus, . Industry, Qantas, Viva Aerobus, Boeing, Thomson Locations: European, France, Germany, Spain, Le Bourget, Paris, Britain, Belgium, Franco, Spanish, Ukraine, Indonesia

☆ Boeing to lift 737 MAX output to 38/month 'pretty soon'
▼ + stars: | 2023-06-18 | by ( ) www.reuters.com time to read: +1 min

PARIS June 18 (Reuters) - Boeing (BA.N) expects to increase production of its best-selling 737 MAX to 38 jets a month "pretty soon," but the company is likely to see supply chain instability at every rate increase, the head of Boeing Commercial Airplanes (BCA) said Sunday. However, he warned that the supply chain continues to be a challenge, with new issues constantly being found. While there was instability as industry increased production rates prior to 2019, “this is a little different," Deal said. "COVID had a pretty significant impact on labor, and this industry still depends on labor ... to get to its net efficiency." Boeing has started a supply chain quality review, with participants including CEOs and other C-suite officials, as well as quality and engineering officials from Boeing's tier-one supply chain that creates major aero-structures and sub-assemblies, Deal said.

Persons: Stan Deal, COVID, Deal, Valerie Insinna, Hugh Lawson, Mark Potter Organizations: PARIS, Boeing, Boeing Commercial Airplanes, Sunday, Boeing's, Thomson Locations: Paris

Lockheed and Airbus will tout their LMXT tanker at the Paris Airshow this week, bringing U.S. reporters onboard the A330 Multi Role Tanker Transport on which the new plane is based. In 2011, Boeing won the first of a three-phase procurement to replace the Air Force's aging tanker fleet, securing a contract for 179 KC-46s. But Larry Gallogly, Lockheed’s director of LMXT business development, said Lockheed and Airbus "are most definitely still in this competition." Lockheed and Airbus sought a program of at least 120 aircraft, but “the business case can certainly close below that,” Gallogly said. Boeing Defense CEO Ted Colbert said the KC-46 "has proven to be highly capable" and is ready for the threats of the 2030s.

Persons: Lockheed Martin, Larry Gallogly, ” Gallogly, Ted Colbert, Jerry Carl, Carl, Valerie Insinna, Tim Hepher, Mark Potter Organizations: Pentagon, Aerospace titans Airbus, Boeing, Airbus, Lockheed, U.S, U.S . Air Force, Air, KC, Capitol, Air Force, General, Armed Services, Alabama Republican, Thomson Locations: WASHINGTON, PARIS, U.S, United States, Alabama, Georgia, American

☆ Boeing defense margins to remain flat in second quarter
▼ + stars: | 2023-06-18 | by ( ) www.reuters.com time to read: +1 min

June 18 (Reuters) - Margins at Boeing's (BA.N) defense unit will look similar in the second quarter to its first-quarter results, Boeing Defense CEO Ted Colbert said Sunday. Margins at its defense unit were negative in the first quarter as Boeing recorded a $245 million pre-tax charge on the KC-46 tanker program. Colbert declined to say whether Boeing would take another charge on the KC-46, which has logged more than $7 billion in losses. He added that there is a “ton of activity” to improve performance at Boeing's defense unit but that it will take time for improvements to be seen. Boeing remains focused on "starting every program the right way," including a contract structure that gives Boeing a "fair shake and healthy business," Colbert said.

Persons: Ted Colbert, Colbert, “, ” Colbert, Valerie Insinna, Hugh Lawson, Mark Potter Organizations: Boeing, KC, Air Force, Thomson Locations: Paris

☆ Boeing boosts 20 year outlook for planes due to narrowbody demand
▼ + stars: | 2023-06-17 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

PARIS, June 18 (Reuters) - U.S. planemaker Boeing (BA.N) slightly raised its annual 20-year forecast for new jetliner deliveries, propelled by the strength of the narrowbody market fueled by demand from low-cost carriers. Boeing expects airlines will need to buy 42,595 jets from now until 2042, up from 41,170 planes in its previous 20-year forecast last year. Boeing expects that narrowbody jets like its 737 MAX or the A320neo family made by European rival Airbus (AIR.PA) will dominate aircraft deliveries, with 32,420 single-aisle jets delivered through 2042. Deliveries from now until 2042 are also expected to include 7,440 widebody planes, 1,810 regional jets and 925 freighters. The company also raised its industrywide passenger traffic forecast growth rate slightly from 3.8% to 4%.

Persons: Darren Hulst, Hulst, we'll, it's, Valerie Insinna, Jonathan Oatis Organizations: planemaker Boeing, Boeing, Paris, Airbus, Thomson Locations: Boeing's, China, Asia

☆ Spirit Aerosystems, workers reach tentative four-year labor pact
▼ + stars: | 2023-06-16 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

June 16 (Reuters) - Spirit Aerosystems (SPR.N) has reached a tentative four-year contract agreement with the 6,000-member machinists union employed at its Wichita, Kansas plant, the union said Friday in a statement. "This fair and competitive contract recognizes the important contributions of our factory employees and ensures that Spirit can successfully meet increasing demand for aircraft from customers," Spirit Aerosystems said in an emailed statement. A slowdown could have impeded Boeing as it tries to recover from ongoing 737 and 787 production glitches. A stoppage could have also had a detrimental effect on already-fragile Spirit AeroSystems, which has been responsible for several recent production flaws affecting Boeing jets, including a 737 bracket installation problem. In May, Spirit said it expects cash burn of about $100 million to $150 million in 2023.

Persons: Aerosystems, ”, Spirit, Valerie Insinna, Kannaki, David Gaffen, Deepa Babington, Maju Samuel Organizations: Boeing, International Association of Machinists, Aerospace Workers, Thomson Locations: Wichita , Kansas, Wichita

Search resuls for: "Valerie Insinna"

25 mentions found