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☆ Boeing delivers 50 jets in May as 737 MAX rebounds from defect
▼ + stars: | 2023-06-13 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

June 13 (Reuters) - Boeing (BA.N) delivered 50 jets in May, 13 fewer than European rival Airbus (AIR.PA), but a 43% improvement on the same month last year. Deliveries of the cash-generating Boeing 737 MAX increased to 35 jets in May, Boeing said Tuesday. The company handed over only 17 MAXs to customers the prior month, when Boeing found a bracket installation defect that forced it to fix aircraft before delivery. Boeing also delivered eight widebody 787 Dreamliners, three 767 freighters, three 777 freighters and a 737 that will be modified into a P-8 Poseidon maritime patrol aircraft for South Korea. Over the first five months of the year, Boeing delivered 206 aircraft - fewer than rival Airbus, which has delivered 244 over the same period.

Persons: Brian West, Valerie Insinna, Mark Potter Organizations: Boeing, Airbus, Paris Air, Wall Street, Air Niugini, Hong Kong International Aviation, Thomson Locations: South Korea

The problem involves a fitting for the 787's horizontal stabilizer installed by a Boeing production facility in Salt Lake City, Utah, the company said. Boeing, which announced last week that it had increased 787 production from three to four jets a month, said the issue has not caused a halt in 787 production. The U.S. Federal Aviation Administration said in a statement it had validated Boeing's assessment that there was no immediate safety issue for 787s already in service. Boeing stopped 787 deliveries at multiple points during that period, resuming them last August after agreeing to an FAA-approved modification plan for Dreamliners in the company's inventory. In March, the FAA said it would allow Boeing to restart 787 deliveries, as the U.S. planemaker had addressed concerns.

Persons: Gavin McIntyre, planemaker, Dreamliners, Jefferies, Sheila Kahyaoglu, Dave Calhoun, Valerie Insinna, David Shepardson, Will Dunham, Deepa Babington, Jamie Freed Organizations: Boeing, REUTERS, U.S . Federal Aviation Administration, FAA, Thomson Locations: North Charleston , South Carolina, U.S, REUTERS WASHINGTON, Salt Lake City , Utah, Washington

Boeing, which announced last week that it had increased 787 production from three to four jets a month, said the issue has not caused a halt in 787 production. The U.S. Federal Aviation Administration said has validated the Boeing's assessment that there is no immediate safety issue for 787s already in service. Boeing stopped 787 deliveries at multiple points during that period, resuming them last August after agreeing to an FAA-approved modification plan for Dreamliners in the company's inventory. The company faced yet another 787 delivery stoppage in February after Boeing found a data analysis error regarding forward pressure bulkhead that was unrelated to the shimming problem. In March, the FAA said it would allow Boeing to restart 787 deliveries, as the U.S. planemaker had addressed concerns.

Persons: Gavin McIntyre, Dreamliners, planemaker, Dave Calhoun, Valerie Insinna, David Shepardson, Will Dunham, Deepa Babington Organizations: Boeing, REUTERS, U.S . Federal Aviation Administration, FAA, Thomson Locations: North Charleston , South Carolina, U.S, REUTERS WASHINGTON, Salt Lake City , Utah, Washington

ISTANBUL, June 6 (Reuters) - An Air India plane flying from Delhi to San Francisco was forced to divert and land at an airport in Russia's Far East after it developed a technical issue with one of its engines, the airline said on Tuesday. The 216 passengers and 16 crew onboard were being offered support on the ground and accommodated in local hotels for the night, Air India said. Air India said it could not share any passenger details. GE Aerospace said it was aware of the diversion and working with Air India to resolve the issue. However, Air India and some Gulf-based, Chinese and African carriers continue to fly over Russia, making flying times shorter and American rivals uncompetitive.

Persons: Rosaviatsia, Campbell Wilson, Biden, Aditi Shah, Tim Hepher, Joanna Plucinska, David Shepardson, Valerie Insinna, Alexnader Marrow, Gleb Stolyarov, Josephine Mason, Emelia Sithole, David Evans, Mark Potter Organizations: An, Boeing, United Airlines, Air, General Electric, Union, Norwegian Air Boeing, Washington, GE, U.S . Treasury, U.S . Department of Commerce, GE Aerospace, International Air Transport Association, Reuters, Thomson Locations: ISTANBUL, An Air India, Delhi, San Francisco, Russia's Far, Russia, Air India, Magadan, Okhotsk, Iran, Shiraz, India, Washington, United States, Moscow, Ukraine, American, U.S

☆ Boeing CEO says fixing supply chain constraints is 'frustratingly slow'
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

June 2 (Reuters) - Boeing Co. (BA.N) CEO Dave Calhoun on Friday said progress on resolving supply chain problems has been "frustratingly slow" even as airlines' demand for planes has bounced back to pre-pandemic levels. Boeing has seen improvements in certain elements of its supply chain, such as engine forgings and castings, Calhoun said. "We've got to be smart about how we manage supply against that demand spike," Calhoun said at a Bernstein conference. Boeing regularly tracks 25-30 parts from a subset of suppliers that have previoulsy faced production headwinds. But surprise issues can still crop up from "the supplier who lost some experience, talents, talents, somewhere along the way didn't replace them in kind," he said.

Persons: Dave Calhoun, Calhoun, We've, Guillaume Faury, Valerie Insinna, Jason Neely, Frances Kerry Organizations: Boeing Co, Boeing, Airbus, Spirit, Thomson

☆ Boeing CEO says resolving supply chain constraints is 'frustratingly slow'
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: 1 min

June 2 (Reuters) - Boeing Co. (BA.N) CEO Dave Calhoun on Friday said progress on resolving supply chain problems has been "frustratingly slow" even as airlines' demand for planes has bounced back to pre-pandemic levels. Boeing has seen progress in certain elements of its supply chain, such as engine forgings and castings, Calhoun said. But the ability for aircraft makers like Boeing and European rival Airbus (AIR.PA) to meet customer demand for new planes will still be constrained "five years from now," he added. "We've got to be smart about how we manage supply against that demand spike," Calhoun said at the Bernstein annual strategic decisions conference. Reporting by Valerie Insinna; editing by Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

Persons: Dave Calhoun, Calhoun, We've, Valerie Insinna, Jason Neely Organizations: Boeing Co, Boeing, Airbus, Thomson

☆ Boeing CEO 'not overly anxious' about Chinese narrowbody jet
▼ + stars: | 2023-06-01 | by ( Valerie Insinna | ) www.reuters.com time to read: +3 min

“For us to get overly anxious about that, I think it's a silly prospect.”Boeing should focus on existing competition and position itself to "win that technology race," Calhoun said. Chinese airlines began returning the 737 MAX to service earlier this year. Although all Chinese users have restarted 737 flights, deliveries of the jet have been stalled amid friction between the United States and China. Spirit has been the source of several problems that have stalled Boeing deliveries in recent years, including an ongoing 737 MAX bracket installation flaw that slowed deliveries since it was discovered in April. “We are disappointed with every next issue that occurs that limits our rates and slows us down,” Calhoun said.

Persons: Dave Calhoun, Calhoun, ” Calhoun, “, Valerie Insinna, Ben Klayman, Matthew Lewis Organizations: Boeing Co, U.S, planemaker, Airbus, China Eastern Airlines, SS, Commercial Aviation Corp of China, Boeing, Paris Air, Thomson Locations: CHARLESTON, South Carolina, China, Shanghai, Beijing, United States, Charleston , South Carolina, U.S

☆ Boeing says certification of 737 MAX 7 is taking 'considerable amount of time'
▼ + stars: | 2023-05-31 | by ( ) www.reuters.com time to read: +1 min

[1/2] Employees are pictured as the first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File PhotoCHARLESTON, South Carolina, May 31 (Reuters) - The certification of the Boeing 737 MAX 7 is taking a "considerable amount of time" due to new documentation requirements, but the company still believes it can be certified by the end of the year, a Boeing Co (BA.N) official said on Wednesday. Both the MAX 7 and MAX 10 are seen as critical for Boeing to compete against Airbus SE (AIR.PA) for orders at the top and bottom of the narrowbody markets. The planemaker is also "close" to receiving FAA approval to begin certification flights of its new 737 MAX 10, Fleming told reporters. Certification of that aircraft is still projected to occur in 2024, but will depend on when Boeing is approved to begin those flights, he said.

Persons: Jason Redmond, Mike Fleming, Boeing's, Fleming, Valerie Insinna, Richard Chang, Matthew Lewis Organizations: Boeing, REUTERS, Boeing Co, Airbus, Southwest Airlines Co, Federal Aviation Administration, Thomson Locations: Renton , Washington , U.S, CHARLESTON, South Carolina, Charleston , South Carolina

PARIS/WASHINGTON, May 29 (Reuters) - Cathay Pacific Airways Ltd (0293.HK) is close to placing an order worth around $2 billion for Boeing (BA.N) 777-8F freighters as the Hong Kong carrier embarks on the partial renewal of a fleet of dedicated 747 cargo jets, industry sources said on Monday. Industry sources have said the competition involved an initial purchase of around half a dozen aircraft, worth some $2 billion at list prices before traditional airline discounts. Boeing launched the 777-8F freighter with an order from Qatar Airways in January 2022, six months after Airbus launched development of the A350 Freighter in a bid to weaken its U.S. rival's traditional grip on the market for freighters. Cathay Pacific told analysts last November it was looking at more freighter capacity and working "actively" with planemakers to acquire some of the new freighters coming up after 2025. Cathay Pacific is the world's fifth-largest air freight carrier and the third-largest traditional freight airline behind Qatar Airways and Emirates when specialist express parcel carriers FedEx and UPS are excluded, according to latest available data from the International Air Transport Association.

☆ U.S. Air Force to award sixth-generation fighter contract in 2024
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

May 18 (Reuters) - The U.S. Air Force intends to award a contract in 2024 for its sixth-generation fighter jet as it races to retain its edge against rapid advances in Chinese military technology, the service said on Thursday. The Air Force released a classified solicitation to industry on Thursday laying out the technical requirements. The new fighter will "survive, persist, interoperate, and adapt in the air domain, all within highly-contested operational environments," Air Force Secretary Frank Kendall said in a statement. "No one does this better than the U.S. Air Force, but we will lose that edge if we don't move forward now." The Air Force plans to spend $2.3 billion on the program in fiscal 2024, and an additional $595 million to continue engine development for the new fighter.

☆ Boeing launches data tool to chart path to net-zero emissions target
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, May 17 (Reuters) - Boeing Co (BA.N) said on Wednesday it is rolling out a data modeling tool aimed at helping airlines and policymakers determine the quickest, most efficient path to reducing aviation emissions to zero by 2050. Boeing unveiled a beta version of Cascade in July 2022 but it was not publicly available. The public launch of Cascade comes just days after U.S. Transportation Secretary Pete Buttigieg met with counterparts from Canada, the United Kingdom and Singapore at the Asia-Pacific Economic Cooperation forum to discuss investments in sustainable aviation fuel. On Tuesday, Reuters reported that European Union countries are set to finalize SAF targets for airports despite some pushback from airlines. “Our intent is to scale SAF and help it scale by first ... examining what has to change in an airplane to be 100% compatible with (SAF),” Raymond said.

Europe's biggest low-cost carrier said it was placing a firm order for 150 of the largest version of Boeing's narrow-body jet family, known as the 737 MAX 10, with options for another 150. The deal delivers a boost to the 737 MAX, Boeing's best-selling jet whose deliveries have been depressed by a two-year safety crisis and post-COVID disruption. "Boeing wanted us to step up the scale and size of the order even to get the discounts that we [got]." Boeing Chief Executive Dave Calhoun countered during a press conference that no premium was high enough for the jet, in a jovial back-and-forth. On Monday, Reuters first reported that Ryanair was close to a major deal for Boeing jets.

☆ Boeing deliveries fall by half in April due to 737 MAX bracket defect
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, May 9 (Reuters) - Boeing Co (BA.N) deliveries fell to 26 airplanes in April, less than half of the previous month's total, after a manufacturing defect forced the company to halt some shipments of its bestselling 737 MAX passenger jet. Deliveries of the MAX, which had climbed to 52 narrowbody jets in March, dropped to 17 planes last month. That left passenger jet deliveries for the U.S. planemaker at their lowest level since July 2022, as well as below the 35 planes delivered last April. Boeing Chief Financial Officer Brian West told investors in an earnings call last month that MAX deliveries would slow through the second quarter, but then grow to about 40 jets per month, with sequential quarterly improvement in the second half. Boeing has delivered 156 jets over the first four months of 2023, including 128 MAXs.

Ryanair said the order would allow it to almost double its traffic to 300 million passengers per year by March 2034 from the 168 million flown to the end of March this year. On Monday, Reuters first reported that Ryanair was close to a major deal for Boeing jets. But its boss pledged not to overpay for the 30 extra seats, telling Reuters in March he could also order more of the existing 200-seat 737 MAX 8200. Ryanair said the deal was worth $40 billion at list prices, though experts note typical discounts run at more than 50%. "Ryanair operates a 737 fleet and is pretty locked in," with Airbus (AIR.PA) sold out for years and China years away from being to supply the West, Agency Partners analyst Nick Cunningham said.

☆ Ryanair set to order jets from Boeing, burying hatchet after price spat
▼ + stars: | 2023-05-09 | by ( Tim Hepher | ) www.reuters.com time to read: +3 min

PARIS, May 9 (Reuters) - Ireland's Ryanair (RYA.I) is set to bury the hatchet with its exclusive supplier and place a multi-billion-dollar order for Boeing jets on Wednesday, ending an 18-month spat over prices. Boeing (BA.N) said it would make a "major announcement" at 1300 GMT, but gave no further details. The 737 MAX sells for up to $131 million at list prices but typical discounts run at more than 50% and details of final pricing are confidential. But the bond between Ryanair and Boeing loosened following the pandemic as low-cost carriers expanded markets. But he has pledged not to overpay for the 30 extra seats, telling Reuters in March he was also looking at more orders of the 200-seat 737 MAX 8200.

☆ Ryanair close to placing major Boeing order -sources
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: +1 min

PARIS, May 8 (Reuters) - Ryanair (RYA.I) is close to signing a major new aircraft order with Boeing (BA.N), two people familiar with the matter said on Monday. The multi-billion-dollar deal for a three-digit quantity of 737 MAX jets could be announced as early as Tuesday, they added, asking not to be named. Boeing and Ryanair declined to comment. Europe's largest budget carrier halted negotiations for at least 100 Boeing 737 MAX jets plus as many options in a pricing dispute some 18 months ago. He said Ryanair was now considering the 200-seat 737 MAX 8200 and the 230-seat 737 MAX 10.

☆ Spirit AeroSystems takes $110 million in charges, profit hit on Boeing 737
▼ + stars: | 2023-05-03 | by ( Valerie Insinna | Abhijith Ganapavaram | ) www.reuters.com time to read: +3 min

WASHINGTON (Reuters) -Spirit AeroSystems Holdings Inc on Wednesday took a hefty $110 million loss in reach-forward charges on Airbus and Boeing jet production and expects a further hit of $31 million to full-year gross profit from disruptions related to a Boeing 737 MAX fuselage production problem. Slideshow ( 2 images )The company announced $110 million in charges on the Airbus A220, Airbus A350 and Boeing 787 during its first-quarter results. Spirit now expects cash burn of about $100 million to $150 million in 2023 due to the risk of lowered 737 fuselage deliveries. The company has also started to build and deliver production-conforming 737 fuselages under a revised process, it said. Cash burn was $69 million in the first quarter, compared with a cash burn of $298 million a year ago.

☆ Boeing supplier Spirit Aero flags $31 million hit from 737 fuselage defect
▼ + stars: | 2023-05-03 | by ( Valerie Insinna | Abhijith Ganapavaram | ) www.reuters.com time to read: +3 min

(Reuters) -Spirit AeroSystems Holdings Inc said on Wednesday it expects a $31 million hit to full-year gross profit from disruptions and rework related to a Boeing 737 MAX fuselage production problem, and that more related costs are anticipated. “Additional costs are expected, including costs Boeing may assert to repair certain models of previously delivered units in their factory and warranty costs related to affected 737 units in service,” Spirit said. Rework costs for affected 737 fuselages at Spirit’s Wichita, Kansas-based production facility are projected to amount to $5 million, an expense of about $100,000-$150,000 per plane. The company has also started to build and deliver production-conforming 737 fuselages under a revised process, it said. Losses on the A220 amounted to about $81 million, including $46 million in non-recurring supply chain costs as well as other costs related to production schedule changes.

[1/2] Airplane fuselages bound for Boeing's 737 Max production facility sit in storage at their top supplier, Spirit AeroSystems Holdings Inc, in Wichita, Kansas, U.S. December 17, 2019. "Additional costs are expected, including costs Boeing may assert to repair certain models of previously delivered units in their factory and warranty costs related to affected 737 units in service," Spirit said. Rework costs for affected 737 fuselages at Spirit's Wichita, Kansas-based production facility are projected to amount to $5 million, an expense of about $100,000-$150,000 per plane. The company has also started to build and deliver production-conforming 737 fuselages under a revised process, it said. Boeing CEO Dave Calhoun last week called the 737 manufacturing defect "gnarly" and "difficult to find", but noted that Spirit and Boeing had quickly identified affected planes and begun the rework.

Boeing shares rose 2.5% in early afternoon trade after the company reaffirmed its plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Deliveries will increase to about 40 MAXs a month during the back half of the year, he said. Reuters reported earlier this month that Boeing's schedule called for suppliers to produce 38 737 MAXs a month from June. Reuters GraphicsBoeing's first-quarter cash burn slowed to $786 million from $3.57 billion a year earlier on higher jet deliveries. Reporting by Abhijith Ganapavaram in Bengaluru and Valerie Insinna in Washington; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

April 26 (Reuters) - Boeing Co (BA.N) said on Wednesday that it planned to ramp up production of its 737 MAX jets to 38 per month by year-end, while backing its annual cash-flow goal, offering some relief to investors after a new manufacturing snafu threatened to derail deliveries. Reuters reported earlier this month that Boeing's schedule called for suppliers to ramp up to 38 737 MAXs a month in June. Overall, Boeing reaffirmed plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Boeing reported an adjusted loss per share of $1.27, wider than analyst expectations of a loss of $1.07 per share, per Refinitiv data. Boeing executives are expected to detail the scope of the problem on an investor call later in the day.

☆ Joby Aviation lands $55 million contract from US Air Force
▼ + stars: | 2023-04-25 | by ( ) www.reuters.com time to read: +2 min

April 25 (Reuters) - Electric aircraft maker Joby Aviation (JOBY.N) will deliver up to nine air taxis to the U.S. Air Force under a $55 million contract extension that marks the company’s first revenue-generating operations, the company announced on Tuesday. Joby will deliver the first two aircraft to Edwards Air Force Base in California by March 2024 for field exercises that will help the Air Force determine whether to adopt electric vertical takeoff and landing (eVTOL) aircraft. Under the contract with the Air Force, Joby will maintain ownership of the air taxis but will teach military pilots to fly them for the first time. Joby previously obtained the first airworthiness approval from the Air Force for an uncrewed electric aircraft in 2020. The latest award brings the total value of Joby's contracts with the Air Force up to $131 million.

☆ Boeing investors seek answers after latest 737 production glitch
▼ + stars: | 2023-04-24 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

Investors are clamoring for details on the extent of the problem, which Boeing said involves a “significant” portion of the 737 fleet where two brackets were improperly installed. But Wall Street has received little information from Boeing on its plan to fix the problem and the overall financial impact. “I'd like to have some numbers and some scale of the materiality of this, whether it affects deliveries, cash flow and all the rest,” Vertical Research Partners analyst Robert Stallard said. Calhoun said last week that Boeing will not revise current plans to increase MAX production this summer. However, the company has slowed 737 MAX deliveries, and the resulting delivery delay will remove approximately 9,000 seats from airlines’ summer schedules.

Boeing has more than 130 completed MAX jets in inventory for Chinese customers worth more than $15 billion at list prices, although airlines typically receive substantial discounts. The Civil Aviation Administration of China (CAAC) on April 14 released the second revision of its 737 evaluation report which incorporates updates to 737 MAX training and technical information. Chinese airlines begun returning the MAX to service in January led by China Southern (600029.SS) and as of April, all Chinese MAX operators have resumed flight operations, with 45 of 95 MAX jets now back in service, Calhoun said. China Eastern (600115.SS) and China Southern said in March they would resume taking delivery of MAX jets this year, without providing further details. The CAAC report is a reason for "incremental" optimism on MAX momentum in China, Myles Walton of Wolfe Research wrote in to a note to investors.

REUTERS/Jason Redmond/File PhotoPARIS/WASHINGTON, April 19 (Reuters) - Planemakers have signalled a shift in production strategy to make factories more resilient to recent supply disruptions by adding "surge capacity," even where that means extra cost. "We live in a supply constrained environment ... Our focus is on both capacity and quality. "To support the supply chain, we've increased on-site presence, we've ramped up internal fabrication for surge capacity and we've increased inventory of select parts for risk protection." DEFENDING AVERAGE OUTPUTPlanemakers only rarely speak of "surge capacity" in the aerospace production system, which is seen as more capital-intensive and less nimble than in consumer-facing industries. Although auto firms rely heavily on overtime to meet peak demand, analysts say there are examples of automakers installing surge capacity for a successful product.

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