Company Watch - Boeing

AirGuide Business, April 21, 2008

Apr 21, 2008

American Airlines parent AMR said said it will speed the replacement of its aging, thirsty MD-80 aircraft with more fuel-efficient Boeing 737-800s. The company expects to take delivery of 34 737s in 2009 and 36 737s in 2010. Apr 17, 2008

American Airlines canceled 595 Boeing (McDonnell Douglas) MD-80 flights Friday and said it expected to be operating 60% of its MD-80 schedule by late that afternoon. It had 226 of its 300 aircraft in service in the morning and said last week it expected to have its full fleet inspected and flying by Saturday evening. American canceled more than 3,000 flights last week as it conducted inspections on wheel well wire bundles in order to comply with an FAA airworthiness directive. Apr 14, 2008

American Airlines on Saturday returned its entire fleet of Boeing (McDonnell Douglas) MD-80s to service and operated a full schedule. The FAA last week grounded the planes, a move that forced American to cancel about 3,300 flights. Each plane was checked by American mechanics and approved by an FAA inspector. In addition, American has hired an independent firm to review its methods for complying with FAA safety directives. The airline has said the canceled flights may cost "tens of millions of dollars." Apr 14, 2008

Boeing Launch Services will manage DigitalGlobe's third satellite launch now scheduled for mid-2009. The WoldView-2 satellite, the company's most advanced satellite, will launch from Vandenberg Air Force Base, Calif. Apr 17, 2008

After two weeks of groundings and inspections, the worst disruption related to increased regulatory scrutiny may be over for U.S. airlines. Carriers should expect tougher safety scrutiny, and the FAA continues to investigate some carriers for possible maintenance lapses. "Based on the high compliance we saw, we're optimistic we're not going to see problems like this again," an FAA spokeswoman said. Apr 14, 2008

Boeing and Raytheon have formed a partnership to compete for an air-to-missile contract. Raytheon will be the prime contractor on the bid. The new missiles will replace the Hellfire and Maverick missiles. Apr 15, 2008

Continental plans to reduce domestic mainline capacity by 5 percent and to take another 14 single-aisle Boeing 737-300 aircraft out of service as leases expire beginning in September. These are in addition to the 34 737-300s and 500s that were already planned to be removed from service in 2008 and 2009. Rising costs and a weak US economy helped prompt a merger deal between two of Continental's biggest rivals, Delta Air Lines and Northwest Airlines, and could spur a wave of further consolidation amid fears of falling travel demand. Continental and United Airlines have reportedly been in merger talks for months. Northwest previously held a "golden share" of Continental preferred stock, which restricted Continental's merger prospects. But Continental has now redeemed the golden share due to Northwest's merger plans. Apr 17, 2008

The new Delta, after the merger of Delta Air Lines and Northwest Airlines, with its combined fleet of 117 Boeing McDonnell Douglas MD-88s and 94 Douglas DC-9s, is an ideal customer for Bombardier's 100-to-130-seat CSeries aircraft, especially with its US$7-billion in liquidity, he said. Northwest has also been very vocal in the past about its interest in the new jets, which would offer 40% less fuel burn than its existing fleet. "The question at this point is not whether or not the merged firm will order the CSeries, but rather one of timing," Mr. Poirier said in a note to clients. "We believe the companies could announce an order pending completion of the deal." Apr 16, 2008

Hewa Bora Airways Boeing Douglas DC-9 crash Tuesday remained under investigation as the confirmed death toll reached 40, according to the BBC. Most of the dead likely were on the ground, according to reports, as the aircraft was unable to lift off the shortened runway at Goma International and crashed through a wall into nearby shops and houses. Provincial Governor Julien Mpaluku told CNN that the runway was shortened six years ago following a volcanic eruption and the national government had declined to fix it. More than 100, including the pilot, were recovered from the burning aircraft and hospitalized with injuries. There were 79 passengers and five crew members onboard. Apr 17, 2008

Southwest grounded dozens of older Boeing 737s and canceled flights in March as a result of the controversy. Prompted by problems at Southwest and congressional pressure to respond, the FAA launched an industrywide review of compliance with its safety directives. That audit led to grounded planes and canceled flights over recent weeks at several airlines. The most severe problems were at American Airlines where 300 MD-80s were grounded and more than 3,000 flights canceled last week. Apr 19, 2008

A follow-up investigation by House of Representatives Transportation Committee and Transportation Department Inspector General Calvin Scovel revealed what he called an "overly collaborative" relationship at Southwest between airline maintenance personnel and US Federal Aviation Administration management at the agency's Dallas office regarding compliance with FAA safety directives. After missed inspections for fuselage cracks on Southwest jets were revealed in March, Scovel said the FAA had not verified the carrier's compliance with FAA safety directives since 1999. Scovel said the FAA also had not completed 21 key safety inspections at Southwest over the past five years. As of Tuesday, Scovel said four still had not been done. Apr 18, 2008