Company Watch - Boeing

AirGuide Business, Feb 18, 2008

Feb 18, 2008

Bmi leases Boeings. Bmi announced today Feb. 13 that is to lease two Boeing 757-200 aircraft from its Heathrow operation as it continues the search for larger jets. The need for extra capacity has come about since bmi[sup.1]s takeover of Bmed, which has seen the Heathrow-based airline take on a significantly enhanced network. Bmi has no current 757s in its fleet and to avoid any maintenance over-complication, will damp lease[sup.1] both 757 aircraft from Astraeus as it ramps up services to Tel Aviv and Freetown (Sierra Leone), among others. The two Boeing aircraft featuring business and economy cabins, will be leased for an initial two-year period, with an option to extend. Feb 13, 2008

Bmi will lease two Boeing 757-200s to expand its medium-haul network further from London Heathrow. In December, Chairman Michael Bishop said that bmi was looking for additional capacity, possibly 757s or 767-200s, to support growth on several former BMED routes that were performing well. The aircraft have been wet-leased from Astraeus for two years with an option to extend. Two separate cabins will offer a mix of business and economy service. Feb 15, 2008

A Boeing victory in the U.S. Air Force flying tanker contract would offset the string of negative headlines that it has garnered, from the recent arrest of a former engineer on spy charges to the delay of its vaunted 787 Dreamliner. Still, Boeing's shares aren't expected to soar on the news, analysts said. It is such an overwhelming favorite that the contract win is already factored into its stock price. Feb 14, 2008

Boeing CFO James Bell told an investors conference in Miami Beach that US airlines constitute just 11% of Boeing's $255 billion backlog and that orders will be required "to avoid an unmanageable fleet replacement period post-2012 that approaches about 1,000 aircraft," the Chicago Tribune reported. He said the manufacturer is "trying to reserve some spots" in its production line this year. Feb 14, 2008

Boeing won an earlier version of the U.S. Air Force tanker program that was scrapped amid an ethics scandal. Analysts think that the Air Force planners still likely favor the 767, because it is similar in size to the military's half-century-old KC-135 (707 sixties vintage) tankers, but with the latest technological advances. Because they're smaller and require less runway, Boeing's tankers could be deployed from airstrips in Africa or Central Asia, while the EADS version would likely be based in Europe, analysts say. The Air Force likely would have to reinforce existing runways to handle the heavier A330, and redesign storage facilities to accommodate the jet's wider wingspan. Feb 14, 2008

US Federal Aviation Administration (FAA) grants Boeing additional certification for refueling tanker. Boeing has received additional FAA certification for its KC-767 aerial refueling tanker. The certification will allow the company to deliver the tanker to Japan by the end of March. Boeing also plans to sell the plane to Italy. Feb 14, 2008

Boeing To Deliver Fewer Planes In India. Boeing expects to deliver 30 planes in India in 2008, 15 less than last year, a company official said on Wednesday. Boeing has 160 aircraft on order from India worth USD$25 billion, due for delivery until 2012. Boeing estimates India will need 911 planes worth USD$86 billion by 2027. Boeing has also made presentations to state-run Air India for sale of planes beyond 2011, he added. Air India's current orders are due to be delivered by 2011 and it is looking to add planes beyond then in tandem with a rapidy growing domestic aviation market. Asian carriers led by India and China have grown at a fast rate, with the Indian market growing by more than a quarter annually over the last 3-4 years. Boeing's primary customers in India are Air India, Jet Airways and budget carrier SpiceJet. Feb 13, 2008

US FAA expects to certify new runway safety tools soon. The US Federal Aviation Administration (FAA) is accelerating the certification process for some electronic displays that provide commercial pilots with detailed runway information. It expects to certify a Boeing system that uses global positioning technology soon. Feb 13, 2008

Boeing expects up to 100 orders from Middle Eastern customers. Boeing expects to book orders for up to 100 planes from customers in the Middle East in 2008, said Lee Monson, Boeing's senior vice president for commercial airplanes. Arab airlines expect to boost their fleets by nearly two-thirds by 2015. Feb 12, 2008

Air Force investigates Boeing (McDonnell Douglas) F-15 accident to determine liability. The Air Force is continuing to investigate defective parts on the F-15 Eagle aircraft fleet to determine whether Boeing should be held liable, a top official said. The Air Force grounded the fleet after an accident in November in which the front section of the plane broke off. Feb 11, 2008

Boeing believes in 'second-generation' biofuels. Boeing is upbeat on its progress with what it terms "second-generation" biofuels and believes regular commercial services could be operating within five years. Addressing an industry environmental conference in Sydney, Head of Environmental Strategy Bill Glover said that in the past two years he "changed from being a skeptic to an enthusiastic supporter of sustainable biofuels," adding, "It will take time to collect the data and get confidence [in the fuel], but an aircraft powered by a biofuel blend could be flying as early as five years' time. Within 10 years we can have a significant impact on the market and on the carbon footprint of aviation."Feasibility studies will begin this month with Virgin Atlantic Airways and GE, while Air New Zealand and Rolls-Royce come onboard later this year. Glover said there has been substantial progress over the past 18 months. Feb 11, 2008