Company Watch - Boeing

AirGuide Business, July 14, 2008

The Boeing Company released its '2008 Current Market Outlook' last week in London. The report, Boeing's 20-year forecast of air travel, foresees a market of 29,400 new commercial airplanes (passenger and freighter) by 2027, taking into account the industry's near-term challenges, including a slowing worldwide economy, surging fuel prices, slowing traffic growth in some markets, and concerted action by airlines to balance costs and revenues. Boeing forecasts a $3.2 trillion market for new commercial airplanes over the next two decades, driven by increasing demand for more efficient new airplanes to replace older aircraft. Strong orders over the past three years have resulted in more than 30 percent of the forecast already in backlog. The influence of current market conditions is reflected in the report, with replacement airplanes taking a greater share of demand (43 percent) than previously forecast (36 percent) -- due to the relative inefficiencies of older aircraft. In addition, Boeing is forecasting a slightly smaller fleet size at the end of the 20-year period (35,800) than predicted in the previous outlook (36,400). Compared with today's fleet of 19,000 units, this represents an annual increase of 3.2 percent per year -- the same as the estimated economic growth rate. These new airplanes will accommodate a forecasted 5 percent annual increase in global air travel, and a 5.8 percent annual increase in air cargo traffic. 7/17/2008

Boeing 777-200LR Freighter's first delivery is set for the fourth quarter. The company selected the -200LR because of its range and the fuel efficiency of the GE90s. The 777 Freighter will be able to match the 747-8[sup.1]s range, so operators can choose between them, depending on payloads. The larger 747-8F carries a third more payload. Among the new freighter[sup.1]s features is a side cargo door slightly larger than a 747[sup.1]s, making it easier to angle in large payloads. It was initially sought by carriers wanting to load spare Rolls-Royce Trent 1000 engines for the 787. 7/15/2008

Boeing 787 Dreamliner's brake control system software is the latest problem holding back the new plane's first test flight, the troubled program's chief said. The first of the 787s, originally meant to fly last summer, has been held back by three major production delays due to parts shortages and incomplete work from suppliers arriving at its assembly plant near Seattle. The jet is still on track for a first flight in the fourth quarter -- in line with the last schedule announced in April -- but the newest "air bubble" in the timetable is in the brake systems, Pat Shanahan, general manager of the 787 program, said at a briefing at Farnborough Airshow on Tuesday. 7/15/2008

Boeing announced it is on track to meet revised delivery targets for its delayed 787 Dreamliner jet, but said it still has work to do and time is getting tighter. The U.S. aircraft manufacturer reiterated that the flagship aircraft is on track to make its first flight in the fourth quarter of this year. The group said it is also on schedule to make the first delivery of the jet to Japan's All Nippon Airways in the third quarter of next year. Boeing had been due to deliver the jet in May this year, but had to postpone it due to production problems. The company has orders for 896 of the airliners from 58 customers to date. Pat Shanahan, vice president and general manager of the 787 programme, said the company is making 'steady progress', from meeting recent production line targets, such as testing the aircraft's electronic systems, to having hit almost 100 percent of its systems computer hardware and software targets. 7/15/2008