Air India awaits Boeing Dreamliner's takeoff

Boeing Co. has reported better-than-expected second-quarter results but failed to answer when will its troubled 787 Dreamliner, 27 of which have been ordered by Air India, fly for the first time.

Boeing has determined how to fix a 787 wing-body problem, discovered in late May, but it still doesn't know how long the modifications will take, according to Chairman and Chief Executive Jim McNerney cited by the Wall Street Journal.

Problems on the Dreamliner, which was Boeing's hottest-selling commercial aircraft ever, already have pushed the first deliveries of the plane back nearly two years and cost the company millions of dollars in penalties and concessions to customers.

During its earnings conference call, analysts pressed McNerney and Chief Financial Officer James Bell for additional details on the programme's timetable and the cost impact on the programme and the company at large, the Journal reported.

"The delays are obviously putting pressure on the programme's profitability," said Bell. So far, the company has indicated the programme has been profitable, though analysts are looking for signs that Boeing could take a charge in the coming quarters once it updates cost estimates, the leading US financial daily said.

The company left intact its projection for 2009 earnings to come in at $4.70 to $5 a share but said that could change based on an updated analysis of the 787's costs.

Many airlines have planned their business models around the 787, which promises fuel-efficiency and maintenance-cost savings. The lack of a firm delivery timetable has thrown off their ability to plan everything from future routes to when they retire aging aircraft.

For the second quarter, Boeing reported net income of $998 million, or $1.41 a share, up 17 percent from $852 million, or $1.16 a share, a year earlier.

That beat analysts' expectations of $1.21 a share. The prior-year results included 22 cents a share in charges. Revenue was up 1.1 percent to $17.15 billion. Revenue at the company's Integrated Defence Systems Unit rose 9 percent to $8.7 billion.

Boeing, Lion Air Announce Order for 737s

The Boeing Company (NYSE:BA) and Jakarta-based Lion Air today announced an order for 56 Next-Generation 737-900ER (Extended Range) airplanes. This order, valued at more than $4.4 billion at current list prices, brings Lion Air's combined orders for the 737-900ER to 178. Additionally, the airline acquired purchase rights for an additional 50 737-900ERs.
Boeing Commercial Airplanes Vice President, Sales, Dinesh Keskar and Lion Air Founder and President Director Rusdi Kirana announced the order at the Singapore Air Show.

"The Next-Generation 737 is the right airplane for our airline, our customers and our growing route structure," Kirana said. "Lion Air is committed to growing its fleet with fuel-efficient, reliable and technologically advanced aircraft, while offering its passengers the best service and lowest fares in the market."
Boeing launched the 737-900ER program in July 2005 when Lion Air announced the initial order for 30 of the newest 737 model. All of Lion Air's airplanes will be equipped with performance-enhancing Blended Winglets, which improve fuel efficiency and reduce CO2 emissions by up to 4 percent.
"Lion Air, the world's largest operator of the 737-900ER, is leveraging the Next-Generation 737's unmatched economics, reliability and overall value to deliver superior service for its customers," Keskar said. "We look forward to growing our relationship with this most valued customer for many years to come."
The 737-900ER incorporates a new pair of exit doors and a flat r ear-pressure bulkhead that allow a maximum capacity of 220 passengers in a single-class layout. Aerodynamic and structural design changes -- including strengthened wings, a two-position tailskid, enhancements to the leading- and trailing-edge flap systems, optional Blended Winglets, and auxiliary fuel tanks -- will allow the 737-900ER to accommodate higher takeoff weights and increase its range to 3,200 nautical miles (5,900 km).

The 737-900ER has substantial economic advantages over competing models, including 6 percent lower operating costs per trip and 4 percent lower operating costs per seat than its competitor -- which is more than 9,550 pounds (4,340 kg) heavier. The 737-900ER joins the 737-600, -700, -700ER and -800 airplanes and will share the same industry-leading reliability of the other Next-Generation 737 series models.

To date, eight customers have placed orders for 227 Next-Generation 737-900ERs. The 737 is the best-selling commercial jetliner in history, with more than 7,700 orders from more than 245 customers around the world. Boeing has more than 2,000 unfilled orders for the airplane with a value exceeding $145 billion at current list prices.

Lion Air received the first 737-900ER in April 2007 when the airplane was delivered in a special dual paint scheme that combined the Lion Air lion on the vertical stabilizer and the Boeing livery colors on the fuselage. The airline has received a total of nine 737-900ERs to date. Lion Air operates an all-Boeing fleet and is the largest low-fare airline in Asia, with traffic approaching 1 million passengers per month since the airline began operations in June 2000.

Boeing, Garuda Indonesia Announce 777 Order

The Boeing Company (NYSE:BA) and Jakarta-based Garuda Indonesia today announced at the Singapore Air Show that the airline has ordered four 777-300ER (Extended Range) airplanes. The order is valued at more than $1 billion at current list prices.
Additionally, Garuda confirmed a previous unidentified order for seven Next-Generation 737-800s placed in 2007, and announced that it has converted 18 of its existing 737-700s on order to 737-800s and six 777-200ERs on order to 777-300ERs.

"We are extremely pleased with the support provided by Boeing to restructure previous purchase commitments," said Emirsyah Satar, president-director and chief executive officer of Garuda Indonesia. "This will enable Garuda to strategically implement its fleet renewal and expansion plan to meet the demands of a changing marketplace."

Garuda originally placed an order for six 777-200ERs in 1996 and 18 737-700s in 1999, which were recorded on Boeing's order books. With today's announcement, Garuda's total order now stands at 25 737-800s and 10 777-300ERs jetliners. Additionally, the airline acquired purchase rights for an additional 25 737-800s and 10 777-300ERs.

"The Next-Generation 737-800 and 777-300ER's dependability, low operating cost and passenger comfort will provide unmatched value and reliability for our passengers and enhance the position of Garuda as the full-service airline of Indonesia," Satar said.

Garuda's 737s will be fitted with Blended Winglets, which will improve fuel efficiency, increase range, and reduce CO2 emissions and takeoff noise.

"The digitally designed Next-Generation 737-800 and 777-300ER are the most technologically advanced airplane families for the single- and twin-aisle market flying today," said Dinesh Keskar, vice president, Sales, Boeing Commercial Airplanes. "We are honored that Garuda has selected Boeing jetliners to support its strategic modernization plan and we welcome this occasion to strengthen our long-time partnership with Garuda and our commitment to Indonesia's aviation industry."

As new market opportunities develop, Next-Generation 737 operators can grow their fleets with a lower investment in parts, equipment and training. Operators benefit from common flight deck, engines, maintenance and airframe spares. As of Jan. 31, Boeing had logged orders for more than 4,500 Next-Generation 737s, and has unfilled orders for more than 2,000 Next-Generation 737 airplanes worth more than $145 billion at current list prices.

The 777 family of airplanes is the market leader in the 300- to 400-seat segment. The 777 is preferred by airlines around the world because of its fuel efficiency, reliability and spacious passenger cabin. The 777-300ER is the world's largest long-range twin-engine jetliner, capable of carrying 365 passengers up to 7,930 nautical miles (14,685 kilometers). As of Jan. 31, Boeing had logged orders for more than 1,000 777s, and has 353 unfilled orders for 777s with a value exceeding $90 billion at current list prices.

Garuda, the flagship carrier for Indonesia, currently operates a mixed fleet that includes 43 737-300/400/500/800 airplanes as well as 747-400s, and operates both domestic and international routes in Pan-Asia and the Middle East.

Boeing and Tata Industries Announce India Joint Venture

The Boeing Company (NYSE:BA) and Tata Industries Limited of India have agreed on a plan to form a joint-venture company that will initially include more than US$500 million of defense-related aerospace component work in India for export to Boeing and its international customers.
Under the memorandum of agreement signed by Boeing and Tata, it is contemplated that the joint-venture company will be established by June 2008, and shortly thereafter will begin work building Boeing aerospace components.

"I am very excited to announce this agreement," said Jim Albaugh, president and CEO of Boeing Integrated Defense Systems. "It represents another step in our commitment to India, in this case by linking the capabilities and heritages of these two companies, in order to bring real and lasting value to India's aerospace industry, while making Boeing products more globally competitive."
It is the intent of Boeing and Tata not only to utilize existing Tata manufacturing capability, but also to develop new supply sources throughout the Indian manufacturing and engineering communities for both commercial and defense applications.
"This joint venture between Tata and Boeing is an important part of our strategy to build capabilities in defense and aerospace," said Ratan Tata, chairman of the Tata Group. "I look forward to the joint venture becoming a world-class facility in India."
Manufacturing capabilities established within the joint-venture company would in later phases be leveraged across multiple Boeing programs, including the Medium Multi-Role Combat Aircraft (MMRCA) competition.
In the first phase of the agreement, Boeing would potentially issue contracts for work packages to the joint-venture company involving defense-related component manufacturing on Boeing's F/A-18 Super Hornet for the U.S. Navy and Royal Australian Air Force, CH-47 Chinook and/or P-8 Maritime Patrol Aircraft. A research and development center for advanced manufacturing technologies is also contemplated.
"Boeing is strengthening and deepening its partnerships with Indian industry through a wide range of new teaming opportunities," said Ian Thomas, president of Boeing India. "Our joint venture with Tata marks a significant milestone in our ongoing journey to build world-class aerospace and defense manufacturing capability in India."
Boeing's history in India reaches back more than 60 years, marked by success in working with airline customers, parts suppliers, research institutes and others to provide products and services. In December 2003, Boeing established a wholly owned subsidiary, Boeing International Corporation India Private Limited (BICIPL), to support the growing demands of India's aviation, aerospace and defense industries.
The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 percent of the country's GDP, and a market capitalization of $72.8 billion as of January 10, 2008. Tata companies together employ over 300,000 people.
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Headquartered in Chicago, The Boeing Company is a $66.4 billion business with 159,000 employees worldwide.

Boeing and ST Aerospace Complete Door Cutting for First 767-300 Boeing Converted Freighter

The Boeing Company (NYSE:BA) and Singapore Technologies Aerospace Ltd (ST Aerospace) today announced that ST Aerospace's subsidiary, ST Aviation Services Company (SASCO), has completed the door cutting for the first 767-300 Boeing Converted Freighter (BCF). The aircraft was inducted on Oct. 18 this year from All Nippon Airways (ANA), Boeing's launch customer for this program. The prototype is expected for redelivery in June 2008, after completion of flight tests and certification by Boeing.

"This is an important day in the life of the Boeing Converted Freighter and the 767-300BCF Working Together partnership," said Dennis Floyd, Boeing vice president Freighter Conversions. "Like many of you, each of us on the BCF team dedicate our day, every day, to developing products that our customers can trust to bring them safe and reliable transportation services. It is the key to long-term customer satisfaction."

A significant milestone in the passenger-to-freighter (PTF) programme, door cutting signifies the start of the major activity in a PTF. It indicates the readiness of the aircraft for the replacement of the floor structures, installation of the new door surround structures and the eventual installation of the main deck cargo door.

"We are happy that the completion of the door cutting for the first 767-300 BCF is ahead of production schedule. It demonstrates ST Aerospace's commitment to delivering a quality product to Boeing in an efficient manner," said TAY Kok Khiang, President, ST Aerospace. "We are honoured with the confidence Boeing has placed in us. With the experience gained from the other conversion programmes, we will continue to leverage on our engineering capabilities, excellent quality and fast turnaround time, to bring even greater value to Boeing and its customers worldwide."

Earlier in March this year, ST Aerospace, through SASCO, was selected by Boeing to perform PTF conversions under the 767-300 BCF programme. ST Aerospace is a part of Boeing's international network of modification facilities, and was selected as the conversion centre for 767-300 BCF based on its performance. Since 1992, ST Aerospace's facilities in Singapore and the US have been actively involved in performing PTF conversions for aircraft including the DC-10, MD-10 BCF, MD-11 BCF, 727 and 757-200 Special Freighter.

A 767-300 passenger aircraft undergoes major modifications on its main deck, with the converted 767-300 BCF expected to have about the same cargo capability as the same model production freighter with approximately 50 tonnes structural payload at a range of approximately 3,000 nautical miles (5,930km) and 412,000lbs (187,270kg) maximum take off weight. There are 24 pallet positions on the main deck. As with the other BCF conversions, Boeing offers a variety of support packages that may be incorporated during 767-300 BCF conversions, including avionics and flight-deck upgrades. Airlines may also consider options such as carbon brakes, live animal and perishable food carriage, weight upgrade and integration of technical manuals.

Boeing Commercial Airplanes, a business unit of Boeing, provides unsurpassed, around-the-clock technical support to help operators maintain their airplanes in peak operating condition. Through its Commercial Aviation Services unit, Boeing provides services and solutions for the lifecycle of a customer's fleet, helping to increase airplane availability, improve reliability and enhance efficiency. Please visit http://www.boeing.com/.

ST Aerospace is the aerospace arm of ST Engineering. Operating a global MRO network with facilities in the Americas, Asia Pacific and Europe, it is the world's largest airframe MRO provider with a global customer base that includes many of the world's leading airlines, airfreight operators and military operators. ST Aerospace provides a full spectrum of maintenance and engineering services through its two business segments: Aircraft Maintenance & Modification (AMM) and Component & Engine Total Support (CETS). Its services include airframe, engine and component maintenance; repair and overhaul; engineering design and technical services; and aviation materials and management services, including Total Aviation Support. ST Aerospace has a global staff strength of more than 6,000 engineers and technical specialists. Please visit http://www.staero.aero/.

Source: Boeing