Boeing has discovered another manufacturing flaw with the 787 which will delay deliveries.
Read the full story from The Seattle Times:
Category Archives: Boeing
Boeing CEO, confident of path to recovery, offers hints of next new airplane
Boeing works to absorb lessons from 737 MAX crashes and improve safety
Good article from The Seattle Times:
Boeing expands ecoDemonstrator flight testing with ‘Explorer’ airplanes, announces 2023 plan
Boeing is expanding its ecoDemonstrator flight-test program to further accelerate innovation for sustainability and safety. The company today announced its 2023 plan to assess 19 technologies on the Boeing 777 ecoDemonstrator, while also adding “Explorer” airplanes that will focus tests on specific technologies.
The first ecoDemonstrator Explorer, a 787-10 Dreamliner, will conduct flight tests in June from Seattle to Tokyo, Singapore and Bangkok to demonstrate how coordinating navigation across global airspace jurisdictions can improve operational efficiency, which can reduce an airplane’s fuel use and emissions by up to 10%. Utilizing today’s onboard capabilities, Boeing and air navigation service providers (ANSPs) in the U.S., Japan, Singapore and Thailand will collectively sequence the airplane’s routes to achieve the optimal flight path across multiple regions, factoring in conditions such as weather, air traffic and airspace closures. The airplane will fly on the highest available blend of sustainable aviation fuel (SAF) at each location.
In 2023, Boeing also will use its current flagship ecoDemonstrator airplane, a 777-200ER (Extended Range), to test 19 technologies including:
- Sustainable wall panels in the cargo hold that are made of 40% recycled carbon fiber and 60% resin made from a bio-based feedstock
- A fiber optic fuel quantity sensor compatible with 100% SAF
- An Electronic Flight Bag application featuring Smart Airport Maps, a component of Jeppesen FliteDeck Pro, which reduces operational costs and supports safe taxi operations with the depiction of contextual airport data
- For all flight tests, the airplane will fly on the highest available blend of SAF locally
Since its initial flights in 2012, the Boeing ecoDemonstrator program has accelerated innovation by taking new technologies out of the lab and testing them in an operational environment. Including the 2023 plan, the program will have tested about 250 technologies to help decarbonize aviation, improve operational efficiency and enhance safety and the passenger experience. Approximately a third of tested technologies have progressed onto Boeing’s products and services.
Boeing reports a GAAP net loss of $425 million in the first quarter
First Quarter 2023
- Still expect to deliver 400-450 737 airplanes in 2023; plan to increase production to 38 per month later this year
- Revenue increased to $17.9 billion primarily reflecting 130 commercial deliveries
- Operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP); cash and marketable securities of $14.8 billion
- Total company backlog of $411 billion, including over 4,500 commercial airplanes
- Reaffirm guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion of free cash flow (non-GAAP)
| Table 1. Summary Financial Results | First Quarter | |||||||||||||||||||
| (Dollars in Millions, except per share data) | 2023 | 2022 | Change | |||||||||||||||||
| Revenues | $17,921 | $13,991 | 28 % | |||||||||||||||||
| GAAP | ||||||||||||||||||||
| Loss From Operations | ($149) | ($1,162) | NM | |||||||||||||||||
| Operating Margin | (0.8) | % | (8.3) | % | NM | |||||||||||||||
| Net Loss | ($425) | ($1,242) | NM | |||||||||||||||||
| Loss Per Share | ($0.69) | ($2.06) | NM | |||||||||||||||||
| Operating Cash Flow | ($318) | ($3,216) | NM | |||||||||||||||||
| Non-GAAP* | ||||||||||||||||||||
| Core Operating Loss | ($440) | ($1,445) | NM | |||||||||||||||||
| Core Operating Margin | (2.5) | % | (10.3) | % | NM | |||||||||||||||
| Core Loss Per Share | ($1.27) | ($2.75) | NM | |||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
The Boeing Company [NYSE: BA] recorded first-quarter revenue of $17.9 billion, GAAP loss per share of ($0.69), and core loss per share (non-GAAP)* of ($1.27)(Table 1). Boeing reported operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP). Results improved on commercial volume and performance.
“We delivered a solid first quarter and are focused on driving stability for our customers,” said Dave Calhoun, Boeing president and chief executive officer. “We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term. Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
| Table 2. Cash Flow | First Quarter | |||||||||||||||||||||||
| (Millions) | 2023 | 2022 | ||||||||||||||||||||||
| Operating Cash Flow | ($318) | ($3,216) | ||||||||||||||||||||||
| Less Additions to Property, Plant & Equipment | ($468) | ($349) | ||||||||||||||||||||||
| Free Cash Flow* | ($786) | ($3,565) | ||||||||||||||||||||||
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
Operating cash flow was ($0.3) billion in the quarter reflecting higher commercial deliveries and favorable receipt timing (Table 2).
| Table 3. Cash, Marketable Securities and Debt Balances | Quarter-End | |||||||||||||
| (Billions) | Q1 23 | Q4 22 | ||||||||||||
| Cash | $10.8 | $14.6 | ||||||||||||
| Marketable Securities1 | $4.0 | $2.6 | ||||||||||||
| Total | $14.8 | $17.2 | ||||||||||||
| Consolidated Debt | $55.4 | $57.0 | ||||||||||||
| 1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities totaled $14.8 billion, compared to $17.2 billion at the beginning of the quarter (Table 3). Debt was $55.4 billion, down from $57.0 billion at the beginning of the quarter due to the pay down of debt maturities. The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $411 billion.
Segment Results
Commercial Airplanes
| Table 4. Commercial Airplanes | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Commercial Airplanes Deliveries | 130 | 95 | 37 % | |||||||||||||||||||||||||||||
| Revenues | $6,704 | $4,194 | 60 % | |||||||||||||||||||||||||||||
| Loss from Operations | ($615) | ($897) | NM | |||||||||||||||||||||||||||||
| Operating Margin | (9.2) | % | (21.4) | % | NM | |||||||||||||||||||||||||||
Commercial Airplanes first-quarter revenue increased to $6.7 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (9.2) percent also reflects abnormal costs and period expenses, including research and development.
On the 737 program, earlier this month the program’s fuselage supplier notified Boeing that a non-standard manufacturing process was used on two fittings in the aft fuselage section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. While near-term deliveries and production will be impacted as the program performs necessary inspections and rework, the program still expects to deliver 400-450 airplanes this year. On production, the supplier master schedule remains unchanged including anticipated production rate increases, which will result in higher inventory levels. The company expects final assembly production to recover in the coming months with plans to increase to 38 per month later this year and 50 per month in the 2025/2026 timeframe.
The 787 program is producing at three per month with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, Commercial Airplanes secured net orders of 107. Also during the quarter the company secured commitments from Air India for 190 737 MAX, 20 787, and 10 777X airplanes and from Riyadh Air and Saudi Arabian Airlines for up to 121 787 airplanes. Commercial Airplanes delivered 130 airplanes during the quarter and backlog included over 4,500 airplanes valued at $334 billion.
Defense, Space & Security
| Table 5. Defense, Space & Security | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Revenues | $6,539 | $5,483 | 19 % | |||||||||||||||||||||||||||||
| Loss from Operations | ($212) | ($929) | NM | |||||||||||||||||||||||||||||
| Operating Margin | (3.2) | % | (16.9) | % | NM | |||||||||||||||||||||||||||
Defense, Space & Security first-quarter revenue was $6.5 billion. First-quarter operating margin of (3.2) percent primarily reflects a $245 million pre-tax charge on the KC-46A Tanker program largely driven by the previously shared supplier quality issue resulting in factory disruption and rework. Results also include the continued operational impact of labor instability and supply chain disruption on other programs.
During the quarter, Defense, Space & Security captured awards from the U.S. Army for 184 Apaches and from the U.S. Air Force for 15 KC-46A Tankers and the initial E-7 development contract. Backlog at Defense, Space & Security was $58 billion, of which 30 percent represents orders from customers outside the U.S.
Global Services
| Table 6. Global Services | First Quarter | |||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | |||||||||||||||||||||||||||||
| Revenues | $4,720 | $4,314 | 9 % | |||||||||||||||||||||||||||||
| Earnings from Operations | $847 | $632 | 34 % | |||||||||||||||||||||||||||||
| Operating Margin | 17.9 | % | 14.6 | % | 3.3 pts | |||||||||||||||||||||||||||
Global Services first-quarter revenue of $4.7 billion and operating margin of 17.9 percent reflect higher commercial volume and favorable mix.
During the quarter, Global Services committed to set up the first Boeing Converted Freighter line in India in collaboration with GMR Aero Technic, delivered AerCap’s 50th 737-800 Boeing Converted Freighter and broke ground on a new component operations facility in Jacksonville, Florida.
Additional Financial Information
| Table 7. Additional Financial Information | First Quarter | |||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Unallocated items, eliminations and other | ($42) | $— | ||||||||||||||||||||||
| Earnings/(loss) from Operations | ||||||||||||||||||||||||
| FAS/CAS service cost adjustment | $291 | $283 | ||||||||||||||||||||||
| Other unallocated items and eliminations | ($460) | ($251) | ||||||||||||||||||||||
| Other income, net | $302 | $181 | ||||||||||||||||||||||
| Interest and debt expense | ($649) | ($637) | ||||||||||||||||||||||
| Effective tax rate | 14.3 | % | 23.2 | % | ||||||||||||||||||||
The increase in loss from Other unallocated items and eliminations was driven by timing of allocations and deferred compensation expense. Other income primarily reflects an increase in investment income due to higher interest rates. The first-quarter effective tax rate primarily reflects the tax benefit of pretax losses.
Segment results reflect the realignment of Boeing Capital into the Commercial Airplanes segment during the first quarter of 2023. Prior period amounts have also been reclassified to conform to the 2023 presentation.
Boeing shares are down as some MAX deliveries are halted, customers are concerned over the impact
Boeing has been forced to delay some MAX deliveries due to a problem with a sub-contractor.
According to Reuters, the installation of two fittings that join the aft fuselage made by Spirit AeroSystems to vertical fin must now be inspected before the aircraft can be handed over to the customer.
Boeing and Spirit will have to perform inspections of the affected MAX 7, MAX 8 and MAX 8200 aircraft.
Read the full story from Reuters:
Seattle Times: Boeing 737 MAX production hit by a new defect in supplier part from Spirit AeroSystems
According to The Seattle Times, Boeing 737 MAX deliveries “will be substantially slowed due to a new defect in a part from supplier Spirit AeroSystems.
The defect will require rework on finished MAXs not yet delivered as well as those currently on the assembly line.”
Read the full article:
Boeing to boost 737 MAX output to pre-crisis levels by 2025
Boeing is planning to boost production of the 737 MAX aircraft to 52 airplanes a month by January 2025 according to Reuters.
Boeing deliveries increase in the first quarter, 130 airliners delivered
The Boeing Company announced major program deliveries across its commercial and defense operations for the first quarter of 2023.
The company will provide detailed first quarter financial results on April 26. Major program deliveries during the first quarter were as follows:
| Major Programs | 1st Quarter 2023 | ||
| Commercial Airplanes Programs | |||
| 737 | 113 | ||
| 747 | 1 | ||
| 767 | 1 | ||
| 777 | 4 | ||
| 787 | 11 | ||
| Total | 130 | ||
| Defense, Space & Security Programs | |||
| AH-64 Apache (New) | 7 | ||
| AH-64 Apache (Remanufactured) | 13 | ||
| CH-47 Chinook (New) | 5 | ||
| CH-47 Chinook (Renewed) | 1 | ||
| F-15 Models | 2 | ||
| F/A-18 Models | 7 | ||
| KC-46 Tanker | 1 | ||
| MH-139 | — | ||
| P-8 Models | 3 | ||
| Commercial and Civil Satellites | 3 | ||
| Military Satellites | — | ||
| Note: Delivery information is not considered final until quarterly financial results are issued. | |||
After four tough years, can Boeing break through under CEO David Calhoun?
Boeing suffered through four tough years. The company is now picking up deliveries for its 737 MAX airliners and 787 Dreamliners.
Boeing is now hiring again to pick up the pace. However its is now behind Airbus in ordfers and deliveries.
CEO David L. Calhoun stated in the 2022 annual report:
“Every day we work to transform our company to service big defense and commercial needs. There is substantial and growing demand for the products and services we create, with more than $400 billion in open orders. In response to these demands and in light of post-COVID supply chain challenges, a priority is making our aircraft production capabilities more predictable and scalable. We do this work while meeting exacting safety and quality standards that are set by our regulators and customers and reflect our values, and I am incredibly proud of the progress we have made in our journey together.
Our mission—to protect, connect and explore our world and beyond—is supported by our unwavering commitment to strengthening safety through continuous improvement, learning and innovation. We will never forget the lives lost in the 737 MAX accidents. Their memory drives us every day to uphold our responsibility to all who depend on the safety of our products
and services.
Despite facing existential challenges in our company’s recent history, there has not been a single year in the last decade when we did not invest substantial time
and capital to enhance our capabilities and deliver innovation. We established research and technology centers in Australia, Brazil, China, Europe, the Middle East, India, South Korea and most recently in Japan. We believe the unique local perspectives our teammates bring to the table allow us to collaborate globally to find technology solutions that drive future growth.
Boeing is one of the most sophisticated engineering and technology companies in the world. We specialize in creating the world’s leading aerospace and defense products and solutions. Prioritizing and expanding large-scale capability investments will help us secure our future.
Additionally, distinctive new capabilities will deliver breakthrough benefits to our customers and reshape our industry in our favor, while uncovering new opportunities for growth. As part of our capability-building journey, we grew our workforce by about 23,000 teammates in 2022, primarily in engineering and manufacturing.
Our team works around the clock to create pioneering physical materials, sophisticated digital platforms and advanced production systems. Digital threads increasingly knit together our capabilities from design to production to support. Big data linked to intelligent analytics powers technologies embedded into our products and services while creating more efficient operations.”
More from Seattle Times:
Boeing halts 787 deliveries due to “documentation” issues – WSJ
Boeing has temporarily halted deliveries of its 787 Dreamliners due to questions concerning “documentation”, according to The Wall Street Journal.
Boeing has not completed a delivery since January 26.
Air India orders 190 Boeing 737 MAX, 20 787 Dreamliner and 10 777X airplanes
Boeing and Air India today announced the carrier has selected Boeing’s family of fuel-efficient airplanes to expand its future fleet with plans to invest in 190 737 MAX, 20 787 Dreamliner and 10 777X airplanes. Along with a comprehensive set of aviation services, Air India is advancing its fleet strategy to sustainably address South Asia’s rapidly growing market for domestic and international air travel.
The agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s. When finalized, this will be the largest Boeing order in South Asia and a historic milestone in the aerospace company’s nearly 90-year partnership with the carrier. The order will post to Boeing’s Orders and Deliveries website when final.
Air India has also contracted with Boeing Global Services for lifecycle support services, including digital solutions, spare parts and landing gear exchange programs, pilot and maintenance technician training, aircraft modifications and other services.
The 737 MAX will provide flexibility across Air India’s domestic and international network while reducing fuel use and emissions by 20% compared to the airplanes it replaces.
- The 737-8, seating 162 to 210 passengers, depending on configuration, and with a range of 3,500 nautical miles, is the market’s most versatile single-aisle airplane, capable of operating profitably on short- and medium-haul routes.
- The 737-10, the largest airplane in the 737 MAX family, offers the best per-seat economics of any single-aisle commercial jet, seating 188 to 230 passengers, depending on configuration with a range of 3,100 nautical miles.
Air India has benefited from the efficiency and flexibility of the 787 Dreamliner family with an existing fleet of 27 787-8s. The larger 787-9 will provide increased capacity, greater range and 25% better fuel efficiency compared to earlier generation jets.
Comair sues Boeing for alleged fraud over the 737 MAX aircraft
Comair Limited has filed a lawsuit in federal court against The Boeing Company for fraud and breach of contract concerning the purchase of eight 737 MAX aircraft.
Comair is seeking damages in excess of $83 million, which it suffered as a result of Boeing’s wrongful conduct.
The lawsuit details Boeing’s wrongful conduct and alleges:
- In 2010, Boeing was under pressure from its largest competitor, Airbus. This pressure led Boeing to take shortcuts, make misrepresentations and conceal information to bring the 737 MAX to market quickly.
- One of the 737 MAX’s central flaws was its new engines. They were larger and could not easily fit under the 737 frame’s low wings. To obtain adequate ground clearance, Boeing moved the engines up and forward.
- The new mount location caused the aircraft’s nose to abnormally pitch up.
- Rather than make the necessary, but more costly, aerodynamic changes needed to prevent the pitch-up problem, Boeing tried to combat it with a new software called the Maneuvering Characteristics Augmentation System (“MCAS”), which automatically applied downward stabilizer trim.
- MCAS did not work safely, and Boeing knew it. A Boeing test pilot reported it took more than 10 seconds to respond to an uncommanded MCAS activation, which he described as a “catastrophic” condition. Boeing also eliminated one of two sensors that told MCAS when to activate—leaving it more prone to failure. Boeing deleted reference to MCAS from the Flight Crew Operations Manual, but forgot to remove it from the abbreviations table.
- Rather than rectify known problems, Boeing concealed them from customers (including Comair) and the FAA in a rush to market and to maximize profits.
- With the existence of the entire MCAS system concealed, Boeing avoided any requirement that pilots be trained on MCAS. Boeing represented that the pilot skill needed to fly the 737 MAX was “interchangeable” with the training and skill needed to pilot the existing 737 NG aircraft.
- In reliance on Boeing’s misrepresentations and concealed facts, on September 19, 2013, Comair entered into a Purchase Agreement with Boeing for the sale of eight 737 MAX aircraft for a total aircraft base price of more than $98 million. Delivery of Comair’s first 737 MAX would take place in February 2019.
- On October 28, 2018, a 737 MAX (Lion Air Flight 610) crashed 11 minutes after takeoff from Jakarta, Indonesia, killing all 189 passengers and crew on board. MCAS engaged to force the aircraft’s nose sharply down. The crew fought to counteract it, but were eventually overcome by MCAS and the aircraft dove into the sea.
- On March 10, 2019, another 737 MAX (Ethiopian Air Flight 302) crashed six minutes after takeoff from Addis Ababa, Ethiopia, killing all 157 passengers and crew on board. Like Lion Air Flight 610, Ethiopian Air Flight 302 crashed when MCAS persistently engaged forcing the aircraft toward the ground.
- Shortly thereafter, all of Boeing’s 737 MAX aircraft were grounded worldwide.
- In September 2020, a U.S. House of Representatives committee investigated the 737 MAX and concluded there was a “disturbing pattern of technical miscalculations and troubling management misjudgments by Boeing” and a “culture of concealment” at Boeing, among other things.
- Among “several unmistakable facts” uncovered, the House Committee found: “Boeing withheld crucial information from the FAA, [and] its customers . . . including ‘concealing the very existence of MCAS from 737 MAX pilots.'”
- Comair relied on Boeing’s misrepresentations and concealment of material facts in deciding to purchase eight 737 MAX aircraft.
- Comair paid Boeing more than $45 million in advanced payments on seven 737 MAX aircraft and full payment on the one 737 MAX aircraft it received. Boeing has refused to return the advanced deposits on the seven aircraft it never delivered to Comair. Comair suffered additional damages as a result of the grounding of its 737 MAX for a total loss of more than $83 million.
Comair Limited is based in South Africa. Comair Limited was an airline that operated scheduled services on domestic routes as a British Airways licensee. It also operated as a low-cost carrier under its own kulula.com brand.
Top Copyright Photo: British Airways-Comair (South Africa) Boeing 737-8 MAX 8 ZS-ZCA (msn 60432) JNB (Jonathan Druion). Image: 946067.
British Airways-Comair aircraft photo gallery:
Watch as the final 747 departs Boeing
Thursday, February 2, 2023
https://onfirstup.com/embed/video/29815483-f50d-4df8-8eed-3542c3c7c866
The final 747’s flight path over Eastern Washington, according to Planefinder.
Following a festive and star-studded sendoff ceremony the previous day, the final 747 – the 1,574th overall – left its birthplace in Everett, Washington, Wednesday morning, lifting off from Paine Field at 8:19 a.m. Pacific.
- The airplane joins the all-Boeing fleet of Atlas Air, bringing its 747 fleet to 56.
The scene: On a cold, bright morning, a group of plane spotters, Boeing teammates and media watched as the final 747 took off. The flyaway followed the previous day’s celebration that was watched by about 10,000 in-person attendees and thousands more as part of a global webcast. It featured past and present Boeing leaders, customer representatives and actor/pilot/aviation enthusiast John Travolta.
What’s next: During that ceremony, John Dietrich, Atlas Air Worldwide president and CEO, revealed that the final 747 would take a unique, crown-shaped flight path on its way to Cincinnati, Ohio before entering the fleet.
It is certainly a fitting start to the next chapter for the airplane known far and wide as the Queen of the Skies.
Atlas Air takes delivery of Boeing’s final 747 production aircraft
Atlas Air issued this statement:
Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. on January 31 announced it has taken delivery of the final 747 (N863GT) ever to be produced by Boeing.
The delivery of this aircraft is the last of four new Boeing 747-8 Freighters Atlas ordered in January 2021. Atlas Air will operate this aircraft for Apex Logistics, a Kuehne+Nagel company, under a long-term agreement.
Atlas designed a custom split livery for this special aircraft, with the Atlas Air logo on the right side and tail of the aircraft, and the Apex Logistics logo on the left side. To honor the legacy of the “Queen of the Skies,” a special decal is included to the right of the nose featuring Joe Sutter, considered by Boeing to be the “Father of the 747.”
“The names we chose for the last two iconic aircraft fit their legacy – ‘Inspire.’ and ‘Empower.’,” said Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics. “We are looking forward to see the last 747-8F aircraft taking off to fulfill the versatile needs of our customers around the world with unmatched capability.”
Boeing made this announcement:
Boeing employees who designed and built the first 747, known as the “Incredibles,” returned to be honored at the Everett factory where the journey of the 747 began in 1967. The factory produced 1,574 airplanes over the life of the program.
“This monumental day is a testament to the generations of Boeing employees who brought to life the airplane that ‘shrank the world,’ and revolutionized travel and air cargo as the first widebody,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “It is fitting to deliver this final 747-8 Freighter to the largest operator of the 747, Atlas Air, where the ‘Queen’ will continue to inspire and empower innovation in air cargo.”
“We are honored to continue our long history of flying this iconic aircraft for our customers around the world,” said John Dietrich, president and chief executive officer, Atlas Air Worldwide. “Atlas Air was founded over 30 years ago with a single 747-200 converted freighter, and since then, we have spanned the globe operating nearly every fleet type of the 747, including the Dreamlifter, Boeing’s 747 Large Cargo Freighter, for the transport of 787 Dreamliner parts. We are grateful to Boeing for their shared commitment to safety, quality, innovation and the environment, and for their partnership to ensure the continued success of the 747 program as we operate the aircraft for decades to come.”
As the first twin-aisle airplane and “jumbo jet,” the “Queen of the Skies” enabled airlines to connect people across vast distances and provide non-stop trans-oceanic flights. Its development solidified Boeing’s role as an industry leader in commercial aviation. The airplane’s core design with its distinctive hump and seating in the upper deck has delighted generations of passengers and operators alike. Boeing continued to improve on the original design with models like the 747-400 in 1988 and the final 747-8 model that was launched in 2005; across all the models, the jet has delivered unmatched operating economics and efficiency to travel and air cargo markets.
Cirium’s key 747 facts
- 1,574 Boeing 747s have been built
- One 747 was not delivered and instead went to a museum, meaning that 1,573 have entered service
- The first flight of the Boeing 747 took place on February 9, 1969
- While four 747s were delivered in 1969 for crew training, entry into service with Pan-Am took place in 1970.
- The aircraft first served the President of the United States of America as ‘Air Force One’ through the US Air Force’s VC-25 program in 1990.
Video:
https://www.youtube.com/live/Oe5rUGhDcgc?feature=share
Top Copyright Photo: Apexlogistics (Atlas Air) Boeing 747-8F N863GT (msn 67150) PAE (Nick Dean). Image: 959868.
Atlas Air aircraft photo gallery:
Watch the last Boeing to be built delivered today to Atlas Air
Boeing will livestream the delivery ceremony of the last Boeing 747 today (January 31):
Boeing will present a live webcast of the ceremony marking the delivery of the final 747 to Atlas Air on Jan. 31 at 4 p.m. Eastern (1 p.m. Pacific).
Thousands of people – including current and former employees as well as customers and suppliers – will celebrate the final delivery in the factory constructed to produce the iconic widebody with the distinctive hump. The final airplane, a 747-8 Freighter, is the 1,574th manufactured during 55 years of production.
While the event is not open to the public, Boeing will make this live webcast available globally at this link.
Here is the link: https://vimeo.com/event/2815427
Boeing to set up a new 737 MAX assembly line in Everett
Boeing has internally announced it will open a fourth 737 MAX assembly line at its Everett plant which is increasingly becoming vacant according to the Seattle Times.
Currently Boeing has three 737 MAX assembly lines at its Renton plant.
Boeing to hire 10,000 workers this year as it ramps up aircraft production
Boeing is planning to hire around 10,000 new employees in 2023.
The company also plans to increase deliveries of its 737 MAX from 374 aircraft in 2022 to 400 to 450 aircraft this year.
Deliveries of the 787 is expected to be between 70 and 80 aircraft.
Top Copyright Photo: Boeing 777-9 (777X) N779XY (msn 65799) VCV (Michael B. Ing). Image: 955408.
Boeing aircraft photo gallery:
Boeing hints the new jetliner it is developing with NASA could also replace the 737 MAX
Boeing is looking ahead for a possible replacement for its 737 MAX in the next decade.
The company has been working with NASA on an aircraft concept that reduces drag and fuel burn that could fly later this decade.
With improved engine technology, this unnamed concept could be 30% more efficient than the current 737 MAX and the Airbus A320neo.
Related to this, NASA has selected Boeing and its industry team to lead the development and flight testing of a full-scale Transonic Truss-Braced Wing (TTBW) demonstrator airplane.
The technologies demonstrated and tested as part of the Sustainable Flight Demonstrator (SFD) program will inform future designs and could lead to breakthrough aerodynamics and fuel efficiency gains.
When combined with expected advancements in propulsion systems, materials and systems architecture, a single-aisle airplane with a TTBW configuration could reduce fuel consumption and emissions up to 30% relative to today’s most efficient single-aisle airplanes, depending on the mission. The SFD program aims to advance the civil aviation industry’s commitment to reaching net zero carbon emissions by 2050, as well as the goals set forth in the White House’s U.S. Aviation Climate Action Plan.
Ultrathin wings braced by struts with larger spans and higher-aspect ratios could eventually accommodate advanced propulsion systems that are limited by a lack of underwing space in today’s low-wing airplane configurations. For the demonstrator vehicle, Boeing will use elements from existing vehicles and integrate them with all-new components.
NASA’s funding through the SFD Space Act Agreement totals $425 million. The SFD program will also leverage up to $725 million in funding by Boeing and its industry partners to shape the demonstrator program and meet the resource needs required. Separately, Boeing’s previous internal investments for recent phases of sustainable aviation research total $110 million.
The TTBW airframe concept is the result of more than a decade of development supported by NASA, Boeing and industry investments. Under previous NASA programs including the agency’s Subsonic Ultra Green Aircraft Research program, Boeing conducted extensive wind tunnel testing and digital modeling to advance the design of the TTBW. Early conceptual studies started under NASA’s Environmentally Responsible Aviation program.
Boeing reports a fourth quarter and full-year 2022 loss
Boeing issued this financial report for the fourth quarter and full-year 2022:
Fourth Quarter 2022
- Generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP); cash and marketable securities of $17.2 billion
- Certification efforts continue on 737-7 and 737-10
- Delivered 152 commercial airplanes and recorded 376 net orders
Full Year 2022
- Generated $3.5 billion of operating cash flow and $2.3 billion of free cash flow (non-GAAP)
- Delivered 480 commercial airplanes and recorded 808 net orders
- Total company backlog grew to $404 billion; including over 4,500 commercial airplanes
Outlook for 2023
- Reaffirming guidance: $4.5-$6.5 billion of operating cash flow and $3.0-$5.0 billion free cash flow (non-GAAP)
| Table 1. Summary Financial Results | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions, except per share data) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $19,980 | $14,793 | 35 % | $66,608 | $62,286 | 7 % | ||||||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||||
| Loss From Operations | ($353) | ($4,171) | NM | ($3,547) | ($2,902) | NM | ||||||||||||||||||||||||||||||||
| Operating Margin | (1.8) | % | (28.2) | % | NM | (5.3) | % | (4.7) | % | NM | ||||||||||||||||||||||||||||
| Net Loss | ($663) | ($4,164) | NM | ($5,053) | ($4,290) | NM | ||||||||||||||||||||||||||||||||
| Loss Per Share | ($1.06) | ($7.02) | NM | ($8.30) | ($7.15) | NM | ||||||||||||||||||||||||||||||||
| Operating Cash Flow | $3,457 | $716 | 383 % | $3,512 | ($3,416) | NM | ||||||||||||||||||||||||||||||||
| Non-GAAP* | ||||||||||||||||||||||||||||||||||||||
| Core Operating Loss | ($650) | ($4,536) | NM | ($4,690) | ($4,075) | NM | ||||||||||||||||||||||||||||||||
| Core Operating Margin | (3.3) | % | (30.7) | % | NM | (7.0) | % | (6.5) | % | NM | ||||||||||||||||||||||||||||
| Core Loss Per Share | ($1.75) | ($7.69) | NM | ($11.06) | ($9.44) | NM |
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
The Boeing Company recorded fourth-quarter revenue of $20.0 billion, GAAP loss per share of ($1.06), and core loss per share (non-GAAP)* of ($1.75) (Table 1). Boeing also generated $3.5 billion of operating cash flow and $3.1 billion of free cash flow (non-GAAP). Results improved on commercial volume and performance.
“We had a solid fourth quarter, and 2022 proved to be an important year in our recovery,” said Dave Calhoun, Boeing President and Chief Executive Officer. “Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond. We are investing in our business, innovating and prioritizing safety, quality and transparency in all that we do. While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength.”
| Table 2. Cash Flow | Fourth Quarter | Full Year | ||||||||||||||||||||||||
| (Millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
| Operating Cash Flow | $3,457 | $716 | $3,512 | ($3,416) | ||||||||||||||||||||||
| Less Additions to Property, Plant & Equipment | ($326) | ($222) | ($1,222) | ($980) | ||||||||||||||||||||||
| Free Cash Flow* | $3,131 | $494 | $2,290 | ($4,396) |
| *Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.” |
Operating cash flow improved to $3.5 billion in the quarter, reflecting higher commercial deliveries and timing of receipts and expenditures (Table 2).
| Table 3. Cash, Marketable Securities and Debt Balances | Quarter-End | |||||||||||||
| (Billions) | Q4 22 | Q3 22 | ||||||||||||
| Cash | $14.6 | $13.5 | ||||||||||||
| Marketable Securities1 | $2.6 | $0.8 | ||||||||||||
| Total | $17.2 | $14.3 | ||||||||||||
| Consolidated Debt | $57.0 | $57.2 |
| 1 Marketable securities consist primarily of time deposits due within one year classified as “short-term investments.” |
Cash and investments in marketable securities increased to $17.2 billion, compared to $14.3 billion at the beginning of the quarter, primarily driven by cash from operations (Table 3). The company has access to credit facilities of $12.0 billion, which remain undrawn.
Total company backlog at quarter-end was $404 billion.
Segment Results
Commercial Airplanes
| Table 4. Commercial Airplanes | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||||||||||||||
| Commercial Airplanes Deliveries | 152 | 99 | 54 % | 480 | 340 | 41 % | ||||||||||||||||||||||||||||||||
| Revenues | $9,224 | $4,750 | 94 % | $25,867 | $19,493 | 33 % | ||||||||||||||||||||||||||||||||
| Loss from Operations | ($626) | ($4,454) | NM | ($2,370) | ($6,475) | NM | ||||||||||||||||||||||||||||||||
| Operating Margin | (6.8) | % | (93.8) | % | NM | (9.2) | % | (33.2) | % | NM |
Commercial Airplanes fourth-quarter revenue increased to $9.2 billion driven by higher 737 and 787 deliveries, partially offset by 787 customer considerations (Table 4). Operating margin of (6.8) percent also reflects abnormal costs and period expenses, including research and development.
The 737 program is stabilizing production rate at 31 per month with plans to ramp production to approximately 50 per month in the 2025/2026 timeframe. Additionally, the 787 program continues at a low production rate with plans to ramp production to five per month in late 2023 and to 10 per month in the 2025/2026 timeframe.
During the quarter, the company secured net orders for 376 aircraft, including an order from United Airlines for 100 737 MAX and 100 787 airplanes. Commercial Airplanes delivered 152 airplanes during the quarter and backlog included over 4,500 airplanes valued at $330 billion.
Top Copyright Photo: Boeing 737-10 MAX 10 SSWL N27751 (msn 66122) BFI (Brian Worthington). Image: 959419.
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