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Friday, March 16, 2012

JAL preps to be Boeing's second 787 customer as delivery nears

JAL 787-8 JA822J

Japan Airlines is preparing to become the second 787 customer, as Boeing nears imminent certification of GEnx-1B engines and a restart of deliveries that were stalled in early February by required repairs following improper shim installation in its aft fuselages. 

The airline has completed both route proving and maintenance training following a quiet visit of GEnx-1B-powered 787 test aircraft ZA005 to Japan for service ready operational validation (SROV) trials that lasted from February 20 to March 9.

Boeing Commercial Airplanes CEO, Jim Albaugh, says JAL will take delivery of its first aircraft in "the weeks to come".

Airplanes 23 and 33, both with 186 seats and registered JA822J and JA825J, respectively, are expected to be handed over to the carrier in late March, say program sources, ahead of the April 22 start to Boston-Tokyo-Narita services. 

Service from Narita to New Delhi and Moscow, as well as Tokyo-Haneda to Beijing are slated to start following the 787's inaugural US service.

Boeing is nearing an imminent certification for GEnx-1B engine-airframe approval for its 787, a milestone expected to be paired with 330min extended operations (ETOPS) approval, says the program's top engineer.

"The work's all done, it's just a matter of churning through all the paper work at this point," says Mike Sinnett, 787 chief project engineer of the 330min ETOPS requirements, "So now it's just rolling it through the process with the GE [certification] coming in the next couple of days, [JAL] will be able to seek operational approval and we'll be done."

JAL's Boston link will not require a 330min ETOPS certification, though the aircraft will meet requirements to fly routes that require a diversion airport between 3h and 5h 30min flying time.

GE says its pairing certification of GEnx-1B 787 will include both its baseline Block 4 and Performance Improvement Package (PIP1) configurations, the latter of which is expected to deliver a 1.4% improvement in specific fuel consumption, due to an increase in the number of low pressure turbine (LPT) blades.

JAL's first 787 is fitted with PIP1 engines, says GE. Boeing completed flying for engine-airframe certification with Boeing on Airplane 35, a production model for Air India, on 23 February.

United Airlines, which takes delivery of six 787s this year, is expected to be the first to require the 330min requirement for its routing between Houston, Texas and Auckland, New Zealand.

180min approvals for Rolls-Royce Trent 1000-powered 787s were granted ahead of its October 2011 service entry, 330min certification was split into a second block of requirements with a "software adjustment" to the low fuel quantity indication necessary to meet US Federal Aviation Administration regulatory criteria.

Engine approvals were granted to Rolls for 330min ETOPS certification for its Trent 1000 in May 2011 and to GE on the baseline Block 4 GEnx-1B in December 2011, and again on March 8 for its PIP1 configuration.

To date, Boeing has delivered five 787s, all to All Nippon Airways, which is flying its aircraft on a majority of domestic routes, as well as a sole long-haul connection between Tokyo-Haneda and Frankfurt, Germany.

ANA expected its sixth 787 in February, Airplane 40, and JAL its first, but both required repairs to shims in the aft fuselage, slowing near-term deliveries. As of March 5, Boeing had conducted repair work on five 787s, a number expected to climb further as inspection continue.


On March 1, Boeing began receiving structural shipments at the Everett factory's Position 0 at a rate of 3.5 aircraft per month for pre-integration and Postion 1 followed to the higher rate as well with the recent loading of Airplane 61, LOT's first 787, for final body join.

Albaugh expects Airplane 66 to be its first 787 that will not require change incorporation work following final assembly, an assessment that has extended beyond previous internal assessments that Airplane 63 would be the company's first "right to pre-flight" 787.

Mapping out its climb to 10 787s per month by the end of 2013 spread across three final assembly lines, Boeing is nearing a June activation of its surge line at its Everett, Washington factory and first delivery from its Charleston line.

Rather than double the pace of its primary Everett line, operational since May 2007, Boeing will initially build up to mirror the current 3.5 aircraft per month rate on its surge line, advancing the factory's 787 output to five per month by years end with the surge's 1.5 per month contribution.

"That second line will basically replicate what we're doing on the first line. So in terms of getting up to five per month, we already know how to do that so this is a matter of replication," says Pat Shanahan, Boeing senior vice president of airplane programs. 

"We'll fold it back into having just one line in Everett," he adds of the surge line, "but in the interim as we wait to bring on the 787-9 it's risk protection. So we've got kind of this belt and suspenders approach in Everett, so we're doubled down on getting to five, and then when we introduce the -9, we're rate protected if we want to run -8's down one line and -9's down another."

Though as the output across the supply chain and final assembly accelerates, Charleston's mid and aft-fuselage facilities remains the biggest "pinch point" to watch for Albaugh, despite delivering to final assembly to 100% completion of assembly. 

Charleston facilities are likely to break to the higher five aircraft per month rate mid-year, say those familiar with the plan, but with more than fifteen center fuselage undergoing integration at a time on three lines, Boeing must advance production in South Carolina well ahead of its final assembly operations to meet its planned rate increases.

"The work cells can only handle so many jobs," says Albaugh. "We want to make sure we don't overload the work cells. We've had an issue to date with change traffic with a lot of late parts. We have been able to resolve the change traffic. We have been able to resolve the parts issues. 

"And for the first time, our mechanics are starting to see planned work, time, after time, after time, and we will get the learning and we will sneak up on the rate changes rather than force them," says Albaugh.

source: fliglobal.com

FLEET WATCH: Year 2011 - flightglobal.com

nother strong year for commercial aviation
 
2011 was another strong year for commercial aviation as a total of 2,796 net orders were made and aircraft deliveries and order backlogs reached an all-time high.

Net orders in 2011

Net orders for 2011 represented an increase of 78% on the previous year. Apart from the regional jet market, each segment benefited from a considerable increase in orders.

Airbus emerged as the leader in the 2011 commercial order battle with 1,425 net orders for the year, while Boeing totalled 788. In the regional market, ATR, Embraer and Sukhoi booked 157, 160 and 73 orders, respectively. Comac took in 95 orders for the C919 narrowbody and 10 orders for the ARJ21. Bombardier totalled 43 orders for the CSeries and nine Q400s.

Narrowbody net orders increased by 107% on the previous year, totalling 2,026 for 2011. Airbus led with an impressive and record high intake of 1,351 orders, of which 1,165 were for the new A320neo. Boeing received 537 narrowbody net orders including 150 for its re-engined 737 Max. Widebody net orders came in at 325, an increase of 59% on the previous year. Boeing received 251 orders and Airbus 74. In the regional market, the ATR intake of 157 orders represents a record for the manufacturer.

From a regional perspective by operator, Asia-Pacific placed the most orders with 1,111 units, representing 40% of the market. North America followed with 1,005 net orders while Europe totalled 364.

Southwest Airlines was responsible for the largest number of orders during the year as the US operator ordered a total of 260 737s (including 150 737 Max, 73 737-800 and 37 737-700 aircraft). Malaysian-based AirAsia ordered 200 A320neo aircraft while India’s Indigo ordered 180 of the A320 Family, including 150 A320neo aircraft.

Lessors GE Capital Aviation Services (GECAS) and International Lease Finance Corp. (ILFC) ordered 123 aircraft each, while Qantas ordered 110 A320 Family aircraft (including 78 orders for the A320neo). Other large orders came in during the year from American Airlines for 100 737s and six 777s, while Delta ordered 100 737-900s.

In the major cancellations of the year, DAE Capital axed a total of 142 aircraft from its order book (67 737s, 53 A320s and 23 A350s). AirTran Airways cancelled 51 737s, while CASGC scrapped 50 A320s. Jazeera Airways cancelled orders for 25 A320s.


Airliner market 10 years view - net orders

Commercial aircraft deliveries in 2011

A total of 1,255 commercial aircraft deliveries took place in 2011, including 771 narrowbody and 212 widebody aircraft, an all-time high for both market groups. Regional jet and turboprop deliveries totalled 154 and 118, respectively.

It was yet another record year for Airbus, which delivered 519 commercial aircraft in 2011, 27 more than in the year before. The manufacturer delivered 412 A320 Family aircraft as well as 81 A330s and 26 A380s.

Boeing, which delivered 446 commercial aircraft in 2010, also surpassed itself with 464 deliveries in 2011. The company delivered 359 737s, 73 777s, 20 767s and nine 747s. Boeing also introduced the new 787 to the market with three deliveries to All Nippon Airways.

In the regional market, Bombardier and Embraer delivered 103 and 102 commercial aircraft, respectively. It was a record year for ATR, which delivered 53 commercial turboprops.
From a regional perspective, 462 of the 1,255 commercial aircraft delivered in 2011 were for operators based in Asia-Pacific followed by Europe with 384.


Airliner market 10 years view - deliveries

Order backlog at 31 December 2011

Airliner backlog ended 2011 at 9,556 units, up 1,545 from the previous year. This is a new record for year-end commercial aircraft backlog. The last high point occurred at the end of 2008 when it stood at 8,332.

At the end of 2011, Southwest Airlines topped the backlog by operator and customer listing with 349 aircraft, consisting of 150 for the 737 Max, 126 737-700s and 73 737-800s. AirAsia followed with 279 aircraft on order with 79 A320-216s and 200 for the A320neo. Emirates and Indigo both showed a backlog of 227 aircraft. An additional 20 aircraft are also on backlog with DAE Capital and are destined to go to Emirates.

In the leasing market, GECAS, ILFC, Air Lease Corporation and Aviation Capital Group showed backlog figures of 251, 233, 161 and 158, respectively.


Airliner market 10 years view - backlog


Regional overview for commercial aircraft in 2011



India Aviation expo to start in Hyderabad from March 14

If it was Airbus's jumbo A-380 in 2008, Boeing's 'Dreamliner' 787-8 aircraft would be the cynosure of all eyes when it touches down in India for the first time for India Aviation-2012 expo, beginning here on March 14, in the centenary year of civil aviation in India.

"The primary objective of the event is to attract investments in the aerospace sectors in the country in general and AP in particular," FICCI Regional Director (trade fairs) Vivek Kodikal said.

While India is the host, UK will be the partner country, France the focus country and the US "guest country", he said.

Andhra Pradesh would be the host state, Maharashtra the partner state and Karnataka the focus state at the event.

The Dreamliner, which would be inducted into Air India fleet soon, would be on display for three days at the biennial aero show at the Begumpet Airport here.

Sukhoi's Superjet 100 aircraft, Airbus' A-318 and Embraer's business jets Phenom 300 and 100 would be the other attractions at the third edition of the International Exhibition and Conference on Civil Aviation, jointly organised by the Union Ministry of Civil Aviation and Federation of Indian Chambers of Commerce and Industry.

Hindustan Aeronautics Limited will showcase its Light Utility Helicopter (LUH) that is currently in the development stage. Powered by a single engine, the LUH is to be deployed for Reconnaissance and Surveillance role.

Union Civil Aviation Minister Ajit Singh will inaugurate the five-day event in the presence of Chief Minister N Kiran Kumar Reddy. Singh will release a postal stamp and a coffee-table book on civil aviation too.

In all, 22 aircraft will be on static display, with 21 airline companies from across the globe will be participating. The beleaguered Kingfisher, which was one of the main sponsors of India Aviation in the previous two editions, would be missing this time.

The show would be open to business visitors for the first three days, and to common people on 17th and 18th



source: http://www.mydigitalfc.com/news/india-aviation-expo-start-hyderabad-march-14-523

Air India demands higher compensation from Boeing for delays

Hyderabad: Air India is negotiating for more compensation from Boeing Co for delayed aircraft delivery, a senior government official said, after the planemaker agreed to pay the cash-strapped airline more than $500 million.

“Two weeks back they (Boeing) agreed to pay a little over $500 million. We are asking for more, we are talking to them,” joint secretary at the ministry of civil aviation, Prashant Sukul, said on Wednesday.

PTI

State-owned Air India was seeking nearly $1 billion from Boeing to compensate for the delays, a source told Reuters last month.

Speaking at a JP Morgan aviation conference later on Wednesday, Boeing Commercial Airplanes Chief Executive Officer Jim Albaugh disputed the claim that Boeing had agreed to the payment.

“We don’t comment on deals that we’ve done. But I can tell you we’re not writing anybody a check for $500 million,” Albaugh said.

Deliveries on the national carrier’s 2005 order for as many as 50 long-range Boeing jets worth about $6 billion have been delayed by more than three years, disturbing Air India’s plans and schedules.

Air India expects to take delivery of seven Boeing Dreamliners in the next fiscal year that starts in April, Chairman Rohit Nandan said on Wednesday.

The state carrier, burdened with a $4 billion debt, is banking on government support to continue operations. It owes about $500 million to oil marketing companies and about $240 million to airports.

Rival Kingfisher Airlines is also struggling.

The loss-making private carrier has failed to stick to its agreed recovery plan, the head of India’s aviation regulator said on Wednesday, adding that the current situation at the carrier cannot be allowed to continue for long.

India’s airlines are likely to lose up to $3 billion in the fiscal year ending March as the industry’s total debt swells to $20 billion. Five of India’s top six airlines are in the red.


source: http://www.firstpost.com/business/air-india-demands-higher-compensation-from-boeing-for-delays-244500.html

We’re not writing anybody a check for $500 million: Boeing

New York: The Indian government and US plane maker Boeing are squabbling over compensation for the late delivery of the company’s 787 Dreamliner to Air India. Boeing was in a feisty mood on Wednesday and burst India’s bubble about receiving $500 million in compensation.

Prashant Sukul, joint secretary at the Ministry of Civil Aviation, told reporters at the Hyderabad air show on Wednesday that “two weeks back Boeing agreed to pay a little over $500 million.” He said that Air India previously asked for $840 million and it has since asked for more because of further delays.

“I think if we settled for $500 million, somebody would have told me,” Jim Albaugh, president of Boeing’s commercial aircraft unit, said on Wednesday at the JPMorgan Chase & Co aviation, transportation and defense conference in New York.

“We don’t comment on deals that we’ve done, but I can tell you that we’re not writing anybody a check for $500 million,” added Albaugh, challenging India’s claim.

India’s demand for compensation is not unreasonable as airlines sign up for delivery slots when they place orders, and Boeing faces penalties for late planes such as the 787 Dreamliner. Boeing’s delivery of the Dreamliner to Air India is almost three years behind schedule.

The roomy, wide-body Dreamliner is a light-weight, carbon-composite airplane that promises significant fuel savings to operators and new comforts for passengers: comfy seats, better cabin climate, less airsickness, reduced jet lag. Development of the Dreamliner has been delayed repeatedly, because of snags in the complex global supply chain.

Technicians check the newly-inducted Boeing 787-8 series Dreamliner aircraft at a static dispaly during the opening day of the India Aviation-2012 show at Begumpet airport in Hyderabad. AFP

Analysts say Dreamliner buyers are likely to be compensated through “store credit.” Compensation would most likely be provided to customers as price reductions on 737 or 777 aircraft, which would protect the profitability of the programme but not of Boeing’s overall business.

“If deliveries slip, compensation to customers should rise,” Doug Harned, with Bernstein Research, noted earlier in the year.

Instead of store credit, financially troubled Air India would naturally prefer a large dollop of cash. According to reports, at one stage Air India had been seeking nearly $1 billion in compensation after placing an order for 27 of the 787 aircraft in 2005, worth $5.2 billion at list prices.

Air India has now decided to sell and leaseback the first seven of the 27 planes it has ordered and is looking for bridge financing worth $230 million. A leaseback arrangement, will allow Air India to sell the planes to a buyer who will lease them back to it. This will free up cash for the Indian carrier.

Air India will get its first 787 Dreamliner in May, Sukul told reporters at the three-day India Aviation-2012 expo in Hyderabad where Boeing’s wide-body jet was on display in the carrier’s colors.

The first Dreamliner was finally delivered to Japan’s All Nippon Airways, the launch customer, in September 2011, ending three years of delays. According to reports, All Nippon Airways received some compensation, although the details are unknown.

The Dreamliner has been a winner for Boeing, the world’s second-largest plane-maker after its European rival Airbus. Since 2004, Boeing has received 870 orders for the Dreamliner and is eager to cut its delivery backlog.

Last month, United Continental Holdings, parent of United Airlines, said in a regulatory filing that it is in talks with Boeing over potential compensation related to delays in 787 deliveries.

source: http://www.firstpost.com/business/were-not-writing-anybody-a-check-for-500-million-boeing-244699.html

Air India likely to induct Boeing 787 'Dreamliner' in May

NEW DELHI: After an almost three-year delay, Air India can now look forward to inducting the first Boeing 787 Dreamliner by May.

The first of these planes is likely to be inducted only in May after it gets operational and technical certifications from the US Federal Aviation Administration, the Directorate General of Civil Aviation and other agencies, official sources said. Air India has ordered a total of 27 of these aircraft.

Meanwhile, the US aircraft manufacturer Boeing said the first Dreamliner, painted in Air India livery, would be on display for three days at the Hyderabad Airshow, starting March 14.

"The super-efficient Boeing-787 Dreamliner is set to make its debut at Hyderabad as part of Boeing's commercial products showcase at the 2012 India Aviation Airshow", a Boeing spokesperson said, adding that the aircraft was set to land at Begumpet Airport on the eve of the airshow.

The delivery of the Dreamliner, built of composite materials which Boeing claims would help significantly reduce fuel consumption, has been delayed for almost three years for which Air India has sought a hefty compensation from the manufacturing company.

The government wants the compensation issue to be sorted out before Air India starts inducting them.

Facing financial trouble, Air India has decided to sell and leaseback the first seven of the 27 planes it has ordered and is looking for bridge financing worth USD 230 million.

Under leaseback arrangement, one party sells a property to a buyer who immediately leases it back to the seller, allowing the initial buyer to make full use of the asset while not having capital tied up in it.

source: http://articles.economictimes.indiatimes.com/2012-03-09/news/31139830_1_dreamliner-boeing-claims-air-india