Etihad kicks off Dubai airshow with mamomth Boeing 777-9X, 777-8X and 787-10 order

by Devesh Agarwal

From top, clockwise, Boeing CGI of Etihad 787-10, 777-8X, 777-9X

United Arab Emirates' (UAE) national carrier, Etihad Airways PJSC, kicked off the Dubai Air Show with a massive order for 56 wide-body Boeing aircraft with options to purchase for an additional 26 aircraft taking the quantity up to 82 at a list price valuation of $25.2 billion.

The Abu Dhabi-based carrier's order includes 25 777X airplanes, comprising 17 777-9Xs and eight 777-8Xs, subject to program launch. Etihad Airways is the first airline to order the 777-8X and will be a launch customer of the airplane, which is expected to enter service around the end of the decade. The order includes options and purchase rights for 12 additional 777X airplanes.

The airline also ordered 30 Boeing 787-10 Dreamliners, the high-capacity, medium-haul, and longest member of the Dreamliner family. Combined with the carrier's previous orders for 41 787-9s, today's order makes Etihad the world's largest airline customer for the Dreamliner family with a total of 71 787s on order. The order includes options and purchase rights for an additional 12 787-10s.

Today’s announcement also includes the milestone 1,000th Boeing 787 Dreamliner to be ordered.

Etihad also ordered one Boeing 777F freighter which is based on the 777-200LR.

The 777X is the upgrade of the venerable Boeing 777 family featuring new composite wings as seen on the 747-8 and 787 family aircraft, along with new GEnx engines which GE promises will be about 10% more fuel efficient. The 777X

The Boeing 777-9X is a stretched, more fuel-efficient version of Boeing ultra-popular 777-300ER. Typically seating 400 passengers, the 777-9X will be capable of flying the same distances as its predecessor, but with up to 40 more passengers, with lower operating costs and reduced fuel consumption per seat. The 777-9X was launched less than two months ago with an order from German flag carrier Lufthansa. Eithad is expected to start receiving its 777-9X from 2020.

The Boeing 777-8X is an upgraded version of the ultra long-haul Boeing 777-200LR, which Etihad recently purchased from Indian flag carrier Air India, to serve the Abu Dhabi – Los Angeles route. The -8X will replace the LRs when the start arriving in 2022. [Read our analysis on why the 777-200LR is ill-suited to Air India's operations]

The Boeing 787-10 is the largest and latest version of the Dreamliner family, typically carrying more than 320 passengers, up to 50 more than the 787-9 which Etihad Airways will introduce late in 2014. The aircraft will be capable of flying between Abu Dhabi and medium-haul destinations such as Dublin or Johannesburg, and it is expected to be deployed on high capacity medium haul routes by the airline. Final assembly and flight test of the 787-10 are set to begin in 2017, with first delivery targeted for 2018. Boeing launched the 787-10 earlier this year, at the Paris Air Show.

All the aircraft in this order will be powered by General Electric GE9X, GEnx and GE90 engines. Etihad ordered 57 GE9X engines which will power Etihad Airways’ 25 new Boeing 777X aircraft, 68 GEnx-1B engines for the airline’s 30 new Boeing 787-10 aircraft, and two GE90-115B engines which will be used on its new Boeing 777-200F freighter.

Etihad Airways currently has 86 aircraft in operation, with more than 80 aircraft on firm order. Its last major aircraft deal was made at the Farnborough Air Show in 2008, where Etihad Airways announced firm orders for 100 aircraft, including 45 Boeing aircraft, in a long-term order which was at the time one of the largest in aviation history.

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Boeing reports robust third quarter fiscal 2013 results. Raises full year earnings guidance

by Devesh Agarwal

Chicago based, US aerospace and defence giant The Boeing Company reported earnings of $1,160 million, a massive 12% jump in its third-quarter profit compared to $1,030 million from the same period a year ago. The company has also raised its 2013 financial performance outlook, based on an increase in commercial aircraft deliveries.

Key highlights of the quarter

• Core Earnings Per Share (non-GAAP)* rose 16% to $1.80 on strong operating performance; GAAP EPS of $1.51
• Revenue increased 11% to $22.1 billion reflecting higher commercial deliveries
• Backlog grew to a record $415 billion, including $27 billion of net orders during the quarter
• Operating cash flow before pension contributions increased to $4.3 billion
• 2013 Core EPS guidance increased to between $6.50 and $6.65 (previously forecast of $6.20 to $6.40); GAAP EPS to between $5.40 and $5.5

Boeing Chairman, President and CEO Jim McNerney said

"Consistently strong operating performance is driving higher earnings, revenue and cash flow as we deliver on our record backlog and return increased value to shareholders,"  "During the quarter, Commercial Airplanes completed the first flight of the 787-9 and delivered 170 airplanes, while Defense, Space & Security maintained solid performance and captured $7 billion in new orders. Despite the uncertainty of the U.S. defense market, overall our customer-focused business strategies and disciplined execution on our programs are producing the results we expect, and our strong year-to-date performance and positive outlook allow us to increase our 2013 guidance for earnings and operating cash flow."

Boeing Commercial Airplanes was the star performer with third-quarter profits of $1,620 million, up 40%, on revenue of $14 billion, and operating margin improving to 11.6%. During the quarter, the 787-9 completed first flight. The company intends to increase the 787 production rate from 10 to 12 per month in 2016, and to 14 per month before the end of the decade. The division booked 200 net orders during the quarter with a backlog of nearly 4,800 airplanes valued at $345 billion.

Boeing Defense, Space & Security's third-quarter revenue was $8 billion ($8,000 million), while operating margin was 8.4%. Profits fell by 19%, mainly due to a profit fall of 48% in Boeing Military Aircraft (BMA) whose third-quarter revenue was $3.5 billion, primarily reflecting lower delivery volume. Operating margin at BMA decreased to 6.2%, impacted by mix and one-time charges on the F-15 and C-17 programs. During the quarter, BMA was awarded a low-rate initial production award for 13 P-8A Poseidon aircraft.

Network & Space Systems (N&SS) third-quarter revenue was $2.2 billion, reflecting higher sales of Delta inventory and revenue in the Space Launch System program, and operating margin was 8.7%. During the quarter, N&SS was awarded a contract by Mexico's Satmex for an additional 702 small satellite.

Global Services & Support (GS&S) third-quarter revenue was $2.3 billion, due to higher volume in maintenance, modifications and upgrades. Operating margin was 11.4%. During the quarter, GS&S achieved first flight on the QF-16 unmanned aircraft and was also awarded a contract by the U.S. Air Force for 56 additional replacement wings for the A-10 aircraft.

Backlog at Defense, Space & Security was $70 billion, of which 38% represents orders with international customers.

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Aerolineas Argentinas signs agreement with Boeing to purchase 20 737-800s

By BA Staff

Boeing and Aerolineas Argentinas, the flag carrier of Argentina, and a member of the SkyTeam alliance, have completed an agreement for 20 Next-Generation 737-800 airplanes. The agreement is valued at $1.8 billion at list prices. When the order is finalized, it will be posted as a firm order to the Boeing orders and deliveries website.

At a signing ceremony in Buenos Aires today, Dr. Mariano Recalde, president of Aerolineas Argentinas and Austral Lineas Aereas, and Van Rex Gallard, vice president of Sales, Latin America, Africa and the Caribbean for Boeing Commercial Airplanes, formalized the agreement, which will help Aerolineas build on a fleet of 26 Next-Generation 737s currently operated by the Argentine carrier.

Dr. Recalde said:

"This is a landmark order for our company, both in the number of aircraft and in what they signify for our fleet. This agreement is a key part of a greater plan to renew our fleet and prepare our operations to accommodate growing demand. The Boeing Next-Generation 737-800, which has more seats than our current single-aisle fleet, will give us more flexibility to operate both domestic and regional routes.

Gallard noted that the agreement extends a long legacy of partnership between Boeing and Aerolineas Argentinas:

"Our partnership with Aerolineas extends back to the days of the Douglas DC-3. We have worked side by side with Aerolineas to help provide world-class aviation to the people of Argentina. Aviation is a key element in economic growth and development, and the success of Aerolineas Argentinas' transformation strategy, helped by the addition of the most efficient single-aisle airplanes flying, will help drive Argentina further ahead in the 21st century,"

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Royal Brunei Airlines receives its first Boeing 787-8 Dreamliner

Boeing (NYSE: BA) delivered to Royal Brunei Airlines, the flag carrier of the Sultanate of Brunei, the airline's and South-East Asia's first 787 Dreamliner. The carrier has ordered a total of five aircraft.

The 787 is scheduled to begin flying regionally to Singapore on October 18, with long-haul service to London, via Dubai, set to begin on December 1. Royal Brunei anticipates delivering on its promise of all Dreamliner long-haul service in the second quarter of 2014 when it will introduce the 787 on flights to Melbourne, Australia.

The airplane flew 6,540 nautical miles (12,112 km) non-stop from Paine Field, Everett, Washington state, home to Bandar Seri Begawan international airport in Brunei.

Dermot Mannion, chairman of Royal Brunei Airlines said

"This exciting addition keeps passenger comfort and high quality service at the heart of our airline and is yet another effort to ensure our fleet remains modern and offers peaceful and tranquil travel," "As a small airline we offer truly personal service, delighting our passengers with an authentic Bruneian grace to enrich their journeys."

Dinesh Keskar, senior vice president of Asia Pacific and India Sales, Boeing Commercial Airplanes, said

"We are delighted that Royal Brunei Airlines has chosen to expand its fleet with five 787s," "The choice is a testament to the airline's commitment to offer the best possible service to its passengers and to operate the most efficient airplane flying today."

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Jetstar receives Australia's first Boeing 787 Dreamliner

by BA Staff

Boeing (NYSE: BA) delivered to Jetstar Airways of Australia the carrier's first 787 today, which is also the first Dreamliner for the nation of Australia.

Jetstar Australia Boeing 787-8 Dreamliner VH-VKA

Jetstar, is the Qantas Group's low-cost brand. Like every other airline which has taken delivery of this new type of aircraft, Jetstar too will introduce the 787 Dreamliner first on domestic routes, to ensure its pilots achieve the required number of landings, its cabin and ground crews get familiar with the aircraft, and then move the Dreamliners to its international network. The airline has a total of 14 787 Dreamliners on order and expects to fly an all-787 long-haul fleet by 2015.

Qantas Group CEO Alan Joyce said

"Today is a historic milestone for the Qantas Group and Jetstar as we welcome the most advanced passenger aircraft ever constructed to the fleet," "In just 10 short years, Jetstar has grown to be the largest low fares carrier in the Asia Pacific, carrying more than 100 million passengers. The 787 will set up the airline for another decade of growth."

The aircraft departed Monday morning local time from Boeing's Everett, Washington state delivery centre for Melbourne, Australia where it will be greeted by airline employees and special guests.

Boeing Commercial Airplanes President and CEO Ray Conner said "

We're proud to deliver the revolutionary 787 Dreamliner to our partners at Jetstar," "The 787s unmatched fuel efficiency will give Jetstar an advantage in the marketplace and its passengers will travel with the world's most advanced in-flight experience."

"Jetstar customers will have the chance to fly in a larger and more spacious cabin, enjoy gate to gate in-flight entertainment and arrive at their destination more refreshed thanks to a lower cabin altitude to reduce the impact of jet lag," said Jetstar Group CEO Jayne Hrdlicka. "The entire Jetstar team is very excited to have the 787 take to Australia skies."

Boeing Aerostructures Australia manufactures the movable trailing edge on the wing of every Dreamliner.

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Boeing firms up orders for 43 787s from ALC and GECAS

 By BA Staff

Boeing and Air Lease Corporation (ALC) announced today that they have completed an order for 30 787-10 and three 787-9 Dreamliners. The order, valued at $9.4 billion at list prices, fulfills the commitment originally announced during the 2013 Paris Air Show in June.

ALC Chairman and CEO Steven Udvar-Hazy had this to say about the partnership:

"We are thrilled to be adding 787-10s and additional 787-9s to our portfolio. The performance characteristics of the 787-10 will build on the 787 family's success in the marketplace by providing the ideal size, capabilities and economical operating costs for medium to long-haul markets."

Furthermore, Boeing and GE Capital Aviation Services (GECAS), the commercial aircraft leasing and financing arm of General Electric, announced today that they have completed an order for 10 787-10 Dreamliners. The order, valued at $2.9 billion at list prices, completes the commitment originally announced during the 2013 Paris Air Show in June and builds momentum in the airplane leasing market for the 787-10.

GECAS President and CEO Norman C.T. Liu said:

"These airplanes are an excellent addition to our broad portfolio of modern, fuel-efficient aircraft. This order enables us to offer our airline customers an airplane with the lowest operating costs."

The new 787-10, launched in June 2013, will extend and complement the family, carrying 300 to 330 passengers up to 7,000 nautical miles (12,964 km) and accommodating more than 90 percent of the world's twin-aisle routes. The 787-10 also will be 25 percent more fuel-efficient than airplanes of its size today and more than 10 percent better than anything being offered by the competition for the future.

Boeing Commercial Airplanes President and CEO Ray Conner described his point of view on the matter:

"As a leader in the leasing industry, GECAS's 787-10 order is a strong statement about the capabilities of this highly efficient airplane. The 787-10 will provide GECAS customers the efficiencies and passenger comforts needed to succeed in an increasingly competitive marketplace."

The 787-10 will feature the 787 family's unique interior. The interior technologies make the passenger experience more enjoyable, including large, dimmable windows; cleaner air; higher humidity; lower cabin altitude; bigger stowage bins; soothing LED lighting and a smoother ride. To date, the 787-10 has accumulated 102 orders and commitments from five customers worldwide.

These 787-10s bring the total number of airplanes GECAS has ordered from Boeing to 598 since 1995, including 737s, 747s, 757s, 767s, 777s and 787s. To date, GECAS has taken delivery of 451 Boeing airplanes.

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Boeing Launches 787 Training in Miami

Training capability at Miami campus enhanced across airplane types

by BA Staff

Florida Gov. Scott and BFS VP Carbary in the 787 simulator

Boeing launched customer training for its 787 Dreamliner aircraft in Miami, Florida, site of the company's largest commercial aviation training campus. Aeromexico and LAN Airlines are the first two customers to train on the new 787 suites at the Boeing Flight Services Miami campus.

At an event attended by Florida Governor Rick Scott as well as a number of other federal, state and local officials, community leaders and airline customers, Boeing also established Miami as its pro forma flight training campus for the Americas -- the location where airline crews will receive the initial training provided to Boeing customers for new model airplane introductions.

Sherry Carbary, vice president, Boeing Flight Services said

"Miami has always been an important Boeing training campus and the largest campus in our global network. Now it will also play an expanded role in training the pilots and technicians who will fly and maintain the groundbreaking 787 Dreamliner," "Miami's location at the crossroads of the Americas offers tremendous advantages as a preferred location for airlines based in Latin America, Canada and the United States. Customers also travel from Europe, Africa, the Middle East and China to conduct training in Miami."

Boeing has greatly enhanced its overall training capability in Florida following an announcement in March 2013 that the company would relocate training devices from Seattle to Miami. To better serve airlines and meet growing personnel training requirements, two 787 full-flight simulators are now located at the Miami campus as well as an additional Next-Generation 737 full-flight simulator and 717, 747 and 767 simulators. An additional 777 simulator will be located in Miami later this year. These seven devices will bring total capability in Miami to 17 full-flight simulators across airplane types, making the campus one of the largest commercial flight training facilities in the world.

The consolidation of Boeing flight training campuses in the Americas is designed to bring training closer to where customers operate, reducing travel times for airline crews and the costs of sending students for training. Miami is an international hub for commercial aviation training and provides geographic diversity within the framework of Boeing's global commercial training network - and convenience that airlines prefer.

About the Boeing Edge

Boeing offers a comprehensive portfolio of commercial aviation services, collectively known as the Boeing Edge. Read more here.

Boeing Flight Services, is a business unit of Commercial Aviation Services, and operates a geographically diverse network of 20 flight and maintenance training campuses on six continents. In addition to Miami, Boeing offers 787 training in strategically located campuses in Singapore, Shanghai and London.

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Image: First Boeing 787-9 Dreamliner features the new Boeing livery

Boeing rolled out its first 787-9 Dreamliner, and this aircraft has also become the first 787 to don the new Boeing Commercial Airplanes (BCA) livery.

The new look began with the 747-8 and evolved with the 737 MAX. The new livery retains many of the features of the original 787-8 livery, adding a prominent number on the tail to help distinguish among models within the same product family.

With the fuselage stretched by 20 feet (6 meters), the 787-9 will carry 40 more passengers an additional 300 nautical miles (555 kilometers). First delivery to launch customer Air New Zealand is set for mid-2014.

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