Delta loss shows availability key to Boeing’s widebody strategy

By: Daniel Tsang published in aspireaviation.com, Dec 16, 2014

  • Boeing stretches 777-9X fuselage from 76.5m to 76.7m: exclusive
  • Airlines, most likely Emirates, asking for more seats on 777X: sources
  • Boeing to announce more seats on 777-9X in Q2 2015: sources
  • 777X de-icing can only take place at Code F stands with FWT down
  • 787-9 OEW 277,000lbs is 11,000lbs lighter than A330-900neo’s 288,000lbs
  • 787-8 OEW 260,000lbs versus A330-800neo’s 280,000lbs
  • 787-8 is 9% more fuel efficient per seat than -800neo on 6,000nm missions
  • Using 253t 787-9 in A330neo comparison pushes up -9’s landing & overflight fee, DMC
  • 787-9 carries 13 tonnes more revenue cargo than A330-900neo
  • A330neo Mach 0.81 means 25 mins longer flying time on 6,000nm missions
  • Virgin Atlantic 787-9 has 9-abreast economy seats at 18.9-inch width
  • Boeing sees A330neo 9-10% more fuel efficient than A330: sources
  • 777-300ER carries 23t of cargo, A380 only 8t: Emirates

Airbus has much to celebrate when Qatar Airways eventually takes delivery of its first A350-900 on December 22nd, despite a last-minute delay in the official ceremony over minor issues. Not only did it run a flawless 2,600-hour, 680-sortie flight test programme in record time, resulting in its type certificate being earnt from the European Aviation Safety Agency (EASA) on 30th September, 14.5 months since first flight, Airbus also won a significant order from the third-largest US carrier Delta Air Lines which opted for 25 Airbus A350-900s and 25 re-engined A330-900neos (new engine options).

The first deliveries of the A350-900 and A330-900neo will begin in 2017 second quarter and 2019, respectively, and will be deployed on transpacific and transatlantic routes that Delta said will produce a 20% saving in cash operating cost (COC) per seat versus the Boeing 747-400 and 767-300ER aircraft they will replace. This follows Delta’s strategy of establishing Seattle as its US West Coast hub for Asian flights to Hong Kong and Seoul Incheon and reducing its foreign exchange exposure to the depreciating Japanese yen by suspending Hong Kong-Tokyo Narita and Manila-Nagoya services, which in turn enables it to retire 4 gas-guzzling jumbos by the end of 2014 and their entirety by 2017.

“Delta always approaches fleet decisions with a balance of economic efficiency, customer experience enhancements, network integration and total cost of ownership. The A350 and A330neo support our long-haul, transoceanic strategy and join a mix of Boeing and Airbus aircraft that provide exceptional flexibility for Delta’s global network as well as strong cash-on-cash returns for our shareholders,” Delta Air Lines vice president (VP) of fleet strategy and transactions Nat Pieper said.

In a nutshell, Delta’s order loss highlights the essence of aircraft order campaigns – a package of pricing, availability, financing and increasingly other forms of assistance such as Airbus taking back 4 ageing A340-300s in 2016-17 and Boeing 5 A340-600s alongside Finnair and China Eastern Airlines’ respective orders for 8 A350-900s and 20 777-300ERs, not simply on the grounds of technical superiority.

“Boeing competed for the order with the 787-9, but we did not have enough 787 positions available in the timeframe that met Delta’s requirement,” Boeing said in a statement, with the Flightglobal Ascends Fleet databaseconfirming there are only 12 available slots in 2017.

For Chicago-based Boeing, this also lays bare the single biggest obstacle to maintaining and solidifying its widebody dominance is availability, rather than being significantly challenged in technical terms.

Delta Air Lines Airbus A330-900neo

Dissecting A330neo & 787 in weight, fuel & operating efficiencies
Needless to say, Airbus begs to differ, which heralds the win, alongside CIT Group firming up its order for 15 A330-900neos, as a “massive endorsement”. Airbus says the 310-seat 6,000nm (nautical miles) A330-900neo, down from 6,200nm when launched, will provide a 14% lower fuel burn per seat against a Rolls-Royce Trent 772B-equipped A330-300 delivered in 2014 over a 4,000nm mission.

Much of this stems from the Rolls-Royce Trent 7000 engine, which accounts for 11% of the per-seat block fuel burn reduction, with another 4% stemming from the adoption of A350-styled sharklet which extends the A330-900neo’s wingspan by 3.7m to 64m and improves the aircraft’s lift-to-drag (L/D) ratio from 21 to 22. In addition, increased cabin efficiency (ICE) which adds 10 seats and brings its seat count to 310 in a 2-class configuration will lower this key metric of aircraft performance by a further 2%. This will partially offset by 4 tonnes of extra operating weight empty (OWE) resulting from the larger engine and the wing modifications and engine integration which shave 2% and 1% off the block fuel burn per seat reduction.

This, Airbus asserts, will augur well for the A330-900neo against a 304-seat 253-tonne 787-9 Dreamliner, with a 1% lower cash operating cost (COC) per seat and a 7% lower direct operating cost (DOC) per seat aided by a lower monthly lease rate at US$1.1 million versus the 787-9’s US$1.3 million.

Yet there exists a contrarian view that merits consideration.

First of all, the 11% installed engine performance appears optimistic, not least because it is being compared against a low base with the Rolls-Royce Trent 772B engine. The Enhanced Performance (EP) standard featuring improved fan and blade tip clearance on its high pressure compressor (HPC), intermediate pressure compressor (IPC), high pressure turbine (HPT), intermediate pressure turbine (IPT) and a re-bladed low pressure turbine (LPT), has already slashed the engine specific fuel consumption (SFC) by 1% since 2009. The EP2 improvement package that slashes SFC by another 1% will enter into service in 2015. They combined shave 2% of the claimed SFC reduction despite featuring an improved overall pressure ratio (OPR) from 35:1 to 50:1 and a doubled bypass ratio of 10:1 from 5:1.

One may also point to the fact that the Trent 7000 is based on the Trent 1000-TEN (thrust efficiency new technologies) engine, which missed its engine specific fuel consumption (SFC) target alongside the GE Aviation GEnx-1B engine on the Boeing 787 Dreamliner. The Trent 1000-TEN will only bring the engine close to Boeing’s original specification from Package C production standard which still misses the original SFC target by around 3%, according to Aspire Aviation‘s understanding. Further factoring in the 1% improvement in SFC from Package B to Package C standards, and 2.3% from Package A to Package B, it is clear that the engine faced a significant 6.3% SFC shortfall at service entry (“Boeing 777X & 787-10 show the lure of the X factor“, 2nd Jul, 13).

Likewise, flightglobal reported that GE Aviation had recalculated the GEnx-1B Block 4 standard’s performance and concluded that the Block 4 missed its original SFC target by 4-5% and the performance improvement package (PIP) I and II have only managed to narrow the gap to 1-2%.

Combined with a heavy 1970s fuselage, a 1980s wing and the addition of electrical bleed air system (EBAS), Boeing Capital Corporation (BCC) managing director (MD) of capital markets development lamented in Sydney that the A330neo is a concept “buried in 2004, resurrected in 2014″ and likened it to the A340, claiming “for those who liked cheap A340s, A330neo is the right solution”. Boeing views the A330neo as only 9-10% more fuel efficient than the existing A330, Aspire Aviation‘s sources at the Chicago-based planemaker revealed.

Moreover, the usual seat count debate also applies to the A330-900neo and 787-9 comparison. Airbus uses a 2-class 310-seat configuration for the A330-900neo, comprising 36 business class and 274 economy class seats, or 11.61% and 88.4% of the total. Boeing, in contrast, shows that its 2-class 787-9 is able to accommodate a total of 360 passengers, comprising 30 business and 330 economy seats, or 8.33% and 91.7% of the total.

Holding the seat ratio constant is important as business class seats, albeit in this case both in a 2-2-2 medium-haul configuration, are disproportionately heavier than economy seats. The 787-9 is able to accommodate 346 passengers in a 2-class arrangement at the same seat ratio of 11.61% business and 88.4% economy, Aspire Aviation calculates.

Airbus goes further in alleging that a 2-class 787-9 is only able to carry 304 passengers with a 16.9-inch economy seat width, and that its products come with “comfort without compromise”. Its proponents are also quick to cite Air Canada as an example, whose 251-seat 787-8 only has a 17.3-inch seat width and a 31-inch seat pitch in order to produce a 29% lower seat-mile costs than the airline’s 191-seat 767-300, which has a 17.8-inch width and 31-34 inches of pitch.

Yet Virgin Atlantic’s 264-seat 787-9 Dreamliner has 198 economy class seats with a 31-inch pitch and 18.9-inch width in a 9-abreast configuration, significantly wider than its A330-300s whose economy seat width is at 17.5-inch. At the end of the day, however, airlines should not be dictated by aircraft manufacturers as to how they design their interiors and there is little business sense in having a wide economy seat while being unable to make profits.

For the 787-9, it should be able to seat as many passengers as the A330-900neo at the very least, which also fits reality with Etihad Airways’ A330-300s and 787-9s both seating 231 passengers with a broadly similar seat ratio, and the same economy class seat width at 17.5-inch on both aircraft.

Most importantly, both the 787-8 and -9 remain lighter than their A330neo counterparts, which drive fuel and operating efficiencies.

Despite Airbus’s plan to shed 800kg of empty weight of the A330neo airframe, the 2-class 310-seat A330-900neo will be 4 tonnes heavier than the 300-seat A330-300, whose operating weight empty (OWE) will be 288,000lbs versus the around 279,000lbs on its predecessor. The 787-9 has an operating empty weight (OEW) of 277,000lbs, around 5 tonnes or 4% lighter than the A330-900neo.

On the 787-8, its OEW of 260,000lbs is 9.09 tonnes or 20,000lbs lighter than the A330-800neo’s 280,000lbs, amounting to a 7.7% advantage. On a 6,000nm mission, this will translate into a 9.9% lower block fuel burn per seat with the 787-8 using 526lbs of fuel per seat and the -800neo 578lbs.

In addition, Aspire Aviation‘s sources at Boeing contend, using a 253-tonne maximum take-off weight (MTOW) assumption on a 4,000nm mission comparison with the A330-900neo would unfairly penalise the -9, since such a sector length is less than half its 8,300nm range capability and would “unquestionably” not require the airplane operating at the 253-tonne MTOW condition. In assuming the engine operating at an unnecessarily high thrust, this will inevitably push up the 787-9’s landing fee, overflight fee as well as the engine’s direct maintenance cost (DMC).

When considering the flight crew cost, many also fail to account for the fact that the A330-900neo will continue to fly at a Mach 0.81 cruising speed whereas the 787-9 will be at M0.85, which will amount to a 25-minute difference on a 6,000nm mission, the same sources say.

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Screen Shot 2014-10-07 at 11.00.47

Production stability key to volume game
When all is said and done, however, Boeing did lose Delta’s order. But it was not on technical grounds, but because of the lack of availability. Rectifying this means an ever increasing amount is at stake when it comes to ramping up the 787 production from 10 a month currently to 12 a month in 2016 and 14 by 2020.

Cutting the 787 cost is instrumental in giving Boeing further leverage on aircraft pricing and allowing it to become more aggressive in competing against the A330neo, whose production rate will be cut from 10 a month to 9 a month beginning 2015 fourth-quarter, given that low capital costs have been trumpeted as one of the A330neo’s biggest advantages, with Hawaiian Airlines chief commercial officer Peter Ingram saying “for a smaller capital cost increment than the A350s or the 787s, you get a good size chunk of the operating efficiencies in terms of fuel costs primarily and engine costs to a lesser extent”.

But analysts warn this will be challenging as the 787 deferred production cost balance reached US$25.2 billion at the end of 2014 third-quarter, a quarterly increase of US$947 million primarily owing to the US$200 million addition of 787-9 inventory to improve long-term productivity. Unit production cost only fell slightly to US$32 million during the quarter. UBS analysts forecast the deferred production balance will peak at US$28-29 billion whereas Buckingham analysts predict it will become larger than US$27 billion by 2016, despite the 787 programme turning “cash positive” in mid-2015.

Achieving this would require production stability, a pre-requisite not very well executed on the 787 programme. Ironically, Boeing should borrow a page from its transatlantic rival Airbus on the A350. The European Aviation Safety Agency (EASA) executive director Patrick Ky said “we dealt with a very mature” aircraft in certifying the 268-tonne and 275-tonne A350-900, which “is determined to be a variant of the A330/340 series aircraft” or “a variant of the A330-200″ with a maximum passenger number of 440 and an operating ceiling of 43,100ft. It is also certified by the EASA to be “beyond 180 minute” with either 300 or 370 minutes extended twin engine operations (ETOPS) options.

While the A350 has yet to enter into service and that early technical glitches are all but inevitable, its smooth flight test programme has lent confidence to the industry that hiccups of the 787 battery’s scale would not be repeated, despite Airbus planning to add lithium-ion battery as line-fit standard onto 2016 examples and beyond.

Although the US National Transportation Safety Board (NTSB) faulted Boeing that “the incident resulted from Boeing’s failure to incorporate design requirements to mitigate the most severe effects of an internal short circuit within an APU battery cell, and the FAA’s failure to identify this design deficiency during the type design certification process”, and the lithium-cobalt dioxide (Li-CoO2) battery manufacturer that “GS Yuasa did not test the battery under the most severe conditions possible in service, and the test battery was different than the final battery design certified for installation on the airplane”; more stringent oversight has been put in place with Boeing finding 17 instances of non-conformance by prime contractor Thales or subcontractor GS Yuasa, and that Boeing’s 3-layered solution worked.

The fact is a few dozens of batteries fail on the in-service fleet everyday, and when it does on a 787 again, especially under cold temperature when lithium buildup accumulates, the stainless steel case able to withstand an explosion, the dielectric and magnetic protection and a titanium tube venting any fluid and hot gas outside of the airplane will protect the 787 on an airplane level.

Putting the past aside, after fixing foam-like plugs going into the stringer, the proximity sensors within the slat skew detection mechanism assembly (DMA), the auxiliary power unit (APU) bowing issue due to hot air being trapped inside the compartment, and nuisance warnings, the 787 is becoming an increasingly mature airplane and edging towards its goal of having a 99.5% dispatch reliability by the second quarter of 2015.

Another sign of increasing production stability is the start of final assembly of Boeing South Carolina’s first 787-9, destined for United Airlines, on 22nd November and the improving order mix, a significant milestone for the -9 in achieving an equal split with its smaller sibling with 459 orders each following Air New Zealand (ANZ) and Virgin Atlantic ordering 2 and 1 additional examples, will arguably aid this process as the -9 features simpler parts such as the elimination of the side-of-body modifications that shaves 363kg (800lbs) in weight. These combined make the 787-9 being 500-1,000lbs below its manufacturer’s empty weight (MEW) specifications and later examples will be 2% lighter still (“Boeing 787 availability key in fending off A330neo“, 21st Feb, 14).

Getting this right is paramount as the A330neo, after a further temporary production cut, possibly to 6 per month by Bernstein Research’s reckoning, will be vying for a large replacement market alongside the 787. The lack of availability also explains the sluggish growth of 787-10 orders, which total 139 and will be exclusively built in Charleston, South Carolina (SC) as its 3m (10ft) longer mid-body fuselage would be too long for Dreamlifter transport.

“The A330neo is expected to bring production rates back up near current A330 levels. But, we believe, A330neo margins are likely to be weaker,” Bernstein Research analysts wrote in a 11th December note to clients.

And this is not just a very large A330 replacement market – the world’s largest A330-300 customer Cathay Pacific along with its wholly-owned subsidiary Dragonair operate 40 and 18 examples, respectively; Air China 49; Turkish Airlines 40; China Eastern Airlines (CEA) 35; Qatar Airways 33; Etihad 32 and even Delta Air Lines’ fleet of 32 examples consisting of 11 -200s and 21 -300 HGWs, with a further 10 242-tonne -300s that are on order whose final assemblyhas begun in early November and will be delivered in 2015 second-quarter; the mission creep of both the A330-300neo and 787-10 with respective range of 6,000nm and 7,000nm, mean they will become perfect A340 and 777-200ER replacements.

There are 422 777-200ERs with Air France having 25, United 74, American 40, to name a few, as well as 284 active A340s that are rife for replacement, according to airfleets.net, with Lufthansa and Iberia having 18 and 7 A340-300s. Iberia, for instance, opted for 8 A330-200s and 8 A350-900s for the role.

The 787-10, in particular, has a better cargo-hauling capability than both the A330-900neo and the A350-900 with a total cargo volume of 6,187ft³ (175m³) versus the A330-900neo’s 5,751ft³ (162.8m³) and the A350-900’s 6,088ft³. The 787-9 could also carry 13 tonnes of extra cargoes on 2,300nm longer range than the A330-900neo.

Given this, it is apparent who the real enemy is for Boeing: production stability.

Image Courtesy of Boeing

777X leaves Airbus no choice but to re-engine A380
Ask the marketing personnel at Airbus and Boeing about the problem of availability and the lack thereof, and they would have little hesitation in saying it is a good problem to have.

However, the same cannot be said of Airbus’s flagship A380 superjumbo or the Boeing 747-8I Intercontinental, both of which are being increasingly cannibalised by the mini-jumbos – today’s 777-300ER and the 350-seat A350-1000 and 400-seat 777-9X in the future.

Citing a weaker than expected cargo market, Boeing last week announced a fresh production cut of the 747-8 rate from 18 a year to just 16 examples, or 1.3 per month from 1.5 per month. Its thinning backlog now stands at merely 39, comprising 13 orders for the freighter.

At the same time, Airbus Group chief financial officer (CFO) Harald Wilhelm said at the plane-maker’s annual Global Investor Forum that the A380 will break even on a unit basis from 2015 onwards till 2017, but not 2018 and beyond, after which it will have to ponder its future that “if we would do something on the product, or even if we would discontinue the product”.

The comment sparked outrage from the A380’s biggest customer Emirates, whose president Tim Clark branded it as a “gaffe” as the world’s largest international carrier is prepared to order 60-70 A380neos if launched. This caused Airbus executives to do some explaining, with Airbus Group chief executive Tom Enders saying “whatever decision we take on upgrading that aircraft will be based purely on economic terms” and Airbus chief executive Fabrice Bregier promising “we will one day launch a 380neo, we will one day launch a stretch. This is so obvious there is extra potential. We will get more customers”. Airbus sales chief John Leahy said it is working on 4 active campaigns with existing customers.

Indeed, there is mounting evidence Airbus will launch a re-engined A380neo when the decision time comes in 2015, not because of a solid business case, but because the Boeing 777X has left little choice for Airbus and the fact that Rolls-Royce will probably shoulder the bulk of the A380neo’s development cost. Aviation Week reported that Rolls-Royce and Airbus are nearing an initial accord for supplying engines powering the A380neo.

If anything, Airbus has held onto the same tale for the past 14 years, that the world needs an A380 in light of increasing airport congestions, and the number of mega-cities with more than 10,000 daily long-haul passengers will grow from 42 today to 71 by 2023, by which time more than 95% of long-haul traffic will originate from them.

At congested airports such as London Heathrow which operates at 98% capacity, the A380 can free up precious slots such as what British Airways (BA) has done in replacing 3 daily 747-400 flights to Los Angeles with 2 daily 469-seat A380 flights. In doing so, the number of total daily seats has decreased marginally by 1%, but a combination of improved traffic mix with a 5% increase in premium seats and a 7% decrease in non-premium seats, and a 19% lower trip cost leads to higher profitability. The A380 has worked so well for BA such that it brought forward 1 delivery from 2016 first-quarter to 2014 fourth-quarter.

Similar significant operational efficiencies could be gained at other carriers, such as Cathay Pacific’s 5 times daily London Heathrow services, Airbus and its proponents argue. CX251 and CX255 now depart 1 hours and 15 minutes within each other in midnight, then CX257, CX239 and CX253 departing in a 3 hours’ window of each other from 9am in the morning till 3pm in the afternoon.

Yet this argument has not translated into solid sales, with the A380’s 318 firm orders since December 2000 dwarfed by the A350 XWB’s 778 and the 787 Dreamliner’s 1,055 in considerably shorter timeframes. The A380’s remaining backlog of 147, while sufficient for sustaining an annual production rate of 30 until at least 2017, appears shaky, with Virgin Atlantic’s one for 6, Hong Kong Airlines’ 10, Air Austral’s 2, Air France’s last 2 orders likely to be cancelled, while lessor Amadeo has yet to land a single customer for its order of 20 examples, let alone Qantas’s remaining orders for 8 examples.

Boeing has offered a decidedly different observation, citing OAG schedules between 2000 and 2014 that while the number of frequencies and capacity increased by 58% and 60%, respectively, serving 46% more cities, the average number of seats per flight has decreased by 2% from 304 to 299 (“Airbus, Boeing in game of thrones for widebody dominance“, 11th Jul, 14).

The A380 or any very large airplane (VLA), its rationale goes, will remain a niche serving airlines’ a select few of trunk routes while being inherently financially risky.

Airlines appear to be siding with Boeing. International Airlines Group (IAG) chief executive Willie Walsh was quoted as saying “aircraft coming into Heathrow will generally be smaller” and has indicated that BA has no intention to grow its A380 fleet beyond 12 examples, despite an existing fleet of 43 747-400s. Air France-KLM Group’s chief executive Alexandre de Juniac even went as far as saying “it’s an excellent plane but it only works for the right destinations”.

Some of the A380’s problems, such as a small cargo space and trading frequency for capacity, already exist today.

The A380 has a total cargo volume of 5,875ft³ and a revenue cargo volume of 2,995ft³, whereas the 777-300ER has a 5,200ft³ revenue cargo volume out of a 7,120ft³ total cargo volume. For Emirates, this means a difference of hauling 8 tonnes and 23 tonnes of cargo, according to its website, while Cathay Pacific hauls 20 tonnes of revenue cargoes on each 777-300ER flights, which add up to 100 and 80 tonnes to London Heathrow and Los Angeles easily (“Cathay Pacific’s prospect poised to take flight“, 1st Oct, 14).

But the arrival of the 777X will hasten a step-change in efficiency, with the aircraft providing a 20% lower fuel burn per seat and a 15% lower cash operating cost (COC) per seat against the 368-seat 777-300ER, offering a balanced growth opportunity for carriers in the Asia/Pacific and Middle East without sacrificing frequencies and resulting in “spill-over demand”. The 400-seat 8,200nm 777-9X will also have a 12% lower block fuel burn per seat and a 10% lower COC per seat than the 344-seat A350-1000, Boeing claims.

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What will exert pressure on Airbus to launch the A380neo is the fact that the 777-9X will lower the -300ER’s seat-mile costs by around 10% and given that the -300ER has roughly the same seat-mile costs as the A380 today, this will lead to a 10% gap between the -9X and the A380.

Furthermore, airlines, most likely Emirates, are asking for more seats on the 777-9X and that this would be announced in the second quarter of 2015, Aspire Aviation could exclusively reveal. When this change is announced, most likely entailing the addition of a few number of economy rows, the seat-mile cost gap will further widen.

The 777-9X’s ability to feature more seats is mainly enabled by tweaks to its interior arrangements such as galleys, despite a small stretch of its fuselage, informally dubbed as the “777-10X”, from 76.5m (250.11ft) to 76.7m (251.9ft), according to a September 2014 Boeing internal document obtained by Aspire Aviation. Assuming the addition of 2 rows or 20 seats, these refinement and cabin changes will make it 420-seat and a one-to-one 747-400 replacement, further enticing British Airways with 43 ageing jumbos, KLM 23, United Airlines 24, Korean Air 14, Thai Airways 12, Air France 7 and Qantas’s 9 remaining examples to place orders.

In other words, the 777-9X will exacerbate the A380’s problems. While Airbus continues to deride the 777X as a “paper airplane”, Boeing is fast-tracking the 777X development with a “manage-to” internal entry into service (EIS) target 6 months earlier than the 2020 second-quarter public target following a 9-month flight test campaign.

It has already signed a long-term contract extension with Toray Industries, effective from 2015 onwards, to supply aerospace carbon fibre reinforced polymer (CFRP) for the 777X’s supercritical 4th-generation CFRP wing, which will be built at a US$1 billion sprawling 1 million ft² new facility in Everett, Washington. The facility will have 3 giant autoclaves co-curing the front and rear CFRP wing spars, stringers with the uncured wing panels, before being sent to the main assembly building, which will occupy the current 3rd 787 temporary surge line for 3 years in the 777X’s initial production phase, according to The Seattle Times. The facility on October 21st celebrated its groundbreaking 7 weeks ahead of schedule and will be complete by May 2016.

Boeing also signed an agreement with Japanese partners Mitsubishi Heavy Industries (MHI), Fuji Heavy Industries (FHI) and Kawasaki Heavy Industries (KHI) guaranteeing a continuation of their existing work, totalling 21% of today’s 777s, on the 777X. In addition, AVIC Shenyang Commercial Aircraft Corporation (SACC) will build the 777X’s empennage tips, whereas St. Louis is assigned responsibility for producing 777X wing parts, replacing Boeing Aerostructures Australia and outside partners.

The same Boeing internal document also reveals that it has started engaging airlines and airports on the 777X’s airport compatibility early, and included alternate and extended twin engine operations (ETOPS) airports from the beginning, even ahead of the firm configuration in mid-2015.

For 2014’s focus of alternate and ETOPS airports, Boeing talked to Nagoya, Osaka Kansai International, Taipei, Kaohsiung, Macau, Ho Chi Minh City, Penang and Batam, Brisbane, Auckland and Melbourne in the Asia/Pacific region; London Gatwick, Paris Orly, Milan, Hannover, Cologne, Brussels, Copenhagen in Europe; Chicago Rockford International Airport, Milwaukee, Detroit, Toronto, Boston, Newark, Philadelphia, Baltimore, Indianapolis, Dallas/Fort Worth, Denver, Portland, Salt Lake City, Oakland, Ontario, Las Vegas in North America.

Boeing also initiated the process to get the folding wingtip (FWT) in design documentations in 2013 with a November 2016 approval for the International Civil Aviation Organisation (ICAO) Annex 14 being eyed. Boeing said in the document that “both EASA and the FAA support the reduction” for reduced wingtip clearance.

This is important as the 777-9X is designed to fit today’s Code E airport gates over a 64.8m (212.9ft) wingspan with the folding wingtip (FWT) in the folded up position while taking less than 20 seconds to unfold and extend its wingspan to 71.8m (235.5ft) just before entering the runway. This Code E compatibility will make most of the world’s airports accessible to the 777X.

While Boeing has already developed the airport operation procedures for the FWT failures, at 1 per 100,000 dispatches, under which the FWT will be in a locked and latched position, Aspire Aviation‘s sources at Boeing say the 777X can only be de-iced with the FWT folded down at Code F gates, potentially adding a layer of complexity to the 777X’s ground operations in wintertime.

All told, with the industry body International Air Transport Association (IATA) forecasting 1.8 billion extra annual passengers from Asia/Pacific at a 4.9% annual growth rate, 559 million extra annual passengers in the US market and 266 million in India over the next 20 years, Boeing is betting that the 777-9X will be positioned at a future sweet spot of around 400 seats, moving up from today’s sweet spot of around 350 seats.

With sufficient availability, it is hopeful that the 777-9X will be able to take on not just the A380 and be a 777-300ER replacement, but also the A350-1000 and A380neo in one fell swoop, giving airlines flexibility not limited to niche roles such as Royal Air Maroc’s Hajj flights, but also profitably operate the aircraft on a large number of an airline’s routes.

Availability is the new name of the game.

Image Courtesy of Rex Features

Has the Boeing 787 been a network changer?

By: HANK OMBELET published in flightglobal.com, Dec 3, 2014

Much has been made about the capability of the Boeing 787 to operate on long thin routes profitably. The aircraft was presented as a “hub buster”; rather than flying large aircraft between hubs and then single-aisle aircraft to the final destination, the 787 would allow airlines to bypass hubs and fly direct to smaller destinations.

The aircraft has been in service for three years as All Nippon Airways took delivery of the first 787 back in September 2011. Since then, 198 more have been delivered to 25 airlines around the world, all but seven the -8 variant. ANA is the largest operator with, currently, 33 aircraft. Half of the total are with airlines in the Asia-Pacific region, with the remainder spread over the other continents.

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The number of seats installed varies substantially. For the -8, the smallest number of seats is on one of the ANA variants which only has 169 seats. It goes all the way up to 335 seats for Jetstar, which still manages to squeeze in three rows of business class but makes up by having nine seats across in economy. ANA and JAL are the only airlines that have eight-abreast in economy.

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ANA is also the only airline that varies the number of seats across its 787s. All other airlines have so far stuck to a single configuration. Not surprisingly, the low-cost and charter airlines have the highest-density configurations – mostly by not having business class and only a small premium-economy section.

All network carriers have a business class on the aircraft, but only one airline has a first class – China Southern having exactly one row of first-class seats, though it remains to be seen how viable such a configuration will prove. Among the network carriers, Ethiopian Airlines and Royal Jordanian have the highest number of economy-class seats at 246, while ANA has the largest number of business-class seats at 46 – although with a 44in seat pitch, these are aimed at use on a short- to medium-haul network.

NETWORK

Flightglobal’s Innovata schedules for November 2014 show 25 airlines operating 787s on a total of just over 250 routes with around 12,000 flights per month. With 200 aircraft, this equates to an average of 60 flights per month or two flights per day.

All but one of the 10 busiest routes by flight number at the moment are from Tokyo Haneda, and all but one of those are domestic routes operated by ANA. The only international route is to Taipei Sungshan airport, which both ANA and JAL serve with the Dreamliner. The only route of the 10 largest using 787s is a domestic route between Guangzhou and Beijing, operated by both China Southern and Hainan.

However, judging from the seat counts (the schedules data for ANA does not distinguish between the -8 and -9) it appears most of the Japanese domestic flights are operated by the 787-9, which for ANA has a high-density configuration with 377 economy seats, plus only 18 business-class seats with a seat pitch of 50in. Clearly, the 787 usage that the Japanese airlines had in mind was, initially at least, as domestic workhorses. Whether this is a good use of an aircraft built for long-haul remains to be seen.

Looking at how the 787 is used by number of flights gives one view, but is skewed toward the shorter flights. It is not really representative of how the 787 is utilised in general. Clearly the longer routes will dominate if kilometres flown is used as a proxy for utilisation, but it does give a better picture on where the aircraft are being utilised.

The 10 largest 787 routes by ASK (November 2014)

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The other issue is that the short-haul use of the 787 is dominated by ANA. This airline is currently the largest operator of 787s (and will remain so based on the current orders), but it uses the aircraft disproportionately on short-haul. Separating the ANA figures out of the general fleet illustrates this impact.

The 24 airlines operating the 787 operate a total of 585 long-haul routes (>5,000km). They have started a total of 55 new 787 routes over the last three years. All new routes are of course long-haul, and it means a 10% increase over the last three years due to the 787. However, the airlines opened another 140 long-haul routes as well with other aircraft.

Where the 787 replaced other aircraft on an existing route, it typically replaced a Boeing 767 or 777. This is not to say that an airline is more likely to replace a 787 with another Boeing, just that the current 787 operators have more Boeing than Airbus aircraft in their existing fleet. The effect on the overall capacity of the replacements is mixed. Looking at existing routes where a 787 was introduced in 2014, the capacity (measured in seats) went down on 23 routes, while on the remaining 44 it increased, partly because on a number of routes the 787 was used alongside other aircraft.

For short-haul routes, the picture is much more complicated, as on many routes several different aircraft are operating and it cannot really be established which aircraft was replaced by a 787.

Norwegian has started the most new routes. The airline timed its launch of long-haul services to coincide with taking delivery of the 787 – though delays in the programme meant it actually launched long-haul flights with leased A340s. It has based its long-haul business model around the aircraft, expecting to be able to compete with low fares by having a technologically advanced aircraft in a high-density configuration giving lower operating costs than its competitors.

New 787 routes (November 2014)

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One of the arguments for the 787 development by Boeing has been around the aircraft being able to open long thin routes bypassing hubs. Looking at the traditional carriers that operate the 787, every single new route has a hub airport at least at one end of the route. And of course, unless a route is between hubs, it bypasses one hub. Take for example the three new routes that JAL has opened with its 787: Helsinki, San Diego and Boston. Helsinki is a hub of Oneworld partner Finnair, which already operated the route. San Diego and Boston are not Oneworld hubs. Previously, a passenger wanting to travel between San Diego or Boston and Tokyo would have to make a connection through one of the other 16 airports on the US mainland that has a flight to Tokyo. So there is clearly a passenger benefit in having such a flight: fewer connections, shorter travel time.

However, the increase in destinations that JAL serves in the USA has not led to a decrease in hub flying. In 2011, JAL flew to four US cities, all served daily using 777s. Three of those are American Airlines hubs: Chicago, New York JFK and Los Angeles. By 2014, flights to JFK had doubled with a 787 service added to the 777 fights. The only destination that has seen a reduction is non-American hub San Francisco, where the 777 was replaced by a 787. But total service to the USA has increased from four daily flights in 2011 to seven this year.

Long-haul, it is rare for a legacy airline to operate a route that does not originate in one of its hubs or at least its focus cities. There are a few of these routes, typically to particular leisure destinations from smaller airports in the airline’s home country. By and large, however, long-haul routes emanate from a hub, and all the current 787 routes for legacy airlines do as well.

Of the 106 routes operated by legacy carriers, 32 actually operate between hubs of alliance partners. Another 74 are typical hub-to-spoke routes. The real spoke-to-spoke routes are operated by the low-cost long-haul airlines such as Jetstar and Norwegian, as well as the charter airlines such as the three TUI airlines: Thomson Airways, Jetairfly and Arkefly.

It seems that for legacy and charter airlines, the 787 currently provides a more cost-effective alternative with a seat count somewhere between the 767 and the 777 that airlines can use to develop their predominantly hub-and-spoke networks. Few of the airlines appear to utilise the full range of the aircraft. It seems it could be potential long-haul low-cost operators that might challenge this model on new “long thin” routes, but would do so with the assistance of a high-density seating arrangement to reduce unit costs.

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Airlines satisfied with 787 engines despite efficiency miss

By: Stephen Trimble published in flightglobal.com, Nov 17 2014

If one of today’s market fashions becomes permanent, the Boeing 787 could be the last commercial widebody aircraft that offers buyers a choice of engines from competing suppliers – in this case the GE Aviation GEnx-1B or the Rolls-Royce Trent 1000.

This increasingly rare engine competition has delivered two propulsion systems with reliability levels well above the average at the aircraft level.

At the same time, it has so far failed to produce a turbofan engine designed by either competitor that meets Boeing’s original promise of a 10% reduction in specific fuel consumption.

Additionally, competitive pressures have not provided airline customers with immunity from brief operational crises with both engines, in one case an operational restriction that still continues.

Both engines boast despatch reliability levels above 99%, the benchmark Boeing is still seeking to claim for the aircraft as a whole.

“The engines are operating flawlessly,” says Zemene Nega, vice-president of maintenance, repair and overhaul for Ethiopian Airlines, a GEnx-1B customer.

It has not always been so. In July 2012, All Nippon Airways, a Trent 1000 customer, grounded five 787-8s after Boeing informed it of a potential problem in the gearbox. Crown gears had corroded faster than expected in endurance tests on the ground, causing damage to the engine. R-R traced the problem to a manufacturing process change by gearbox supplier Hamilton Sundstrand. It was corrected within weeks.

The GEnx-1B became the focus of the next engine crisis. A decision by GE Aviation to adopt a new lead-free coating on the fan mid-shaft backfired with explosive results. The coating caused the component to corrode faster in humid climates. In late July 2012, a GEnx-1B on board a newly assembled Air India 787-8 sustained a contained failure. GE reverted to a previous lead-based coating, and the problem disappeared.

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Rolls-Royce‘s next move is to deliver the Trent 1000-TEN upgrade in mid-2016

Rolls-Royce

A longer-term problem for GE Aviation is a relatively new phenomenon called ice-crystal icing. Liquid water is not present above about 22,000ft, so airframe icing is never a concern at cruise altitudes for a turbofan-powered widebody aircraft.

However, meteorologists have recently discovered the presence of ice crystals at even higher altitudes, especially in tropic latitudes. In massive storm concentrations stretching 100km (62mi) across, convection forces can carry ice crystals the size of a grain of flour to cruising altitudes above 30,000ft. The crystals bounce off an aircraft’s skin, but can be ingested into an engine. It is believed that crystals land on a warm blade and begin to melt, which attracts other crystals to stick to the blade. Eventually, enough ice develops on the blade to cause damage downstream when it sheds.

The phenomenon is particularly acute on the GEnx engine. On its predecessor, the CF6, the ice build-up would most often shed as the aircraft descended. The GEnx experiences the ice shedding problem at cruise altitude, leading to in-flight engine shutdowns. As a result, the US Federal Aviation Administration issued an airworthiness directive last year requiring airlines to steer 787s at least 50mi wide of major storm concentrations.

For some airlines, the restriction is an annoyance but not a network issue. Japan Air Lines, however, has pulled the 787 off three routes originating in Tokyo: Bangkok, Delhi and Singapore.

By contrast, the Trent 1000 engine faces no such operational restriction, says R-R project director Gary Moore. Fortuitously, the three-spool architecture of the Trent engine family happens to be less prone to ice crystal build-up inside the core. The intermediate compressor section, which is absent in the GEnx design, rotates at a higher speed, making it more difficult for dangerous quantities of ice to build up on the blades.

“We don’t have this problem,” Moore says. “It is just a very clear difference in the two engines.”

Another clear difference between the engines is the order split. So far, 787 customers have chosen the GEnx-1B over the Trent 1000 by a nearly two-to-one margin, with 17% of the order backlog still unspecified.

R-R places a couple of caveats on the GEnx-1B’s strong start. First, not all airline decisions have been the result of a competition. When given the chance to compete, the Trent 1000 has claimed nearly half of the orders, Moore says. Moreover, the Trent 1000 is starting to gain some momentum. In the last 19 engine selections, the Trent 1000 has won orders 11 times, he says.

R-R’s next move is to deliver the Trent 1000-TEN upgrade in mid-2016. GE has acknowledged that the GEnx-1B misses, by 1-2%, Boeing’s original specification for reducing specific fuel consumption. The Trent 1000-TEN – packed with technological improvements inherited from the Trent XWB – is still aimed at achieving the 787’s original fuel-burn target.

“We’re targeting the original spec that was put upon the airplane,” Moore says. “You don’t spend this level of investment to think we’re not going to get there. We’re going to get there.”

Boeing Revisits Past In Hunt For 737/757 Successors

By: and  published in aviationweek.com, Dec12, 2014

For years, Boeing wrestled with how to replace a best–selling single-aisle product with an all-new design in one size s-ector while simultaneously protecting the longer-range, middle-of-the-market (MOM) from the predatory ambitions of Airbus.

Although this may sound like the 737 and 757 replacement conundrum faced by Boeing today, it is, in fact, the scenario that challenged the company almost 40 years ago. In the 1970s Boeing was grappling with how to replace the 727 and at the same time counter the emerging threat of the Airbus A310, the first derivative of the A300 family. 

In a curious parallel to the situation today, Boeing’s market analysis for filling the 180-300-seat gap in the 1970s indicated that although the two requirements overlapped, it was too difficult to meet them both with a single-fuselage cross-section aircraft. A single aisle worked better for the lower end, but did not stretch very well. A twin aisle worked better for the upper end, but equally did not shrink well. As a result, for almost six years in the 1970s, the company exhaustively studied two concepts: a single-aisle twin dubbed the 7N7 and a widebody twin called the 7X7.

Most observers at the time believed Boeing would develop one or the other but not both, at least not immediately. It was therefore with some surprise that between 1978-79, over a period of less than eight months, the company ambitiously began the simultaneous development of both aircraft. The 7X7 became the 767 in July 1978, while the 757, formerly the 7N7, received the production go-ahead the following March.

But will Boeing repeat history to answer the long-running 737/757 replacement question, and if so, why? The answers lie in the way the 757 and 767 were developed and, more important, in what they share in common. Although designed to serve very different markets, Boeing ended up developing the 757 and 767 as sister aircraft that shared key design features, including common cockpits, and used many common parts and systems. The novel approach reduced development cost and made the aircraft more attractive to operators of both types.

Faced with converging requirements, Boeing is considering using the same blueprint as it reviews its options for developing the new small airplane (NSA), and a parallel new “middle-of-the-market” aircraft that would go beyond simply filling the 757 replacement niche. “We talk about reuse of architectures and equipment, and the 757/767 are great examples,” says Mike Sinnett, vice president of product development for Boeing Commercial Airplanes. Although developed for different roles “the systems were 40% common, they had common cockpits and a common type rating.” Because it worked before, the design approach is something “we would have in our mind going forward,” he adds.

Tough acts to follow: 9,350 737s and 757s have already been delivered, with at least a further 4,200 undelivered current model and 737 MAXs still to come. Credit: JoePriesAviation.net

The NSA and 757 successors have been under evaluation, in various guises, for years. NSA was relatively well advanced as a preliminary concept when Boeing abruptly altered course in August 2011 to launch the reengined, upgraded 737 MAX in response to airline demands for a faster solution. But the 757 successor is a different story, which is why Boeing is talking to carriers about a “MOM” study rather than a simple replacement for its illustrious twin. Part of the issue is knowing what to develop, says Sinnett. The “customers don’t understand it either and that’s still evolving. It is not just about seats and range.”

In the 2008-09 period, Boeing’s evaluations in this sector centered on the Light Twin, a 290-300-seat single-class, twin-aisle, transcontinental aircraft based on 787 technology. However, by 2013 these studies had morphed into a similar-sized aircraft, but with a range of 4,000-5,000 nm. “The study aircraft would not be a direct successor to Boeing’s single-aisle twinjet,” says Marketing Vice President Randy Tinseth. Speaking earlier in 2014, he says, “We think there’s maybe a marketplace and we have a lot of interest from a lot of customers in an aircraft that seats between 200 and 300, but does not need the range capacity of the 787. We are having a lot of discussions with customers to figure out the market size of what that might become,” he adds.

While a new small aircraft was originally easier to define because of the payload range covered by the current and future 737 families, the upper edges of this replacement category have blurred into that of the 757/MOM as airlines indicate a growing preference for larger aircraft. “The middle-market segment lands between the 737-9 and the 787, and when you look at the range/payload chart there is a lot of room there,” says Sinnett. 

As a result, the hunt for a new small aircraft is increasingly linked to that of the slightly larger middle-market sector which, for want of a better term, is still largely dubbed the 757 replacement. “The 757 is a proxy for something that is not a 737 and is not a 757.” The airlines are interested in something that “is more than a 757. They are not looking for a carbon copy,” Sinnett adds. Studies are therefore focused on designs with more range and capacity to “enter a niche, and to understand if it can be expanded into a third market segment. We are still testing the waters.”

The first indications of Boeing’s renewed interest in NSA came from CEO Jim McNerney who, speaking last Nov. 5 at an innovation conference in Abu Dhabi, said: “By 2030, we will have a new airplane.” The aircraft “will be slightly bigger,” and have new engines.

McNerney added that there is “a good chance it will be a composite airplane.” Sinnett acknowledges that the 2030 timing is as much driven by crystalizing of airline demand as by readiness of technology. “The technology suite that exists today incorporated in an all-new airplane would not be any better than a MAX today. The 737 has been optimized [very] well over the decades and MAX continues that with another step change. It has become really hard to beat.”

Although Boeing pushed the state-of-the-art in commercial structures, systems, design and propulsion with the 787, Sinnett projects that “it will be the end of the next decade before we have the technology available,” to the point where it would warrant service entry of an all-new family. Rejecting reports elsewhere that an NSA could be launched later this decade for possible service entry as early as 2025, he adds that “for the middle of the decade we couldn’t do better than the MAX; it is probably another five years beyond that.”

However, engine makers confirm that Boeing has asked them to restart the NSA powerplant studies they undertook up to 2011, as well as to evaluate concepts for a 757 successor. GE Aviation President David Joyce says “we all had an NSA engine.” But he points out that the technology advances since that time mean that the architecture must be totally reevaluated. “In terms of replacements of 757s, you can imagine we’re all having that dialogue right now.” 

While Joyce also casts doubts on any go-ahead in the medium term, he adds: “If it does [proceed], I think it is right in the sweet spot of the technologies that are developed between the [CFM] Leap and the GE9X [for the 777X], depending on what the time line is. We have another whole block of technologies we are looking at in addition to that. There are some pretty radical architectures out there. As you know, we have a history of looking at some wild stuff, like the unducted fan, and a few other things like the three streams in the military world. So the architecture guys are busy.”

Eager to reenter the single-aisle market that it effectively exited with the sale of its share in International Aero Engines, Rolls-Royce has also laid out plans for Advance and UltraFan future engine architectures designed to meet a wide variety of power demands for new aircraft from 2020 and 2025, respectively. Pratt & Whitney has meanwhile vowed to develop year-on-year fuel-burn performance improvements to the geared turbofan, which enters revenue service on the A320neo and CSeries in 2015, and sees itself as a strong contender to be among the engines offered on future Boeing NSA/ MOM concepts.

Although they sport different contours, the 757 (foreground) and 767 share identical cockpits. Credit: Mark Wagner/Aviation-Images.com

With longer-range, higher-capacity versions of the737-900ER, MAX andA321neonibbling away at the edges of the classic 757 market, the key unknown remains whether an all-new replacement would not only recapture this lost ground but also expand a new niche beyond that of the current 757.

To Richard Aboulafia, vice president of analysis at the Teal Group, the answer is “a no-brainer.” He believes there is a market for 3,000-4,000 757-size aircraft over 20 years. Aboulafia envisions an aircraft seating approximately 220 passengers and flying up to 5,000 nm. The passenger capacity would therefore be similar to the high-density layouts of the 737 MAX or A321, but would be achieved in a configuration suitable for legacy carrier long-haul services. Aboulafia believes the aircraft should offer a 20% unit cost advantage over the existing 757.

Another factor influencing the decision about a possible new 757 type aircraft does not have to do with the segment itself, but rather with how competition between the MAX and the neo plays out. Airbus, which launched the neo eight months ahead of the MAX, holds 57% of the firm orders so far. Aboulafia argues that if the market shift of Airbus controlling 60% is “structural” (i.e. permanent) then Boeing may be forced to counter with a new concept that will be bigger than the MAX to address the gap left by the 757 and, more important, solidify its position in the narrowbody segment. 

Boeing raises 737 yearly delivery target to 624 in 2018

By: STEPHEN TRIMBLE, published in flightglobal.com, Oct 2, 2014

Boeing has announced a plan to further increase 737 production to 52 aircraft per month, or 624 aircraft per year, in 2018.

The latest capacity boost adds to existing plans to raise production from 42 currently to 47 per month in 2017, as Boeing introduces the 737 Max in the third quarter of that year.

“Our thorough analysis tells us the single-aisle market continues to expand and is the fastest growing, most dynamic segment of the market,” says Boeing marketing vice-president Randy Tinseth, in a news release.

Boeing has more than 4,000 orders for the 737NG and the 737 Max in the backlog.

The 737NG is expected to remain in production through the second quarter of 2019, with the last delivery to Ryanair.

Beginning in mid-2015, the 737NG will be produced side-by-side with the 737 Max on three assembly lines in Renton, Washington.

The third line is opening next year to support assembly of the 737 Max flight test fleet.

As it reaches full speed, the third line increases the potential capacity of the 737 production system to build up to 63 aircraft per month. Boeing also has raised capacity on the 737 wing assembly line in Renton to support a potential capacity of 63 aircraft per month, as well.

Spirit AeroSystems in Wichita, Kansas, builds 70% of the 737 structure, including the fuselage and the wing pylons. The General Electric/Snecma joint venture CFM International is the exclusive engine supplier, with the CFM56-7B and the Leap-1B for the 737 Max.

Suppliers Wary Of Further Narrowbody Rate Increases

By: , published in aviationweek.com, Oct 2, 2014

Airframe suppliers are comfortable with manufacturers’ plans to push narrowbody production rates up to a combined 100 per month, but express concern that anything beyond that could strain the supply chain or dampen demand after a few years, trigging costly rate fluctuations, a Canaccord Genuity survey reports.

Airbus and Boeing are producing 84 narrowbodies per month—42 each—and have announced plans to go up to the mid-90s combined. Rumblings of 50 per month or more out of Boeing—a move likely to be matched by Airbus—could be supported by suppliers, the survey found. But added demand from emerging programs, like Bombardier’s CSeries, could muddy the waters. Suppliers also expressed doubt that the costly ramp-ups would be sustained for long enough periods to justify the investment needed to get them there.

“This survey raises questions about the sustainability of rates above 100/month for Boeing and Airbus,” Canaccord wrote. “We believe many suppliers are reluctant to invest to support rates above which have been announced for fear that they would be capitalizing for a rate that is not sustainable.”

Despite the long-term concern, suppliers—notably the crucial higher-tier ones—are confident that current and planned production rates are both sustainable and aligned with demand. Structures firms are the “most optimistic,” Canaccord noted, believing that rates exceeding 100 per month are feasible. Their optimism is “closely followed” by material suppliers.

The one supply chain segment expressing concern is interiors suppliers, which face both record production rates and increasing demand for retrofits as carriers capitalize on innovations such as slimline seats and new premium cabin offerings.

“Interior suppliers see the most to worry about with higher narrow-body production rates,” Canaccord said.

777 Rates

Regarding widebody aircraft, suppliers are mixed about whether Boeing will reduce rates before transitioning from the 777 to the 777X. Among the ones that foresee a rate cut, they believe Boeing will provide at least two years’ notice, meaning it will be business as usual well into 2016 at least.

Canaccord notes that it has no evidence that Boeing plans to cut rates and expresses optimism that the manufacturer can bridge the gap without building fewer current-generation models.

“We believe Boeing has 10-15% in pricing it can play with on the 777 before the program crosses the economic threshold whereby a reduction in rates makes more sense than further price concessions,” Canaccord suggested. “We believe investors, and suppliers, are being too pessimistic on the 777, and we still see a [greater than] 50% chance Boeing will be able to bridge the 777 order gap as it transitions to the 777X.”

Boeing is producing 777s at 8.3 per month, a rate it hit in January 2013. In 2011, it bumped rates from five to seven per month. Canaccord is projecting 98 Boeing 777 deliveries this year.

The Airbus A330-to-A330neo transition is more straightforward, Canaccord explained.

“Suppliers largely expect Airbus to eventually announce a reduction to A330 rates as part of its transition from the A330ceo to the A330neo. This is consistent with what Airbus has been signaling,” Canaccord added.

Suppliers expect the current 10-per-month rate to drop to seven per month in 2017-2018, before stepping back up again, Canaccord said.

787-9 Test Lessons To Aid 787-10 And 777X

By: , published in aviationweek.com, Oct 24, 2014

Boeing has spent more than 50 years perfecting the art of the stretched derivative and honing a strategy that along the way produced the 777-300ER, one of the most successful long-haul designs in commercial airliner history.

However, as it looks to the development of the next-generation derivatives, the 777X and double-stretch 787-10, the company can ill afford a repeat of the missteps made in the building and testing of the original 787. The manufacturer faces aggressive competition from Airbus with the A350-1000, as well as pressure from an expectant market that has already placed firm orders for a combined tally of 425 777X/787-10s. There is little room for error in two such vital programs, which call for deliveries starting in 2018 for the 787-10 and 2020 for the first 777X variant, the 777-9X.

Both the 787-10 and 777-9X will be extremely long, stretched versions of the original models. Measuring 224 ft. overall, the 787-10 will be 38 ft. longer than the baseline 787-8, while the 777-9X will be the longest twinjet yet made, with a length of just under 251 ft., or around 42 ft. greater than the first 777-200s. Stretching the fuselage can directly change the longitudinal and lateral stability characteristics of an aircraft, resulting in follow-on effects on the flight control system and handling qualities. To help it avoid potentially costly redesigns and delays, Boeing is therefore banking on using valuable and, in some cases, unexpected lessons learned during the test and development of the latest stretch model, the 787-9.

Compared to the troubled 787-8, the test effort for the 20-ft.-longer 787-9 was virtually trouble-free. The flight-test portion was completed in eight months, compared to 20 months for the 787-8, and encompassed just over 1,500 flight hours, or one-third of the time required for the original variant. However, as revealed by 787-9 chief pilot Mike Bryan, not all went strictly to plan. “We found a lot of things matched our predictions very closely and we found some things that weren’t such a good match,” he said at last month’s Society of Experimental Test Pilots symposium in Anaheim, California. “We dealt with those and solved them. We also had aspects that taught us we could do things safer and smarter.”

Bryan said advanced flight testing using the 787-8 as a surrogate for the stretched model helped pave the way for some performance predictions more than a year before the first flight of the 787-9 in September 2013. This included fitting a 787-8 with artificial ice shapes to simulate performance in icing conditions. The design and predicted performance was later verified during 787-9 flight tests in Canada. Similar testing using a 787-9 is expected to feature in the run-up to the 787-10’s first flight, which is due to take off from Boeing’s facility in Charleston, South Carolina, in 2017. Part of the planning for flight testing includes arrangements for performing initial airworthiness sorties out of Charleston before transitioning the test aircraft to Boeing Field, Seattle, for the remainder of the certification program.

Boeing announced in July that the aircraft will be assembled exclusively at the East Coast site because 10 ft. of the aircraft’s overall 18.-ft stretch will be added to the mid-body section. This makes the 110-ft.-long unit too long to be transported in the fleet of specially converted 747-400 Dreamlifters that ferry parts to the assembly lines in Everett, Washington, and South Carolina. Assembly of the first 787-10 is expected to begin in 2016, with certification and initial delivery to launch customer Singapore Airlines in 2018.

Stability and control tests also yielded some unexpected results that required changes to the flight control system and may also help Boeing better prepare for the 787-10 and 777X. “If we knew how to predict all these things ahead of time, we’d be out of the business of flight test, and these are examples of where we needed to make changes,” says Nikos Mills, senior specialist engineer of stability and control at Boeing.

Mills, who now works on the 777X, says one such discovery was an unexpected interaction between the 787-9’s first body-longitudinal-bending mode and the aircraft’s maneuver load alleviation system. This flight control law activates with positive g and reduces structural loads by deploying spoilers on the outboard upper wing surface. The interaction was uncovered during the final flutter flight test at 380 kt. and an altitude of 25,000 ft. When the crew initiated a positive g pull, “the outboard spoilers were picking up the body mode and pinging the structure even more,” says Mills.” So we did additional flight testing and modified [software] filters so we were able to get a nice smooth pull-up without those things happening.”

In another instance, Boeing adapted the angle-of-attack control law to provide protection against stalls with flaps in the up position after flight tests showed the 787-9 did not exhibit the same pre-stall buffet cues in this configuration as the -8. “The pilot can now go to full aft stick, hold it there, and the airplane will just settle down at the commanded alpha,” says Mills. “It is very benign and very easy to fly.” Boeing also modified the flight control system to eliminate a slight vibration in the flight deck during final approach to landing. “It’s not a safety issue, but we ended up doing some additional flight testing to retune the filters, and so now it’s smooth and is active with flaps down,” he adds.

Al Jazeera Investigate: Interview – The former Boeing union president

Published in aljazeera.com, Sep 10, 2014

Former Boeing engineer and union president Cynthia Cole speaks out about her concerns with the 787 “Dreamliner”.

Cynthia Cole worked at Boeing as a Test Engineer from 1978 to 2010. She was president of the union for Boeing technical employees and engineers, SPEEA, from April 2006 to March 2010. At that time, SPEEA represented around 25,000 Boeing employees, many of whom were developing the “Dreamliner”. Below are extended extracts from an interview she gave to Al Jazeera in early 2014.

I have to say that until the last few years, I truly enjoyed my whole career at the Boeing Company.

For me, the biggest change came with the McDonnell Douglas merger. All the processes and procedures that we had as a heritage Boeing Company were slowly changing and becoming the McDonnell Douglas process or the McDonnell Douglas procedure.

I felt it was wrong. I felt it was going to take the company in the wrong direction. I thought that quality would suffer and the integrity of the product would suffer. Anybody I know that’s a heritage Boeing employee has said the same kind of things.

The 787 business model


I disagreed with the whole business model for the 787. In fact, I was at Renton Town Hall… – I’m president of the union – to observe. One of the engineering managers on the 787 was doing this Renton town hall [meeting] and he’s addressing all these questions.

I raised my hand to speak. The person with the microphone gave me the microphone. I said, “Well, you know, here’s the problem with the 787 model. We’re turning a bunch of companies that were vendors and suppliers into partners. The problem with being a partner is there’s only one Boeing Company in the whole world. They’re not the Boeing Company or we wouldn’t need to be the Boeing Company. No one does engineering the way Boeing does. These people, these companies that are now the partners, they’re not Boeing, and they’re not doing the job to the standards that we would expect because they aren’t the Boeing Company. That’s the bottom line.”

The people in the audience at that time, they cheered because it resonated with all the engineers in that room.

‘You’ve got to do something’


I would be out in the public, and I’d be at various stores, and Boeing employees who actually worked on the 787 would come up to me. They recognised who I was and said, “You’ve got to do something”.

I think there was a lot of pressure to get the programme done on schedule, and engineering was no longer in charge.

– Cynthia Cole

Of course, I’m thinking, oh, great. What am I supposed to do? They come up to me and say, “My supervisor’s not listening to me. I know about problems on the 787 that aren’t being addressed. My supervisor just says, ‘I can’t talk to you about this because I’ve got to keep this part of the programme on schedule. And if I have to stop to deal with what you think is a problem, then I’m going to be in trouble.'”

I actually went to Everett a couple of times and toured the facilities and talked to people on the factory floor. They’re all singing the same song. That’s when I started asking for a meeting where I was talking to Boeing managers.

That was unheard of, for someone on a programme to talk to someone who’s not on their programme and to voice concerns and to say that they’re not being listened to. That was just not the Boeing Company that I’d worked for all these years. It was raising red flags in my mind.

At first, I didn’t believe it. When a few people came up to me, I thought, okay, maybe they just don’t get along with their supervisor. I just kind of blew a few of them off and said, “Okay. Well, I’ll look into that and do what I can.”

Then, the more I heard it, the more I thought, “Oh, my, gosh”. It wasn’t the same person. This was all different people. I’d get email on my Boeing email system saying, “I’d really like to talk with you”, or “I see problems on the programme and no one’s addressing them”.

Cross-talks


That’s when I started asking to have these meetings. My idea was one top engineering manager just to stand in front of a group of SPEEA members who were engineers and technical employees on the programme, and then have somebody from HR in front with a flip-board and just write down everything they say.

I think the first meeting went for an hour and a half. The poor little HR guy standing there, he just wrote and wrote and wrote.

I mean, I’m president of the entire union. I’m not being approached by members on other programmes. It’s only this programme, the 787, that I’m having all of these people come up to me. They’re all SPEEA members. They’re all either engineers or technical employees. And so I’m believing now that there’s something going on. They’re not being listened to. I think it has something to do with this outsourcing and having all these partners take over the work.

Then, I went to the hangar in Everett and found out that a lot of the work that was coming in from the partners wasn’t being done to the standards that they were expecting, so the quality assurance people would not allow it on the plane. And so as the plane was being built, these things would have to be fixed. It was piling up.

I think there was a lot of pressure to get the programme done on schedule, and engineering was no longer in charge.

The business model was in charge, and the business model of partners and outsourcing.

These are engineering programmes. This is why these planes fly and why they work, because of engineers and engineering. Not because of the business model, and not because of the finance structure, and not because of all these other hoops and whistles, and the stock price, and the board of directors, whatever you want to call it.

It’s the engineers; it’s the engineering. If you don’t do that right, you haven’t got anything.

Proprietary information


So if a part is a vendor part, then Boeing owns it. Boeing has all the drawings. They know everything about that part. They get everything.

If it’s a partner, then I was over at the customer service centre and that’s where some SPEEA members were saying, “We’re kind of concerned because some of these parts that come from the partners, they’re giving us their drawings and they’re proprietary. We’ll see their box and we’ll see what goes into their box and what comes out of their box, but we don’t know what’s in the box. It’s just marked proprietary.”

It’s marked proprietary because these partners, they own it, and it’s their proprietary part.

If you want to troubleshoot a problem on an aircraft and if you’re poring through the drawings to figure it out and you think the problem is in that box, you’re not going to know.

They were feeling that their hands were tied because they said, “You know, we’ve got pieces of this aircraft that we really don’t know a whole lot about. We can’t do our normal job.” That concerned them.

As a Boeing employee, I would have more confidence in the aircraft and feel better about it if we had done our normal Boeing processes. It’s the unknown of some of these pieces that we don’t really have full control over.

Al Jazeera Investigate : Interview – The fired engineer

Published in aljazeera.com, Sep 10, 2014

In September 2009, Boeing hired John Woods as a Manufacturing Engineer at its 787 “Dreamliner” factory in Charleston, South Carolina.

Just over a year later, Boeing fired him. The company said he was working too slowly.

Woods said he was fired for raising safety concerns. He filed a whistleblower complaint with the US aviation safety regulator, the Federal Aviation Administration (FAA), alleging seven serious violations. The FAA substantiated only one of the seven: that Boeing used “inadequate manufacturing planning documents that lacked revision control and were missing inspection steps”.

Woods also appealed to Boeing’s Ethics Department, claiming he was being harassed. After 91 days, Boeing rejected his complaint. The Labor Court upheld the company.

A worker has 90 days from the point at which they believe they have been retaliated against to make a complaint with the Department of Labor. For Woods, because he had waited for Boeing’s Ethics Department, he could not turn to the Department of Labor.

At the time he was hired, Woods had declared to Boeing that he had psychiatric conditions: Attention Deficit Disorder, Obsessive-Compulsive Disorder, and mild depression.

The words below are taken from an interview recorded with Mr Woods in 2014.

Working for Boeing


I was very proud to be working at Boeing, the biggest and best commercial aircraft manufacturer in the world and to have the opportunity to work on the first all-composite fuselage for a commercial aircraft. I drank the Boeing Kool-Aid. I was thrilled to be there. Every time the store came around, I bought all my souvenirs.

I was hired to focus on repair of the carbon epoxy material whenever it’s damaged or whenever there’s a manufacturing defect. If there’s damage, we have to remove the material and replace the material to the point where it’s at least as strong as its original design. I was the first manufacturing engineer that was to be dedicated to that position.

I would write the work instructions for the technicians on the floor to how to do the repair.

Quality and production


There was some animosity between quality and production. I would bring up a quality concern and they would say, well, that’s not helpful to production.

In a couple of meetings, there were several … managers screaming at me to dumb down my work instruction.

– John Woods

On several occasions, I would go check out these repairs while they were being done and after. There are inspection points all throughout the repair process where an inspector is supposed to come over and check something and mark it down that he checked it.

You’re never supposed to go past an operation that’s not checked off. I would see a defect and I’ll look at the inspection sheet and there was no note of it, and I know in the specifications that all anomalies, even small anomalies, are supposed to be recorded in the inspection.

So I would bring an inspector over and show it to him and say, “Could you please note this down in your inspection?” And they say okay, so I’d walk away. Then I’d come back later that day or the next day and it’s still not noted.

So then I would go mention it to the supervisor and go back another couple of days and still not noted. It became very frustrating on several occasions, to the point where people were angry at me for bringing it up.

Dumbing down


In a couple of meetings, there were several, a group of managers screaming at me to dumb down my work instruction.

And then when it hit the floor, there was pushback because they don’t want to do all this extra work, so then they come back to me and ask me to – that I put too much in there and I need to dumb it down.

The requirements that I had in there were supposed to be in there. The specifications tell you what the requirements are and you have to tell the technicians what the requirements are.

You have to identify what are the key requirements that are significant enough to put in your work instructions, and sometimes the spec will say that you may do something or you shall do something or you must do something, so just things like that go into your judgment on whether or not – how important it is.

Concerned


Given what I’ve seen, working at the South Carolina plant, doing structural repairs for the Boeing 787, I definitely would be concerned about flying on it myself. I don’t feel safe flying on the 787.

There’s no doubt there are bad repairs going out the door on the 787 aircraft.

I am worried that sooner or later, there’s going to be a structural failure on the fuselage.

These are structural parts, and this is a jumbo jet carrying a couple of hundred human beings, and the structural fuselage has to be solid. The nature of composite materials is the damage grows, and then eventually you get failure. In my view, sooner or later, there will be a fuselage event on the 787 I’m guessing within a couple of years, but that’s just a guess.

I’m concerned about flying on that aircraft. When you know how many times it’s been repaired before it’s even delivered to the customer, you don’t realise that you’re buying damaged. Your aircraft has been damaged and repaired already when you think it’s new.

Fired


I had written a repair work instruction for repairing the stringers. They started using it, and then they realised it’s got these new requirements.

They’re telling me I wrote too good of a procedure, so to speak, that’s got too much requirements in it that doesn’t all need to be in there. And they got very upset, even standing up by their chairs and yelling at me.They were furious because they had expected me to take the stuff out already.

A week later, I was terminated.

The subject matter of the [FAA] complaint was my own area. And when it came back from the FAA with only substantiating one of my seven points, I was very surprised because I know I could’ve myself substantiated all of them, but it’ll be easy for me because that was my subject matter. But I certainly expected a lot more than one to be substantiated. In fact, one is kind of a joke.

Speaking out


My reasons for speaking out about the quality problems on the 787 are because I’m truly concerned about the manufacturing quality of this first-of-a-kind composite aircraft.

Boeing did not have adequate quality controls in place when it comes to repairing structural composites. I wasn’t going to let that continue on my watch.

They encourage you to speak out, and where did it get me? It got me fired.

So instead of saying thanks for doing a good job, because I thought I was doing what I was supposed to be doing, I had to leave in shame really. I was embarrassed with my own family.

Six weeks since I’ve been terminated, and then here I am unemployed with termination on my record. And I have to try to find someone to hire me after being fired from Boeing and it’s very hard to do. It took me a year-and-a-half.

It shouldn’t be this hard to do the right thing.