Boeing more bullish on new aircraft orders

Boeing has released its latest current market outlook. (Boeing)
Boeing has released its latest current market outlook. (Boeing)

Boeing has revised upwards its market forecast for aircraft delivers over the next 20 years, with the rise of low-cost carriers, the Chinese market and global economic growth fuelling demand for passenger travel and cargo volumes.

The Boeing Current Market Outlook (CMO) for 2015-2034, published on Friday (Australian time), said 38,050 aircraft would be delivered over the next two decades, with 58 per cent to be used for growth and the remainder as replacement of older frames. The forecast represented US$5.6 trillion worth of aircraft at list prices.

The latest CMO is up 3.5 per cent compared with Boeing’s previous market outlook published a year ago, which tipped 36,770 new aircraft deliveries in the two decades to 2033.

There were upward revisions were for the single aisle, small widebody (200-300 seats) and medium widebody (300 to 400 seats) segments, while the regional jet forecast was unchanged.

“Those single-aisle airplanes that are the foundation of the networks of the airlines around the world have performed better than we’d anticipated,” Boeing Commercial Airplanes vice president of marketing Randy Tinseth told reporters during a conference call discussing the CMO on Friday.

“Frankly I don’t think we’ve fully understood and comprehended the real strength of those airlines in the emerging developing economies as well as the strength and the growth potential of low-cost carriers.”

The CMO noted the single-aisle market continued to be the fastest-growing, largest overall segment, requiring 26,730 aircraft over the coming two decades. Moreover, aircraft such as the 737, A320 or Embraer E190, among others, carried up to 75 per cent of passengers on more than 70 per cent of the world’s commercial aviation routes, supported by the proliferation of low-cost carriers and airlines in developing and emerging markets.

Those upward revisions were offset by reduced expectations for deliveries in the large aircraft segment, comprising the 747-8F (freighter), 747-8I (passenger) and Airbus A380.

The company now expects just 540 new aircraft deliveries of large widebodies over the next 20 years, a reduction of 80 aircraft from the 620 forecast in the 2014-2033 CMO.

Most of the downward change was tipped to come from Asia, where demand for these very large aircraft was reduced to 140 frames over the next 20 years, 70 aircraft below the 2014-2033 prediction of 210.

Boeing has traditionally regarded the very large aircraft segment as a small market, believing just a handful of airlines around the world had the route structures and capabilities to successfully utilise an aircraft with more than 400 seats.

And Tinseth said many of those routes had now been filled by existing large aircraft. Moreover, airlines were increasingly attracted to new small and medium widebodies given their compelling operating economics.

“We recognise that, we make adjustments to the forecast that are in line with the realities of the market that we see today and developing in the future,” Tinseth said.

“It’s been a market segment frankly that we have overestimated demand.

“If you can’t fill a big airplane you are going to choose something that will ensure you will be able to make money. It is all about risk and reward.”

Boeing's CMO says the proportion of single aisle aircraft will rise over the next 20 years. (Boeing)
Boeing’s CMO says the proportion of single aisle aircraft will rise over the next 20 years. (Boeing)

Sales of both the A380 and 747-8 have been slow, with no new orders for the Airbus doubledecker superjumbo in 2015 and the production rate of the latest version of the 747 due to be trimmed to 1.3 aircraft a month from September, down from 1.5 a month currently.

Tinseth said the recovery in the cargo market would help support orders for 650 new large freighters (more than 80 tonnes) over the next two decades, representing between two to three new deliveries a month.

That should spur demand for the 747-8F, and help support production of the current 777 ahead of the 777-X’s expected entry into service in 2020.

“I believe this is good news for the 747-8 production line because it means strong demand for those airplanes over the next several years,” Tinseth said.

“It also bodes well for our 777 family as we work a bridge between today’s 777 family and the 777-X in the future.

“Big freighters are needed, particularly in the Asia Pacific.”

The overall freighter fleet was forecast to increase to 2,930 in 2034, from 1,720 in 2014.

Tinseth noted the retirement rate for aircraft had tripled over the past 15 years, rising from less than 200 aircraft a year in 2000 to somewhere between 500 and 600 aircraft a year in 2014.

It was expected that two to three per cent of the existing airline fleet was expected to be retired each year over the next two decades, which Tinseth said provided “a very strong base for our production moving forward”.

Airlines in Asia represented the bulk of expected new deliveries over the coming 20 years, with 14,330 new aircraft tipped to enter service in that period.

“The low-cost carrier (LCC) business model has proved successful throughout the world but particularly so in Asia Pacific,” the Boeing CMO said.

“Over the past 10 years, the region’s LCCs have generated an average annual growth rate of 24.5 per cent. By comparison, Europe’s LCCs grew 13.4 per cent annually during the same period, and North America’s grew a modest 2.2 per cent annually.”

The forecast for Asia was up from 13,460 new deliveries in the 2014 CMO.

The Boeing presentation noted 78 per cent of capacity growth between 2013 and 2014 was achieved through additional frequencies, with 14 per cent coming from new direct routes and eight per cent through upgauging with larger aircraft on existing routes.

A summary of Boeing's CMO for 2015-2035. (Boeing)
A summary of Boeing’s CMO for 2015-2034. (Boeing)



Australian Aviation

Boeing 747-8 Intercontinental Receives allowance Federal Aviation Administration for 330-Minute Extended Twin Engine Operations

EVERETT, Wash., March 18, 2015 /PRNewswire/ — Boeing (NYSE: BA) has received 330-minute Extended Operations (ETOPS) approval from the U.S. Federal Aviation Administration (FAA) for the Boeing 747-8 Intercontinental. It is the first time a four-engine airplane has received this type of design approval.

With this approval, required for four-engine passenger airplanes built after Feb. 2015 to fly beyond 180 minutes from an en-route alternate airport, the 747-8’s design is approved to conduct 330-minute ETOPS missions. These missions allow operators to fly long-distances more directly on virtually any worldwide city pair routing.

Although ETOPS has been a requirement for twin-engine airplanes since the 1980s, the regulations have recently been applied to the design of passenger airplanes with more than two engines.

“Our customers will benefit from this additional level of reliability inherent to ETOPS design approvals while still leveraging the vast network of routes ideal to the 747-8 capabilities, including 330-minute ETOPS routes,” said Bruce Dickinson, vice president and general manager, 747 program, Boeing Commercial Airplanes. “The 747-8 already offers fuel savings from an improved aerodynamic design. Flying long-distance routes directly helps our customers fly even more efficiently – saving fuel and emitting less carbon dioxide.”

With 83 airplanes in service with 11 customers, 747-8s have logged more than 619,000 flight hours and more than 101,000 flight cycles.

Karen Crabtree
747 Communications
Boeing Commercial Airplanes
+ 1 206 766 2930+ 1 206 766 2930


SOURCE : Boeing Website

Kuwait Airways Finalize Order for 10 Boeing 777-300ERs

KUWAIT CITY, Dec. 23, 2014 /PRNewswire/ — Boeing [NYSE: BA] and Kuwait Airways have finalized an order for 10 777-300ERs (Extended Range), valued at $3.3 billion at list prices.

The order underlines the popularity of the 777-300ER as the preferred long-haul aircraft of many of the world’s leading airlines including those from the Middle East. The airline originally announced its intent to order the 777-300ER in November.

“Kuwait Airways has plans to renew its fleet as well as expand its operations and the 777-300ER is a perfect airplane for our strategy,” said Rasha Al Roumi, Kuwait Airways CEO. “The airplane has already validated its position in terms of high reliability, low operating costs and fuel efficiency. We are looking forward to having the 777-300ER join our fleet.”

The 777-300ER is the most fuel and cost-efficient airplane in its class today with 99.5 percent reliability, making it the most reliable twin-aisle aircraft in the world. The flagship of the world’s elite airlines, the 777-300ER carries 386 passengers in a standard three-class configuration up to 7,825 nautical miles (14,490 kilometers), on non-stop routes.

“This order marks another feather in the cap for the 777-300ER which not only continues to be an integral part of the fleet of many of the world’s airlines but is also being ordered by new customers who see the value of the airplane,” said Ray Conner, president and CEO, Boeing Commercial Airplanes. “The aerospace industry in the Middle East continues to enjoy a phenomenal growth and we are proud to be part of that growth and look forward to an enduring relationship with Kuwait Airways.”

Daniel Mosely
International Communications
Boeing Commercial Airplanes
+44 7780 481 228

Photo and caption will be available here:

SOURCE :Boeing website

Boeing Statement on Air China’s Commitment for 60 737s

SEATTLE, Dec. 22, 2014 /PRNewswire/ — Boeing [NYSE: BA] is pleased that Air China has committed to purchase 60 737s, including Next-Generation 737 and 737 MAX airplanes. The commitment when finalized will be valued at more than $6 billion at current list prices.

“Our long-standing and productive partnership with Air China dates back to the airline’s beginning and we are proud the 737 has been part of their success,” said Ihssane Mounir, vice president of Sales and Marketing, Northeast Asia, Boeing Commercial Airplanes. “We are excited to see that the 737 family will play a significant role in Air China’s continued success.”

The order will be posted on Boeing’s Orders & Deliveries website once all contingencies are cleared.

Yukui Wang
Boeing China Communications
+86 10 5925 5505

Kevin Yoo
International Communications
Boeing Commercial Airplanes
+1 206-249-6372

SOURCE : Boeing website

Malaysia Airlines Celebrate 100th Boeing 737 delivery

SEATTLE, Dec. 19, 2014 /PRNewswire/ — Boeing [NYSE: BA] and Malaysia Airlines celebrated the carrier’s 100th 737 direct delivery today. The airplane, a Next-Generation 737-800, is scheduled to arrive in Kuala Lumpur, Malaysia Sunday.

“The 737 has, and continues to be, an amazing aircraft for our airline with its consistent reliability, unmatched economics and innovation in passenger comfort,” said Ahmad Jauhari Yahya, group chief executive officer, Malaysia Airlines. “We used a 737 for our very first flight in 1972 and we are excited to now take delivery of our 100th airplane of its type.”

Malaysia took delivery of its first 737, a 737-200, in 1972 and has operated the 737-200, 737-300, 737-400, 737-500 and 737-800 as well as 747-400s and 777-200ERs (Extended Range).

“We are proud of our long running relationship with Malaysia Airlines and honored to be a part of this special centennial delivery,” said Dinesh Keskar, senior vice president of Asia Pacific and India Sales, Boeing Commercial Airplanes. “The operating economics and capability of the 737 will continue to play an important role in Malaysia’s leading airline.”

Malaysia Airlines’ new 737-800 features the Boeing Sky Interior, with larger pivoting overhead stowage bins, larger window reveals and LED lighting to enhance the sense of spaciousness. Malaysia was the Asia launch customer for the Boeing Sky Interior. The airline has an additional 10 737-800s on order.

The 737-800 is the best-selling version of the highly successful Next-Generation 737 family, the most technologically advanced airplanes in the single-aisle market. The Next-Generation 737’s market success has been confirmed by investors who consistently rank it as the most preferred single-aisle airplane due to its wide market base, superior performance efficiency and lowest operating costs in its class. More than 5,100 Next-Generation 737s have been delivered to date from customers worldwide.

Joanna Pickup
International Communications
Boeing Commercial Airplanes
+1 425-879-6077

Jay Krishnan
Corporate Communications
Boeing Southeast Asia
+65 6883 9809

SOURCE : Boeing website

BOC Aviation Finalize Order for Two Additional 737-800s

SEATTLE, Dec. 18, 2014 /PRNewswire/ — Boeing [NYSE: BA] and BOC Aviation have finalized an order for two additional 737-800s, valued at $186 million at current list prices.

The order is a part of the Singapore-based leasing company’s effort to grow its portfolio of fuel-efficient airplanes.

“Building on our order of 80 737 aircraft earlier this year, these two additional Next-Generation 737s enable us to respond to demand from airline customers which are expanding or replacing older fleets,” said Robert Martin, BOC Aviation managing director and chief executive officer. “The 737 is known for its operational and fuel efficiency, and BOC Aviation expects continued healthy demand for the Next Generation 737 and 737 MAX.”

“BOC Aviation has played an important role in the success of the Next-Generation 737 and we are excited to continue our relationship with their order of two additional 737-800s,” said Dinesh Keskar, senior vice president, Asia Pacific and India Sales, Boeing Commercial Airplanes.

BOC Aviation, owned by Bank of China, is the leading global aircraft leasing company based in Asia, owning one of the youngest fleets in the industry with an average aircraft age of less than four years. These two aircraft add to BOC Aviation’s order of 82 Boeing aircraft in August, which comprised 80 737s, of which 50 are 737 MAXs, as well as two 777-300ERs (Extended Range).

The 737-800 is the best-selling version of the highly successful Next-Generation 737 family, the most technologically advanced airplanes in the single-aisle market. The Next-Generation 737’s market success has been confirmed by investors who consistently rank it as the most preferred single-aisle airplane due to its wide market base, superior performance efficiency and lowest operating costs in its class. The Next-Generation 737 has accumulated more than 6,800 orders from customers worldwide.

Joanna Pickup
International Communications
Boeing Commercial Airplanes
+1 425-879-6077

Jay Krishnan
Corporate Communications
Boeing Southeast Asia
+65 6883 9809

Claire Leow
BOC Aviation Communications
+65 6325 9638

SOURCE :Boeing

Jetlines Announce Order for Five 737 MAX 7s

SEATTLE, Dec. 15, 2014 /PRNewswire/ — Boeing [NYSE:BA] and Jetlines today announced an order for five 737 MAX 7s as the new Canadian ultra-low cost carrier builds its future fleet. The order, valued at $438 million at current list prices, includes purchase rights for an additional 16 737 MAXs.

“This agreement with Boeing is a major milestone for Jetlines,” said Jim Scott, CEO of Jetlines. “We are thrilled to be partnering with Boeing and look forward to introducing the 737 MAX 7 into our fleet.”

The new airline, headquartered in Vancouver, British Columbia, plans to tap into passenger demand by offering low cost airfares on routes that avoid direct competition with other airlines.

“Boeing is proud to partner with Jetlines as it begins a journey to offer low airfares to passengers across Canada,” said Brad McMullen, vice president of North America Sales, Boeing Commercial Airplanes. “The 737 MAX 7 is perfectly suited to the airline’s needs, and we appreciate the confidence Jetlines has in the airplane.”

The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market. The 737 MAX 7 will be capable of flying more than 3,800 nautical miles, extending the range over today’s 737-700 by approximately 400 nautical miles (741km).

With this order, the 737 MAX has orders for 2,562 airplanes from 55 customers worldwide.


Doug Alder
Boeing North American Sales Communications

SOURCE : Boeing

Boeing Conducts World’s First Flight with ‘Green Diesel’ as Aviation Biofuel

SEATTLE, Dec. 3, 2014 /PRNewswire/ — Boeing [NYSE: BA] has completed the world’s first flight using “green diesel,” a sustainable biofuel that is widely available and used in ground transportation. The company powered its ecoDemonstrator 787 flight test airplane yesterday with a blend of 15 percent green diesel and 85 percent petroleum jet fuel in the left engine.

“Green diesel offers a tremendous opportunity to make sustainable aviation biofuel more available and more affordable for our customers,” said Julie Felgar, managing director of Environmental Strategy and Integration, Boeing Commercial Airplanes. “We will provide data from several ecoDemonstrator flights to support efforts to approve this fuel for commercial aviation and help meet our industry’s environmental goals.”

Sustainable green diesel is made from vegetable oils, waste cooking oil and waste animal fats. Boeing previously found that this fuel is chemically similar to HEFA (hydro-processed esters and fatty acids) aviation biofuel approved in 2011. Green diesel is chemically distinct and a different fuel product than “biodiesel,” which also is used in ground transportation.

With production capacity of 800 million gallons (3 billion liters) in the U.S., Europe and Asia, green diesel could rapidly supply as much as 1 percent of global jet fuel demand. With a wholesale cost of about $3 per gallon, inclusive of U.S. government incentives, green diesel approaches price parity with petroleum jet fuel.

“The airplane performed as designed with the green diesel blend, just as it does with conventional jet fuel,” said Capt. Mike Carriker, Chief Pilot, Product Development and 777X, Boeing Test and Evaluation. “This is exactly what we want to see in flight tests with a new type of fuel.”

Green diesel is among more than 25 new technologies being tested by Boeing’s ecoDemonstrator Program aboard 787 Dreamliner ZA004. The program accelerates the testing, refinement, and use of new technologies and methods that can improve aviation’s environmental performance.

On a lifecycle basis, sustainably produced green diesel reduces carbon emissions by 50 to 90 percent compared to fossil fuel, according to Finland-based Neste Oil, which supplied green diesel for the ecoDemonstrator 787. The flight test was coordinated with the U.S. Federal Aviation Administration, Rolls-Royce and Pratt & Whitney, and EPIC Aviation blended the fuel.

For more information about ecoDemonstrator 787 technologies and a complete list of supplier partners,

Bret Jensen
Engineering Communications
Boeing Commercial Airplanes
+1 425-266-3674

Jessica Kowal
Environment Communications
Boeing Commercial Airplanes
+1 206-660-6849

SOURCE :Boeing website

Proving flight

Now that I’m back home after visiting 787 customers overseas, I wanted to congratulate ANA on a significant development over the weekend. Just a few hours after I flew on the first Dreamliner to resume commercial service with Ethiopian Airlines (separate blog entry below), ANA completed a 787 proving flight around Tokyo on Sunday.

The first ANA 787 outfitted with the new battery system returns to Tokyo’s Haneda International Airport after a two-hour proving flight on Sunday.

The airline’s chairman Shinichiro Ito and Boeing Commercial Airplanes president and CEO Ray Conner were both on board. Ito said the flight had no issues and was a very big step forward in returning the ANA fleet to commercial service. Conner called it the perfect flight on a perfect day. We look forward to many more.