Tag: production (Page 7 of 17)

Boeing Reports Fourth-Quarter Results

January 27, 2021 / WIL BALDWIN

Fourth Quarter 2020

Financial results significantly impacted by COVID-19, 737 MAX grounding, and commercial widebody programs
777X program recorded $6.5 billion pre-tax charge; first delivery expected in late 2023
737 MAX began receiving regulatory approval to resume operations and restarted deliveries
Revenue of $15.3 billion, GAAP loss per share of ($14.65) and core (non-GAAP)* loss per share of ($15.25)

Full-Year 2020

Revenue of $58.2 billion, GAAP loss per share of ($20.88) and core (non-GAAP)* loss per share of ($23.25)
Operating cash flow of ($18.4) billion; cash and marketable securities of $25.6 billion
Total backlog of $363 billion, including more than 4,000 commercial airplanes
Strengthening safety processes, improving performance, managing liquidity and transforming for the future

Table 1. Summary Financial Results	Fourth Quarter		Full Year
(Dollars in Millions, except per share data)	2020	2019	Change	2020	2019	Change

Revenues	$15,304	$17,911	(15)%	$58,158	$76,559	(24)%

GAAP
Loss From Operations	($8,049)	($2,204)	NM	($12,767)	($1,975)	NM
Operating Margin	(52.6)%	(12.3)%	NM	(22.0)%	(2.6)%	NM
Net Loss	($8,439)	($1,010)	NM	($11,941)	($636)	NM
Loss Per Share	($14.65)	($1.79)	NM	($20.88)	($1.12)	NM
Operating Cash Flow	($4,009)	($2,220)	NM	($18,410)	($2,446)	NM
Non-GAAP*
Core Operating Loss	($8,377)	($2,526)	NM	($14,150)	($3,390)	NM
Core Operating Margin	(54.7)%	(14.1)%	NM	(24.3)%	(4.4)%	NM
Core Loss Per Share	($15.25)	($2.33)	NM	($23.25)	($3.47)	NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”

The Boeing Company [NYSE: BA] reported fourth-quarter revenue of $15.3 billion, reflecting lower commercial deliveries and services volume primarily due to COVID-19 as well as 787 production issues, partially offset by a lower 737 MAX customer considerations charge in the quarter compared to the same period last year (Table 1). GAAP loss per share of ($14.65) and core loss per share (non-GAAP)* of ($15.25) reflected a $6.5 billion pre-tax charge on the 777X program and a tax valuation allowance, partially offset by a lower 737 MAX customer considerations charge. Boeing recorded operating cash flow of ($4.0) billion.

“2020 was a year of profound societal and global disruption which significantly constrained our industry. The deep impact of the pandemic on commercial air travel, coupled with the 737 MAX grounding, challenged our results. I am proud of the resilience and dedication our global team demonstrated in this environment as we strengthened our safety processes, adapted to our market and supported our customers, suppliers, communities and each other,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our balanced portfolio of diverse defense, space and services programs continues to provide important stability as we lay the foundation for our recovery. While the impact of COVID-19 presents continued challenges for commercial aerospace into 2021, we remain confident in our future, squarely-focused on safety, quality and transparency as we rebuild trust and transform our business.”

The return to service of the 737 MAX in the U.S. and several other markets was an important step, and Boeing continues to follow the lead of global regulators and support its customers. Since the FAA’s approval to return to operations, Boeing has delivered over 40 737 MAX aircraft and five airlines have safely returned their fleets to service as of January 25, 2021, safely flying more than 2,700 revenue flights and approximately 5,500 flight hours.

Boeing now anticipates that the first 777X delivery will occur in late 2023. This schedule, and the associated financial impact, reflect a number of factors, including an updated assessment of global certification requirements, the company’s latest assessment of COVID-19 impacts on market demand, and discussions with its customers with respect to aircraft delivery timing.

Click the link below to read the full press release!

https://boeing.mediaroom.com/2021-01-27-Boeing-Reports-Fourth-Quarter-Results

U.S. Air Force Awards Boeing Additional $2.1 Billion Contract for 15 More KC-46A Tankers

January 21, 2021 / WIL BALDWIN

The U.S. Air Force on Wednesday awarded Boeing [NYSE: BA] a $2.1 billion contract for 15 KC-46A tankers, expanding its fleet of aircraft that will not only set the standard for aerial refueling but will also help enable the integrated digital battlespace. Like a cellular tower in the sky, the KC-46 connects air forces to data needed to maintain the decision advantage and win on the 21st century battlefield.

“The KC-46’s adaptability is going to be a game-changer for the U.S. Air Force,” said Jamie Burgess, Boeing KC-46 tanker vice president and program manager. “We know our defense customers will need to transform how they fight and win in the modern era. That’s why Boeing is focused on making sure the KC-46 grows and changes with them.”

The KC-46 is a widebody, multirole tanker designed for state-of-the-art air refueling, cargo and medical transport. Boeing is now on contract for 94 KC-46A tankers.

“Our KC-46 fleet is growing, and we’re ready to extend the reach of next-generation air refueling to more of our Airmen,” said Col. Jason Lindsey, U.S. Air Force KC-46 System program manager.

Boeing delivered the first KC-46A to the U.S. Air Force in January 2019. Since then, the company has delivered 42 tankers to McConnell Air Force base in Kansas, Altus Air Force Base in Oklahoma, Pease Air National Guard base in New Jersey and Seymour Johnson Air Force base in North Carolina. The next-generation KC-46 is bringing new capabilities and operational flexibility to the U.S. Air Force and international customers.

Boeing is assembling KC-46A aircraft at its Everett, Washington, facility, where it also continues production of the KC-46 tanker for Japan.

Garmin Honored with Consecutive On-Time Delivery Awards from Airbus Helicopters

January 20, 2021 / WIL BALDWIN

Garmin International Inc., a unit of Garmin Ltd. (NASDAQ: GRMN), today announced it has received a 2020 On-Time Delivery Award from Airbus Helicopters, Inc. for its efficient performance related to product delivery. Garmin avionics are available as standard on select Airbus Helicopters, including the H125, H130, H135 and H145.

Each year, Airbus Helicopters, Inc. recognizes suppliers who stand out in performance, competitiveness and reliability. This is the second year in a row Garmin has won the On-Time Delivery Award for commitment and timeliness in delivering avionics to fulfill Airbus Helicopters Inc. production lines and customer orders.

“We are once again very proud to be recognized by Airbus with this prestigious award for our commitment to serve them and our mutual customers with the on-time delivery of our products,” said Carl Wolf, Garmin vice president aviation sales and marketing. “To again receive this award is truly humbling and ultimately would not be possible without the dedication of our entire Garmin team, in addition to the gratifying strategic relationship with Airbus Helicopters.”

Garmin avionics are available as standard on the Airbus H125, including the G500H TXi flight display,
GTN^™ 650 touchscreen navigator, GNC 255 nav/comm, GMA^™ 350c audio panel and the GTX^™ 335R remote-mount ADS-B Out transponder. The GTN 750, GNC 255 and GTX 335R are also available as standard on the H130, while the H135/H145 feature the GTN 750 and Flight Stream 510 as standard equipment.

This marks the third consecutive year Garmin has received an award from Airbus Helicopters, Inc. In 2018, Garmin was also recognized by Airbus Helicopters, Inc. as the Supplier of Excellence for its unmatched responsiveness and competitiveness in its support of the UH-72A Lakota helicopter program, and for its overall support at the Airbus Helicopters Inc. final assembly and completion center in Columbus, Miss.

Boeing Awarded Contract for 12 More KC-46 Tankers

January 14, 2021 / WIL BALDWIN

This week the U.S. Air Force awarded Boeing [NYSE: BA] a $1.7 billion contract for 12 KC-46A tanker aircraft. With this sixth production lot, Boeing is now on contract for 79 KC-46A tankers.

The company delivered the first KC-46A to the Air Force in January 2019. Since then, Boeing has delivered 42 tankers to four different bases. The next-generation KC-46 brings new capabilities and operational flexibility to the U.S. Air Force and international customers.

“The investments Boeing is making in the KC-46 today will benefit generations of service members,” said Jamie Burgess, Boeing KC-46 tanker vice president and program manager. “I believe the partnership between Boeing and the Air Force will also produce additional KC-46 innovations that will carry the warfighter well into the future.”

Boeing received its first two production lots from the U.S. Air Force, for seven and 12 aircraft, in August 2016. The third lot, for 15 aircraft, was awarded in January 2017; the fourth lot for 18 aircraft in September 2018 and the fifth lot for 15 aircraft in September 2019.

The KC-46A is a multirole tanker designed to refuel allied and coalition military aircraft compatible with international aerial refueling procedures. It’s also equipped to carry passengers, cargo and patients on any mission at any time.

Boeing is assembling KC-46A aircraft at its Everett, Wash. facility where it also continues production of the KC-46 tanker for Japan.

For more information on Defense, Space & Security, visit www.boeing.com

Boeing 747-8 Lives On With Atlas Air Worldwide Purchases of Four Freighters

January 14, 2021 / WIL BALDWIN

Boeing [NYSE: BA] and Atlas Air Worldwide announced an agreement to purchase four 747-8 Freighters. The order enables Atlas Air to leverage the operational advantages of the 747-8 Freighter to meet growing cargo demand around the globe.

“The 747-8F is the best and most versatile widebody freighter in the market, and we are excited to bolster our fleet with the acquisition of these four aircraft,” said John W. Dietrich, Atlas Air Worldwide President and Chief Executive Officer. “This significant growth opportunity will enable us to capitalize on strong demand and deliver value for our existing and prospective customers. The efficiency and capability of the 747-8F further complements our longstanding focus on leading edge technology. Dedicated freighters – like those operated by our Atlas, Polar and Southern subsidiaries – will continue to be in demand as the global airfreight market, particularly the e-commerce and express sectors, continues to grow.”

With a maximum payload capacity of 137.7 metric tonnes (137,750 kg), the 747-8 Freighter allows customers to access 20% more payload capacity while using 16% less fuel compared to previous-generation 747s. The jet also features 30% quieter engines. The 747-8 airplanes in this agreement will be the final four aircraft to roll off the production line in Everett, Washington.

“The 747 will forever hold a special place in aviation history and we are honored by Atlas Air’s longstanding commitment to the airplane. Atlas Air began operations 28 years ago with a single 747 and it is fitting that they should receive the last 747 production airplanes, ensuring that the ‘Queen of the Skies’ plays a significant role in the global air cargo market for decades to come,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “With the global air cargo fleet expected to grow by more than 60% over the next 20 years, we look forward to delivering these airplanes and supporting Atlas Air’s Boeing fleet well into the future.”

Atlas Air has 53 747s in its current fleet, making it the largest 747 operator in the world. Its world-class fleet also includes 737s, 767s and 777s. The 747 and 777 models, in particular, are capable of carrying tall and outsized cargo loads on 3-meter-high (10-foot-tall) pallets. This common main-deck pallet height supports interchangeable pallets, adding to the versatility of both models.

Boeing, the market leader in air cargo aircraft, provides more than 90% of the dedicated freighter capacity around the world, including new production and converted freighters. The 747 program has produced 1,560 aircraft since launching the jumbo jet more than 50 years ago. In July 2020, Boeing announced its decision to complete production of the 747-8 in 2022.

JetBlue Rings in New Year with Airbus A220-300 Aircraft

January 3, 2021 / WIL BALDWIN

JetBlue (NASDAQ: JBLU) announced it has formally taken delivery of its first Airbus A220-300 aircraft, marking the start of a new era for the airline’s fleet. The aircraft – tail N3008J – is scheduled to arrive at JetBlue’s home at New York’s John F. Kennedy International Airport (JFK) this evening from Airbus’s U.S. production facility in Mobile, Ala. It is the first delivery of 70 A220 aircraft JetBlue has on order, which will be phased in to ultimately replace the existing fleet of 60 Embraer 190 aircraft.

The A220 boasts a nearly 30 percent lower direct operating cost per seat than the current E190. Lower seat costs come from both fuel and non-fuel savings. The A220 fleet will also help to further reset JetBlue’s maintenance costs well into the decade. The airline anticipates the A220 fleet, with improved reliability and longer maintenance intervals, will have a maintenance cost per seat that is more than 40 percent lower than E190s.

With a range of up to 3,350 nautical miles and a 40 percent lower fuel burn per seat than JetBlue’s E190 aircraft, the favorable economics open the door to new markets and routes that would have been unprofitable with JetBlue’s existing fleet. The A220 covers a wide mix of new and existing market possibilities with excellent economics on short, medium and even potentially transcontinental markets. This will allow for better overall aircraft utilization and provide a competitive advantage for JetBlue in short haul markets.

The A220 is powered exclusively by Pratt & Whitney GTF engines, which deliver double-digit improvements in fuel and carbon emissions. Optimizing fuel burn is an important first step in JetBlue’s cost-conscious sustainability strategy, and prioritizing fuel-efficient aircraft and engines aligns with JetBlue’s approach to reducing emissions. Earlier this year, JetBlue became the first major U.S. airline to achieve carbon neutrality for all domestic flights, and later announced its plans to achieve net zero carbon emissions across all operations by 2040. The A220’s significant reduction in per-seat emissions will help JetBlue meet and maintain its sustainability commitments.

The interior of JetBlue’s A220 will be as impressive as the operating capabilities of the aircraft. Customers will also enjoy an elevated inflight experience with wider seats, spacious overhead bins and extra-large windows. JetBlue’s fleet features the most legroom in coach (a) and free Fly-Fi®, the fastest broadband internet in the sky (b). JetBlue will reveal details of its custom-designed A220 cabin – featuring thoughtful, customer-friendly touches throughout – in January 2021.

JetBlue continues to navigate the new travel environment with a steady hand and a long-term view on recovery. The investment in the A220 allows the airline to continue to execute its low cost business model, and enables JetBlue to continue to offer low fares to more customers.

Click the link below to view the JetBlue Airbus A220-300 Aircraft time lapse video!

https://mms.businesswire.com/media/20201231005234/en/849666/19/4822028_JetBlue_A220-300_Timelapse_1.mp4&.mp4?download=1

Boeing Says More Freighters Needed to Support Global Supply Chains

November 17, 2020 / WIL BALDWIN

Boeing [NYSE: BA] today released its biennial World Air Cargo Forecast (WACF), reflecting COVID-19 impacts and opportunities as well as substantial long-term demand for freighters over the next two decades.

Enabled by a rebound in global trade and long-term growth, the WACF forecasts demand for 2,430 freighters over the next 20 years, including 930 new production freighters and 1,500 freighters converted from passenger airplanes.

According to the new forecast, world air cargo traffic will grow at 4% per year over the next 20 years. This growth is influenced by trade and growing express shipments to support expanding e-commerce operations. With these developments and the proven need for dedicated freighter capacity to support the world’s transportation system, the global air cargo fleet is expected to grow by more than 60% through 2039.

“Freighter operators have been in a unique position in 2020 to meet market requirements for speed, reliability and security, transporting medical supplies and other goods for people and communities around the world,” said Darren Hulst, vice president of Commercial Marketing. “Looking ahead, dedicated freighters will be even more critical to compete in air cargo markets; they carry more than half of air cargo traffic, and airlines operating them earn nearly 90% of air cargo industry revenue.”

In addition to projecting long-term demand for freighters, the WACF provides insights into air cargo performance during the pandemic, including the following:

– E-commerce, which was growing at double-digit rates prior to the pandemic, has accelerated its impact on the air cargo market as more businesses shifted to online selling platforms. Year to date through September, express carriers increased traffic by 14%

– Passenger belly cargo, which in 2019 accounted for about half of the world air cargo capacity, was significantly reduced when airlines parked thousands of planes. Freighter operators responded by operating above normal utilization levels, and traffic for all-cargo carriers grew 6%

– So far in 2020, approximately 200 airlines used more than 2,000 passenger widebody aircraft for cargo-only operations to generate cash flow and support global supply chains. These passenger freighters have taken up some of the capacity shortfall and, in some cases, generated quarterly profits for carriers despite minimal passenger operations

Airbus Signs Contract for 38 Eurofighters with Germany

November 15, 2020 / WIL BALDWIN

Airbus has signed a contract to deliver 38 new Eurofighter aircraft to the German Air Force. This makes Germany the largest ordering nation in Europe’s biggest defence programme. The order, also known by its project name Quadriga, covers the delivery of 30 single-seater and 8 twin-seater Eurofighters. Three of the aircraft will be equipped with additional test installations as Instrumented Test Aircraft for the further development of the Eurofighter programme.

Dirk Hoke, CEO Airbus Defence and Space, said: “The new Tranche 4 Eurofighter is currently the most modern European-built combat aircraft with a service life well beyond 2060. Its technical capabilities will allow full integration into the European Future Combat Air System FCAS”.

The renewed order from Germany secures production until 2030 and comes at a strategically important time for the programme. In addition to an expected Eurofighter order from Spain to replace its legacy F-18s, procurement decisions in Switzerland and Finland are imminent in 2021.

The variant offered in Switzerland corresponds to the configuration of the German Quadriga order. The equipment includes the world’s latest electronic radar, future-proof hardware and software and unlimited multi-role capability for engaging air and ground targets.

Eurofighter is Europe’s largest defence programme, in which the United Kingdom, Spain and Italy are involved alongside Germany. In addition to technological capabilities, it secures more than 100,000 jobs in Europe.

F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.

Boeing Secures Over $800M in Middle East Training and Support Contracts

November 11, 2020 / WIL BALDWIN

– Qatar Emiri Air Force to receive aircrew and maintenance training support for F-15QA aircraft

– Comprehensive support includes pre-delivery training and maintenance, and in-country services support

Boeing [NYSA: BA] today acknowledged three foreign military sales contracts with the U.S. Air Force for training services and support in the Middle East valued at more than $800 million.

The first previously unannounced contract was awarded in 2019 and will support the Qatar Emiri Air Force (QEAF) with F-15QA program management, maintenance and aircrew training valued at $240 million over a five-year contract period.

Boeing also received a separate not-to-exceed $68 million contract to provide maintenance and logistics support for the QEAF during their pre-delivery training for the F-15QA aircraft, which will commence early next year. The QEAF will send pilots and weapon system operators to the U.S., where the aircrews will learn how to independently operate the F-15QA ahead of receiving their new aircraft. Training will include in-person instruction, simulation events and flying operations and will be held near Boeing’s F-15 production facility in the U.S. through mid-2021.

Following this, Boeing will establish and operate an aircrew and maintenance training center for the QEAF at Al Udeid Air Base, Qatar, through 2024.

A third contract awarded in November and valued at more than $500 million will provide the QEAF with in-country spares and logistics support once the aircraft are delivered to Qatar.

“The tailored training and sustainment delivered by our team, coupled with Boeing’s platform expertise, allows us to deliver a holistic solution to our Qatari customer so they can optimize the full capability of their fleet with high availability rates,” said Tim Buerk, director of Middle East defense services for Boeing. “We look forward to our continued partnership with Qatar and further supporting their mission readiness needs.”

The F-15QA is an advanced variant of the undefeated F-15 aircraft. The Advanced F-15 features next-generation technologies that offer more speed, range and payload than any other fighter in its class. Boeing will deliver 36 F-15QA aircraft to Qatar starting in 2021.

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Boeing Wins Contract for Two More KC-46 Tankers for Japan

November 1, 2020 / WIL BALDWIN

The U.S. Air Force has exercised the option for the Japan Air Self-Defense Force’s (JASDF) third and fourth Boeing [NYSE: BA] KC-46 tanker through the Foreign Military Sale (FMS) process.

“Japan’s new tankers will play an invaluable role in the security alliance between our two countries,” said Col. Jason Lindsey, U.S. Air Force KC-46 System program manager.

Boeing’s KC-46 will be a force multiplier in the U.S.-Japanese defense alliance. It can refuel U.S., allied and coalition military aircraft compatible with international aerial refueling procedures, any time, on any mission, and can carry passengers, cargo and patients whenever and wherever needed.

“This order further enhances our enduring partnership with Japan,” said Will Shaffer, president of Boeing Japan. “The KC-46 will be an unparalleled asset to Japan’s air mobility fleet for decades to come.”

Boeing was awarded the initial FMS contract for Japan’s first KC-46 aircraft and logistics services in December 2017 following the Japan Ministry of Defense’s KC-X aerial refueling competition. A contract for a second KC-46 was awarded to Boeing in December 2018.

Boeing assembles KC-46A aircraft for both the U.S. Air Force and the JASDF on its 767 production line in Everett. Japan’s first KC-46 is scheduled for delivery in 2021.

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