BA

[rffrydr]

Boeing selling off on GOOD news:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVcW9Enj_UpI&refer=home

Chinese visit may have been best times. Lotsa toppy looks out there.
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Today is the Tomorrow you worried about Yesterday!

[rffrydr]

After forcing local production of Boeing wing assemblies a decade ago out pops a new chinese plane:

http://www.bloomberg.com/video/64536570/
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Yet another delay in the 787 but Boeing maintains that it is on track to deliver its first 787 to All Nippon Airways by 1Q of next year:

http://online.wsj.com/article/SB10001424052702303341904575576292786616162.html

[HenryTo]

787 delayed yet again due to the shutdown of a Rolls Royce testing facility:

http://noir.bloomberg.com/apps/news?pid=20601087&sid=aO1Flzhr7Xrs&pos=2

New projected delivery date is the middle of 1Q 2011.

[HenryTo]

Boeing 787 passes its first real-life lightning test:

http://www.bloomberg.com/apps/news?pid=20601109&sid=auOyZWk6k_pM&pos=15

[rffrydr]

Heard that on Bloomie yesterday and couldn't help thinking: if you like BA you gotta like EADS--the one company leveraged to the Euro above all others.
_________________
Today is the Tomorrow you worried about Yesterday!

[HenryTo]

Goldman Sachs reiterates its "conviction buy" on BA yesterday.
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Takeaways from an upbeat Investor Conference; reiterate CL-Buy

News

We attended Boeing’s annual Investor Day in Philadelphia and highlight
the following key takeaways.

Analysis

New aircraft orders better than expected: Management commented that
new commercial order activity has been better than expected. We do not
believe investors are expecting orders near term. With backlog still at 7X
sales, if we start to see healthy order numbers, we would be even more
positive on the stock.

There is an R&D tailwind coming: Management commented it sees R&D
“declining substantially over the next few years.” It also stated that is the
case (to varying degrees) regardless of the strategy on 737 and 777.

Multiple comments lead us to believe BA is not going to re-engine the 737.
If that is true and it instead designs an all new aircraft, EIS is about 2020,
which means significant R&D relief for the next three years minimum.

A 787 may actually be delivered in 2010: Tone on 787 was very positive.
BA clarified that the supplier stoppage and shear tie issues are separate
and it is not highly concerned with either. Focus has turned to the ramp to
10 per month. We still believe the market will be positively surprised by
2010 787 deliveries if they occur. Commentary on 747-8 was much more
cautious and we suspect that schedule will slide one more time.

BDS may surprise us; Cautious Defense view supported: We believe
BDS is thought of as a poorly positioned Defense business. Indeed, BDS
will decline in 2010. But a new F-18 MYP, ramping helicopter production,
and a tanker win could drive future growth at BDS when others will start to
decline. Boeing is talking to F-35 international participants about F-18.

Regarding the sector, Boeing said it sees in-sourcing, investment pressure, and moves to fixed-price development.

Implications

We reiterate our CL-Buy; our estimates and price target are unchanged.

[HenryTo]

Boeing asserts that the European sovereign debt crisis will have no material impact on its backlog. Also does not forsee any cancellations due to the delay - as the plane is simply too fuel-efficient for customers to ignore:

http://www.marketwatch.com/story/boeing-says-its-insulated-from-europes-problems-2010-05-20?siteid=yhoof
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Boeing Co. said Thursday that the difficulties in Europe over some sovereign-debt woes aren't likely to harm the manufacturer's commercial-aircraft backlog, which already is "oversold" through 2012.

The Chicago-based aerospace giant said its backlog at the end of the first quarter stood at $250 billion, and is dominated by demand for its wide-body models such as the 767, the 777 and the up-and-coming 787 Dreamliner. Boeing's (BA 63.88, +0.88, +1.40%) most popular single-aisle plane, the 737, is completely sold out until 2013.

Of its total backlog, just 20% of orders come from European customers, of which 12 are to be delivered to customers in Portugal and Greece -- the focus of continent's economic difficulties, according to Jim Albaugh, chief executive of Boeing Commercial Airplanes.

Furthermore, the troubles in Europe appear to be contained. "What's happening in Europe will not have an impact on what's happening elsewhere," Albaugh said during an investor meeting.

Boeing reaffirmed its earlier 2010 guidance for its commercial division, with revenue in the range of $31 billion to $32 billion on deliveries of 460 to 465 planes. The segment's operating margin is expected to be between 6.5% to 7.5%.

Over the next 20 years, Boeing predicts global customers will purchase some $3.2 trillion in new aircraft, or about 29,000 airplanes. On the services side, the company believes operators will outsource about $2.4 trillion in maintenance and retrofitting work.

Shares of Boeing, a Dow component, declined 4% in recent trading Thursday at $63.52 along with the broader market. Anxiety over the European economy and an unexpected rise in U.S. unemployment numbers last week appeared to be driving the downturn.

But the stock has had a good run since facing down the global credit crisis last year, and is up more than 42% in the last 12 months.

Boeing has been optimistic on demand for its aircraft models and recently announced it would increase production rates for the 737 by 2012. Albaugh said he would consider raising rates a second time if the situation warrants it.

Analysts have speculated that Boeing will lift 737 rates gradually to ensure its suppliers are able to match the higher demand. Read more about the projected rate change.

The company is also taking into consideration replacing the engine of the plane to increase its fuel efficiency, a decision it plans to make this fall.

An advanced engine design by Pratt & Whitney -- a unit of United Technologies Corp. (UTX 66.61, +0.18, +0.27%) -- promises significantly less fuel burn and has made headway with jet makers Bombardier and Mitsubishi, and Boeing's 737 customers are demanding a similar fuel-saving advantage. Read more about the 737 engine redesign.

"People who have the 737 want a re-engine; those who do not have a 737 want a new plane, but you can make a plane more efficient with either a new airplane or a new engine," Albaugh said.

Boeing has to keep costs for the company and its customers in mind while making its decision, the executive added.

787 remains on target; reimbursement talks nearly complete

Meanwhile, the 787 development program is on track to win U.S. certification by the end of the year, according to the program's manager, Pat Shanahan.

During the same meeting, Shanahan said 787 testing had "retired all significant risk" from the program, including potential problems for the jet's aerodynamic design and software integration.

To date, the 787 is now moving from a testing phase to demonstration, he noted.

Currently Boeing is flying and testing four 787-8 planes, and customers have placed 860 orders. The first deliveries are scheduled for the fourth quarter of 2010.

Boeing intends to ramp up the plane's production rate to 10 a month by the end of 2013. Meanwhile, the slightly larger 787-9 model should be in full production by early 2012.

The next-generation aircraft made with lighter materials to boost fuel efficiency and range has hit numerous hurdles on its way to market, and is now about two years behind schedule.

Talks with customers demanding discounts for their orders as a result of the delays are nearly complete, Albaugh said, and though there have been some threats of outright cancellations, he doesn't think it likely his customers will do that, even if they had reserved the option to do so without penalties.

"This [plane] will generate a lot of revenue; it's a very efficient airplane; it's an airplane they will have to own."

[HenryTo]

More on the 787. Boeing executives asserts that the company has "retired all significant risk" from the program:

http://www.marketwatch.com/story/boeing-787-program-has-retired-significant-risk-2010-05-20-111330
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Boeing Co. (BA 64.02, +1.02, +1.62%) has retired all "significant risk" from its 787 development program, including potential problems for the jet's aerodynamic design and software integration, said Pat Shanahan, the program's general manager on Thursday.

To date, the 787 has flown 1,450 flight conditions, and is now moving from a testing phase to demonstration, Shanahan said during an investors meeting.

Currently there are four 787 planes being tested by the aerodynamics giant, and customers have placed 860 orders. Boeing intends to ramp up the plane's production rate to 10 a month by the end of 2013. Meanwhile, the slightly larger 787-9 model should be in full production by early 2012.

[HenryTo]

Boeing insists that the 787 is on (current) schedule and the first of them would be delivered this year:

http://blog.seattlepi.com/aerospace/archives/206625.asp
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Boeing executives Thursday declared airline demand on the rise and maintained the key 787 Dreamliner remained on track for first delivery this year.

"We can look back and say the economy hit bottom somewhere in 2009," Boeing Chairman, President and Chief Executive Jim McNerney said during Boeing's annual investor conference, in Philadelphia.

(I filed a detailed live blog of the conference this morning and another post with details about the 737.)

Boeing Commercial Airplanes President and Chief Executive Jim Albaugh said he was confident Boeing would catch Airbus in deliveries in 2011 "and certainly in 2012."

"We're seeing customers that we haven't talked to in a couple years come back to us," he said.

Albaugh acknowledged some stumbles with the 787 flight-test program.

"We've not flown as many hours as we had hoped to fly, but the efficiency of the flights is higher," he said. Adding later, "We have eaten into some of our contingency ... but we have quite a bit of contingency left."

While several analysts have recently predicted first delivery would move to early 2011, Boeing executives insisted it remained on track for this year, barring something unforeseen.

Patrick Shanahan, vice president and general manager of Airplane Programs for Boeing Commercial Airplanes, said the first 787 with GE engines will certify and deliver in the first quarter of 2011 (the initial 787s have Rolls-Royce engines). He said Boeing's South Carolina 787 plant will start production next June, start final assembly in the third quarter of 2011 and deliver its first 787 in the first quarter of 2012.

To prepare to ramp up to 10 787s a month in 2013, Boeing is drilling down to every work center to make sure people, processes and tools are in place, that the learning curve in place is one they can execute, Albaugh said. "Yeah, we have found some things that we have to fix."

Referring to progress with the work of suppliers, Shanahan said: "The next (787) unit that arrives in Everett will be 70 percent more complete than the last unit sent at the end of 2009."

Looking past the inaugural 787 model, the 787-8, Albaugh said the company will have firm configuration of 787-9 in June. Shanahan said production of the first 787-9 was on track to start in the first quarter of 2012.

Albaugh said executives were "a long ways away from deciding" if they would move ahead with the 787-10.

[HenryTo]

First non-Boeing pilots (from All Nippon Airways) to fly the 787:

http://blog.seattlepi.com/aerospace/archives/205838.asp
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Two pilots from 787 Dreamliner launch customer All Nippon Airways Wednesday became the first non-Boeing pilots to fly the composite airliner.

ANA pilots Masayuki Ishii, director of 787 pre-operations planning, and Capt. Masami Tsukamoto, manager of 787 pre-operations pilots, took the controls of Boeing's first test-flight 787 during the two-hour-and-40-minute flight over Washington state, Boeing said.

"It was fantastic and an incredible experience," Ishii said in a news release. "ANA passengers are in for an incredible experience when they fly on the 787."

"The flight was fantastic," Tsukamoto said. "I've been waiting for this day since we made the launch order, and today my dream came true."

Both pilots performed multiple takeoffs and landings, along with other maneuvers that allowed them to feel the airplane's characteristics, Boeing said. It conducted the flight under a special airworthiness certificate from the U.S. Federal Aviation Administration.

Boeing expects pilots such as Ishii and Tsukamoto, who are rated on the 777, to be able to become qualified as 787 pilots in as few as five days of training.

Boeing pilots Mike Carriker, Boeing's 787 chief test pilot, and Christine Walsh, and Scott Fancher, vice president and general manager of the 787 program, also were on board.

"The flight was a customer demonstration for our launch customer's lead pilots to evaluate the 787," Fancher said in the news release. "We are extremely proud to have ANA on the flight, and have the opportunity to show what a great airplane the men and women of Boeing have created."

Boeing is scheduled to deliver the first 787 to ANA in the fourth quarter of this year.

[HenryTo]

Boeing unveils the first semi-autonomus, unmanned stealth fighter - the Phantom Ray:

http://www.dailytech.com/article.aspx?newsid=18381
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Darryl Davis, president of Boeing Phantom Works cheered, "We are on a fast track, and first flight is in sight. Phantom Ray is on schedule to fly in December, about two years after this project began. This is a tremendous accomplishment for Boeing and the Phantom Ray team."

The Phantom Ray is designed to fulfill a variety of roles including intelligence, surveillance and reconnaissance; suppression of enemy air defenses; electronic attack; strike; and autonomous aerial refueling.

Today, unmanned aerial vehicles (UAVs) are fast becoming a mainstay of the U.S. Armed Forces in the global arena, but most UAVs currently in action require extensive piloting. The Phantom Ray, by contrast, would be mostly autonomous, making its own way to designated targets and only requiring a human operator to pull the trigger. The Phantom Ray is also larger than most UAVs currently in action, and thus should be able to support more diverse roles or provide more destructive power.

[HenryTo]

The 787 passes its ultimate test:

http://blog.seattlepi.com/aerospace/archives/199831.asp?source=mypi

[HenryTo]

Boeing's X-51 gets ready for its first flight:

http://www.edwards.af.mil/news/story.asp?id=123193363

[nodoodahs]

[HenryTo]

The Boeing 787 achieves "Initial Airworthiness" status:

http://www.dailytech.com/article.aspx?newsid=17440