We did a piece over at AirInsight noting that the legacy of the Boeing 787 is already taking shape–contributing to the development of the 737, 747-8 and likely the 777. Hop over and take a read.
Update, 930am: The Daily Express of L0ndon (of all places) reported yesterday BCA got the approval Friday for the 737RE and that the announcement is to come today. Thanks to Heidi Wood of Morgan Stanley for this one.
Approval for Authority to Offer the 737 re-engine is expected to come from the Boeing Board of Directors today, according to sources.
Last Friday we published our story reporting this in Commercial Aviation Online in London and, per our arrangement with CAO, the following day on this site.
Bloomberg News published this story later on Friday also confirming ATO was expected.
Official launch of the airplane isn’t expected until fall, likely after the October Board meeting, predicts Credit Suisse.
Full design definition of the 737RE isn’t expected until next month, we are told. While it is widely expected that the CFM LEAP engine will have a 66-inch fan in order to avoid any changes to the landing gear that would complicate the work statement, as of today this isn’t definitively settled. A 68 inch fan is still a possibility, though it’s considered more remote.
Here is a story we did for Commercial Aviation Online:
|Source:||Commercial Aviation Online|
Delta Air Lines’ order for 100 Boeing 737-900ERs is a major boost to this model, but does nothing to add to the 737 re-engine programme.
The airline’s original request for proposals, issued early this year, came well before Boeing decided to go forward with the 737 re-engine and accordingly, the airplane was not included in any proposal from Boeing to Delta or in any analysis after American Airlines placed the launch order in July.
While there had been some expectation among Wall Street analysts that Delta would at the least have conversion rights in the contract to allow some deliveries in the 2017-2018 period of the 737 re-engine, CAO has confirmed with two sources that there is no provision. Delta would be taking too few airplanes in this period to be allocated valuable launch customer/launch operator delivery slots, according to one person familiar with the situation. Although American provisionally ordered 100 737REs, it does not want to be the launch operator and has slated first deliveries in 2018.
AirInsight, in a burst of prolific writing, posted three pieces of note today:
- An analysis of the cost of operating and maintaining Boeing 757s and why there is a move to replace this versatile aircraft;
- Thoughts on the departure of Gary Scott as CEO of Bombardier’s aircraft division and leader of the CSeries effort, with additional thoughts about the decision by Delta Air Lines not to order the CSeries or the Embraer E-195 at this time; and
- A think piece on the pricing competition between Pratt & Whitney and CFM for the new GTF and LEAP engines.
Boeing completed expansion of a facility at its Renton (WA) 737 plant where it makes wings, where productions rates will climb from 31.5/mo to 35/mo this year and 42/mo in the near future. The company is studying taking rates to as high as 60/mo, as well as where it will assemble the 737RE.
In an internal daily news distribution, Boeing wrote:
The new line is located in Final Assembly just north of the old location, where employees install hydraulics and electrical systems into wings that are built in a different building. Mechanics have about three months to become accustomed to the new line before rates go up.
“It’s the best possible scenario for rate break,” said Ron Karnes, general manager of Seal, Test and Paint and Systems Installation. “Early implementation, a new area and all that time to practice — it’s a very good plan.”
Key to the line’s success are the inputs made by mechanics during six Accelerated Improvement Workshops held over the last year. Workshop participants included people from all parts of the wings value stream and across the shifts.