Odds and Ends: Bombardier, Boeing and Mountain Dew
Bombardier: Jon Ostrower reports that Bombardier will deliver 10 CSeries per month from 2016 in this report. This is a pretty modest rampy up rate, in our view, on the way to a projected maximum of 20 per month. Ostrower also has this piece about the activation of BBD’s CIASTA “iron bird” designed to test systems on the ground, well before the first flight, in a bid to iron out any problems before getting too far into assembly.
Even at the maximum rate, this pales compared with the 42 per month announced by Boeing for the 737 and 44 per month announced by Airbus for the A320. Both companies are considering even higher rates, to as many as 60 per month.
This also is one reason why BBD isn’t striving for some mega-order that some observers and analysts want as indicative a vast market acceptance of the CSeries. BBD simply couldn’t fill such an order without one customer dominating its production line. BBD wants to establish a broad customer base by entry-into-service.
In a recent research note, Goldman Sachs said BBD indicated it wants a customer base of 20-30 by EIS. The company now has orders and commitments from 10 customers. Ostrower reports the total commitments now exceed 300 (we were aware of about 250), and BBD’s former president Gary Scott said at an ISTAT conference the plan was to have 300 orders by EIS. EIS is still planned for the end of 2013, though there is growing speculation this will slip anywhere from 3-6 months. First flight is targeted for the end of this year.
Chet Fuller, who heads sales at BBD, gave a 30 minute interview on Canada’s Business News Network. Ostrower has the video posted here.
Boeing: The company announced its 2011 deliveries on Jan. 5, and due to shortfalls in the 787 and 747-8, missed its target. We’d written several pieces about the likelihood the 787 and 747 deliveries would fall short, so we’ll link Flightblogger’s summary here. Flightblogger has a lengthy look at the 787 situation here.
Boeing Wichita: With it now official that Boeing will close its military-based Wichita (KS) facility, Kansas politicians are understandably crying foul over the support the gave Boeing in the KC-X tanker competition in exchange for the 7,500 jobs promised for the state.
As a Washington resident, welcome to the club (vis-a-vis the 787 Line 2 issue). But reality is reality, you there in Kansas. With declining military contracts, the tanker business alone could not sustain a profitable facility that (according to press reports) included more than 90 buildings.
We do note that all but 100 of the jobs that will be transferred from Wichita go to non-union states Oklahoma and Texas. The final 100, tied to the tanker, go to Washington State. The recent union contract with IAM 751 included a provision that if Wichita closed, the tanker jobs would come here.
Airbus: The long, long expected order from Hong Kong Airlines for 10 Airbus A380s finally has been announced. This is about a year overdue. This had been expected at the Zhuhai Air Show in November 2010.
Yuk: From our days as a garage employee in high school, we knew that you can clean corroded battery terminals with Coca Cola, which says a lot about what we all drink when it comes to soda. But this story is really weird.
The Pepsi company owns Mountain Dew and in a lawsuit where someone claimed to have found a dead mouse in is can of soda, Pepsi counters that this isn’t possible because Pepsi says Mountain Dew will dissolve a dead mouse.