Boeing gets launch order for MAX 7

Boeing finally got a launch order for the 737-7 MAX, from Southwest Airlines.

Southwest converted 30 737-700 orders to the 737-7.

The 7 MAX competes with the Airbus A319neo and the Bombardier CSeries.

Taking care of business at the airframe OEMs

The news yesterday the Boeing resumed delivery of the 787 is good news, not just for Boeing and the airlines, but for all the stakeholders.

Although Boeing did not stop or slow production of the aircraft during the grounding, had the grounding continued for six months instead of 3 1/2 we saw, Boeing may well have had to slow down the supply chain.

The 50 airplanes in the field are slowly returning to service. The last are to be carrying passengers by next month.

Now it’s back to taking care of business.

The launch of the 787-10 was pushed to the right during the grounding. We fully expect this launch to come soon, perhaps at the Paris Air Show. The 777X received its Authority to Offer last month. We anticipate formal launch by year end, perhaps at the Dubai Air Show with a huge order from Emirates Airlines. We also think there will be some commitments announced at the Paris Air Show, by Qatar Airways, which always likes to make a splash at the European event.

Production for the 787 is ramping up toward the 10 per month goal Boeing set for the end of this year, and despite skeptics (we included), it looks like this will happen. But Boeing needs to go beyond 10/mo to 14 to accommodate the 787-10 and demand for the current offerings. With a planned 2018 EIS for the -10, there’s plenty of time to bring the supply chain into line for this.

Over at Airbus, the A350 MSN001 has been painted and is prepping for handover to flight test.

Odds and Ends: 777X features; progress on A350, 787-9 and CSeries

777X features: More details are emerging about the planned features of the Boeing 777X.

Progress, Progress, Progress: The CSeries prototype gets its tail number, the Boeing 787-9 is taking shape, and the first A350 has been painted.

Richard Branson in drag: this speaks for itself.

EADS North America on Sequester: The CEO, Sean O’Keefe, has this Op-Ed commentary on Sequester. He doesn’t pull punches.

Conservatives attack ExIm Bank again; Embraer v Bombardier

Conservative tax groups are once again attacking the US Export-Import Bank and its funding of US exports, including Boeing aircraft.

ExIm was created during the Great Depression to support US exports. It get attention because Boeing is the most visible beneficiary. The think tanks believe ExIm financing amounts to corporate welfare–a position that is 180 degrees from their usual approach to corporations.

Delta Air Lines is leading corporate attacks because it contends that foreign airlines get preferential financing and put it at a disadvantage.

Delta says that carriers like Emirate Airlines hardly need ExIm support, and it has a point. But less well-capitalized airlines like LionAir certainly could use it. Some further reform may be needed; international rules to bring ExIm fees and interest rates to market rates were already adopted. Tightening eligibility may be fair.

Delta had this to say in an Op-Ed piece in Forbes. You have to click past the advertising page to read it.

But eliminating ExIm? We disagree, as we have written on several occasions. The think tanks would hand this market support over to Airbus, which benefits from the European Credit Agencies export financing and this wouldn’t go away. This would put Boeing and its supply chain at a disadvantage to Airbus in international sales.

Embraer vs Bombardier: Here’s an interesting article explaining how Embraer sees the market a bit differently than Bombardier.

Odds and Ends: Avoiding risk; Avoid 787 goofs with 777X; Anticipation for the 777X; CSeries expectations

Avoiding Risk: Jetmakers avoid risk by revamping existing models.

Avoid 787 goofs with 777X: This Reuters article reports how challenging the brand damage has become with the 787 issues, and it’s not the first time we’ve heard the link.

Looking forward to 777X: Akbar Al-Baker didn’t say much during the grounding of the 787, but he’s back in the news now. He looks forward to the 777X but couldn’t resist complaining about the GE90 on the current 777. That’s odd: the GE90 has only been in service since the creation of the 777-300ER and is well regarded in the industry. But Al-Baker being Al-Baker–need we say more?

CSeries Expectations: Bombardier says first flight will be next month. Expectations are beginning to increase, according to this article.