CONFIDENT BOEING
SEES 3Q REVENUE
SURGE
Boeing reported third-quarter net income of
$1.03 billion, down 6%
from a $1.1 billion net
profit in the year-ago
quarter. But the company touted surging
revenue, including a
28% year-over-year
jump by its Commercial
Airplanes unit.
Boeing chairman,
president and CEO
Jim McNerney said
in a statement,
“Commercial Airplanes
continued to build
momentum with 787
deliveries and 737 MAX
orders. Underpinned
by our solid performance to date and
positive outlook, we are
raising our year-end
guidance for revenue,
earnings and operating
cash flow. We remain
well positioned for
long-term growth.”
Third-quarter revenue increased 13%
to $20.01 billion while
operating profit was
$1.56 billion, down
9%. Commercial
Airplanes posted a
28% year-over-year
rise in third-quarter
revenue to $12.19 billion
as aircraft deliveries
heightened 17% to 149.
“Commercial Airplanes
booked 369 net orders
during the quarter,” the
company said. “Backlog
remains strong with
approximately 4,100
airplanes.”
Boeing is projecting
585-600 commercial
aircraft deliveries for
the full year.
Air France seeking compensation for A380 issues
Air France (AF) is pursuing
Airbus for lost revenues following a number of technical
issues with its Airbus A380
fleet, including those related to
wing cracks.
“We are in negotiations with
Airbus about compensation
for aircraft being taken out of
service, in order to partly offset
lost revenues,” an AF spokes-
man said. “The talks are still
underway, but the subject is all
the more complex given that it
concerns all operators.”
He declined to comment on
the amount of compensation
AF is seeking or the amount of
aircraft ground time caused by
the problems.
The compensation claim
relates to ground time caused
by micro-cracks on the A380’s
wings and some “minor
operational incidents” with the
type’s Engine Alliance GP7000
engines, he said.
Airbus has come up with an
upgrade program to remedy the
wing cracks, but this needs to
be approved and the schedule
for the work has “not yet been
defined,” the spokesman said.
AF has received eight of the
12 560-seat A380s it has on
order and its fleet has accrued
55,000 flight hours since
2009. A further two A380s will
arrive by summer 2014, but the
final pair have been postponed
under AF’s restructuring plan.
“The delays to the delivery
schedule mean we have not yet
reached our cruising stage in
terms of performance, due to
the technical problems, delivery
schedule delays and problems
with the micro cracks,” the
spokesman said.
Air France looks to offset lost revenues with compensation
AIRBUS OPENS NEW A350 XWB ASSEMBLY LINE
Airbus has inaugurated a new 74,000 square meter A350 XWB Final Assembly Line
(FAL) in Toulouse, which will employ 1,500 staff. The new FAL will produce up to 10
aircraft a month from 2018.
Two initial A350 XWBs—the static test and the first flyable aircraft, MSN1—are
already on the line at different stages of final assembly.
The static aircraft, which will be used for ground tests, is nearly completed. The full
fuselage, both wings and the vertical tail plane have been joined. This will be trans-
ferred to the Toulouse Jean-Luc Lagardere static test hangar, where it will be prepared
for the start of static tests in spring 2013.
MSN1’s fuselage has also been joined. The wings, vertical and horizontal tail plane are
already inside the FAL and will be joined to the fuselage in early November.
The new FAL has been fitted with 22,000 square meters of photovoltaic solar panel-
ing, which Airbus said generates more than half of the building’s energy needs.
Boeing increases 777 build rate to 8. 3 per month
Boeing said it has started
building the 777 at a rate of
8. 3 aircraft per month, up 20%
from the 7 per month rate it
had been building the widebody aircraft.
The manufacturer said a rate
of 8. 3 aircraft per month is the
“highest rate ever for a Boeing
twin-aisle airplane … The first
part, the lower lobe of the aft
fuselage, of the first 777 [a
freighter designated for Korean
Air] to be built at the new rate
was loaded into position in the
factory earlier today.”
Boeing said the increase
“reflects the strong demand
for the 777.” It added that
1,049 777 passenger and
freighter aircraft are currently
in service.
Separately, Boeing said
Kuwaiti lessor ALAFCO finalized an order for 20 737 MAXs,
the first sale of the re-engined
narrowbody in the Middle East.
The order, first announced
at the Farnborough Airshow
in July, is valued at $2 billion
at current list prices. The aircraft will be powered by CFM
International LEAP-1B engines.
