Q1 2010 results

As is often the case around here, there’s a lot going on, including our 2010 1st quarter earnings results, and the announcement of some major milestones on the 787 program.

First, regarding our financial results, bottom line is we’re off to a good start.

BCA delivered 108 airplanes in the 1st quarter and booked 100 gross orders - with 17 orders removed from the books during the quarter. (Last year at this time, you may recall, our cancellations exceeded gross orders.) We have a strong contractual backlog of 3,350 airplanes - valued at $250 billion.

You can check out the full quarterly details in our news release.

We marked so many accomplishments in the first quarter it would take too long to list them all here. But clearly, among them would be the continuing progress through flight test for both the 787 and 747-8 programs. Both teams are focused and disciplined and working hard toward first deliveries this year.

This past quarter we finalized an order with United Airlines for 25 787-8s, continuing our 80-year partnership with United. Total firm orders for the 787 at quarter-end were 866 airplanes from 57 customers.

Some other highlights:

  • Ryanair took delivery of its 250th Next-Generation 737-800
  • We finalized an order for 20 737s with Turkish Airlines, and announced an order for 10 737-800s with Ethiopian Airlines
  • A GOL Airlines 737-800 became the first single-aisle airplane bound for revenue service to be prepared for painting with a chrome-free primer
  • We delivered the second of two 777 Freighters to Southern Air Holdings, the first 777s to join its cargo fleet
  • EGYPTAIR and GE Capital Aviation Services (GECAS) took delivery of the first 777-300ER to join EGYPTAIR’s fleet
  • GECAS and China Cargo took delivery of GECAS’ 350th Boeing airplane
  • We delivered two 767-300 Freighters to UPS, and a 767-300ER passenger airplane to LAN
  • Two Boeing Fabrication groups received the Fred Mitchell Award for their Lean+ accomplishments in 2009 - at Boeing Winnipeg and Boeing Auburn
  • On-time performance by our Commercial Aviation Services team for urgent customer support requests was at 99%
  • The CAS team delivered four Boeing Converted Freighters, added 206 airplanes to Airplane Health Management, and added 27 airplanes to the 777 and 737 Component Services Program

I’d call that a solid quarter.

The other big news from overnight - the Federal Aviation Administration (FAA) has granted expanded type inspection authorization (TIA) for the 787 Dreamliner.

TIA clears the way for FAA personnel to be onboard flight tests. It also marks the beginning of a more complex series of certification tests.

image/photo

787 flight test has achieved type inspection authorization, and ZA003 seen above at Eglin Air Force Base in Florida, will begin testing under conditions of extreme heat and cold.

TIA is an ongoing process between Boeing and the FAA. The first step took place in February when the FAA agreed that the flutter testing we would conduct would be part of the certification record.

Speaking of flutter testing, check out the new video posted to our flight test website. There’s another video there too about the ground effects testing we did in Victorville.

In addition to receiving expanded TIA, we’ve reached firm aerodynamic configuration on the 787. That means we’ve validated the design and won’t be making changes to the external lines.

That is really significant. Our team found only a small handful of changes to make. They’ve already been implemented and validated on the flight test airplanes.

By the way we’ve logged our 500th flight test hour, and you may have also heard that ZA003 arrived in Florida for extreme weather testing.

So, that’s a lot going on. And of course we’ll continue to share our progress as we continue on this journey together.

Comments (4)

Daniel Tsang (Hong Kong):

Dear Randy,

With ZA001, ZA002 and ZA003 won't be re-marketed following the completion of the 787 certification, why doesn't Boeing lease them out to potential 787 customers?

Boeing did this before with the 757 at Northwest Airlines.

I think this will work and bring significant value to Boeing as the lessees (the airlines which lease the 787 from Boeing) are going to like the aircraft!

Norman (Long Beach, California, United States):

It looks like a good quarter when there are plans to ramp up production of the 777 and the 747-8.

I'm glad United is still in the team with the order of 25 787s.

Hopefully this trend will continue for the rest of the year with the good first quarter that Boeing had.

Chris C (South Africa):

Excellent Q1 results, Boeing! All the best for the on-going flight-test efforts on the super-efficient 787 Dreamliner and phenomenal 747-8F! And, likewise, all the very best for the on-going sales campaigns for the BCA family, especially for the 777F, 777-200LR, 787, 747-8I AND -8F, and some more 767 orders!! It's shaping up to be an exciting year for Boeing indeed! Keep it up.

Russel Ahmed (Dhaka, Bangladesh):

What a great way to start up Q1 profit. Always i am a mindfreak about BCA. 787 DreamLiner as well as 747-8F simply triggered the milestone highlighting the efficiency and art of innovation BOEING always emphasize.

Looking forward to the first delivery of B787 Dream Liner to ANA. Congras Boeing!! A remarkable year has just got started.

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