Rock steady

They say there’s strength in numbers. And our 2010 orders and deliveries numbers, released today, were rock steady. These figures back up what I’ve been saying: Not only has the market recovered, it’s expanding. Net orders for commercial airplanes in 2010 topped out at 530. When you compare that to the 142 net orders in 2009, you can see why I’m so optimistic.

image/photo

737 flying high with 486 net orders in ‘10

We delivered 462 commercial airplanes last year, right on target. Of course, the Next-Generation 737 led the charge and set a record in the process. The 737 continues to be the industry’s most sought-after plane with 376 deliveries and 486 net orders for the year.

As people keep packing planes, Boeing is in a great position to meet the rising demand. As you may have read, we’ve already scheduled increases in production rates for the 737, 747 and 777. Flight testing has resumed for the 787 Dreamliner and we’re working on an updated delivery schedule.

While the new year may bring a lot of challenges, it also opens up incredible opportunities for all of us here at Boeing. We look forward to meeting the challenges and hope you follow us along the way.

Comments (7)

Oscar:

Randy,

Since you were able to add to the 747-8 test fleet, why not do the same with the 787 test fleet to make up for the lost time so that the planes can start to be delivered?

Daniel Tsang (Hong Kong):

Congratulations on the 737NG superb performance, Randy!

Honestly, I have to applaud Boeing's approach over the 737 replacement/re-engining program, notwithstanding Boeing remains undecided over this.

As a financier, you definitely don't want the residual value of your existing portfolio to be undermined.

And a single-digit fuel burn improvement isn't worth the resources that would otherwise be better utilized somewhere else.

Well... my New Year's wish - NEW 747-8 & 787 ORDERS!

Congrats once again, Randy!

Paulo M (Johannesburg, RSA):

The performance is respectable - over 500 orders is impressive so soon after such a damaging recession. Certainly vindicates the the employment scene at Boeing, especially compared to the last recession.

Seems like commercial has entered a very dynamic period were some notable emerging markets are offsetting to some degree the current stagnation in your traditionally largest markets -- sort off removing some of the cyclic nature of the business.

Good luck for this year, certainly with the 787, which hasn't been easy - great strides seldom are. I'm looking forward to the first flight of the 747-8 Intercontinental, which reinstates for many years more a very sleek airliner profile in the sky.

Tim (Ont. Canada):

Yes the 737 is a great airplane. It definitely is the backbone of many airlines for years to come and rightfully so since it is a design that simply works. Thankfully you have resisted temptation to completely redesign it and just did the smart thing by doing minor improvements over the years to keep it fresh, 8500 plus orders means you got it right! Porsche also has the same smart idea with their 911 based car designs, why create something completely brand new when you take something you already created that everyone loves and trusts and just keep updating it, avoiding huge development costs and also avoiding unnecessary risks that can destroy the company.

There is a real lesson to be learned here that Boeing seems to have overlooked lately.

In my opinion Boeing also has another great airplane still in production, the 767, but yet Boeing has decided not to refine or update this reliable trustworthy dependable profit making machine that has the best safety and on time record in the history of air travel. Boeing decided to create a whole new plane from scratch thinking what could go wrong; it’s what the market wants. And so the 787 was born and we all know how well that plan is unfolding. It was supposed to be 20% more efficient than the 767 but now the catalogue price has risen by 40% and the 787 is overweight thus eliminating any benefit this plane was supposed to have.

I can only imagine that some executive at Boeing is starring at a 767 right about now and thinking, all we had too do was update the engines and cockpit, add the sky interior and voila its done, cheap and easy. It would be in production and flying right now with happy customers making more profit for everyone just like the 737…

Norman (Long Beach, California, United States):

2011 will be an exiting year not just for the increase in current aircraft production but also the introduction of the 787 into airline service and the first flight of the 747-8 Intercontinental.

Cristiano (Campo Grande, MS, Brazil):

The not shown orders in 2009 were exercised in 2010 because the aviation companies considered that year a long summer to burn out some calories (money) and show up their new muscles (new aircraft) :-)

Paulo M (Johannesburg, RSA):

Tim,

That plane was the 767-400ERX, it was to be offered with the then planned Rolls Royce Trent 600, and a varient of the General Electric CF6 -- both engines on the 747-400X, -400X Stretch proposals. I believe Kenyan was to be its launch customer. I think, like the 767-400ER, it had poor market reception. The 767-400ER had just two customers -- 44 planes.

In the same period, Boeing really struggled against Airbus, the A340-600 seemed to be a runaway success, the A380 had a hugely impressive launch year. Boeing struggled with its 747 product development, the 777 longer-range models - the 777-300ER & 777-200LR - seemed to be trailing those growth A340's -- Four-Engines-For-Long-Haul seemed to have greater momentum than ETOPs.

And, it was against that backdrop that Boeing needed to radically innovate -- offer something that would shock the industry. And yet, its belief in ETOPs p2p operations was unshakeable.

They needed to do the Dreamliner as badly as Apple needed to do the iPhone - because no one else would. So far, what they achieved on their other aircraft has been remarkable - particularly performance on the 777-300ER. Pushing the 767 to the magical 1,000 units and launching the 747-8, which took the total there beyond 1,500, are notable in the face of tough competition. :)

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