July 2012 Archives

Signature swoop

A lot of our friends from United were up well before the crack of dawn this morning to pull off a live webcast from our Everett site. It was all for the rollout of their first 787.

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Their Dreamliner livery includes our signature swoop— a nod to Boeing and United’s partnership through the years. Some of you may know that for several years beginning in 1997, I headed up the Boeing sales campaigns for United. That’s why it’s so special to see their first 787 taking another step toward delivery.

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Congratulations to United and for the thousands of fans who watched their webcast this morning. I know you’re going to love this airplane.

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PIP anniversary

Here’s an anniversary that comes with some gifts in the form of positive customer feedback. One year after the first Next-Generation 737 was delivered with the Performance Improvement Package (PIP), airlines are telling us about the benefits.

Our promise was to provide up to 2 percent improvement in fuel burn. To get there, we enhanced the CFM engine—and added other things like aerodynamic-shaped anti-collision lights, streamlined slat and spoiler trailing edges, and ski-jump wheel well fairings re-contoured to smooth the air flow near the main landing gear. 12 months later, here’s a sampling of what our customers are saying about PIP.

“The Performance Improvement Package has contributed to a remarkable fuel mileage improvement compared to the non-PIP airplanes,” said Takeshi Katsurada, vice president of flight operations engineering for Japan Airlines. “We can validate its improvement through each delivery flight performance monitoring and also daily flight operations monitoring to the extent of more than 2 percent fuel mileage improvement.”

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Japan Airlines can validate a fuel mileage improvement of more than 2 percent through delivery flight performance monitoring and also daily flight operations monitoring of its Next-Generation 737-800s with PIP.

“Virgin Australia has been introducing B737-800 aircraft equipped with the Performance Improvement Package as part of its ongoing fleet renewal programme,” said Virgin Australia General Manager, Group Flight Operations, Captain Brad Thomann. “We have been pleased to observe the improved fuel performance of these aircraft, which represents an important contribution to our overall fuel conservation strategy and our commitment to reduce greenhouse gas emissions.”

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Virgin Australia’s 737-800 with Boeing Sky Interior.

“Our latest tests have shown that aircraft, which incorporate the Performance Improvement Package, provide flydubai with up to 1.6 percent reduced fuel burn over non-PIP aircraft,” said Ghaith Al Ghaith, CEO of flydubai. “With a growing fleet, any savings we can make towards our fuel costs are positive from both a financial and environmental perspective. We look forward to Boeing introducing the final part of the package, which will provide us with even greater fuel savings.”

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flydubai’s Next-Generation 737-800s with PIP provide the airline with up to 1.6 percent reduced fuel burn.

That final part of the package, a redesigned environmental control system exhaust vent, is scheduled for mid-2013. Best of all, PIP is offered to all of our customers at no extra charge.

This is just part of our commitment to continuous innovation on the world’s best-selling airplane. The Next-Generation 737 gets better and better—something we can all be happy about.

Back to its roots

Our customer ANA is getting ready to bring the 787 Dreamliner back to its roots in the Seattle area. Earlier this week, the airline launched its new daily nonstop service from Seattle to Tokyo with a 777-300ER in order to accommodate the summer crowds. In October, ANA will transition that service to the 787. It’s just one more example of how the Dreamliner is opening up markets to our customers.

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ANA’s 777-300ER gets a water cannon salute from the Port of Seattle’s Fire Department as the airline launched service between Seattle and Tokyo. (Leanna Robb photo)

During a traditional Japanese sake cask-breaking ceremony at Sea-Tac Airport, ANA executives were joined by Washington Gov. Chris Gregoire and officials from the Port of Seattle. ANA’s flight will depart Seattle daily at 1:15 p.m. and arrive in Tokyo at 3:45 p.m. the next day.

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The Kaze Daiko drummers of Seattle perform at ANA’s inaugural Seattle-Tokyo flight event at Sea-Tac Airport. (Leanna Robb photo)

ANA has taken delivery of 11 Dreamliners so far, with 44 still on order. And over the next few months, you’ll be seeing a flurry of 787 deliveries to more customers. Last month, the first 787 to go straight into pre-flight operations (Line 66) rolled out of the Everett factory where we completed final production work on the factory apron before moving the airplane to the flight line. That was a milestone for the program and production gets smoother almost every day. While it’s a busy time in Everett and North Charleston, we’re positioned well to get more and more airplanes into the hands of our customers.

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One of ANA’s 787s.

Congratulations to ANA on launching their newest route—and here’s to seeing the 787 flying in and out of Sea-Tac very soon.

Act 2

In the days leading up to the Farnborough Airshow, I emphasized to the media that the show was just one week out of 52—and that our plan to add orders and commitments would come before, during and after. Today’s historic commitment from Aeromexico drives home that point and continues the incredible momentum for the 737 MAX.

The airline has agreed to buy a mix of 90 737 MAXs, as well as 10 787 Dreamliners. When the deal is finalized, it will be the largest investment for a domestic airline in Mexican commercial aviation history.

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737 MAX in Aeromexico livery.

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787 Dreamliner in Aeromexico livery.

The demand for the MAX is one of the main factors in our strong second quarter earnings. Net income rose to $1.0 billion, or $1.27 per share, on revenue of $20 billion. Earnings per share rose 2 percent, with earnings per share guidance for 2012 increased to between $4.40 and $4.60.

But the MAX isn’t the only bright spot from the second quarter on the commercial side. It was once again a true team effort across the board, and I want to share some of those accomplishments. (By the way, don’t miss the video at the end of this post. It’s a must see!)

737

We delivered our 4,000th Next-Generation 737 and our 300th Boeing Sky Interior. We also made a series of design decisions on the 737 MAX, including improvements in aft-body aerodynamics to improve efficiency, and unveiled the Advance Technology winglet which will improve fuel burn by up to 1.5 percent.

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The 4,000th Next-Generation 737— delivered to China Southern.

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Here’s me posing next to a full scale model of the 737 MAX Advanced Technology Winglet.

747

The first 747-8 Intercontinental passenger airplane was delivered to launch customer Lufthansa. The airline took delivery of its second Intercontinental on June 30. The program delivered seven airplanes in the second quarter, for a cumulative total of 22. The first 747-8 built at the new two per-month rate rolled out on May 30.

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Flyaway for Frankfurt. Lufthansa takes delivery of its first 747-8 Intercontinental.

767

The KC-46 Tanker program completed its Preliminary Design Review with the U.S. Air Force - a major step in developing the next-generation aerial refueling tanker. The program delivered the 50th 767-300 Freighter to UPS. Meanwhile, FedEx Express announced an order for 15 767 Freighters.

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The 50th 767-300 Freighter for UPS.

777

The program has hired and trained hundreds of workers as it gets ready to increase production from seven to 8.3 airplanes per month. ANA took delivery of its 50th 777 and Air France received its 60th 777. China Eastern Airlines agreed to buy 20 777-300ERs, EVA Air finalized an order for three, Pakistan International Airlines ordered five and American Airlines ordered one. We continued to get positive response as we work with customers on potential 777 improvements.

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Air France takes delivery of its 60th 777.

787

A Dreamliner powered in part by biofuel flew from Everett to Tokyo for delivery to ANA on April 17 and set two records: first-ever transpacific biofuel flight and first biofuel flight of a 787. Transaero Airlines ordered four 787s. In May, the Dreamliner drew thousands of visitors during a four-day Dream Tour stop in Washington, D.C., that culminated in presentation of the Robert J. Collier Trophy for innovation in the performance, safety and efficiency of air and space travel. The Dreamliner also won the grand prize in the 2012 Hermes Awards for Innovation and the American Institute of Aeronautics and Astronautics (AIAA) Award for Excellence. The Dream Tour - a six-month, seven-leg global journey that included 39 stops and attracted 68,000 visitors - concluded June 6 in Abu Dhabi, United Arab Emirates. In June, Lion Air finalized an order for five 787-8s for its new premium carrier, Batik Air. We continued deliveries as ANA took four and JAL took two 787s.

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The 787 comes in for landing in DC.

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The Collier Trophy.

Boeing South Carolina

Boeing South Carolina rolled out its first 787 on April 27 with nearly 7,000 Boeing employees and guests cheering it on. The airplane completed its first flight on May 23. Boeing South Carolina and the Interiors Responsibility Center South Carolina were added to the Commercial Airplanes production certificate during a signing ceremony with the FAA on June 27.

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A big celebration in South Carolina for their first rollout.

Commercial Aviation Services

Boeing delivered its 50th 747-400 converted freighter on June 30 for Evergreen International Airlines. The Flight Services campus in Shanghai, China, tripled its capacity with the introduction of an advanced 787 Dreamliner training suite for pilots and maintenance crews and a 747-400 full-flight simulator. The services unit agreed to collaborate with SELEX Systems Integration, an Italian air traffic management systems provider, to help develop a European air traffic management program.

Congratulations to the entire Boeing team for another amazing quarter. Here’s to closing out the rest of the year on a strong note. Enjoy the video below that recaps our second quarter highlights.

Name that airplane

There’s no doubt our friends at Thomson Airways are excited about being the first UK airline to fly the 787 Dreamliner. Now, they’re adding to the excitement with a contest to name their first 787— and the chance to win a free flight.

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Keep an eye out for this 737.

Thomson painted a #nameourplane hashtag on the side of one of their 737s. If you spot that airplane, you’re asked to tweet an image or the location of where you saw it, along with a reason you should get to name the new 787 Dreamliner. Those who don’t get a glimpse of the hashtagged 737 can still tweet their suggested name.

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An image of Thomson’s 787 Dreamliner.

Tweets can be up to 140 characters long including the hashtag— and any that include an original twitpic of the tagged 737 will be given special consideration. The winner will be chosen by a panel of judges including Chris Browne, Managing Director of Thomson Airways.

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Thomson Managing Director Chris Browne during the 787 Dream Tour.

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Here’s me having some fun with Thomson and other UK customers during a great stop on the Dream Tour.

I had the chance to show Chris the 787 in person during the Dream Tour stop in the UK back in April. The reception the airplane received there was overwhelming— and this contest will build on that excitement. (Check out the animation below showing Thomson’s 787 inside and out.)

I look forward to seeing the winning name. Good luck on spotting the 737 with the hashtag. More contest details can be found here.

Fabulous at 50

As you probably know, we released our 2012 Current Market Outlook earlier this month. But unless you looked at the forecast in depth, you probably missed our view of the cargo market and the need for both production and converted freighters.

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We’re forecasting that cargo traffic will grow faster than the passenger market with the cargo fleet increasing by more than 80 percent over the next 20 years. That fleet will include the need for 250 large converted freighters— like the 747-400BCF.

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The 50th 747-400 Boeing Converted Freighter.

Just today, the 50th 747-400 Boeing Converted Freighter was delivered. Besides being a milestone for Boeing, the airplane is the first for customer Evergreen International Airlines. It’s also the 40th conversion accomplished by Taikoo Aircraft Engineering Co. (TAECO)— the primary conversion partner for the 747-400BCF.

The airplane was modified by adding a side cargo door, a strengthened main-deck floor, full main-deck lining installation, provisions for a new cargo handling system and updated airplane systems.

Congratulations to the teams at Boeing and TAECO—as well as our customer Evergreen.

Family Affair

Music is often a way to bring people together. And in this case, music—and one special airplane— brought an extended family together.

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Norwegian’s Next-Generation 737-800 takes off from Boeing Field for Oslo. (Jim Anderson photo)

Many of you know that Norwegian Air Shuttle displays famous faces on the tail fins of its fleet. Following an online contest that saw more than 250,000 votes cast, a Next-Generation 737-800 delivered to Norwegian earlier this month now features an image of Geirr Tveitt, one of Norway’s composers who lived from 1908 to 1981.

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Composer Geirr Tveitt is featured on Norwegian’s latest 737-800.

Tveitt’s family has roots in Washington State, where several relatives work for or are retired from Boeing. Some of them gathered on board the airplane before its delivery flight to Oslo.

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Tveitt’s relatives are shown on board Norwegian’s 737-800 before it heads to Oslo. Clockwise from left are Ken Holland, retired Boeing employee; Curt Tveit; Ruby Holland; Doug Partington, Boeing Defense Space & Security; Nicole Partington and David Gaustad, Commercial Airplanes. (Colleen Pfeilschiefter photo)

“As a Boeing employee, our family takes great pride to see our relative featured on the tail of a 737,” said Doug Partington, manager, Airborne Warning Systems, Boeing Defense Space & Security, and a relative of Tveitt. “To also have the national airline recognize Geirr Tveitt’s contribution makes us all proud. What a great legacy to represent Norway.”

The family also has a connection with Norwegian Air Shuttle. Tveitt’s son-in-law, Poul Baekkevang, flew for the airline from 1976 until his retirement two years ago.

Congratulations to all involved with this family affair.

The Beat Goes On

I’ve been saying all week that the Farnborough Airshow ain’t over til it’s over. Proof of that came today with United’s order for 150 of our 737s, including 100 737 MAXs. While the announcement was made in Chicago instead of here at Farnborough, it capped an incredibly successful week—and helped us make history in the process.

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737 MAX in United livery.

United’s order pushed the total orders for the world’s most popular airplane to more than 10,000—a milestone that every employee in Renton, past and present, can take pride in. I was privileged to take part in a photo shoot a few weeks ago outside our Renton factory as 737 employees formed a giant 10,000 in the parking lot. While no one knew exactly which airline would bring us to this milestone at the time, we’re thrilled that United can celebrate the moment with us. (Photos and video of employee event below).

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Where’s Waldo? See if you can spot me in the photo.

Over the past week, customers have announced orders and commitments for 396 Boeing airplanes, valued at more than $37 billion. Our net orders for the year now stand at 691. Yes, the beat goes on.

While we’ve been successful this week, it’s still only one week out of 52. Our focus continues to be on ensuring that our production rate increases go smoothly, that we make the right decisions at the right time on product development, and making sure that we offer the best airplanes in the market. It’s exciting to see the great progress we’ve made on the 737 MAX when it comes to range and takeoff weight—and even more exciting to see the market respond to the airplane.

As I get ready to head back home from two weeks here in the U.K., I wanted to reflect on what this air show means to Boeing—and me personally. It’s still all about connecting with our customers and suppliers—and showcasing our products. Our thanks to Korean Air for bringing their beautiful 737 with the Boeing Sky Interior. And of course, thanks to the star attraction—the 787 for Qatar Airways. (Photos and video of flying display below).

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The 787 in Qatar Airways livery departs from Farnborough.

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Cheers to everyone at Farnborough for being a great host. See you back here in two years!

Farnborough Finale for the 787

Day 3 of the Farnborough Airshow ended with the final performance of the 787 for Qatar Airways. My congratulations to our great Boeing pilots, Captains Mike Bryan and Randy Neville, for putting on 3 performances none of us will soon forget— and to the entire 787 team for building such an incredible product.

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The 787 makes one final “touch and go” at the show.

Earlier in the day, we gathered for another sales announcement - this time with our customer Avolon. The leasing company made a commitment for 10 737 MAX 8s and 5 737 MAX 9s, as well as 10 737-800s. As the orders and commitments keep stacking up this week, the 737 MAX continues to grab all the headlines.

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The 737 MAX in Avolon livery.

A little over a week ago, I was talking about the demand for 34,000 new commercial airplanes over the next two decades. Today, we released our Pilot and Technician Outlook that showed the need for 460,000 new commercial airline pilots and 601,000 new maintenance technicians over the same time period. That’s why we’re expanding our training technologies and the reach of our partnerships to develop a global flight school network to better supply aviation talent for the future.

I’ll wrap up today’s journal entry with a fun (perhaps cheesy) video I put together here on the grounds of Farnborough. Enjoy!

The Commitments

As I look back at Tuesday’s events here at the Farnborough Airshow, it struck me that it really was all about commitment. Two of our customers, who happen to be two of the top leasing companies, made the commitment to buy our airplanes and make them a key part of their business model.

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Boeing Commercial Airplanes President and CEO Ray Conner and Norm Liu, President and CEO of GECAS.

GECAS started the day with a commitment for 100 737s, including 75 of the new 737 MAX and 25 Next-Generation 737-800s. Before the day was over, ALAFCO announced their commitment for 20 737 MAXs. It’s very clear that the MAX has become the darling of the air show.

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Ray Conner with ALAFCO chairman and CEO Mr. Ahmad Alzabin.

The other star of the show was busy as well. Media and guests made their way into the 787 for Qatar Airways. It was my first chance to check out Qatar’s interior—and it didn’t disappoint.

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Later in the day, the airplane took to the skies for another exciting flying display. We’re told the images of the 787 flying at the air show are some of the most viewed on media websites. The rave reviews continue to come in.

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Day 2 of the flying display.

On Tuesday, we also had the chance to brief everyone on our progress with the 737 MAX. Bottom line— the airplane keeps getting better, and better and better. That briefing was followed by our second forecast in the past couple of weeks. We’re predicting a $2.4 trillion market for commercial aviation services over the next 20 years. And we wrapped things up with an update on our ecoDemonstrator program that’s about to enter flght test.

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Here’s the lastest photo of the ecoDemonstrator 737 for American Airlines.

One of the main reasons we take part in air shows is to meet with our customers, suppliers and partners. That’s why it was a pleasure to talk about the market with our friends at the Canada pavilion. Boeing and Canada have a long history—and the folks there are always a great audience. Of course, it doesn’t hurt that I came away with a small gift basket of Canadian maple syrup— which I shared with the team at breakfast today.

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Speaking with our friends at the Canadian pavilion.

Speaking of food, I’ve had the chance to find some delicious restaurants over the past week and a half in the U.K. Last night, a group of us headed down a very narrow one lane road to the Anchor Inn out in rural Hampshire. It dates back to the 16th century and featured ceilings so low that the owners placed “mind your head” warnings around the pub. I had a great meal of bangers and mash.

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Not much head room in the pub.

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Pub food goes gourmet.

I’m looking forward to our final two days here at Farnborough. Stay tuned for more behind the scenes moments.

Firsts at Farnborough

Day One of the Farnborough Airshow was a series of firsts—the first time our new CEO attended an air show in his new role, the first 737 MAX order from a leasing company, and the first time a Boeing 787 took part in the flying display.

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The 787 takes part in its first ever flying display at an air show.

That flight of Qatar Airways’ 787 was the perfect end to a near perfect day for Boeing. The only thing missing was the sun that’s been shining on Seattle. After gray skies and the threat of rain all day— all eyes were on Mike Bryan as he took the airplane up for a short but exciting seven minute flight that included an unexpected touch and go. It was a great way to showcase what is truly one incredible airplane.

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The 787 meets the V-22 during the flying display.

Earlier in the day, the 787 was part of an unveiling ceremony as Qatar’s CEO Akbar Al Baker and new Boeing Commercial Airplanes CEO Ray Conner welcomed guests on board the airplane for the first time. It was a proud moment for us and our customer—and we can’t wait to see them put the airplane into service in the near future.

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Checking out Qatar’s 787.

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A full scale model of the 737 MAX Advanced Technology Winglet.

Our first order of the air show came at high noon when ALC became the first leasing company to order the 737 MAX. The order includes 60 737 MAX 8 and 15 737 MAX 9 airplanes. Of course, everyone is wondering what else we have on tap when it comes to orders. I’ll just say the week ain’t over til it’s over—so stay tuned!

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ALC becomes the first leasing company to order the 737 MAX.

London Calling

LONDON—After unveiling the 2012 Current Market Outlook, I’m spending the next few days in London in advance of the Farnborough Airshow. Earlier today, the 787 in Qatar Airways livery performed two validation flights as it gets ready to take part in the flying display at the show. Captains Mike Bryan and Randy Neville from Boeing wowed those gathered today.

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What an amazing sight! The 787 takes part in a validation flight at Farnborough.

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Those of you who follow this blog regularly know how much I love music. So I couldn’t pass up the chance to see the stage version of “Rock of Ages” at London’s Shaftesbury Theatre while I was in town. Imagine hearing 30 songs from the 80’s packed into a two and a half hour production. It was great fun.

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A great trip back to the 80’s.

Before signing off today from London, some of you may be wondering about orders at the show. As I always say, this is really just one week out of 52. We don’t hold order announcements— as you can see from all the activity over the past few days with FedEx and Virgin Australia. But if our customers want— we’re more than happy to make announcements. Now, off to Farnborough!

Seeing double

I wanted to share something pretty special that happened at our Everett factory earlier this week. Incredibly, Line No. 1,035 for both the 767 and 777 programs loaded into the final body join positions on Sunday night. This is the first time two production lines loaded the same line number on the same day.

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767 with line No. 1,035 is loaded into final body join. Gail Hanusa photo.

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777 with line No. 1,035 in the final body join position wears a saddle as the three main sections are joined. Gail Hanusa photo.

The 767 is a freighter that will be delivered to UPS, and the 777-300ER is for Qatar Airways. Both airplanes will be delivered in the coming months.

Reminiscing

Earlier today in London, I presented our new 20-year forecast for the aviation market—better known as the CMO (Current Market Outlook). Before I share the highlights of that forecast, allow me to reminisce about how far we’ve come in air travel.

Back in 1977, I took my very first flight on board a Frontier Airlines 737. I was headed from my home in Kalispell, Montana to college in Ithaca, New York. That journey included a total of five legs—the last one being only 32 miles from Elmira to Ithaca.

Today, point to point air travel is more of the rule than the exception. It’s a part of everyday life that links us to family, friends, fun and business. And looking out over the next two decades as emerging markets continue to grow, more and more people around the world will be connected by affordable airline service.

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I sat down with the BBC after presenting the CMO in London.

Our 2012 CMO projects a $4.5 trillion market for 34,000 new commercial airplanes over the next 20 years. The single-aisle market, served by our Next-Generation 737 and the future 737 MAX, is forecasted to continue its robust growth. Widebodies, such as the 747-8, 777 and 787 Dreamliner, account for almost $2.5 trillion dollars worth of new airplane deliveries in the forecast.

The market for new airplanes is set to become more geographically balanced in the next two decades. Asia-Pacific, including China, will continue to lead the way in total airplane deliveries.

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Without question my favorite part of the CMO rollout is the Q&A session with the media. We addressed everything from the global economy, to the cargo market, to our product strategy.

Being in Europe, of course I was asked about Airbus’ decision to build a new factory in Alabama. Based on my experience with US customers, success is all about the value of your products, your people and your relationship with customers—not about the address on your business card.

While air travel has certainly changed over the years, the reasons we do the CMO every year haven’t. I recently came across a Boeing CMO presentation from the early 1960s that showed the four reasons we do the CMO - for product and market planning, for sales planning and forecasting, for business planning, and to support our customers and suppliers. Those always have been the driving factors for doing this forecast—and probably always will be.

I invite you to take a look at the short video below that I filmed inside our Everett factory. It lays out some of the main points from the CMO, while giving you a look at our 787 and 777 lines. Enjoy!

 

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