Status report

As we announced some very strong first quarter earnings today, we also gave an update on our 787 battery system improvements. In fact, I’m currently in Addis Ababa, Ethiopia talking with our customer Ethiopian Airlines, the media and others about the current status of the Dreamliner.

We’ve started installation on 10 787s already in the customer fleet, as well as nine production airplanes. The bulk of the fleet retrofits should be wrapped up by mid-May. 787 deliveries are expected to resume in early May.

We still expect 787 deliveries to be greater than 60 this year. 15 to 20 percent of those deliveries are expected in the second quarter. Total commercial aircraft deliveries are still expected to be between 635 and 645 for the year.

As we work to get the 787 fleet back in the air, we also have to be laser focused on the rest of our business. That includes converting our record backlog— 4,445 airplanes valued at $324 billion—into deliveries and continuing to execute on our production rate increases. I look forward to seeing what the rest of 2013 brings our way.

I’ll leave you with a look back at our first quarter highlights in video and photos.

737

• Program builds its first Next-Generation 737 at rate of 38 per month, marking a 20 percent production rise over the past two years.

• American Airlines finalizes orders for 100 737 MAXs, with options for another 60.

• Iceland Air finalizes an order for 16 737 MAXs.

• Ryanair announces commitment for 175 737-800s.

image/photo

Ryanair CEO Michael O’Leary and Boeing Commercial Airplanes president and CEO Ray Conner at a signing ceremony in New York City to mark Ryanair’s commitment for 175 737s.

• 737 MAX meets Design-to-Loads milestone, which defines what forces the airplane structure will experience in operation.

• Boeing delivers its 1,000th airplane to China. The Next-Generation 737-800, painted in a special peacock livery, goes to China Eastern Airlines. K65850-01_med.jpg Boeing delivers the 1,000th airplane to China.

• Leasing company GE Capital Aviation Services (GECAS) takes delivery of its 350th 737, becoming the third customer to reach that number.

• Boeing delivers the 7,500th 737 to come off the production line - to Malaysia-based Malindo Air.

747

• 747-8 fleet surpasses 100,000 flight hours. The milestone comes 15 months after first delivery to launch customer Cargolux.

• 747-8 serves its 100th airport, as a 747-8 Freighter operated by Cargolux arrives in Hanoi.

image/photo

A water cannon salute greets the Cargolux 747-8 Freighter in Hanoi, the 100th airport for the airplane.

• Cathay Pacific Airways of Hong Kong finalizes an order for three 747-8 Freighters.

• Cargolux takes delivery of its 25th 747 Freighter - the first 747-8 to be built.

• Korean Air takes delivery of its 150th airplane - a 747-8 Freighter.

767

• LAN Airlines, Chile’s largest commercial carrier, takes delivery of its 50th Boeing airplane, a 767-300ER.

• Program marks a 90 percent reduction in “traveled work” compared to the previous year, reducing the need to spend time and money completing jobs on the airplane after it leaves the factory for the flight line.

image/photo

A 767 leaves the Everett factory.

• Program marks two years since award of Air Force contract to build KC-46 Tanker. Boeing remains on plan to deliver 18 of the aerial refueling tankers.

• Tanker program partners with Digital Aviation, part of Commercial Aviation Services, to develop an Airplane Health Management (AHM) variant for the KC-46. AHM monitors, collects and analyzes airplane data to assist engineering and maintenance crews.

777

• First 777 built at increased rate of 8.3 airplanes per month, or 100 per year, rolls out of the factory in January. Korean Air takes delivery the following month.

image/photo

The first 777 built at the rate of 8.3 per month is delivered to Korean Air.

• American Airlines takes delivery of its third 777-300ER - its 50th 777 overall — and puts its first 777-300ER into revenue service.

• Los Angeles-based Air Lease Corporation finalizes an order for 10 777-300ERs.

• Aeroflot, Russia’s flagship carrier, becomes the first airline in Russia to operate the 777-300ER.

• A 777-200ER is delivered to ANA only nine months after configuration by the customer - a first for that model. It’s the third 777 model to meet that time frame.

• GE is selected as the engine partner for the 777X.

• 777 Major Structure Delivery Center is rated the top “FOD-free” organization in Commercial Airplanes for its achievement in reducing foreign object debris.

787

• American Airlines finalizes orders for 42 787 Dreamliners, with purchase rights for 58 more.

• Boeing receives approval from the U.S. Federal Aviation Administration (FAA) of the company’s plan to test and certify improvements to the 787’s battery system. Approval of the certification plan marks an important step toward resuming commercial 787 flights.

Line 86 takes off from Paine Field in Everett, Wash. on March 25, 2013. The airplane will be delivered to LOT.

• First 787-9 aftbody section is fabricated and begins assembly at Boeing South Carolina; first midbody sections arrive to begin assembly and integration.

• Construction begins at Boeing South Carolina on expansion of 787 aftbody paint facility and Dreamlifter Operations Center.

• Boeing South Carolina Midbody Assembly & Integration team captures the 2012 Fred Mitchell Award for showing unprecedented improvement in its Lean Manufacturing.

Commercial Aviation Services

• Boeing Shanghai begins 767 maintenance services for Russia-based Nordwind Airlines. The first 767-300ER “C-check,” an extensive inspection of the entire airplane, is completed on Feb. 9. Boeing Shanghai also delivers its first 737-300 passenger-to-freighter conversion - to Kenya Airways.

• Boeing announces that flight training simulators, including two 787 training suites, and some training operations in Seattle will be consolidated into the Miami training campus.

• Singapore’s SilkAir signs an exclusive, five-year agreement for Flight Services training.

Comments (5)

Jonah (London):

Fantastic news Randy. One step closer to seeing the B787 back in the UK. Best wishes.

Norman (Long Beach, CA):

Having the 787 get back in the air soon is great news for the first quarter of the year, by the second quarter nearly or over 100 787 will be up in the air.
I hope to see the 777X launched very soon, the interest
seems very high from multiple airlines around the world.

Muchemi (Nairobi, Kenya):

Hi,

Saw you in the news. Thanks for passing by Kenya.

Matthew Giacalone (kailua-kona, hawaii):

Hello Randy,
I'm resident of Kona and live just above the Keahole aiport. I'm a big fan of airplanes and flying in general. Could you tell me why a 787 has been at the airport for the last week or so? The plane is unmarked, with the exception of the large "787" on the tail. This is the second time I've seen a 787 for an extended period of time at the airport here. I'm guessing that there is some sort of advanced UV testing that is being done to perhaps see how well the composites will fare when exposed to intense sunlight for extended periods of time. Otherwise, why would a new wide body be just sitting on the tarmac for such a long time. Maybe the boss just likes taking a new ride to the beach? :)

Randy Tinseth:

Hi Matthew,

Dreamliner ZA005 has been in Hawaii for tests related to demonstrating the performance of engine improvements provided by General Electric. Glad you spotted it!

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