July 2014 Archives

Number 500

Milestone deliveries are always special. And the one today in Everett was a proud moment for everyone who has ever been associated with the 777 program.


The 500th 777-300ER goes to Emirates.

We delivered our 500th 777-300ER to Emirates this morning. Ten years after its first delivery, the airplane still remains the market leader and a passenger favorite.


The 777-300ER is surrounded by employees at its roll-out on November 14, 2002.

Thanks to Emirates and all 37 of our 777-300ER customers around the world for your continued confidence in the airplane.

Next in line

Just a few weeks after our 1,500th 747 was delivered to Lufthansa, we’re getting ready for the next airline to take delivery of the new 747-8 Intercontinental.


The first 747-8 Intercontinental for Air China.

Air China’s first 747-8 recently rolled out of the paint hangar in Everett. Air China has five Intercontinentals on order. This first airplane will be delivered later in the fall.


Air China will become the second airline customer to take delivery of the Intercontinental. They plan to use the airplanes to expand their international routes.

The second quarter

Today’s strong earnings report shows that our focus on production rate increases, quality and productivity is paying off. All of those elements will be even more important as we head into the future. With the launch of the A330neo, both Boeing and Airbus have set their product strategy for the next decade.

Our goal is to prove that our products and services are unmatched in the industry. With a record backlog of more than 5,200 airplanes— and many more to sell—executing on our plan has never been more important.

As we look forward to the challenge— we take a look back at the achievements from the second quarter in pictures.


The 787-9 is certified for commercial service.


Air New Zealand completes contractual delivery of their first 787-9.


The 787 program marks 100,000 revenue flights and 20 million passengers.


Boeing delivers the 8,000th 737 to come off the production line - a 737-900ER for United Airlines.


The 737 MAX program surpasses 2,000 orders.


The 737 program delivers 124 airplanes in the quarter, a new record.


The 1,500th 747 is delivered— a 747-8 Intercontinental for Lufthansa.


Riga International Airport in Latvia becomes the 150th airport served by the 747-8.


777X design refinements are made to increase fuel efficiency and reduce airplane weight.

Loss of MH17

Just minutes after departing the Farnborough Airshow grounds, we received the terrible news about the loss of Malaysia Airlines Flight MH17.

While this past week brought out the competitive nature in all of us, events like MH17 bring the entire industry together in mourning and solidarity.

Our thoughts go out to all those on board, their families and loved ones.

Race to the finish

For the second time in two weeks, we’ve finalized another big 777X order. Qatar Airways officially booked an order for 50 777-9Xs during the third day of the Farnborough Airshow.


His Excellency Akbar Al Baker, CEO, Qatar Airways (left) and Ray Conner, president and CEO, Boeing Commercial Airplanes at the 777X announcement.

The airline also announced a commitment for 50 additional 777-9X purchase rights and their intent to order four 777 Freighters with options for four more. We thank Qatar for their confidence in the 777 and 777X.

In addition to the Qatar order, Wednesday saw a flurry of customer announcements. Here’s a look at the day in photos.


Air Algerie ordered two Next-Generation 737-700C convertible airplanes.


MG Aviation finalized an order for two more 787-9s.


Hainan Airlines announced a commitment for 50 737 MAX 8s.

I’ll end by mentioning two other things unrelated to the air show— but still important. The 5,000th Next-Generation 737 has rolled out of the Renton factory destined for the US Navy.


The 5000th 737NG is a Boeing C-40A Clipper - a modified 737-700C.

And a Lufthansa 747-8 Intercontinental touched down in Berlin with the winning 2014 World Cup German national team onboard. We’re proud to see Boeing airplanes all over the world.


Looking to the future

We kicked off Day 2 of the Farnborough Airshow by showing what the future holds when it comes to the 777X passenger experience.


Here’s a look at what the future holds inside the 777X.

We’ll build on the interior of today’s 777 and apply 787 Dreamliner cabin innovations, including:

  • A cabin altitude of 6,000 feet, comparable to the 787

  • Windows that are more than 15 percent larger than the competition

  • A cabin that is 16 inches wider than the competition

  • Higher cabin humidity, comparable to the 787

  • Enhanced air filtration, next-generation LED lighting, and lower cabin noise

The rest of Day 2 included three more customer announcements and the 787-9 flying display.

By the way, there’s been some speculation that a video showing the 787-9 practicing for the air show over Moses Lake, Washington was computer generated animation. I can tell you for certain that it is actually very real— and quite spectacular. We used a helicopter to capture what this airplane is fully capable of. See the video below— followed a recap of Day 2 in photos.


Air Lease Corporation ordered 26 airplanes - six 777-300ERs and reconfirmed 20 737 MAX 8s.


Intrepid Aviation announced the leasing company’s first direct Boeing order for six 777-300ERs.


CIT Group Inc. announced that CIT Aerospace placed an order for 10 787-9 Dreamliners.


Paying a visit to the 787-9 before its flying display.


Tasty tomatoes at a great little Italian place close to the air show.


Now that’s a great pizza.

Dazzling day

The first day of the Farnborough Airshow came to an end with the 787-9 wowing the crowd during the flying display. It was the perfect way to wrap up what turned out to be a very busy day. In addition to these photos, check out this amazing video.


The 787-9 takes part in Monday’s flying display at Farnborough. Photos by Steve Eastell.


To no one’s surprise, Airbus kicked things off by formally launching the A330neo. I spent most of the day fielding questions from reporters about my thoughts on that move. As I told them, even talking about the A330neo proves that Airbus’ A350 strategy has failed. The A350-800 is basically extinct, and the A350-1000 isn’t going anywhere. Their answer— an airplane they pulled from the market 10 years ago. It couldn’t compete with the 787 then—and can’t compete in the future.

Entering the air show with 649 net orders on the year, we picked up another 51 orders and commitments on Day 1. We started things off with Monarch Airlines and their selection of the 737 MAX 8. It’s truly a pleasure to know the Monarch livery will once again be on 737s, and we appreciate their vote of confidence as they start a fleet transition to Boeing single-aisle airplanes.


Monarch Airlines and Boeing are finalizing terms and working towards a Purchase Agreement for 30 737 MAX 8s. Photo by Steve Eastell.

Okay Airways from China placed an order for 737 MAXs and Next-Generation 737s. And the leasing company Avolon committed to 787-9 Dreamliners and more 737 MAXs. We thank them all for their business and look forward to growing with them.


Okay Airways announced an order for six 737 MAX 8s and four Next-Generation 737-800s. Photo by Marian Lockhart.


Avolon announced a commitment for six 787-9 Dreamliners and five additional 737 MAX 9s. Photo by Marian Lockhart.

More announcements still to come as the week goes on—so stay tuned.

Flying at Farnborough

The 787-9 has successfully wrapped up its validation flights at Farnborough. Now, we look forward to seeing it each day during the flying display starting Monday. Enjoy these fantastic photos taken by Boeing photographer Marian Lockhart during the validation flights.







Appetite for airplanes

Greetings from London, where I released our annual Current Market Outlook—Boeing’s 20 year forecast for commercial airplane demand. This year’s report shows a 4.2% increase in demand over last year—36,770 total airplanes valued at $5.2 trillion. While the forecast covers a lot of ground, I wanted to share a few of my key takeaways.

Strong, resilient market

Some still question whether there’s a market “bubble.” All you need to do is look at this week’s order from Emirates for 150 777Xs. Airlines are demanding more fuel-efficient airplanes to replace their older fleet. And the continued emergence of low-cost carriers means demand for new airplanes.


I made the rounds on London television to discuss the new forecast. Here’s me at Bloomberg London.

Single-aisle demand fueling the forecast

The hot demand for single-aisle airplanes is the main driver of this year’s forecast. 25,680 new airplanes will be needed in this segment, with the heart of the market being in the 160-seat range. The Next-Generation 737-800 and new 737 MAX 8 offer our customers the most revenue potential in this mid-sized space, where network flexibility and cost efficiency meet.

Point to point

Point to point service continues to be alive and well. Airlines are focused on providing more frequent non-stop service, whether it be with big airplanes or small ones…long range service or short range hops.

Widebody shift

We’re forecasting that 8,600 new airplanes will be needed in the twin-aisle segment, about the same as last year. Small widebody airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner will lead the demand. But this year’s forecast reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X.

Closing thoughts

We’ve been issuing our Current Market Outlook for more than 50 years—with a good track record. In fact, we’ve been a bit conservative— with more airplanes delivering than we estimated. This track record gives us confidence in our forecasting methods and models. But more importantly, it gives us confidence in our product strategy, business plan and the advice we give our partners, customers and suppliers.

We now turn our full attention to the Farnborough Air Show which starts on Monday. The 787-9 arrived at Farnborough this morning and will take part in the flying display.


The 787-9 is seen here just minutes after landing at Farnborough.

I’ll leave you with a food picture from a proper British pub— check out this steak and ale pie!


Buildup to Farnborough

Five days before the start of the Farnborough Airshow, Emirates today finalized its big order for 150 777Xs.


The 777X in Emirates livery.

This order shows just how strong and resilient the airplane market is. In fact, that’s one of the main points of our updated 2014 Current Market Outlook— which I’ll officially unveil tomorrow in London. And we believe our current and future widebody lineup featuring super-efficient airplanes like the 777X is perfectly in line with what the market is demanding.

The Emirates deal brings our net total orders for the year to 649 airplanes. Airbus finally released its order total through the end of June, showing only 290 net orders. We know business hasn’t really been that slow in Toulouse, so I expect to see an interesting air show from them.

Halfway there

As we reach the midway point of the year, I wanted to share a few observations on the orders and deliveries stats.

This past week, we booked 10 more orders—bringing our net order total for the year to 499 - a pretty nice number for the halfway mark.

We’ve had a consistent drumbeat of orders throughout the year, including a landmark deal with Air Canada for 61 of our 737 MAXs. It’s pretty clear that our customers are driving the timing of order announcements. We thank them all for their confidence in Boeing airplanes.

Airbus has yet to update their numbers, but it’s safe to say we’ll have a strong lead going into the Farnborough Airshow. As usual, we expect the race to tighten up once Airbus rolls out its stockpiled orders en masse the week of the show.

Across all programs, we’ve delivered a total of 342 airplanes through June 30. Our focus remains on executing our production rate increases and getting airplanes into the hands of our customers.

Deliveries by program will vary each month due to a variety of reasons. But I want to point out that we delivered 15 787s in June—a new record for the program. A total of 162 787s have now been delivered to 20 customers worldwide, including the first 787-9.

As I mentioned earlier, the second half of the year kicks off with the Farnborough Airshow. I’ll be heading over next week to unveil our new 2014 Current Market Outlook and look forward to bringing you details from the air show right here in my journal.


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