Randy's Journal

Taking a breather

Fri, 03 Feb 2012 08:49:53 -0800

As we head toward the weekend, I'm catching my [breath](http://www.youtube.com/watch?v=OMOGaugKpzs&feature=related) before what promises to be a very busy stretch going into the Singapore Airshow. First of all, I wanted to step back and say a huge thanks to Aer Lingus for playing host to us during the Dream Tour's stop in Dublin last week. More than 1,000 people visited the 787 during that stop in Ireland and it was exciting to see all the buzz.

Great photo from Dublin looking out the 787 windows and onto the wing.

During my time in Dublin, I also took part in the annual European Airfinance Journal Conference. I always enjoy this conference because it offers a great opportunity to take the pulse of the industry early in the year. Are there concerns about the market? Yes, but I have to say that everyone continues to be upbeat--including the financiers who seem confident about what lies ahead. I'll be in Singapore a few days before the actual air show to attend the Low Cost Carrier Conference. A lot of airlines, especially in Asia, are now competing in the low-cost segment and that's fueling demand for single-aisle airplanes. Case in point-- Nok Air in Thailand. They recently [promoted](http://www2.nokair.com/en-US/index.html) their new 737-800 with a special sale to destinations across Thailand. Love their livery. I've always said our airplanes have personality. Now it's great to see that Nok (which means bird in Thai) gave them a face-- and a beak too.

We know the new 737 MAX and the Next-Generation 737 are the perfect fit for these airlines and we look forward to working with them on their fleet needs. I'll be blogging more in depth about this once I get to Singapore. For now, I'll leave you with a picture of Guinness I enjoyed in Dublin. While it tastes good here at home, it tastes even better in Ireland.

Cheers to the weekend!

White room with a view

Wed, 01 Feb 2012 12:47:19 -0800

There's something very elegant about an airplane painted in simple [white](http://www.youtube.com/watch?v=NJZHWMD6N3k&feature=related). And when that airplane just happens to be the first 747-8 Intercontinental scheduled for delivery, it's even more beautiful.

The Intercontinental being readied for delivery conducted its first flight from Paine Field this week. Ed Turner photo.

Earlier this week, the airplane reached another milestone by completing its first production flight (B-1 Flight) from Paine Field in Everett. During the flight, the pilots checked the Intercontinental's systems to make sure the airplane is ready for delivery.

I'm told the airplane performed very well and will now undergo more tests and a customer flight before delivery to a VIP customer. We look forward to announcing a delivery date soon. Congratulations to the entire 747 team for another exciting moment in program history.

Already legendary

Fri, 27 Jan 2012 08:45:50 -0800

I'm just back from Dublin, Ireland where the 787 Dream Tour made another [impressive stop](http://www.irishtimes.com/newspaper/ireland/2012/0127/1224310810388.html).

Hello from Ireland!

I've used many adjectives over the years to describe the 787. Now there's a new one to add to the list - legendary.

Mike Sinnett, vice president and chief project engineer for the 787 program, accepts the Aircraft of Legend award. Courtesy of Kiddie Hawk Air Academy / Larry Grace.

During a ceremony in Beverly Hills, the Living Legends of Aviation presented the 787 Dream Team with a special award-- the very first Aircraft of Legend award. While the group has honored the likes of everyone from Buzz Aldrin to Morgan Freeman, this is the first time an airplane itself has been recognized.

Honored to receive the first Aircraft of Legend award.

[The Legends event](http://livinglegendsofaviation.org/) is produced by the Kiddie Hawk Air Academy, which introduces children to flight with the Kiddie Hawk Trainer. It's quite an honor for us and a real tribute to the thousands of men and women at Boeing and our partners around the world who've created an airplane that is already legendary.

No looking back

Wed, 25 Jan 2012 08:23:17 -0800

The way we ended 2011 with such strong orders, it's really no surprise to see just how well the company did in the fourth-quarter. The [numbers released today](http://boeing.mediaroom.com/index.php?s=43&item=2112) show that earnings per share rose to $1.84 on revenue of $19.6 billion thanks in large part to commercial airplane deliveries. For the full year 2011, earnings per share increased 20 percent to $5.34 on record revenue of $68.7 billion. On the commercial side, we have a record backlog of 3,771 airplanes worth $296 billion, which equates to six years of production at current rates. BCA revenue also increased by 14 percent for the full year. But what I'm most excited about is where we're going in 2012. On the commercial side, today's guidance shows that deliveries are expected to be between 585 and 600 airplanes. 70 to 85 of those deliveries are expected to be 787 and 747-8s, of which approximately half are 787s. And our prediction of 2012 being the Year of the 737 MAX continues to look solid. Earlier today, Norwegian announced a firm order for 100 737 MAX airplanes and 22 Next-Generation 737-800s. It's the largest-ever Boeing order from a European airline.

A 737 MAX in Norwegian livery.

This will be a very defining year for Boeing as we continue our production rate increases and work to put our airplanes into the hands of our customers. And while there's no looking back, I do want to share some of the highlights from fourth-quarter 2011 that helped us end the year on a great note and provided the momentum for a strong start to 2012. **737** The agreement with the International Association of Machinists & Aerospace Workers ensured the new 737 MAX will be built in Renton. By year's end, the MAX had more than 1,000 orders and commitments from 15 customers. In the fourth quarter, the team started to produce the first Next-Generation 737 at a rate of 35 per month, the highest ever. The program booked 551 net orders and delivered 372 airplanes in 2011. **747-8** In October, launch customer Cargolux took delivery of its first 747-8 Freighter. The program delivered nine of the jumbo freighters in 2011. The airplane's performance has been exceptional with a dispatch reliability rate approaching 97 percent. The 747-8 Intercontinental is on track for a delivery early this year to the first VIP customer and to airline launch customer Lufthansa. **767** Boeing remains on plan to deliver the first 18 combat-ready tankers by 2017. In the fourth quarter, FedEx Express ordered 27 767-300 Freighters, pushing total orders for the freighter to 111. By year's end, the program had delivered 20 airplanes to five customers and received 42 orders - a mix of tankers, passenger airplanes and freighters. **777** The 777 won an unprecedented 200 net orders in 2011, breaking the record of 154 orders set in 2005. In November, Emirates ordered 50 777-300ERs worth $18 billion, one of the largest orders by dollar value ever. The 777 production rate rose to seven per month for the first time since May 2010. In November Boeing began assembly of its 1,000th 777, scheduled for delivery to Emirates this March. In December the FAA approved 330-minute ETOPS for the GE-powered 777 fleet. During the fourth quarter, the program delivered its 50th 777 Freighter (to FedEx Express) and its 300th 777-300ER (to Biman Bangladesh Airlines). **787** The fourth quarter saw ANA put its first 787 into revenue service and the airline took delivery of two more Dreamliners. ZA001, the first Dreamliner, flew to New Zealand and Australia-- and the 787 began an around-the-world Dream Tour. In December the Dreamliner set world records for speed and distance. **Commercial Aviation Services** The Boeing China Service Center, which provides maintenance and engineering support to China's growing commercial aviation industry, opened in Beijing in October. In November, CAS signed its 50th customer for Airplane Health Management, a software system that gives airlines real-time, predictive maintenance information. In December, Boeing announced its 50th order for a 747-400 Boeing Converted Freighter.

Build A Bike

Fri, 20 Jan 2012 09:40:58 -0800

As a former engineer, I still miss the hands on part of bringing an airplane to life. But recently, I had the chance to work on a production line using the "lean" manufacturing techniques we talk about all the time. Okay, so we weren't building airplanes. But I teamed up with other members of Boeing's leadership team during a retreat in Arizona to build 202 bikes in 90 minutes.

A great team from Boeing gets to work. That's me on the bottom right.

The Build-a-Bike event was part of an effort by Boeing to reward children in the Mesa School District. The bike recipients, first and third-graders, were selected based on guidelines established by the school district including attendance and classroom achievement.

The bike building marathon is just one way that Boeing's Global Corporate Citizenship helps make a difference in the communities where our employees live and work. In total, $147 million from The Boeing Company and its employees were distributed around the world in 2011 through thousands of charitable grants and business sponsorships. It was truly a pleasure and a lot fun to take part in such a great effort. Congratulations to those deserving students in Mesa and enjoy the bikes!

Start me up

Tue, 17 Jan 2012 13:38:23 -0800

There's no doubt 2011 was a more challenging market than our customers anticipated. So what's in store as we get deeper into 2012? For airlines, the name of the game is profitability--and it's good to see that IATA is forecasting modest profitability for the year. This is really a testament to our customers who've managed their capacity and costs despite high fuel costs and a sluggish economy. While it will be a challenging year, I'm still expecting to see passenger traffic grow by 5 percent. The cargo market should start to rebound in the second half of the year, although growth will be below the long-term average. With our strong backlog and a market that keeps growing, every indicator shows that we're on the right track as we increase our rates to keep up with the true demand in the market. That demand is coming from emerging and developing economies, growth from low-cost carriers, and the need to replace older aircraft with more fuel-efficient airplanes. In fact, we see more replacement than growth in both North America and Europe over the next 20 years. The chart below shows some of the key drivers of market growth.

Next week, we'll unveil our delivery guidance for 2012 as we release our earnings report. As we [start up](http://www.youtube.com/watch?v=FtzslsMbFvw) the new year, it should be very exciting-- especially with the 737 MAX as we take the more than 1,000 orders and commitments for the airplane and bring them to the bank.

Smooth sailing

Fri, 13 Jan 2012 09:51:08 -0800

The 787's smooth entry into service will hit an incredible milestone this weekend when ANA welcomes their 100,000th Dreamliner passenger. Since ANA launched two domestic routes with the 787 on November 1, there have been very few empty seats.

The first Dreamliner delivered to ANA at Tokyo's Haneda Airport.

Load factors for ANA have reached 88 percent, 16 points higher than their other aircraft on the same routes. We're also proud to report the Dreamliner's reliability has been impressive, with an on-time departure rate of 96.3 percent. Later today, ANA will launch its first 787 service from Tokyo to Beijing. And later this month, they'll begin service from Tokyo to Frankfurt on the Dreamliner.

Here's the 787 that ANA will use for its service from Tokyo to Beijing.

All of this momentum for the 787 comes as we get more good news on the order front. Earlier this week, we announced a new order for 10 Dreamliners. And Air France-KLM confirmed their order for 25 787s that was placed at the end of 2011. Total 787 orders now stand at 870 airplanes from 59 customers. By the end of this year, we expect more than one million passengers will experience what this airplane has to offer. I got my first chance to fly on the 787 during the Dream Tour in China and it was everything I expected--and more. I hope you get the chance to experience it for yourself as more of our customers receive their airplanes. Congratulations to ANA on all of their success with the 787 in such a short amount of time.

35 reasons to celebrate

Tue, 10 Jan 2012 13:24:45 -0800

35 seems to be the magic number in Renton today. Employees at the 737 factory celebrated as the program officially reached the rate of 35 airplanes per month. The first airplane at the new rate was delivered today to AWAS Aviation Services, Inc. Norwegian Air Shuttle will lease the airplane from AWAS.

The first airplane delivered at the rate of 35 per month.

Meanwhile, the 35th airplane at the new 35 rate is rolling out of the factory today--but not before serving as the backdrop for an employee event celebrating the efforts to reach this milestone. With beach balls falling from the ceiling and a live band playing in front of thousands of employees, individual teams were recognized for their innovative ideas that allowed the program to become a lean machine.

737 employee teams were recognized during a celebration at the Renton factory. The 35th airplane at 35 per month served as the backdrop.

Beach balls drop from the ceiling of the 737 factory.

Today's event was also a chance for employees to celebrate the news that the 737 MAX will be built in Renton. Saying the accomplishments of the entire 737 team played a key role in selecting Renton as the Home of the MAX, 737 VP & GM Beverly Wyse congratulated employees for their dedication. Passing the 1,000 mark for orders and commitments for the 737 MAX shows just how popular the airplane has already become in a short amount of time. I've said it before and I'll say it again now. 2012 will be the Year of the MAX.

Chance McKinney and Crosswire perform during the 737 event.

Thousands of employees packed the Renton factory for today's event.

I'm constantly amazed at the work our employees do... and it's paying off big time. They're the reason we've reached 35, and they'll be the reason we'll soon hit 38 and 42.

Back to business

Thu, 05 Jan 2012 09:57:09 -0800

First off, let me wish all of you a belated Happy New Year. 2012 is starting out with more good news-- thanks in large part to 2011. We just tallied our [orders and deliveries](http://boeing.mediaroom.com/index.php?s=43&item=2093) from last year and there's reason to be positive about the year ahead. We booked 805 net orders in 2011 and delivered 477 airplanes. Compared to last year, orders are up by 275 airplanes and deliveries are up by 15. All of that is due to record-breaking orders, including the best year ever for 777 orders. We fell a bit short of our delivery guidance on 787s, but our number one goal this year is to make sure Dreamliner production is stable and reliable as we get those airplanes into the hands of our customers. The end of year totals also revealed even more amazing news about the 737 MAX. We've now topped 1000 orders and commitments from 15 customers. I've said 2012 will be the "Year of the MAX" and these latest numbers show we're already heading in that direction. As we turn our focus to the rest of 2012, I hope you'll enjoy this look back at some of the many accomplishments from 2011 captured in photos.

Rollout of the 1000th 767 (2/2).

The premiere of the 747-8 Intercontinental (2/13).

Enjoying the Intercontinental's big day with my son Joel (2/13).

Employees on the 767 line celebrate the tanker contract win that was announced Feb. 24.

The 777 Freighter completes two years in service (February).

First 737-700 with the new Boeing Sky Interior goes to airberlin (3/11). In total, over 200 737s with the Sky Interior have now been delivered.

The 747-8 Intercontinental takes off on its first flight (3/20).

787 pilot training begins with our launch customer ANA (4/23).

Our South Carolina 787 Final Assembly Building opened in June.

The 747-8 Freighter was just one of our airplanes at the Paris Air Show in June. It was the first-ever transatlantic flight by a commercial jetliner powered by biofuel in all four engines.

The 787 lands for the first time in Japan as it conducts test runs with ANA (7/3).

Boeing and Airbus share the stage as American Airlines makes a big commitment-- agreeing to order up to 300 of our airplanes (7/20).

The second Dreamliner, ZA002, made a special fly-by as the 787 was certified by the FAA and EASA (8/26).

The 737 MAX is unveiled (8/30).

First delivery of the 787 Dreamliner (9/26). Employees lead the way as one of ANA's Dreamliners is towed into the big event.

Posing with Joe Sutter during first delivery of the 787 (9/26).

First delivery of the 747-8 Freighter (10/12).

The 300th 777-300ER went to Biman Bangladesh (10/24).

Work begins on the 1000th 777 (11/9).

Emirates orders 50 777-300ERs worth $18 billion (11/13).

Lion Air makes historic commitment for up to 380 737s (11/17).

Having a blast on the first leg of the 787 Dream Tour through China in December.

Landmark agreement between Boeing and International Association of Machinists & Aerospace Workers on four-year contract extension, making Renton the home of the 737 MAX (12/8).

Southwest becomes launch customer for the 737 MAX with a record-breaking order (12/13).

7000th 737 goes to flydubai (12/16).

I'll end with one of my favorite photos from all of 2011.. The 747-8 Intercontinental and the 787 Dreamliner flying side-by-side over Washington state.

The long and winding road

Wed, 21 Dec 2011 09:13:27 -0800

I'm often asked how many miles I travel in a year. When you're on the [road](http://www.youtube.com/watch?v=-cUaO1P2mfo) as much as I am, you keep track. So here are the final statistics of my travels in 2011. **277,710 miles** **122 flights** **31 airlines** **26 countries** After logging all those miles, I'll be taking the next couple of weeks off to spend some time with my family. But I wanted to take this chance to thank all of you (2 million unique readers across the globe this year alone) for making this blog so successful. Our readership more than doubled in 2011 thanks to what I hope were interesting, entertaining and thought-provoking posts about the wonderful people and products of Boeing.

A group photo during the first leg of the 787 Dream Tour in China.

My last business trip of the year was definitely my favorite. Being able to kick off the Dream Tour in China and fly on the 787 for the first time is something I'll always remember. I wanted to send a special thanks to every member of the Flight Test team for making me feel so welcome. I'll leave you with a quick video of one of my favorite things besides airplanes...food! This time, it's homemade noodles we had in China made in less than 15 seconds! Enjoy the holidays and have a wonderful New Year. We'll see you back here in 2012.

Spirit of the Season

Mon, 19 Dec 2011 11:21:12 -0800

We deliver hundreds of airplanes every year (426 so far as of December 1). But many of you may not know that some of those deliveries carry very special cargo. I'm very proud that Boeing regularly teams up with our customers, relief agencies and charities to send everything from books to medical supplies across the world to the people who need them most. In the spirit of the season, I wanted to share one recent delivery flight of a 777-300ER to Biman Bangladesh Airlines.

A delivery flight for Biman Bangladesh turns into a humanitarian flight. (left) Mohammed H. Kabir and Syed M. Hussain

Syed M. Hussain, a Boeing engineer with 787 Interiors and native of Bangladesh, organized with other Bangladeshi Boeing employees an effort to put 8,500 pounds of relief items such as clothes and school supplies onto the airplane. Working with a non-profit organization called SpaandanB, the supplies were delivered to areas in Bangladesh affected by harsh winter conditions. Hussain actually went on the delivery flight and was kind enough to share his story with us: **After a 16 hour direct flight, went to a remote area about 150 miles from Dhaka. With the help of more than a dozen volunteers from the local non-profit organization, we distributed clothes, vitamins and food to about 700 people.**

Boeing engineer Syed Hussain distributes vitamins to children in Bangladesh.

**It was a great feeling for me to serve so many people with my own hands. I was about to cry by seeing all these children without clothes, shoes and nutritious food.** **I got an opportunity of a lifetime to gain a different kind of experience in life besides work. I have served local communities in the USA for the last 31 years, but this experience touched me very much where I served my motherland. It was a great feeling.**

Syed meets a 110 year old man in need of a blanket.

Along with Hussain, Bangladeshi Boeing employees volunteered countless hours to make this possible. I thank you, as well as all Boeing employees who've contributed to other special delivery flights, for your efforts to make a real difference in people's lives across the globe.

7000 and counting

Fri, 16 Dec 2011 12:22:11 -0800

Even though it's the world's most popular airplane, you still have to be amazed that we've just delivered the 7000th 737. I know our friends at flydubai are proud to be the ones flying it--especially since it comes with a commemorative logo near the nose.

Number 7000 goes to flydubai.

While the 737 MAX will soon continue the proud tradition of this program, the Next-Generation airplanes aren't going anywhere anytime soon. You only need to look at some of our recent orders to see that it is still a vital part of our customers' fleets. As we celebrate today's 7000th delivery, I thought it would be fun to take a trip down memory lane for a look at the program's previous milestone deliveries. Thanks to our friends at the Boeing archives for digging up some of these.

1000th delivery: December 1983, Delta

2000th delivery: February 1991, Lufthansa

3000th delivery: February 1998, Alaska

4000th delivery: June 2001, Air Algerie (we have no photo of the actual airplane. This photo shows a 737 delivered to Air Algerie in July of 2001)

5000th delivery: February 2006, Southwest

6000th delivery: April 2009, ILFC (for Norwegian Air Shuttle)

Now that we've had some fun with photos, here are some fun facts to go along with them. • On average, approximately 1700 737 airplanes are in the air at all times. • One 737 takes off or lands every 2.3 seconds. • The 737 has flown more than 103.9 billion miles; equivalent to approximately 559 round trips from the earth to the sun. • The 737 family has flown more than 106.6M flights. • The 737 family has flown more than 168.4M flight hours; the equivalent to one airplane flying more than 19,000 years nonstop. I want to congratulate all of our employees in Renton for reaching yet another impressive milestone. Your work never ceases to amaze all of us. By the way, 7000 must be a lucky number this month. My congratulations to Airbus for their 7000th aircraft delivery. It really is an exciting time to be in this business and I look forward to the competition in 2012.

Wild, Wild Week

Thu, 15 Dec 2011 09:42:18 -0800

Just when you thought our late flurry of orders may have come to an end with the Southwest deal, our friends at FedEx Express kept the momentum going with today's order for 27 of our 767 Freighters and two 777 Freighters.

The perfect pairing for FedEx... the 767 and 777 Freighters.

It's no secret around the office that I'm a huge fan of FedEx Express. In fact, I made sure to snap a picture of a 777 Freighter model they had on display at this year's Dubai Airshow.

A FedEx 777 Freighter model on display in Dubai.

FedEx has been very aggressive in the way they advertise their 777 Freighters, promoting both the airplane's efficiency and environmental responsibility. With today's order, FedEx is putting its confidence in the 767 Freighter's ability to fit right into its fleet. It also means we'll be building the 767 Freighter for years to come. With today's order from FedEx, our numbers for this week are truly staggering--251 new firm orders. And when you look at the mix of airplanes ordered by our customers, it proves just how popular our products are across the board. This week's orders: **Etihad:** 10 787s and two 777 Freighters **Southwest:** 150 737 MAX airplanes and 58 Next-Gen 737s **FedEx Express:** 27 767 Freighters and two 777 Freighters **Unidentified Customer:** Two 777 Freighters Net orders for the year have jumped from 527 to 778. And the 777's record year continues with 200 net orders. While we've obviously been very busy with several campaigns, it's our great customers who've made all of this possible. This wild week ends with two more big milestones for the 747-8 team. Just yesterday, the 747-8 Intercontinental got FAA certification. And this morning, certification came from the European Aviation Safety Agency (EASA). The program is now in the final stages of delivering the first Intercontinental early next year.

A ceremony marking our certification from the FAA.

The program took another key step this month when the Intercontinental made an early visit to Frankfurt, home of Lufthansa, the airline launch customer for the newest member of the 747 family. I wanted to share some new photos from that trip.

A beautiful scene as the 747-8 Intercontinental visits airline launch customer Lufthansa in Frankfurt.

Hundreds of Lufthansa leaders and employees had a chance to tour the airplane and get an idea of the passenger experience. Lufthansa wants to keep photos of its interior secret until the airplane goes into service, but I'm told there were smiles all around once they saw it for themselves.

2011 has been one wild ride. I'm glad you were able to take it with me, and hopefully we can be just as entertaining in 2012.

Sending our LUV to Southwest

Tue, 13 Dec 2011 12:58:13 -0800

Just a few days ago on this blog, I hinted that our first firm order for the 737 MAX was coming soon. How fitting that our longtime partner Southwest made the order and became the launch customer for the MAX.

A 737 MAX in Southwest livery.

We've been with Southwest from the very start. Not only have Boeing and Southwest helped each other prosper through the past 40 plus years, we've also stood side by side during the more challenging economic times. I'm very proud we could stand together today for what's going to be a very exciting time for both of us.

An early Christmas gift. Boeing Commercial Airplanes CEO Jim Albaugh (left) presents a 737 MAX model in Southwest livery to airline CEO Gary Kelly.

You can't think of the 737 without thinking of Southwest. But while today's order is another one for the history books, it's a lot more than just dollars and numbers. The firm order shows that Southwest not only stands behind the MAX, but is also dedicated to making it the key to its future. We take that commitment very seriously and can't wait to deliver their first airplane.

A blast from the past-- Boeing and Southwest working together.

If you're interested, [click here](http://www.boeing.com/Features/2011/12/corp_wallpaper737_12_13_11.html) to download wallpaper of the 737 MAX in Southwest livery. In closing, as someone who tries very hard to keep a blog interesting, entertaining and relevant-- I want to say how much I enjoy Southwest's great blog ["Nuts About Southwest."](http://www.blogsouthwest.com/) The airline is famous for its customer service and they've also done a really amazing job when it comes to social media-- especially with [today's post ](http://www.blogsouthwest.com/blog/southwest-airlines-proud-history-boeing-737)celebrating the MAX order. Cheers to you Southwest. The ride gets better every day.

Thank you China!

Mon, 12 Dec 2011 08:54:58 -0800

As the 787 Dream Tour moves on to Africa, I'm heading back home after an incredible journey across China.

A water salute and rainbow greet the Dreamliner as it arrives in Addis Ababa, Ethiopia for the African leg of the Dream Tour.

I'll remember this trip not only because it was my first time flying on the Dreamliner, but because we got to share the experience with so many of our customers, suppliers and friends in China. It was very special for everyone involved-- including our incredible team from flight test that made it all happen. I'll leave you with some new pictures that capture some of my favorite moments.