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Friday, November 8, 2013

Boeing Needs Two "Fish On" Call Outs

When you are trying catch your limit when fishing you need luck, skill and the right time for a catch. Boeing needs two fish before calling out "fish on". One is the Washington State legislature who has to come to terms with Boeing incentives this next week early, before the second fish can come on, The IAM union vote is scheduled later next week. If the Washington Legislature can't offer what Boeing wants, it becomes an non incentivize plan B move for Boeing using its paid facilities elsewhere, and then the second IAM fish becomes less attractive. Boeing needs to hook both fish this next week.  In 2003, the legislative incentives where laid down on Boeing's financial keel. However, wiggle room "rewarded" Washington State with a Charleston, SC plant, and extensive parts making in Japan when it came to the 787 project. The wings flew the Washington coop for Japan. Washington State got schooled by Boeing's lessons learned committee of expressway deed doers from corporate offices.

Japan has now schooled  Boeing by attracting all Boeing's business to its country and then Japan Airlines commits the unpardonable sin of ordering 31 Airbus A350. Having  dug a deep  hole of lost trust in Japan, Boeing is going to Dubai to make a statement next week at the Airshow, pointed  directly at JAL The 777X better be all that! Otherwise, things will get nasty at Boeing for awhile. I image some Corporate Change Management will occur, if the next X doesn't run smoothly off the flight line. Therefore, since I drank the Boeing cool-aide a long time ago, I think the 777X program  will stimulate the world thirst with a fuel sipping  777X, and view the A-350 as a clunker next in line to the Edsel.

Back to the Washington Legislature: The debate will continue on Friday November 8 and into early next week. How do we incentivize Boeing and not have them build plan B in like Long Beach, California of all places. Washington State can build wings too! :(  Not only that, didn't we already give Boeing the keys to land west of the Cascades and beyond? :) If the state can extend the 2003 May-Flower-like compact through 2025 with fewer loop holes, as in no new 777X plants elsewhere outside the NW.  With a previso that all major assemblies remain within Washinton's tax base, This exchange and consent with agreements of a tax benefit for Boeing, in the manor "pleasing" Boeing's Board in Chicago. The statement using the word "pleased" is a common verbage Boeing uses in PR bullets when announcing a deal with another  airline, and should be included when making a deal with Washinton State or The union. "Boeing is pleased to announce , yada yada, yada, that both the Unions and State of Washington have offered its services in building the world's best aircraft, the 777-X, somewhere North of Olympia and so forth.  At least I got Boeing's PR words in, "is pleased", in the approprate spot of this paragraph.

More pleasing thoughts on this matter. What do you do with the 5,000 folks in SoCal who are now working on the last C-17 on this run? I have an Idea! How about moving the 767 tanker project south, once flight testing starts on the 767 KC145 project.  The 5,000 would continue with military projects like the tanker, and the space opened in Everett would give the 777X a slick new production center. Its then roomier in Everett and Boeing could build the remaining order book on the 777-200/300 standing orders when expanding into the old 767 space for the 777X. Good thing Boeing doesn't have me working for them, I have many more ideas like that which could ruin a company, just sayin! The two fish to land for Boeing are, the envelope please:
  • the IAM contract vote, yes, with Boeing and...
  • Incentivization for Boeing from the Washington State Legislator

Wednesday, November 6, 2013

JAL Has The Rest Of The Story Opting For Airbus.

The Rest of the story Link for full read

JAL abandon Boeing 787 ship late in the delivery of its relationship with Boeing. Not only did it raise eyebrows in Chicago but caught the Japanese government flat footed its administering aviation giants ANA and JAL  Since JAL went bankrupt the government went in a bailed them out. Also giving JAL premium landing slots over ANA. It special relationship pretty much froze JAL out of taking on an Airbus a giveaway order of its aircraft, where it had over the last 60 years purchased with Boeing.

Now comes the caveat, with ANA now stationed at second fiddle in the airport line up, JAL received special considerations for new slots as part of the recovery plan and then spends its money on Airbus after having a "special launch" reltionship with Boeing and Governental support in recovery of its financial failure. So JAL turns around and takes the Airbus Giveaway order of 31 A-350 right before its governments eyes and sends them an e-mail about it. Boeing not complaining, (rightly so) stands back and says whoah, what just happened hear with our feature launch customer, JAL? Launch customers treat its partners better than that assuming they had crossed all T's and dotted all the I's with JAL. Cold is the word used and cold is what happened. What is Boeing going to do when ANA takes a shot with Airbus in a few months, another 30 A350''s. What wrong with the 787, or is it a quick swing to diversify while no one is looking?  I believe JAL has taken a calculated move at many levels in the Boeing relationship. I also believe they are cold and becoming independent and want act like the Arab nations asw a purchasing cartel, and have and make choices. Message is received by all participants.

They will now go the twisted trail forward without launch customer privileges or government bailouts. They want to play hard ball, and now they will get fast balls, curves and a few knuckle-balls along the way from this point forward. The Boeing pitching squad will treat them kindly, but no special deals await Japan Airlines from this time forward. The trust has been broken as Boeing did not see it coming from a launch partner JAL, who threw them under the Orient Express Bus.

Please read the entire linked article above and form your own opinion

Tuesday, November 5, 2013

787 Glitch Statistics By Press AI Leads the Pack

It dawned on me awhile back that Air India has an inordinate



amount of glitching. You see them as false lights blinking, Panels dropping off on final approach, and faulty parts. So I looked at where AI Inventory came from in the 787 line of craft

Below are AI first 10 units and where they are built.

Everett                Charleston

# 1                            #3
#2                             #4
#8                             #5
#10                           #6
                                 #7
                                 #9

Totals  4                   6

Step one is to isolate a problem containing two factors. Customer proficiency and source of build. AI has reach a statistical number most people can relate to and come up with a broad assumption without tying any one glitch to a source. This is dangerous ground in sampling.


  • 98 aircraft built by  Boeing and delivered
  • 10 in sample size
  • 10% Sample Size From Boeing is The AI Fleet
  • 60% of all AI 787's are built in Charleston
  • 50% of Charleston's builds have delivered to Air India
  • 40% of all AI are built in Everett



More detail in stats:


  • 98- 787 are delivered representing 100% of the population tested.
  • 4- 787's from Everett = 4.1 % of Boeing population and 40% of AI 787 fleet
  • 6- 787's  from Charleston = 6.1 % of Boeing population and a 60%  0f AI Fleet


Now for some more number crunching without any empirical or actual glitch data.

The probability of glitches in Air India fleet should have 60% assigned to Charleston built aircraft and 40% assigned to Everett built aircraft. What becomes curious is that Charleston does not build 60% of Boeing's aircraft but some number ssouth of that, causing a weighted skewing in this example.

Charleston has delivered 12 out of the 98 787's in customers hands of which AI now owns 6 or half of the Charleston production. AI has the highest glitch rate publicized for awhile now. The main thing about statistic is to develop a trend or a predictive picture of outcomes in an manufacturing process.

Having had a lifetime effort wrapping my mind around statistics during performance auditing or error statistics you could develop conclusions based on the tests and raw outcomes. AI is a good case for this type of work. Several things need to happen at both ends of the test.. One is a Boeing Everett to Boeing Charleston comparison of delivered  Aircraft for its completeness and fault expectation, the second is Air India's ability to manage this new technology.

If a performance audit would determine AI is doing everything required operating its aircraft, then the shoe drops on the production source. If a majority of the glitches occur on the Charleston built aircraft where AI owns 60% of its fleet from Charleston, then Charleston has some serious maturing before its ready for prime time.. Boeing owns that data in the far reaches of its relational data base and is not public information. Completeness tests in auditing should be conducted on the process of building the 787. Something appears to be out of skew.

Summary:
  • 12.25% of all 787''s comes from Charleston
  • 60% of Air India is From Charleston, representing half of the Charleston 787 ever built and delivered.
  • Air India is a Leader in frequent Glitching


Now here comes the "Nail Biter":

Both Norwegian Aircraft come from Everett and have had a recent rejection inspection on its aircraft where Boeing came and fixed it, Anomaly?

Monday, November 4, 2013

Boeing's Orthopedic Foot Print In The NW SoCal

Boeing is reconfiguring its cabin of industry in the Pudget Sound area. It has reached its maximum change management configuration for its rapidly evolving aerospace industry and indicates it doesn't currently have key parts that will work effectively in the Puget Sound, or has a better option existing outside the region. Even though its best most experienced labor force resides near Everett, Wa, Boeing is seeking a diverse manufacturing game board in which to draw answers for every contingency it may encounter. With the Charleston, SC facility barely making 1.5 787 a month its not a confidence builder for betting all in Charleston, SC for Boeing's plan. Have those strong unions in the NW, Boeing is slowly reigning in that historical commitment to the North West. After hearing the many arguments and speculations for sinking everything into the NW as a bad idea.

It becomes apparent Boeing thinks its best bet on a changing aircraft design is found from multiple contributions of engineering, wherever they are found. From the Southern part of California to Russia Boeing seeks talent specific engineering from five  potential key partners for the 777X design motifs. Use of titanium in an aircraft would come from Russia and California arenas.  That impetus to the 777X design, would rapidly propel this aircraft forward. With that in mind, Boeing is hiring specialist best suited, as the hired guns to do the job.  A Boeing Local Posse of engineers would take too long to ramp up on the 777X project. The locals will be used where they are best applied. Puget Sound is in the game only to the extent of bringing the aircraft together in an efficient common effort . 5,000 workers from the C-17 project would like to know if they can work on the 777X or just burn ttheir motgages and move.

The second question is offered by aircraft aficionados around the world. Where will the 777X come together? If its not Everett where the delivery center resides, and the world largest building has it own zip code, then where? This whole diverse scheme of engineering and design suggests a diverse scheme of assembly where all roads lead to where? Charleston, Alabama Long Beach(see below), or Everett. Segmented parts are assembled in a multi-locale operation and shipped to a central assembly point. Could St Louis be that central locale having assembles coming from all directions? Thinking about Charleston is like thinking about Everett,  only Everett is an assets best suited with its labour force needing the call of duty. Boeing does have a plan pending on early orders and has five years lead time to configure a build site (s). Making an early prognostication is similar to making a prophecy. I'm not a aviation prophet. However, something with Boeing is in a state of moving three cups around the table while trying to guess, where the 777X pea lies under what cup? Its best to start with what three cups are on the table.  My own three cups are logical for the most part:

777X work is focus of secret talks by Boeing, Machinists

Seatlle Times (NOW November 4):
"The national and local leadership of the Machinists union is in secret talks with Boeing’s top executives, trying to reach a deal that will see the 777X built in the Puget Sound area in exchange for a long-term labor contract, according to sources with knowledge of the negotiations.
If a deal is reached, it’s likely to be decisive in securing both final assembly of the forthcoming 777X jet in Everett and the fabrication of its giant composite wing somewhere nearby.
One source with direct knowledge said that while the outcome is uncertain, a decision is imminent because the talks would not be extended much longer.
  • Everett, 24oz cup
  • Charleston 12 oz cup
  • St Louis  Bourban shot glass (cup)
  • Long Beach Dark Horse coming in from Santa Anita Race Track
Forbes Revelations:
Only weeks after announcing that it expects to complete production of the highly-regarded C-17 airlifter at Long Beach, California in 2015, theBoeing BA -0.18% Company is eyeing a new role for the 5,000 workers at the site: assembly of its planned 777X widebody airliner.  Boeing says the 777X will be “the largest and most-efficient twin engine jet in the world,” offering 20% better fuel efficiency than the existing 777 as it flies 350-400 passengers to ranges of over 9,000 nautical miles.  In combination with the new 787 Dreamliner, 777X is expected to dominate the high end of the commercial transport market after it debuts around 2020.
(Disclosure: Boeing and other big aerospace companies contribute to my think tank."

Now the west coast dark horse becomes California at Long Beach ( interesting port city)
Everett is logical because the talent and infrastructure are in place for the 777X.
Charleston is second, because it has space and a non union inexperience work force.
St Louis comes up third, Long Beach has over 5,000 plant experts from the c--17 project awairting orders in its massive space. because it has proven parts shipping through the 737 project duration.  Alabama is a dark horse in this thought but has interesting potential. The 777X could be built in two places simultaneously where the dash eight is built in Charleston  Long Beach area and the dash nine in Everett.

A diversification of attention towards a new model balances risks and spreads talent in an apportioned manner into the future. A west coast- east coast spreads labor risks proportionately between Boeing's own investment at the two locations without investing an additional and extraordinary amount of capital at a third location. This type of strategy would eliminate St Louis to a supporting role it now holds as 737 supplier of major parts for the 787 and 737. 

An unmentioned third source of labour has greatly emerged in the tech industry. That is of contracted labor. The contractor bids a sum based on required work offered by a company. The contractor supplies the skilled work for for the job. The contracting company provides training and supervision for the task. In the contracted agreement all benefits are provided to its employees under the contract. Competition is between  competing contractors for winning the bid. It has not become a part of Boeing's play book as of yet but could become par of that type scenario in the future. If contracting elevates its game with qualified skill sets for a specific technological requirement. The engineering union for Boeing maybe a target from its recent announcement of putting out to bid, engineering on the 777X to five different firms. 

This move makes contracting a step closer for all future projects. Contracting may occur on the factory floor with routine and repetitious jobs. Specialized jobs may have a longer shelf life as a Union contract, but will dissolve over time as a contracted temporary work force arises with the same skill set. Competition on the factory floor is a reality in the next 20 years for contracted labor in the production phase. Charleston  is that future the North West is looking at. State Tax breaks can only go so far for saving jobs. Automated systems gives unions less leverage for maintaining an ownership over Boeing's labor force.

Back to the new model type, the 777X. Boeing is making a proportioned effort towards the future with each model type. The 787 was the Charleston moment. The 777X is the engineering move and possibly a new build site. A new model  is a circumvention opportunity for the old problems with the unions and other monopolies from supply chain issues. Boeing wants to keep choices on the board and not lock into a strangle hold over its own destiny building newer aircraft. A new model (777X) means a new opportunity to shake the shackles of the status quot. What Boeing sees in the future is control of its own destiny. If the cost of moving is the right price, then it will move and leave behind that status quot it opposes. The JAL/Airbus order could be a reaction as Boeing seeks to build 777X in the states. All parts of the Boeing story are moving from some event we are not aware of, or of contemplating as a reason for why Boeing does what it does. The orthopedic footprint in the NW is about to get adjusted.

Friday, November 1, 2013

The Boeing Light Comes On and The Max Will Run out Renton's Door

Boeing to Increase 737 production  "Airwise"


Boeing is to increase production of its workhorse 737 aircraft to 47 planes per month by 2017 from 38 now, a surprise move that analysts said boded well for the company, its suppliers and airlines.
Boeing had already announced plans to increase production to 42 per month in the first half of 2014, matching current output by rival Airbus of its competing A320 jet family.
With the new target, Boeing would enter territory that Airbus isn't attempting. The output, from the same footprint at Boeing's 737 factory in Renton, Washington, will not only boost Boeing's cash pile, it will give the company more delivery slots to sell to airlines who want new, fuel-efficient planes sooner.
"This is a big, bold, but very strategic move by Boeing," that follows recent competitive wins by Airbus that likely have been "more heavily price-driven than in the past," said Russell Solomon, an analyst at Moody's in New York.
He said Boeing can also be aggressive on price and now can talk to customers about new orders "with the very pointed message that they won't have to wait as long to get their greatly desired new equipment if they buy Boeing vs. the other guy."

************************************************
A bold move is part of a larger strategy of parry and thrust sward play with Airbus. Airbus is dimishing its customer A320 back orders at an alarming 42 a month pace, beating Boeing's thrust of 38 a month as of this current moment. Boeing would like the high ground in the single aisle market of 47 units per month, as stated in this article. What more could Boeing do by making this production disadvantage  on Airbus? Airbus stole the march on Boeing by adding 2400 Neo orders to its book. When Boeing only has taken 1500 MAX orders since its offering of the Max. Having started over a year later, it lags the Airbus Back Log. So its waging that a 47 unit output will sell more single aisle, because you will get them sooner into customers arms in this race.  Yeah, I'll call it the "Arms Race"
***********************************************
Because of the high volume and relatively low production costs, the 737 and A320 are often seen as cash cows, and play a big role in funding development of larger and technically more challenging aircraft like the Boeing 787 Dreamliner or the Airbus A350.
Boeing's rate increase was more ambitious than some forecasts. Carter Copeland, analyst at Barclays in New York, said he had penciled in Boeing building 46 737s a month around 2018. "I definitely didn't expect an announcement on it so soon," he said.
Just last week, Boeing said it would lift production of its 787 wide-body jet to 12 per month by 2016 and 14 per month by 2020, up from a target of 10 a month by the end of 2013.
While Copeland said he didn't have major concerns about the 737 supply chain keeping up with higher rates, he said producing so many of the current 737s and the 737 MAX "would seem somewhat challenging on the surface."
*************************************************
Challenging but necessary, the output of single aisle runs concurrently with these points of interest maintaining a shorter backlog in Boeing Just In Time (JIT)approach.


  • Increase cash flows
  • Increased investment performance
  • Customer delivery within a 5 year planning window
  • Greater Customer opportunity to maintain a shorter wait when first ordering.
  • 5 a month increase ='s 60 unit  a year closer to delivery
*************************************
He added, "I'm sure the supply chain is quite pleased as the 737 is a profit leader for essentially everyone who's on it."
Boeing commercial planes vice president Beverly Wyse said in a statement that the higher rate would "lay a solid foundation as we bridge into production on the 737 MAX."
The company has 3,400 orders for 737 aircraft, including about 1,500 next-generation MAX models.
The 737 MAX will have new engines and other changes to make it about 14 percent more fuel efficient than current models.
Boeing said the first delivery of the 737 MAX is on track for the third quarter of 2017.

In contrast to the Boeing target, the chief executive of Airbus this week reiterated plans to hold its production rate of competing A320-family aircraft steady at 42 per month, saying the European company had some concerns about the fragility of the supply chain.
Rob Stallard, an analyst at RBC Capital Markets, said Boeing's move "might give Airbus reason to accelerate" its production beyond the 42 a month.
Airbus' output for narrow-body jets is based on an 11.5-month production calendar, implying average capacity for 483 aircraft like the single-aisle A320 a year.
Boeing is based on a 12 month production schedule, though the company traditionally closes for the week between Christmas and New Year.
Stallard said the new Boeing target was "incrementally positive" because speculation about rate increases in the latter half of the decade may had have "fully baked in the ramp, and suggests that the current up-cycle continues to have legs."
He added that any rate ramp carries risk.
**********************************************
The JIT Arms Race has started and Boeing aims to win this race. Its new engines and news designs are placed on a winner, should propel it beyond its order books, as all empediments are removed. The backlog does have risks as well as having a thin order book at the front end. In all JIT formulates a production build up number, and this is where the magic occurs for the bottom line. That build-up works hand in hand with marketing. The sales teams needs to know a year in advance, what are its stated goals, and can it achieve the goals on time, in order to keep the Arms Race on target. Get those units in the customers arms when the sales team makes that pitch of "on time delivery in quanity". 

The, "when do you want it question?", is just as important as the "how many do you want or need questions". Its hard to sell someone with a company five year plan in the vest pocket talking to Boeing marketing team about deliveries will start in 2021. Boeing hopes, that my friend is a NEO issue. Boeing would like to tune is sales program with customer knowledge. Where they will be ready to delivery on a customer's five year plan in numbers, and advancements, beyond its competitor whom is building the NEO.

The  NEO is backed into a full order book Jam with this type of strategy as it has 2400 NEO at rest and not going anywhere soon. Boeing too, is trying to break out of that strangle hold by targeting production to solve the problem. 

Having a 47 a month single aisle production capacity or delivery rate at peak periods, allows the marketing team more flexibilty for delivering promises it makes. Room that it requires, without it would box them into a... "well I don't know just yet, if we can get you your 20 Max's in the year 2020. Have you looked at our Gold care program Yet?" :>)

The build-up number for the order book, as an example: should have a two year production backlog which delivers a Just in time pace meeting customer planning goals for financing and route management, and it aalso migates risk from lack of back log for Boeing. This example would allow sales and demand some flexibilty with a 47 per month break neck production speed.  

They have publically recoginized this arms race and are actively employing the troops to get single aisle NG's and Max's into the Boeing customer's arms from Renton, Washington's lakeside doors .
*************************************************
Airbus and Boeing both see demand for over USD$2 trillion worth of such aircraft over the next 20 years.
(Reuters)

Thursday, October 31, 2013

When You Wake Up November 1. You May Read 87 Boeing Billions

"Say whaaaat, 87 $Billion in orders scooped in Dubai for Boeing. I know its post Halloween and you may still be dubious of claims after Halloween, especially from the walking dead before morning coffee. But this one may have legs that walk through boardrooms around the world. Emirates and even Qatar orders for the 777X may  scare the the Beelzebub's out of you. No matter how cryptic this news message is from all of all places Hispanic Business it made me look and read on! I thought they sound as crazy as I was about Boeing in my Order prognostications last year when I said it would take 150 orders for the type to launch it. Well, this stellar publication only second to WSJ (:)has come forward with this terrific endorsement of my Boeing musing in a perfect world. Keep the applause quiet some people are trying to either work or sleep.

Must  read for effective coffee spewing:

Boeing Lines up $87 Billion in Mideast Orders for 777X


"The 255 planes under discussion included as many as 100 to 150 for Dubai-based Emirates, about 50 for Qatar Airways and as many as 30 for Etihad Airways, said the people, who asked not to be identified as the negotiations were private.

Cathay Pacific Airways was weighing a purchase of as many as 25 of the aircraft in a transaction that would probably come before the Dubai event, one of the people added. The expo runs from November 17 to 21 and is often a showcase for long-haul jets like the 777."

The above tease was copied first for your news pleasure before the morning arrives. Just sleep on it and if you are already at work in daylight, "put that in your pipe and smoke it" before a hundred links appear before your eyes and confuse the sensibility further. Boeing will launch way above my imaginary prediction from last year. Sleep well airline exec East of  Staten island. Everyplace is east of  New york even New Jersey if you travel far enough on the 777X.

Happy Halloween And Other Scary Stuff

FAA to expand use of personal electronic gadgets on planes
                                                                                           



Much 777X detailed design to be done outside Puget Sound region
                                                                                                                                         




Boeing plans to approach Tata-Singapore Airlines
                                                                                                  




Japan Airlines H1 net profit slips 17.8pc
                                                     

                                                                                                     

                                                                                            




Be Very Afraid, Boeing Is Coming, Airbus!




Wednesday, October 30, 2013

THE MEMO ON THE FLOOR

GLENN FARLEY / KING 5 News Aviation Specialist

NWCN.com

Posted on October 30, 2013 at 11:24 AM
An internal Boeing memo Wednesday stated that a good deal of the detailed design work for the 777X widebody jet will be carried out by teams outside of Washington.

The memo was sent to workers from Mike Delaney, Boeing Commercial Airplanes vice president of Engineering, and Scott Fancher, vice president and general manager of Airplane Development.

According to the memo, teams in South Carolina, Alabama, California, Philadelphia and St. Louis will carry out the detailed design work.

SPEEA, the engineer's union, said the memo doesn't mean core design work will not stay in Puget Sound.

The internal Boeing memo said, "at this time, no decisions have been made about 777X design or build in Puget Sound."

Boeing had previously stated that engineering work handled by suppliers for the 787 would be brought in-house for the next program.

"In addition, we are leveraging lessons learned on 787 and 747-8 to ensure continuity across the 777X program," the memo said. "The announced structure will allow for an efficient use of resources and enable Boeing to resolve design issues effectively the first time."

Makes you wonder what new approach is used on Boeing's engineering run-way. I believed Boeing was in the final leg of its engineering work on the 777X. If this referenced memo confuses, then it probably has succeeded in steering on-lookers off the trail. Something big is going on behind the doors of corporate espionage. Boeing must have assured SPEEA, this is a small thing, just a memo for effect snow-balling the competition gazing from abroad. An 350-1100 is hinted about with Qatar interest. Here are some out-source engineering points under this blogs consideration.
  • How far can you push a two engine configuration while maintaining its advantage over four engines?
  • What is the perfect balance between using composite assembly with metal alloys on Mini+ Jumbo's?
  • Is there a 777-10X  450 passenger capability with the new proposed base design?
  • Is there a 777-10X market, replacing the 747-8i?
  • What is the Airbus A-350 1100?
  • How long would it take for the 777-10X for achieving entry into service using  current Boeing advancements?


Out source these questions with a full engineering report on my desk by end of 2014.

Boeing may build a 450 seat configuration as a 777-10X. Airbus is ready to throw more chips into the pot with the hand its currently holding. Boeing cannot in snide fashion, ignore that threat, because it can replace the 747-8i with an ultimate Mini+Jumbo. Called a Mini Jumbo by default, because Airbus built a huge white elephant that will be lucky to sell enough copies to break even. Making everything else a "mini" by default.
Proof is maybe is this memo reference above, and SPEEA showing an uninterested response when these engineering trespasses that are occuring away from the North West! It tends to perk my attention that memos are leaked, and the engineering union yawns, during threats of outsiders working on the union engineering turf. Everybody in the Jumbo game would like to lay down the last card, and win the pot with a high card.. Airbus  may threaten an 1100 card, and then Boeing plays last with a 1000 card that would trump the 1100. Players at the table are waiting for the proverbial blink., before slapping the last card down.

Tuesday, October 29, 2013

ROI Verses ROI


The two worlds meet often in the fight for supremacy. Especially in Technology and Fashion. The first ROI represents, a Return on Idea meeting the Return On Investment. The Idea is born out of brain storming, pride and the need for human relevancy. Frail human mental functions are subject to public rejection, no matter how well intended. Think of Blue Jeans and Mini Skirts for great long lasting ideas. Then again reflect on Bell Bottoms Pants, and  Eight Track Tapes. Horrible Ideas that burned out in the public conscience. The Return On Ideas either continues or are buried quickly.

The Second ROI is the Return On Investment. It is a measuring stick measured on corporate balance sheets for the investor's intrigue.  For every dollar invested what do you get in return. The four engine aircraft are rapidly becoming the bell bottoms of aviation.  Akbar Al Baker, reminds how whimsical appearing a customer may seem. Al Baker states he does not want 787-10's or any more A-380's, signaling a fashion change for multi-billion dollar purchases. It affects his Qatar airlines ROI plans. Al Baker wants what makes money in his airline network around the world. He bought tons of A-350's and 787's. Sorry for the late entry of the 787-10 and for the four engine A-380 reorder book.

Qatar Readies More Orders as Al Baker Studies Boeing’s 777X 

"The CEO said he would assess any stretch model of the A350 model beyond the -1000 he is already buying, but has no interest in the 787-10X, which is too close in size to the A350-900, a variant that the carrier is also purchasing.

The carrier also has no interest in additional Airbus A380 double-decks, of which it will receive the first example early next year, he said."

The Return on The Idea has flown the coup for Al Baker.  That does not mean the Idea for those models he passed on is done, but it does mean he has set his plans for his Investments in concrete. He will look at the 777X and any Airbus follow-on, if it has two engines. The two engines is the "Blue Jean" workhorse that will carry his mini skirted airline into the future. No Eight tracks in electronics bay. The 787 is a great airplane and will settle in on a remarkable career. It is approaching 100 units flying and going beyond 200 flights a day. The 787-10 does not fit Al Bakers extensive back log and his own inventory at this time. He is more cautious for his financial ROI than impulse ROI. An Idea is taking a back seat at this time until he can solidify his investment.

The Idea return is when the vision and desire, conspire into its own reality no other can touch. The investment is the structured journey to a successful end. Where no Idea can be ignored or can set aside if valid. The Boeing problem is unappreciated genius verses Airbus' more simplistic approach of lower risk. In the end Boeing hopes for its return on its Idea over the Airbus Return on Its Investment. Will the Idea win over the customer? That is the war we are seeing waged at this time. Airbus has sneaked a march into Boeing's stronghold in Japan having a 31 unit A-350 order with Boeing's Stalwart friend, Japan Airlines. No explanation is given in the press for that order from Japan Airlines. Strangely Airbus has not succumb to its usual gloating. Something is more going on, than just a better deal. Japan Airlines may have traded off the JAL Idea for a different Investment. That is where the soul of this war is being fought. The Idea vs the Investment.  Boeing is currently selling an investment full of hiccups that is a great Idea. Airbus is trying to sell its four engine behemoth out of its pride shop, which has not even reached a break-even point as of yet, since its introduction on the flight-line in 2005.
Boeing may have lost a battle in Japan, but Airbus lost the war in Toulouse. ROI verses ROI is separated by Risk. Japan decided its Idea risk is too high and opted to a lower Investment risk with Airbus, or is spreading out its risk with Airbus. It does not mean the 787 is a risky airplane, but it means Japan has spread its ideas broadly with its network by an Airbus purchase. If the Boeing matures into the Vision that Boeing seeks, then it will win. Airbus' near sighted vision cannot compete with the Boeing 787 when all Glitches are retired. Japan Airlines blinked in its vision so others may pass beyond them from its A-350 order.

The 777X and Al Baker are at a cross road with QATAR's stuffed inventory. Over 250 units are on back order (undelivered). Al Baker has  spent the cookie jar at this junction and can wait for the 777X process to reach completeness, before ordering a boat load of 777-X9's. He is free to speak of no 787-10's and A-380's with extreme wise sounding quips about stuff he doesn't need at a time like this. It's no reflection on the aircraft that he castigates as unwanted, but its more of a reflection he his Ideas and Investments are full up at this time. His Dubai order will be his vision through sunglasses protecting him from eye strain while others order at Dubai (uhumm Emirates).

Sunday, October 27, 2013

Boeing Meet Boise

The State  OF Washington is finding ways to keep Boeing in its state. One way to do this is to not keep Boeing in this State, but enlist a neighbor to aide it as a partner in this endeavor. There is a place with miles of open country near a population base of technology, homing 600,000 persons supporting an expanding economy. No ocean to confine expansion. Not only does it have an exclusive cheap electrical base with its Snake river dams, but it has a strong military presence in this treasured valley. Apply the name Mountain Home, AFB, here (60 miles south east).  Its Just south and east of another Military Air base  residing in the metropolitan area, and Commercial Airport as Gowen Field. On the edge side of Gowen pulses the commercial airport, making it a duopoly of separate military and commercial operation is Boise, Idaho.  Boise has a technology infrastructure for its new computer technology developers with Micron and Hewlett Packard. Multiples of electronic start-ups dot the valley.  Boeing should consider Boise as an extended shop for the 777X instead of Charleston, SC. Its only 50 flight minutes from Puget Sound, a test flight lap away. I challenge Boeing to come up with a better ready made spot in the US.



  • Cheap and plentiful land
  • Cheap and plentiful Power
  • An Unbounded (Non Union) Labor pool
  • A 360 degree Airspace
  • Urban University for Urban Industry
  • A Jetway To The North West
  • Rail connections
  • Available Industrial Parking Space For The Supplier Chain

Will Washington be big in Boeing's jumbo jet future? | DON BRUNELL

I know Boeing has looked at Boise for something, but have they looked at Boise as a North West Annex, maintaining continuity for aircraft development and production with nearby Everett? Or have they considered Boise as a fair weather port in a continuous flow of production , nearer rather than farther from Paine field. All first flight 787's could go to Boise on an initial test run for a park and fly, conducting production testing in Boise. A final flight back to Paine with the customers in its control, landing at Paine Field for the delivery center. Better weather and clear days most of the year. Expanding the Northwest Boeing operation in the Northwest would enable Boeing to expand the 777X development in the Puget Sound area more effectively. Sending it to Charleston is more complicated and expensive. The 50 minute flight to Boise is quick and dirty for moving personnel back and forth to a Boeing Campus located in Boise, ID. Its just a commuter hop expanding the Paine footprint farther South East. People stationed in Boise would benefit from multi outdoor amenities from white water, skiing and wilderness. Boise has an excellent inland fishery. You drive off a north end street in Boise and go right up to the ski area. Boise metro area will grow to one million in ten years.

Boise has not had a hurricane, twister or earthquake of note yet. The shut down risk from natural disasters is statistically mitigated. Boise could do a lot for Boeing as well as Boeing doing a lot for Boise. In this scenario Boise could save the Puget Sound Region of having the corner stone operations ripped out of the area, as Boise would supplant any Puget sound space constraints, by annexing a Boise center. Boeing would gain the flexibility it requires when expanding manufacturing in this area. A Charleston effort stretches the workforce and materials line thin in some cases, even though Charleston does production of plastic components for the barrel and surfaces at the facilities. Boise could build additional capacity for the western region as has Boeing expanded some supplier manufacturing in Helena, MT for the 787-10. My admonition is:    "be careful where you put all your eggs", One massive storm could cause havoc back east. Supplemental production possibilities in Boise diversifies that risk as a sound lower cost answer, that does not interrupt Boeing's continuity as what Charleston, SC has already accomplished, with its low production numbers so far away from the NW.

Gowen Field Is Boise's airport military twin side of operations

A-10 Warthog Wing is in.

More airstrip space for up to 13000, feet exist adjacent To Boise Airport.

Micron Technology Chip Maker Eastern end of Airport Flight Path in Boise, ID

Hewlett Packard Campus Printer Division


Boise State University, Urban and Technological Flavored University



The Composite Photo Of Boise



Boeing, ADA county has a parking space for you and you could add your Picture to this portfolio..