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Monday, December 2, 2013

Why Convience Stores, Fast Foods and Supermarkets Sell Soda Water as "Pop"

My early years saw me as a manager of a small convenience and gas station store. I got used to the terminology  of "lost leaders" Gross profit margins and marketing stimulus. The whole concept is based on your inventory and how it contributes to profitability. Today's aircraft are much like that convenience store. Buy a large Slurpee for $1.99 and get a free Hot dog. At first I didn't understand the salesmanship in that lost leader (Slurpee/Dog Deal) drives the aviation industry. Configuration is simply packaging appeal. JetStar fills its seats like popcorn with 335 seats on one 787-8. Then ANA orders  46 business seats of Slurpee's with its 112 Vienna sausage tins back in economy for its marketing scheme. Before you let loose of your cookies and milk, via a nose/food transfusion. I got into my convenience store 101 mode and came up with a Tokyo to Frankfurt or Slurpee and sausage route.

The Slurpee is only crushed ice with a flavoring of syrup squirted on top, making a drink selling for $1.99. As store manager, I read those labels coming off the delivery truck seeing what is contributing to the stores gross product margin. Those slurpees' came in at an astounding .18 cent cost factor, selling for a 1.99 per cup during a hot day crises, that's what it made the store money. Those lousy Vienna sausages in a tin were sold for a 1.99 and made the store only 18% profit margin or 36 cents on a two dollar purchase.  The Slurpee made the store $1.61 shoving out those drinks that cost the store only 38 cents on the drink.

Let us take 112 Vienna sausages to Frankfurt as well, analyzing what those 112 seats will do?


*That $1,000 seat (sausage tin) will buy a lot of things on this flight.

787 full tank of trip fuel (Trip Fuel amount necessary for the route, payload weight, conditions)

  • Crew cost up to the business class.
  • Ground crew and airport fees.
  • Overhead cost from the flight. (Fixed on each flight)
  • Maintenance allocation of cost for each flight.
  • All Other Incidental costs I am not aware of:
*(The bullet points is what it will buy for the airline as a lost leader seat)

Total revenue pool from ANA's Economy Sausages. 112 * 1,000 tickets = $112,000 Revenue with a Profit margin of 18 % or 91, 820 in cost allocation from Economy.

Business Class ANA: The Slurpee's 46 Revenue seats of $1,800 =$82,000 ttl and a cost 18% = 14,760.

Gross profit Slurpee dollars at 82%= 62,240
Gross profit Vienna Sausage Dollars= 20,160

Total flight Gross Profit Dollars= $82,400 receiving $194,000 in revenue.

ANA 46 seats are the Slurpee's purchased at the convenience store, and the Vienna sausages are just impulsive grocery purchases. Jet Star philosophical business strategy is to fit as much sausages into  its 787-8, and make money in a mono blend seating regimen for profit. Configuration in the variable item to make money as the 787  is the constant (C) in this formulation. Ability for Variable configurations maximize the profit margin in a more robust market for business travelers, than a market just for people moving on vacations or visits to friends around the world. ANA penchant for a "heavy" configuration for its passengers (whales) allows everybody else to hang out on these flights just like in Las Vegas. Casinos can afford tourist because of the "whales" on the floor.

This brings me to a conclusion, All 787's are ordered up for company variables and business strategy depending on the 787 configuration. All 787's provide a foundation that is a constant in this formula even with the headwinds. The question before customers (airlines) is not what can the 787 do for you, since you already know that a constant has been defined, but how many Slurpee's or Vienna Sausages  do you want on your aircraft?

Next time you get a coupon at McDonalds hamburger stand that invites you to buy an extra large drink for $2.49 with a free quarter pound cheese burger. The $2.49 spent buys both and becomes a lost leader until you want fries with that! The "that" part becomes pure profit.

A very rough interpretation of general and basic costs and revenue relationships, but this illustration helps visualize why ANA went with its mix of seating on long haul flights and why Jet Star stayed with "the sausage is -in-the-can", business.

Sunday, December 1, 2013

Leases and Wet Leases and Other Boring Stuff

In Financial matters we were directed to the lease opinions that would effect both balance sheets and and operational financials or Revenue to EB IT processes. These slight but important adjustments are seen as mechanism to avert capital risk or benefit the cash models used to extend a company's value. The first part of leasing is knowing what current revenue streams and costs of operations affect the bottom line. A company identifies the two cash streams towards its growth as a viable company.


Part I is ownership of your primary revenue asset.. Buying the 787 was very expensive for Air India, a cash flow deprived Airline in need of assets for making them more money when digging it out of debt. Air India bought 27, 787's from now into the future. The Cash account is infused with borrowed money. The Asset to Liability balance expands in symmetrically fashion as the fleet receivers more 787. Air India in not a bottomless pit of financing and credit. As interest expense expands so does the ability for retiring debt as a constant stream of cash is parsed off to either debt interest or the reduction if principal. The next airplane comes from Boeing next month and whoa, another hit to financial credit card, and the interest or principal payment plan expands. Air India is all so aware of this is going to sell some of its Boeing 787 off the books and replace it with a lease on that same airplane. The leasing company takes on the asset as a risk in return for an income stream through its lease payment. Air India doesn't loose the asset and continue flying it in its revenue stream as always. The cash flow for Air India is given a reprieve through lower expenditures servicing a leased airplane, over servicing a purchased airplane.

A few of the benefits for Lessor vs the Lessee

Lessor.                                                      Lessee (Air India)

End lease ownership of asset             New accounting advantage from an asset
Valuation loss applied to Lessee        Greater Expense controls affecting bottom line
A financial/Revenue mechanism       Full Maximum Use of an asset Value
Opportunity to sell at end lease         Opportunity to buy a replacement Lease end


These few points really shake up the Balance Sheet and or Income Statement allowing fleet expansion to continue to its full objective of filling the market with 27 787's and meeting its goals. The 787 is hoped to resuscitates Air India. They are quietly tweaking its inventory through leasing or buying. There are so many more implications at this point, like expanding your status for future purchasing or leasing returning value from a revenue source as the 787 with less up front cash. The 7 units leased 787 or conversions from a buy program, opens up Air Iindia for more acquisitions of 787. Seven are moved in a different spot in accounting match the value flow of the aircraft with the expense flow and not  weighing down its financial picture as a steep burden it could never recover from in the cash flow department.

Wet Leases:

I own an airplane and a operational staff to fly it. You can lease my team and airplane, and stuff, if you need a hauler until you get your own toy. That is what LOT is doing during the winter months is providing a 787 for some charter company or vacation scheme for the winter. Cash flow is important for the off season in LOT's operational scheme. Flying from Warsaw Poland to Chicago IL during winter is a slow period for all Northern tier destinations in North America ffrom Poland. Providing  a wet lease is ideal for shoring up cash flows year around, but preferable during "off peak periods".


Short Term leasing hits the books differently than a Long term lease. Its a 30 day rental period and you won't find airlines doing this unless its in Hollywood on a movie set doing an airplane movie.

Long Term lease works when buying a 787 from a customer, then leasing back to that same customer, i.e. the likes of Air India. The customer uses the same signing day agreements without the airplane ever leaving your hanger. Theyy have made a profit on that day selling the 787 and leasing it back. Welcome aboard to Air India.
Air India accounting spread sheet ajusts and "viola", the books look better for buying more aircraft.

Friday, November 29, 2013

JAL Elevates To A Women's Scorn Level 5 For Boeing


"Boeing and GE see JAL's move to suspend 787 operations from subtropical zones susceptible to the unusual core icing issue as a mixed signal. Though neither would comment directly last week, some within the companies consider the type's withdrawal to be an overly cautious step, while others view it as symptomatic of the increasingly difficult relationship between the airline and Boeing. The lengthy delays to the 787 and its subsequent service-entry problems have strained the JAL-Boeing rapport, which took a turn for the worse in October with the carrier's historic decision to acquire the Airbus A350-900 and -1000."


In the wake of Boeing's advisory, JAL is withdrawing 787s from service between Tokyo, New Delhi and Singapore and is suspending plans to use the type between Tokyo and Sydney. All three routes are in subtropical regions where core icing has been encountered with increasing frequency since the 1990s, in lockstep with the growing air traffic there. The unrecognized form of icing inside engines causes surges, thrust loss or power “roll-backs” with little or virtually no warning."

The order from JAL to the Airbus is a broken relationship, not a sales coup for Airbus. People change as Corporations change. If a board member cannot stand broken promises from Boeing, then it seeks people who will change its direction as a matter of principal, not a matter of what’s best for the operation. They secretly agree they can live with an A350 while turning the page on Boeing's unsolved 787. JAL failed to negotiate a 777 deal and have ceased supporting the 787 with a stiff upper lip. Instead, without warning it simply walked away leaving Boeing sales team to pick up the tab as it got on the Air-bus Transit after the Boeing diner. The first Boeing responders reacted by thinking it was something they failed to do while dining. But it became a glitchy, "that dog don't hunt no more" exercise, from the 787 project.

Here is JAL''s problem. Acting out in disappointment or anger at Boeing's mishap plague aircraft, will do more harm into the future for JAL, as its competitors will begin to receive preferred status, for a refined 787 that will seize the market right out from under JAL. Since JAL did not hang in there fully addressing the risks through the tough parts. They retreated when the end game of perfecting the 787 is close at hand. A mystifying reaction for all that is invested, even though Boeing counters the problems, they blinked.

Boeing will regroup and will suffer remorse about JAL. However it will refocus marketing in the Region with Singapore, China and Australia. These competitors may leave Japan Airlines on an "Island" for the region. If Airbus type aircraft cannot fatten operational margins with the A350, and instead diminish those very new found margins operating the 787, then anger or impatience will cost JAL. Message was received by Boeing and now the Icing campaign is received through JAL's cool bulletin on canceled routing and flights in regions where the icing threat is not likely. It means to me that JAL is not done yet slapping Boeing until it feels better about what its going to do in the near future. That is a full departure from Boeing, because some strong will and headstrong group has gained momentum in its decision making. Boeing can only take that group out to diner so many times and offer preferred status so many times before both JAL and Boeing see those meeting for what they are, a mere inconvenience. 

JAL took the risk as first customer with a new guy on the block, but are unwilling to see it through. It may be time to move on with better situations, no matter how many flowers Boeing comes to JAL's door, when they want to date other manufacturers, even if doing that is a really risky business! What internal memo rationalizes JAL's lambasting for every Boeing problem, it still remains a very safe airplane and both Boeing/GE and the FAA are doing its due diligence and correcting any problem with a; first priority and in a very timely manner. When Airbus lost flight 442 (A330) with a total hull loss, its customers stood by Airbus. That was no inconvenience, it was tragic!  What’s tragic here, is JAL's actions, and no confidence comments from deep space.


Its 2013 What's Under The Tree?



Its a new GE9X that will power the 777x 8-9 aircraft. Last year I wrote a Tree piece about  the folding wings, in a  777X format, making an introduction to the Blog world as some kind of writer of whimsical proportions. However, this is this year's rendition of Holiday trimmings and fantasy coming to life. Its the ostentatious GE9X made to order for the Gulf States. They want it, as in about 450, copies, and they will get it. I could not find a picture with enough wrapping paper applied so here it is on a Black Friday display floor.




So the Gulf States ordered a 777X purpose built aircraft complete with folding wings, special appliccations of plastic flight surfaces and this extra special GE9X to be produced as a super efficient, frost free jet engine This Tree ornament is the size of a UPS delivery van. So it will deliver on time with a consistancy of a Swiss Made watch.


The Brochure came with my engine gift under the tree.


If you could click on the GE bragging points I will enumerate a few  below.


Delivering bigger fuel-burn advantages
The GE9X will be the most fuel-efficient engine GE has ever produced on a per-pounds-of-thrust basis, designed to achieve significant fuel burn savings over its predecessor, including:
10%better SFC than the GE90-115B-powered 777-300ER.
5%better SFC than any other twin-aisle engine in 2020.

Monday, November 25, 2013

Jack Frost Hits The 787 Right In The GE Engine

and other Thanksgiving Turkey suffers.




  • You mean GE didn't test the 1B engine in all conditions?
  • Software is the answer for when and when not to blast the Ice out of the engine.
  • Rolls Royce prepared for Jack Frost
  • JAL Is "Quick Draw McGraw" again and punches on Boeing with a 787 grounding and grounding charges $$$. They really are hating on Boeing.
  • The 777X proves to be a part of the Gulf State Strategy for world domination.
  • 407 seats and 8,200 miles  is the ultimate Hub Buster
  • 350  seats is "Brave Heart" Freeeeedom...!! for 9,200 miles.

 Those are this weeks turkey stuffers: Below are valid comments on the POINTS

I wonder why all that testing of GE engines in the heat, at high elevation and Northern Canada did not reveal an Icing problem during normal operations by flying over thunder storms? This seems like a corner was cut has bitten Boeing again with its engine supplier. I am sure GE has empirical data supporting all conditions and could have concluded statistically that this would not/never happen in optimal situations, and is  very rare situations if at all. It has become a frequent Turkey Stuffer.

Software can't fix everything, it can only assist  mechanical functions by activating those mechanics for regulating the Icing problem. It seems that GE is now taking a paradigm shift towards activating a solution it should have provided in the first place since it has a ready made solution within 72 hours of the first Icing problem report. Once again Boeing takes a hit because a supplier failed its due diligence on a known quantity.

Rolls Royce has not reported a similar condition with its engine regarding Icing. They must have done its work  before releasing the engine and will continue to fly on as GE sorts out its own mess hurting Boeing further with its customers like JAL.

Speaking of 787 Launch customer JAL who no longer wants to participate as a glitch crash dummy for the 787 program, they may as well refund Boeing for those preferred prices given them when they bought so many 787, since they are dropping out of the launch customer status with a snarky attitude. I know all new airplanes go through a shake-out period they will reveal everything wrong under normal repeated operations. JAL felt they had reached its limit of problems and drew a line in the proverbial sand and bought 31 A--350 in the face of being a "Boeing Exclusive Launch Leader" (BELL). I guess these are types of faulted relationships and faulted trust. It bothers me when it happens. Boeing may have crossed JAL's line in the sand, but JAL response is an unmitigated shame cast, when so much has been establish between the two, for so long, just to flip it off.

Boeing will try to mend fences but more from a position of strength as it opens up the 777X order book without Japan in mind. Airbus may breach into the orient market place, but Boeing has breached the Gulf States Market from Airbus. The A 380 is a Purpose Driven type for the Mid-East. The Mid East has space, sand and more airspace for the world. Its not that the mid-east is a destination, but has geographic position on the globe for joining east with west in a very efficient manner. Not having population clutter around it. The A380 lands or takes off with 500+ passengers, then directs fleets of 777X anywhere east or west. North or South in the world, with its "Special Purpose Built 777's. Whether its a 350 seat -8 or a 407 seat -9, it will service the A380 nicely coming in from LA X, London Heathrow or Australia, and then send those customers around the world elsewhere on the 777's. Its more about being a Super Hub than liking one aircraft manufacturer over the other. They want purpose built aircraft from anyone like Boeing or Airbus and they have deep pockets for those luxury aircraft when they need them. Enough said on that!

This a Turkey Day wrap as I am thinning out the LiftnDrag slices during the Holidays, and I too will bring another version of "What's Under The Tree", and a January Boeing Forecast for 2014, and other seasonal fun stuff. It will be difficult to up the entertainment, but I will try as I enjoy expressing my thoughts, sarcasm, and wit concerning Boeing. As gggoes for a beating of its arch competitor Airbus during the season. If I slip a nugget out that has not yet been reported upon, so be it!    

Thursday, November 21, 2013

The Dubai Exhale

The Dubai Exhale:

Recently Boeing received orders for twenty-five 777X (Big Bodies or BB's) from Etihad and one hundred and fifty BB's from Emirates and another 50, in a Letter of Intent or (LOI) from Qatar.  The LOI is a sale, and because you can't tip-over this LOI apple cart or dump it, since Qatar would have to go Bankrupt or Boeing does not meet its proposed configuration successfully, becomes very unlikely. So count the 50 Qatar LOI as a purchase for conversations sake. All they have to do is drill a few more oil wells and the LOI pumps-up into a Qatar order. 

Having made that observation, then Boeing has about 259 such orders where they need a home for this order book in development or production. The IAM, Seattle WA, jug heads refused to work under Boeing's new terms offered. Boeing answers the IAM, by saying, "and your point is, IAM?" just after the IAM voted “No" on Boeing's proposal, it won't renegotiate, but will seek out people who want meaningful work somewhere near a Boeing property, even if it resides on some US high desert location.

Boeing has time for constructing a Lego like manufacturing plant under two years, as they did in Charleston, SC, (18 months).

Boeing would need a workforce of at least 5,000 on the floor and its supporting engineers for the project. Modular teams are the new way for pulling together projects. Design teams from Russia, Japan and the US meet 24 hours a day on super computers throwing Ideas on the screen, as if in the same building. Modular workforce makes unions not relevant when considering the thinking level of design world. 

The floor staff; as machinist, builders or other specialties can be assembled together with the latest processes and computer controlled manufacturing. The union workforce is greatly endangered by smarter and more accurate processes and tools, rather than the actual workers. Yes, there is a critical need for trained eyes and skilled inputs on assembly. 

However, the advancement of automation tooling and assembly is closing the gap on each reiteration of a model. The unions are becoming irrelevant by progress. When self-importance places a higher worth than its replacement in process, the workforce becomes endangered. Unions are still needed, but are not irreplaceable. That is what Boeing knows and is in position for executing an all new opportunity of controlling its own destiny without a traditional Union workforce.

They will contract a highly mobile and trainable work force that can operate an assembly procedure when a workforce maturity is obtained. This is the Union challenge. They must overcome and execute, "a how to make themselves relevant again effort". Boeing wants a covering for its company's back from labor strikes and disruption, as that union dog doesn't hunt anymore.

Labor has been excused from this 777X adventure, Boeing will build quickly and train a workforce simultaneously for operating its tooling, assembly process and manufacturing components. The union has abandon it purpose a long time ago and focused on getting more from Boeing and giving less from the workforce mind set. Hind-sight should have taken a Pyrrhic victory and voted yes and then started looking for the plan "B" for the next 8 years. Now they have nothing, tell your children how that works. A lot of talk is on Long Beach, Texas and Charleston. It is easy to speculate about those three regions as the 777X location benefactor.

Everett isn't over, but it’s on life support for its future as a 777 builder. Long Beach has United Auto workers to think about and Charleston presents a greater reliance on its yet unproven experiment even though Charleston grows closer to obtaining manufacturing chops reserved for Everett, WA. When Charleston puts five 787 out the door a month, builds barrel components, and the does design work with manufacturing implications. Then Everett loses relevancy at that time.

The Charleston site is just about too emerged as a reliable replacement for SPEEA and IAM. Everett will stay involved into the future for massive projects. Its involvement should be more ancillary than primary for its models. The 737 is bonded to Renton. The 747-8 is on life support, the 777-300ER has a final day. Well you look at the 767 with its outstanding orders and the tanker project, and you get the feeling the Union acted as a surrogate for all of the NW's future, even though they were just one faction not representing many hundreds of thousands of people being affected. Who Lost: The State of Washington, The IAM, Boeing's 3rd party partners. Not to mention the trickle-down effect on everything else in the region. The IAM was voting for everybody in Washington and now they will eventually look for work elsewhere. Good Luck Washington!

100 billion from Dubai is a lost order for the NW not Boeing. Even though there were 111 737 booked. The majority of the billions was a vote no for the NW by the IAM. Boeing was done with the IAM before the vote. They believed they paved the way for the IAM with Washington State cooperation. They said they were committed to Washington for the next 8 years if the IAM said yes.

Even though the contract would be a great sacrifice for the union workers, it is a greater sacrifice now facing those workers in finding any situation down the road. Some will be metal workers, others will work for small business, but they won't reside in an ever evolving business with world implications as they did with Boeing.  

If the Dream could not go beyond the Union contact, then the members didn't think beyond the contract offer. A great workforce can't be ignored, unless it focuses on the bad deal and then walks away. A vote yes and then broadcasting the reality of Boeing's objective, marches against Boeing's offer, has more power than the "no" and a walk away result. Family, community and friends come first and that sacrifice a union member makes for those values, by voting "yes" puts Boeing into an unwanted spotlight that Boeing has created and the world abhors. The workers could have stuck it to Boeing's image with a Yes nod and kept themselves for the people of Washington.


Wednesday, November 20, 2013

Post 787 Design Era

The 787 entered a brave new world in the aviation saga from Wright Brothers to the new 777X types, AKA 777-8 and 777-9.  What sticks out is two different configurations much like the auto industry conundrum of building a Tesla all electric or a Honda Hybrid. The 777X class has all plastic flight surfaces including its massive wings. There are some disadvantage's still remaining on the table for all plastic airplanes. The 737 is  too small at this time for plastic and the 747 and 777X is too big for all plastic skins, using barrel configurations.  The A350 uses panel with added weight found in its under lying support structure just because it uses more fasteners and ribbing for attaching panels while maintain structural integrity. It gains ground through plastic skin over aluminum skin.

Boeing does not want to go small with an all plastic post Max aircraft in 15 years since they have stated the cost in doing an all plastic 737 would not make the aircraft cost feasible for its gain in efficiency, they chose tricking out the 737 with all the internal advances, engine evolution, and aero design. This makes the MAX more relevant than the NEO. The Neo could have gone plastic panel version but didn't since the A350 has not reached the market place at this time.. That would be a big risk as demonstrated by Boeing's 787.


The Marines had it down over Seventy Years Ago with the Corsair. Now Boeing waves its Corsair over Dubai with A Patent on this 70 year old feature


However, Boeing is rapidly closing off its proof of concept glitching while in service. The overly complex 787 will live up to its over the top promise in two more years of service where a whole new genre of aircraft reaches that dream. The A350 falls short as does the Max and 777X types because they laid up short to make a chip shot on the design board. What is really intriguing is Boeing's hybrid approx for the MAX, the 747-8i and finally the 777X. The 747 did what it could with designed flight surfaces including the body by working in aluminum. Then went with a new engine performance package for power and fuel burn economy. A common theme ran throughout the aircraft matching the 787 in seating appointments and electronics. It added the feel of flying with 787 like commonalities. It uses computer like precision on optimizing the aircraft. Mission was accomplished with a beautiful new aircraft.

What to with the Max? All plastic is out because it does not give the performance return  for the investment cost of developing an all plastic single aisle aircraft. So Boeing said, let's do a 747 number on the Max. New engine performance, new engine placement on the wing and much more design work on the aluminum frame would make this aircraft fly like a 787, as much as possible giving it a remarkable efficiency improvement during operation, even down to the maintenance cost. Boeing improves it like it was 787 without the plastic body and wings. Its competitor went NEO on its metal frame and Boeing Maxed the 737 frame and its newly created performance. The 737 became a safe buy for its customers with a strong yield of improvements, flying like a 787 for crew and passengers without those windows.

This brings us to a grand finale of patch work advances placed on the 777 frame coming directly from the 787 play book. Boeing gleaned through the very best of 787 and placed it on the 777. Then they reviewed the best of the 777 and kept it. Yes they went with a slightly bigger window but not in the 787 class. They decided that all plastic body was another 8 years in the making and "went with what they do best". The engine guys are on a hot streak and Boeing implored "give us more fuel efficient heat"! So goes the 777 call out for those 787 wings that are so beautiful, and they fly as the best in the world. Boeing wants two of those for every aircraft. Boeing will go Swiss Army knife on those wings, so we can pass airport security by docking it in a 787 spot at the airport. We want the 787 wing to fold up in a pinch. "Corsair Cool, Huh" So goes the "List" and checking it twice before going on a road trip to Dubai. Boeing just got a Black Friday like order book in Dubai as the aviation world marveled at the response. Even some Sheiks were impressed as its county's leaders stepped up to the camera and beamed with pride. Boeing final guessed right with the help of its customers. "Build something we want", is the battle cry, and Boeing gave up delusion of grandeur with the 777 and came out with a marvel that will change the world more than the A380 or an A350. The 777 is rapidly becoming the Best of series or show for its customers.

  • Plastic wings and wing box 787 era
  • Plastic control surfaces  787 era
  • 777 favorite things added from prior generation
  • New technology Aluminum body, evolved and matured
  • The GE engine advancements from 787 era
  • 787 era commonalities, flies like a 787, flight bags. maintenance checks etc.
The favorite things category moves forward with confidence. The Mid Eastern delegation has stated, "no 787 like problems at launch". Boeing blinked, and said "okay, we can do that" So goes giving what customers want not what Boeing dreams up. The MAX, 777 and 747 is following the Airbus line of attack  of having no show stoppers during developement. Boeing is stealing from the Airbus play book as well.

The 787 will be a corner stone of everything possible as it tweaks out the 787 aircraft over the next two years, with the 787-9 and 787-10 in the tooling. Developmental risk becomes a chapter in Business school book, "Production Management 301". When the 787 problems go to text books then the 787 is etched in stone and can become that proven method for building airplanes in the future. Right now only the wings become the best of the best, and will show up sometime into the future on a Max or 747 (if in demand)and 777's. The engine advance can attach to any wing and  the electric storm remains a 787 electrical storm, until a "solid" solution updates the system as a whole. The 787 will fly safely in the meantime giving the dream a full workout to perfection. Just like the early internal combustion engines from the past have become something great in 2013 with its hybrid counterparts. 


Tuesday, November 19, 2013

A LiftnDrag Thanksgiving Metaphor Shoping List

Thanks For Giving Menu:

*   Cranberry Sauce            => JAL to Airbus hand off.
*   Mashed Potatoes/Gravy  => 737 MAX Orders 2013
*   Green Beans                  => Eco friendly 787 makes impact at the dinner table
*   Brussels sprouts             => Lufthansa signing up for 34 new vastly improved 777X
*   Squash                          => JetStar’s 335 seats on a 787-8, it has a no gas section!
*   Stuffing                         => Norwegian Stove Top Addition with 291 seats on a 787-8
*   The Turkey!                   => Battery and glitches included with this bird. Tested +.
*   Pumpkin Pie                  => 787 luggage Bins create space for more carry-on charges.
*   Ice cream                      => 747-8i sugar sinker, 5 net orders avoids Boeing's nap
*   Post Thanks For Giving=> Cathy Pacific comes to the Boeing Black Friday Sale 777X
*   Sparkling Apple Cider     => Union loses its grip with NW apples supply.
*   Fruit Cup                       => Board of Directors avoid an after diner market slump.
*   Guest Pocketing Rolls     => A traditional event for LOI and option activities at Dubai.

*   Happy Thanks For Giving everyone. I've enjoyed 2013 immensely in spite of Boeing's attempts of botching it up.


Monday, November 18, 2013

Boeing Bragging Points From Dubai

The Boeing press release found on its own web site expresses optimism, confidence, and pride for the 777X launch. It has expressed this in its latest release of information.

Boeing 777X to Deliver Unprecedented Efficiency and Economics

Boeing 777X to Deliver Unprecedented Efficiency and Economics

"DUBAI, United Arab Emirates, Nov. 18, 2013 /PRNewswire/ -- Boeing [NYSE:BA], one day after announcing the record-breaking launch of the 777X, today at the Dubai Airshow outlined the performance characteristics and a variety of features that will make the newest member of the Boeing twin-aisle family the largest and most fuel-efficient twin-engine commercial jetliner in aviation history.
Key innovations will make the 777X 12 percent more fuel efficient than its competitor:  an all-new composite wing based on the innovative wing developed for the super-efficient 787 Dreamliner, aerodynamic advances such as a hybrid laminar flow control vertical tail and natural laminar flow nacelles, and all-new GE9X engines developed by GE Aviation.
In addition to unprecedented fuel efficiency and environmental responsibility, these new technologies will help the 777X deliver 10 percent lower operating economics than the competition.
"The 777X builds on the heritage of the 777-300ER and incorporates many advanced technologies designed for the 787 to create a new standard for widebody airplanes. It will truly be a worthy successor to the 777-300ER," said Fancher.
The 777X's efficiency directly links to exceptional environmental performance. Carbon dioxide (CO2) is produced as fuel is consumed. This means the reductions in fuel use will result in equivalent cuts in carbon dioxide emissions.
Two models comprise the 777X family – the 777-8X, with approximately 350 seats and a range capability of more than 9,300 nautical miles; and the 777-9X, with approximately 400 seats and a range of more than 8,200 nautical miles. The 777-8X competes directly with the Airbus A350-1000 while the 777-9X is in a class by itself, serving a market segment that no other airplane can.
"Both of these airplanes are about providing growth options and flexibility for our customers," Fancher said. "The 777-9X fits in the heart of where we think the market will go."
At 233 feet, the 777X composite wing has a longer span than today's 777-300ER. Its folding, raked wingtip delivers greater efficiency, significant fuel savings and complete airport gate capability. In addition, it allows access to the entire range of gates currently accessibly by the 777-300ER.
Adding 787 technologies in the flight deck, flight controls and other systems is just the beginning. The 777X implements 787 technologies where they add value to our customers and increase commonality across Boeing's twin-aisle product family.
Boeing is exploring a number of innovations that will advance the passenger experience and create an interior passengers will prefer. For instance, the company will reposition and resize the windows to provide more ambient light inside and provide passengers with better views outside the cabin. A new interior architecture will make the 777X cabin even more spacious, leveraging the airplane's cross-section – the widest in its class.
The 777X is targeted for first delivery in 2020.
Contact:
Scott Lefeber (Dubai)
777X Communications
+1 425-213-9445
scott.s.lefeber@boeing.com
Doug Alder (Seattle)
Media Relations
+1 206-544-1814
doug.alder-jr@boeing.com
More information: www.newairplane.com/777X  
SOURCE Boeing
So here it is:


Remember when Boeing said in its earlier press release for the Boeing 787 that would shatter fuel improvements by 15% with the 787. Then came the launch process with a multi-level design onslaught from engine makers to wing makers. As well as a weight loss interdependent. Remember when Boeing said in its earlier press release for the Boeing 787 that would shatter fuel improvements by 15% with the 787. Then came the launch process with a multi-level design onslaught from engine makers to wing makers. As well as a weight loss superintendents managing the carry-off of structural design enhancements. This above mention snip-it of "12% percent improvement is common denominator of an "all hands on deck" approach to fitting out a new design. The 12% claim is a bottom number, not the top number. They have computer modeled the 12% performance number and should exceed that number in an Actual After modeling performance generator, during tests flight of up to 15% over the competition similar aircraft. What will happen is that the 777-8 through 9 will have the upcoming physical changes on...

GE engine updates in testing and in flight. The PIPs move forward.
Building test frames will have a weight demolition activity CRFP wing design optimized from 787 dynamics to 777-8 dynamics Engine placement articulated to sweet spot on wing. Lessons learned on body design (shape) transfers from 787 to 777. 787 like enhancements. When its all complete and ready to go to customer, it will be more like a 15% improvement over the 777-200 or 300 as compared with the new 777-9. The -8 eight will be a phoenominal 350 passenger bus killer. Compared with the 787-10, it will go farther than the dash10 with more passengers. The 787-10 is a high tech gap filler, that will please a niche of routes for both Boeing and its customers. The 777-8 or 777-9  will move more like a cruise ship the a 17 INCH SEAT Bus ride. Dubai (et al) loved what they saw and saw what they loved! Airbus is all in with the 1000 and will double down with loyal minion.

Congratulations , Boeing for executing a plan, even it has had a rough year in 2013 with the 787. Now the table is set for the world.

This above mention snip-it of "12% percent improvement is common denominator of an "all hands on deck" approach to fitting out a new design.  The 12% claim is a bottom number, not the top number. They have computer modeled the 12% performance number and should exceed that number in an Actual After modeling performance generator, during tests flight of up to 15% over the competition similar aircraft. What will happen is that the 777-8 through 9 will have the upcoming physical changes on.

GE engine updates in testing and in flight. The PIPs move forward. Building test frames will have a weight demolition activity CRFP wing design optimized from 787 dynamics to 777-8 dynamics Engine placement articulated to sweet spot on wing.
Lessons learned on body design (shape) transfers from 787 to 777 with 787 like enhancements.

When its all complete and ready to go to customer, it will be more like a 15% improvement over the 777-200 or 300 as compared with the new 777-9. The -8 eight will be a phenomenal 350 passenger bus killer. Compared with the 787-10, it will go farther than the dash10 with more passengers. The 787-10 is a high tech gap filler, that will please a niche of routes for both Boeing and its customers. The 777-8 or 777-9  will move more like a cruise ship the a 17 INCH SEAT Bus ride. Dubai (et-al) loved what they saw and saw what they loved! Airbus is all in with the 1000 and will double down with loyal minion.

Congratulations , Boeing for executing a plan, even it has had a rough year in 2013 with the 787. Now the table is set for the world.

Sunday, November 17, 2013

Day 1 Dubai "Book em Dano"

Day 1 Dubai:


Hawaii 5-O Theme Song
Randy's Journal From Dubai

Boeing Chairman, President and CEO Jim McNerney (third from left) presents a 777X model in Emirates livery to His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates Airline. To McNerney’s left is His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the United Arab Emirates and ruler of Dubai. At far right is Akbar Al Baker, CEO of Qatar Airways.



Commercial Passenger Approximate Orders:

                   737    787-10    777-8   777-9           [Foot Notes]
Etihad                      30            8+1F** 17           [12 opt 787-10:[12 777's]:[2 777F]
Emirates                               35        115 [50 opt 777x's]
Qatar                                                   [50 777-9's LOI]
Flydubai    111                                                  [54 LOI 777x*** Ooops unconfirmed!
Lufthansa                                         34 **F=Frieght Version non passenger.
----------------------------------------------------
Boeing       111         30         44        166  Booked          ttl 351
Options                    12         14         50 Total Options         76
LOI                                                   50  Total LOI                50
                                                              Total Dubai Play 481

Math Note: All undefined 777 orders are counted in the 777-9's column

The Guy Norris Aviation Week Report: Please Link to this site for concise reporting.

Let the professionals explain!

Boeing officially launched the 777X derivative at the Dubai air show on the back of 259 orders from four airlines worth almost $100 billion, making it the largest single commercial launch by value in the history of the industry.
Dubai-based Emirates Airlines grabbed the lion’s share of the contracts with firm orders for 150 777X, plus purchase rights on a further 50, while neighboring Qatar Airways and Etihad Airways shared the limelight by ordering an additional 50 and 25 respectively. Together with Lufthansa’s earlier order for 34 777-9X, Boeing says the combined value of the 777X agreements is more than $95 billion. The Emirates order is made up of 115 of the larger capacity -9X versions and 35 -8X, while Etihad will take 17 777-9X versions and eight -8Xs. Etihad’s order also includes options and purchase rights for 12 additional 777X.

Beyond the 777X, Boeing’s 787 orderbook also received a significant boost with Etihad ordering 30 787-10s. Together with the carrier’s previous order for 41 787-9s, the -10 purchase means Etihad will become the largest operator of the 787 with a total of 71 787s on order. The deal includes options and purchase rights for an additional 12 787-10s and marks the 1,000th order for the 787 family since All Nippon Airways launched the program in April 2004. The Etihad selection also means the 787 has reached the 1,000 firm order milestone in just over nine years, faster than any other twin-aisle aircraft. Etihad’s order also includes one additional 777 freighter plus two options.
The 777-9X will be configured to carry more than 400 passengers, and will have a range of more than 8,200 naut. mi. The 777-8X, which with capacity for 350 passengers is sized close to the current 777-300ER, will have a range of more than 9,300 naut. mi. The aircraft will be powered by General Electric’s GE9X which will be rated at around 105,000 lb. thrust, confirms David Joyce, the engine maker’s president and CEO.

“The -9X will have a 16% to 17% delta in fuel burn (compared to the current 777-300ER), and is an aircraft that is redesigned inside and has a new wing,” says Emirates Airlines president Tim Clark. “It is all composite and has great lift over drag. The -8X is about the same size as the 777-300ER but will be able to fly 17 hours to 18 hours non-stop and with the same fuel efficiency as the -9X. It’s a step change in aircraft design and a step change in propulsion but we have to wait seven or eight years for this to come.”

Design of the 777X is under way and Boeing confirms suppliers will be named “in the coming months.” Production will begin in 2017, with first delivery of the 777-9X targeted for 2020, with initial deliveries of the -8X following around 18 months later.

Almost eclipsed by the twin-aisle order avalanche was the news that flydubai has ordered 100 737 MAX, all of them -8s, as well as 11 737-800s. The deal is valued at $11.4 billion at list prices, including purchase rights. It is the largest ever Boeing single-aisle airplane purchase in the Middle East, says the manufacturer. First flight is scheduled in 2016 with deliveries starting in 2017. Flydubai currently operates the 737-800 and so far has taken 33 of the 50 aircraft it ordered in 2008.