Wednesday, October 28, 2015

Wide Body Report - October 28, 2015

October 28, 2015

Boeing has announced that it intends to reduce its production rate for the 777 airline, as the 787 begins to turn the corner towards becoming a profitable product. Boeing has been producing the 777 at an accelerated rate for the past several years to help cover losses due to 787 development and during early 787 production.  The announcement from Boeing comes after Delta's CEO commented during an earnings teleconference regarding the falling cost for second-hand 777s, a comment that was seen as undercutting Boeing's ability to obtain top dollar for new-production aircraft.  A production cut in the 777 was also seen as inevitable as Boeing prepares to switch-over to prodution of the new 777X in 2020.

Boeing has revealed that the deferred production cost balance for the 787 Dreamliner has risen to $28.3 billion in the 3rd quarter of 2015, up from $27.7 billion in the second quarter.  The balance represents the amount of total investment and profit loss that has been absorbed from development of the 787 through its initial ramp up in production.

EVA Air has announced an order for 24 Boeing 787-10 airlines, and 2 Boeing 777-300ER aircraft, after evaluating both the 787 and the Airbus A350.  Taiwan's EVA Air currently operates a mix of Boeing and Airbus aircraft.

Airbus is preparing to flight test the Rolls-Royce Trent XWB-97 - the new engine slated for the Airbus A350-1000 - aboard an A380 flying testbed.  The A350-1000 is a larger, stretched version of the A350-900 currently in production, featuring an all-new wing, larger maximum take-off weight and greater range.

Saudi Arabian Airlines is reportedly evaluating an A380 purchase as its fleet of 747s approaches retirement.  The state airline will be retiring four 747s in coming years, and is reportedly evaluating both the Airbus A380 and various models of the Boeing 777.

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