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Tag: Aircraft manufacturing

  • Airbus shares fall 11% as company cuts 2024 guidance on targets, deliveries

    Airbus shares fall 11% as company cuts 2024 guidance on targets, deliveries

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    A Lufthansa Airbus A340-313 aircraft taxis at Los Angeles International Airport before departing for Frankfurt on May 5, 2024 in Los Angeles, California.

    Kevin Carter | Getty Images News | Getty Images

    Shares in Airbus fell by close to 11% on Tuesday after the company said it was cutting its targets for 2024, including aircraft deliveries and earnings.

    Airbus on Monday said it was now expecting its adjusted earnings before interest and taxes to come in at around 5.5 billion euros ($5.9 billion), down from a previous estimate of 6.5 to 7 billion euros affirmed on April 25.

    The company said it was now anticipating to deliver approximately 770 commercial aircrafts this year, compared to a previous outlook near 800. Airbus also delayed its target timeline for ramping up the production of its A320 aircraft.

    Europe-listed shares in the company were down 10.85% at 11:37 a.m. London time.

    Stock Chart IconStock chart icon

    Airbus

    The guidance cuts are partly linked to supply chain issues in Airbus’ commercial aircraft business, the company said.

    “Airbus is facing persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment,” the firm noted.

    Airbus said it was also facing additional costs in its space systems division. It had recognized “commercial and technical challenges” in the business and was therefore recording charges of around 0.9 billion euros in the first half of 2024, Airbus said.  

    “These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes,” the company said.

    Airbus’ half-year results are set to be released on July 30.

    Earlier this year, Airbus’ operating profit for the first quarter came in weaker than expected, with CFO Thomas Toepfer at the time telling CNBC that company earnings were “not particularly strong.”

    Airbus cuts its 2024 guidance for financial targets and deliveries

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    June 25, 2024
  • China’s answer to Boeing and Airbus, the C919, takes first commercial flight | CNN

    China’s answer to Boeing and Airbus, the C919, takes first commercial flight | CNN

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    CNN
     — 

    China’s first large homegrown passenger jet made its inaugural commercial flight on Sunday, flying from Shanghai to Beijing, Chinese state news agency Xinhua reported.

    Flying as China Eastern Airlines flight MU9191, the new narrow-body C919 plane left Shanghai at 10:32 a.m. local time. It was welcomed with a water salute after it landed at the Beijing Capital International Airport at 12:31 p.m.

    After years of research and development, the launch of the C919 is seen as a pivotal moment in Beijing’s “Made in China 2025” strategy, which aims to boost local manufacturing, including by reducing reliance on foreign airplanes for its aviation sector.

    “The first commercial flight is a coming-of-age ceremony of the new aircraft, and C919 will get better and better if it stands the test of the market,” said Zhang Xiaoguang, director of the marketing and sales department of COMAC, in a Xinhua report.

    With a range of up to 5,555 kilometers (3,452 miles), the C919 will take on the world’s two major aircraft manufacturers, Airbus and Boeing. It will be a direct competitor to their A320 and B737 narrowbody jets, most commonly used for domestic and regional international flights.

    Built by COMAC (Commercial Aircraft Corporation of China) in China, the first C919 was delivered to China Eastern Airlines in December 2022 and in the months since has been put through a series of test flights.

    The single-aisle, twin-engined aircraft has 164 seats in a two-class cabin configuration consisting of business and economy seats.

    According to the 2022 Shanghai Science and Technology Progress Report issued by the Shanghai government, 32 clients had placed a total of 1,035 orders for the plane as of the end of 2022.

    Many of the plane’s major elements such as the nose, fuselage, outer wing, vertical stabilizer and horizontal stabilizer were designed by COMAC.

    However, the company enlisted Western companies to assist with some components. This includes the plane’s LEAP-1C engines, which were developed by CFM International, a joint venture between General Electric and French high-tech industrial group Safran.

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    May 28, 2023
  • Biden to announce a Boeing and Air India deal worth at least $34 billion | CNN Business

    Biden to announce a Boeing and Air India deal worth at least $34 billion | CNN Business

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    CNN
     — 

    Air India will purchase more than 200 planes from Boeing, a White House official says President Joe Biden will announce Tuesday. It’s the third biggest sale of all time for the aircraft manufacturer.

    The agreement will include 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs – a total of 220 firm orders valued at a list price of $34 billion, the official says. The purchase will also include customer options for an additional 50 Boeing 737 MAXs and 20 Boeing 787s, totaling 290 airplanes for a total of $45.9 billion at list price.

    In a statement, Biden said the sale would “support over one million American jobs across 44 states, and many will not require a four-year college degree.”

    “This announcement also reflects the strength of the U.S.-India economic partnership,” the president wrote. “Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges — creating a more secure and prosperous future for all of our citizens.”

    Production will support three separate U.S.-based manufacturing lines, will result in $70 billion in total economic impact across the United States and support an estimated 1.47 million direct and indirect jobs, a White House official said Tuesday.

    India has been gaining some manufacturing business as Western tensions flare with China, including major companies that traditionally rely heavily on Chinese production. Apple is one such company, with Minister of Commerce and Industry Piyush Goyal saying the tech giant was already making between 5% and 7% of its products in India.

    India is set to overtake China this year to become the world’s most populous country. The country’s massive and cheap labor force, which includes workers with key technical skills, is a big draw for manufacturers. Asia’s third-largest economy also offers a growing domestic market. In 2023, as global recession fears persist, India is expected to remain the fastest growing major economy in the world.

    If it can sustain that momentum, India could become only the third country with GDP worth $10 trillion by 2035, according to the Centre for Economics and Business Research.

    Boeing’s

    (BA)
    737 Max has been plagued with problems, but production and orders for the troubled aircraft has picked up, boosted by a massive order from United late last year. In June, Ethiopian Airlines took delivery of a 737 Max from Boeing for the first time since the March 2019 crash that killed all 157 people on board, and led to a 20-month grounding of the jet.

    The company has plenty of other troubles in China, the world’s largest aviation market. It has been on the verge of being virtually shut out of the region as trade tensions between the United States and China have basically halted Boeing sales in the country for the last four years. The company has not announced any sales to a Chinese passenger airline since November 2017, and the country banned the Boeing 737 Max for much longer than most countries. A Boeing 737 Max finally took off in China in January for the first time since 2019.

    Boeing has faced myriad problems in recent years, beyond the drop in demand for passenger planes that occurred during the pandemic. Delivery of the 787 Dreamliner widebody jets resumed last year after they were halted due to quality control issues.

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    February 14, 2023
  • Boeing says farewell to ‘Queen of the Skies’ with last 747 delivery | CNN

    Boeing says farewell to ‘Queen of the Skies’ with last 747 delivery | CNN

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    CNN
     — 

    More than half a century since the original jumbo jet ushered in a glamorous new jet age, helping bring affordable air travel to millions of passengers, the last-ever Boeing 747 was delivered on Tuesday, marking the start of the final chapter for the much-loved airplane.

    In a ceremony that was broadcast live online, the aircraft was handed over to its new owner, US air cargo operator Atlas Air, at Boeing’s plant in Everett, Washington.

    In a dramatic opening of the hangar’s sliding doors, Atlas Air’s new plane was revealed behind flags bearing the liveries of every carrier that’s ever taken delivery of a 747. The company has 56 of the aircraft in its fleet.

    One small significant detail on the last one delivered: a decal right next to the nose paying homage to Joe Sutter, chief engineer of the Boeing 747 program, who died in 2016 and is considered by many as the “father” of this famous aircraft. Members of the Sutter family, as well as members of the Boeing family representing the company’s founder, Bill Boeing, attended the delivery ceremony on Tuesday.

    John Dietrich, president and CEO of Atlas Air Worldwide, thanked the assembly of Boeing employees.

    “The impact of your work continues well beyond the production lines,” Dietrich said. “It has fueled childhood dreams and career ambitions while at the same time driving global economies and supply chains.”

    Dietrich also shared a flight plan spelling out “747” that the new plane is set to fly on Wednesday.

    A string of speakers representing companies that have relied on the 747 came to celebrate the aircraft.

    “The 747 is a symbol for many, many things, and above all, I think it’s a symbol for the world, which the 747 has made substantially smaller,” said Lufthansa CEO Carsten Spohr.

    Actor and pilot John Travolta, who narrated a series of videos chronicling the aircraft’s colorful history, appeared to thank the employees of Boeing for “the most well-thought-out and safest aircraft ever built.”

    While the final 747 won’t be carrying paying passengers, its delivery is another milestone for the distinctive double-decker “Queen of the Skies,” which revolutionized intercontinental travel while also appearing in James Bond films and even giving piggyback rides to the Space Shuttle.

    With the last passenger 747 having entered service more than five years ago, the end of the 747’s enduring career now moves even closer, hastened by airlines switching their preferences to smaller and more economical aircraft.

    Tuesday’s delivery is a moment long anticipated by the global aviation community. Expectant airplane enthusiasts have followed every step of the final 747’s construction, ever since Boeing announced in July 2020 that it was ceasing production of its one-time flagship.

    The aircraft, registered as N863GT, made its first public appearance in December, when it was rolled out of the Boeing assembly line covered in anti-corrosive green paint. In early January, photos appeared online of the aircraft, already wearing the Atlas Air livery and the homage to Joe Sutter.

    Interestingly for a jet that predates the Apollo Moon landings (it hit the skies a few months earlier, in February 1969), the Boeing 747’s production line has outlasted that of one of its most direct recent competitors, the Airbus A380, which was produced between 2003 and 2021.

    It was the introduction of the European double-decker plane in the early 2000s that prompted Boeing to announce, in 2005, one last version of the 747 design that by that time was already starting to show its age.

    The B747-8I (or B747-8 Intercontinental), as this last variant of the venerable jumbo jet is called, proved to be a swan song for large four-engined airliners.

    Even though the A380 is currently enjoying a revival, with airlines rushing to bring stored aircraft back to service in response to the post-Covid air traffic recovery, these giants of the skies struggle to compete with the operational flexibility and fuel economies of smaller twin-engined jets.

    As of December 2022, there are only 44 passenger versions of the 747 still in service, according to aviation analytics firm Cirium. That total is down from more than 130 in service as passenger jets at the end of 2019, just before the pandemic crippled demand for air travel, especially on international routes on which the 747 and other widebody jets were primarily used. Most of those passenger versions of the jets were grounded during the early months of the pandemic and never returned to service.

    Lufthansa remains the largest operator of the passenger version of the B747-8, with 19 in its current fleet and potential commitments to keep the jumbo flying passengers for years, possibly decades, to come.

    Best of the Boeing 747 jumbo jet: In pictures


    The 747 has proven more popular among cargo operators. There are still 314 747 freighters in use, according to Cirium, many of which were initially used as passenger jets before being renovated into freighters.

    Features such as the distinctive nose-loading capability, and the cockpit’s elevated position, leaving the whole length of the lower fuselage available to carry large-volume items, have made it a cargo favorite.

    Tuesday’s delivery also brings questions about what will happen to Boeing’s vast Everett factory, in which the 747 has been produced since 1967.

    This facility was purpose-built for the Boeing 747 and is, according to the company, the largest building in the world by volume. It’s since served as the main production location for Boeing’s wide-body airliners, the 767, 777 and 787 (the best-selling narrow-body 737, however, is produced at Renton, another location in the Seattle area).

    Developments in the last few years have been shifting the company’s industrial center of gravity elsewhere.

    In addition to losing the B747, Everett recently lost the 787 production line, after Boeing decided to consolidate production at its plant in Charleston, South Carolina.

    Boeing continues to make the B767 at Everett, a relatively old model with limited commercial perspectives, as well as the B777, which is currently seeing low production rates, in anticipation of its new version, the B777X. The latter, however, has suffered several delays and it is currently going through a certification and development process that is proving to be much lengthier and complex than expected.

    While Boeing hasn’t disclosed much publicly about what it intends to do with the facilities that housed the Boeing 747 final assembly line, in the run up to the final jumbo delivery reports have emerged that they may be used to work on stored B787 Dreamliners.

    What’s more, according to these same sources, Boeing may also produce additional B737s in Everett. Production of this bestselling model currently takes place at another facility in Renton, further south in the greater Seattle area.

    Despite the fanfare of January 31, there are still two more Boeing 747 deliveries pending – and they’re by no means ordinary.

    These are the two new US presidential planes, which are technically called VC-25, even if they’re popularly referred to as “Air Force One” (a call sign that is only used when the US President is on board).

    These two planes have already been built, having originally been destined for Russian airline Transaero, which went bankrupt in 2015. The two future Air Force Ones are currently undergoing an extensive program of modifications to prepare them for presidential service.

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    January 31, 2023
  • United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

    United places order for 200 Boeing planes, giving two troubled jets a vote of confidence | CNN Business

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    New York
    CNN
     — 

    United Airlines placed a massive order for at least 200 Boeing planes on Tuesday, split between two models dogged by recent problems: the 737 Max and the 787 Dreamliner.

    It’s a crucial vote of confidence for Boeing, which took tens of billions of dollars in financial losses due to the problems with the two planes. The Federal Aviation Administration grounded the 737 Max for 20 months starting in March 2019, halting deliveries of the jets, after two fatal crashes that killed 346 people. The 787 was not grounded but the FAA halted deliveries for roughly a year due to quality control issues.

    Even beyond those problems, Boeing has been losing the competition with European rival Airbus on new orders, especially for single-aisle jets like the 737 Max. It has done better in competition for widebody plane orders, but has faced problems there as well, with delays for a new model of the 777, the 777X, and the halt in 787 deliveries.

    Later Tuesday Boeing reported that it had received orders for a total of 571 commercial planes through November of this year, net cancellations. So United’s order for 200 jets by itself represented 35% of the orders the aircraft maker had already reported for the year. But even adding those 200 jets doesn’t bring Boeing’s total near to the 825 plane orders that Airbus has booked, net its own cancellations.

    While neither United

    (UAL)
    nor Boeing

    (BA)
    would reveal pricing details, the list price of the jets total more than $37 billion. Even with the deep discounts typical of such purchases, the order will likely amount to tens of billions of dollars in sales Boeing

    (BA)
    desperately needs.

    United said the firm orders for 100 twin-aisle 787 Dreamliners, along with an option to buy 100 more, will represent the largest widebody jet order on record by any US carrier.

    “The Boeing team is honored by United’s trust in our family of airplanes to connect people and transport cargo around the world for decades to come,” said Stan Deal, CEO of Boeing’s commercial aircraft division.

    Shares of Boeing rose 3% in premarket trading, following the announcement.

    The 787 is a plane used primarily on long-range overseas routes. The model’s purchase represents United’s belief that there is pent-up demand for international travel, which has not bounced back as quickly as US domestic passenger demand over the last year. Some countries — notably China — still have strict restrictions on flying into the country, and some passengers are concerned about foreign travel.

    But United will take delivery of the planes over the course of the next 10 years, during which time any restrictions and concerns may become distant memories. And the first 100 Dreamliners it receives will replace retiring older 757, 767 and 777 jets already in United’s fleet. Some of those older planes date back at least 30 years.

    United’s options for 100 additional Dreamliners represents the company’s plans to expand its fleet and its reach into international markets.

    The significant order makes United the “flag carrier of the United States and the leading airline of around the globe,” United CEO Scott Kirby said Tuesday in an interview with CNN’s Poppy Harlow on CNN This Morning.

    “This is just the next step in that path to replace some of our older 767s that are at the end of their life, but also to create growth opportunities for years to come in the international network for years to come,” Kirby said.

    He also didn’t express any hesitation about ordering two Boeing planes that had trouble in the past, saying a “few tough years made [Boeing] stronger” and noting that United has always had a “great partnership” with the aerospace company.

    The order, while an important lift for Boeing, isn’t a total surprise.

    Airlines have a financial interest in sticking with the same model plane once they commit to it. The companies are able to save on pilot training and spare parts costs by populating their fleets with the same models.

    Unlike a driver who can seamlessly move between car makers, commercial pilots are limited to flying only the model on which they are certified. While United has some orders with Airbus

    (EADSF)
    , nearly 80% of its existing fleet is composed of Boeing jets.

    “We have a large installed base of 787s,” said Kirby when asked on a press call about potentially increasing purchases of a competing Airbus model. “The economics of bringing in another fleet type doesn’t make sense.”

    Boeing started taking orders for the Dreamliner in 2004, and United was one of its earliest US customers. It is made of a lighter-weight composite material than the aluminum used to build most commercial jets, giving it much better fuel economy and thus operational savings compared to the older planes it will replace in the United fleet. United has yet to decide how many of each of the three different models of the Dreamliner it will take.

    The 100 737 Max jets United is buying includes 44 planes for which it already had an option to purchase, and 56 new orders. In June 2021, it announced the purchase of 200 of the 737 Max jets, along with 70 competing planes from Airbus, in the largest aircraft order that United has ever placed.

    –CNN’s Jordan Valinsky contributed to this report.

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    December 13, 2022
  • Some recent fatal crashes involving vintage aircraft

    Some recent fatal crashes involving vintage aircraft

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    Saturday’s collision between two World War II-era military planes at a Dallas air show was the latest in a long list of crashes involving vintage planes used or designed for military purposes. Some recent fatal crashes in the U.S. and abroad:

    — Oct. 2, 2019: A four-engine, propeller-driven B-17G Flying Fortress bomber with 13 people aboard crashed at Bradley International Airport, north of Hartford, Connecticut, during a traveling vintage aircraft show. Seven people were killed and six were hurt. The National Transportation Safety Board found that pilot error was the probable cause, with inadequate maintenance a contributing factor.

    — Nov. 17, 2018: A privately owned vintage World War II Mustang fighter airport plane crashed into the parking lot of an apartment complex in Fredericksburg, Texas, killing the pilot and a passenger. The P-51D Mustang was returning after performing a flyover during a living history show at the national Museum of the Pacific War. The aircraft was destroyed, and several vehicles in the parking lot were damaged.

    — Aug. 4, 2018: A 79-year-old Junkers Ju-52 plane operated by the Swiss company Ju-Air plunged into the Piz Segnas mountain near the Flims ski resort in eastern Switzerland, killing all 20 on board. Retired from Switzerland’s air force in 1981, the German-built plane was carrying tourists who wanted to take “adventure flights” to experience the country’s landscape in vintage planes. Swiss investigators said that “high-risk flying” by the pilots led to the crash.

    — May 30, 2018: A small vintage airplane that was part of a GEICO stunt team with five other planes crashed in a wooded residential area in Melville, New York, killing the pilot. The World War II-era SNJ-2 aircraft, known as a North American T-6 Texan, had departed from a nearby airport and was heading to Maryland when it crashed.

    — July 16, 2017: A pilot and an airport manager were killed in Cummings, Kansas, after their World War II-era P-51D Mustang “Baby Duck” crashed into a field. Authorities say the pilot was re-creating a stunt he had performed on the prior day at the Amelia Earhart Festival.

    — Jan. 26, 2017: A World War II-era Grumman G-73 Mallard flying boat stalled and nosedived into the Swan River in Perth, Australia, during Australia Day celebrations. Both the pilot and his passenger died.

    — Aug. 27, 2016 — A pilot from Alaska was killed when his 450 Stearman biplane, a World War II-era plane often used for military training, crashed during the Airshow of the Cascades in Madras, Oregon.

    — July 17, 2016 — A T-28 Trojan, used by the U.S. military as a training aircraft beginning in the 1950s and also as a counterinsurgency aircraft during the Vietnam War, crashed at the Cold Lake Air Show in Alberta, killing the pilot. Thousands of spectators witnessed the accident.

    — Aug. 22, 2015 — A 1950s-era Hawker Hunter T7 jet crashed into a busy highway near West Sussex, England, killing 11 and injuring more than a dozen others. Investigators said the pilot, who survived, was flying too low and slowly to successfully complete a loop-the-loop. He was charged with 11 counts of manslaughter but ultimately was cleared.

    — June 22, 2013 — A pilot and a wing-walker were killed when their World War II-era Boeing-Stearman IB75A biplane crashed into the ground and burst into flames during a performance at the Vectren Dayton Air Show in Vandalia, Ohio. Thousands of spectators saw the crash, which federal safety investigators said was likely caused by pilot error.

    — Sept. 16, 2011 — The pilot of a 70-year-old modified P-51D Mustang called the Galloping Ghost lost control of the aircraft at the National Championship Air Races and Air Show in Reno, Nevada, and crashed into spectators, killing 10 and injuring more than 60. The pilot also died. Federal investigators blamed the crash on worn parts and speed.

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    November 12, 2022

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