NYC777
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Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 12:40 am

Here are a few key points from Boeing's conference call with Jim McNerney and James Bell:

+ 787 - deliver on time in May 2008 in accordance with contractual obligations
+ Vibration issue is fixed on the LCF, certification expected in the 1st quarter of 2007.
+ 787 engines to start airborne tests in 1st quarter and arrival of 787 major pieces for assembly in 1st quarter at Everett.
+ Final assembly of first 787s for 2nd quarter
+ Schedule, weight and supplier issues but are being resolved.
+ First flight for end of August 2007
+ No additional R&D expenditure other than what has been budgeted.
+ 787 updates twice a quarter next 787 update in early March

[Edited 2007-01-31 16:49:13]
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ual747-600
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 12:56 am

Great news for the 787!! Can't wait for the roll out.

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drexotica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 1:22 am

Boeing is showing the world how its supposed to be done. Thanks for the info NYC777.
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NYC777
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 1:31 am

Boeing still expects to deliver 112 787 in 2008 to 2009 with about 36 to 37 of those delivered in 2008.
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pygmalion
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 1:57 am

Its nce to see Boeing addressing issues up front and staying on track for EIS. They spent money last year when needed to correct issues and address concerns. A well managed program. Thats how it's done
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Cal

Thu Feb 01, 2007 2:13 am

I'm a little surprised that none of the participants in the conference call tried to pin-down Mr. McNerney more on exactly how much the 787 is "overweight" at this juncture. I'm sure that Mr. Bair will get more closely questioned on this point at the next "update" in March.

[Edited 2007-01-31 18:19:22]
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 2:37 am

Quoting NYC777 (Thread starter):
787 engines to start airborne tests in 1st quarter

Cool. What will RR use for a flying testbed for the Trent 1000?
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NYC777
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 2:41 am

Quoting Revelation (Reply 6):
Cool. What will RR use for a flying testbed for the Trent 1000?

I think they have a 747 engine test bed in England similar to GE's. Someone correct me if I'm wrong.
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brendows
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 4:43 am

Quoting NYC777 (Reply 7):
I think they have a 747 engine test bed in England similar to GE's. Someone correct me if I'm wrong.

RR will be testing the engines in the US, Texas IIRC, on a 742. I believe it's the ninth test engine that they will be using on that aircraft.
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 9:13 am

A transcript of today's conference call is now available online:

http://online.wsj.com/documents/Transcript-ba-20070131.pdf (Subscription)
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TeamAmerica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 9:32 am

Quoting Leelaw (Reply 5):
I'm a little surprised that none of the participants in the conference call tried to pin-down Mr. McNerney more on exactly how much the 787 is "overweight" at this juncture.

Me too. No one is asking the hard questions. As long as the stock is rising, nobody wants to rock the boat...or so it seems.
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ikramerica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 9:50 am

Quoting TeamAmerica (Reply 10):
Me too. No one is asking the hard questions.

I have a question about that.

We have been hearing from Boeing cheerleaders that it is only overweight of internal Boeing targets, NOT of promised performance targets nor published figures.

We have heard from Boeing bashers that their 'sources' say it is overweight in all senses of the word.

If the case is the latter, wouldn't Boeing have to disclose that?

But if the case is the former, is Boeing actually obligated to disclose it at all? Isn't "we are meeting contractual weight but are above our internal metric" enough of an explanation?

I mean, if they are meeting their promises but not their own internal goals, by "how much" they are missing internal goals is really not relevant, is it? It's an "industry secret" and nobody's business but Boeing's, not even the investors, if that's the case. Revealing too much at this point would give Airbus more information as they try to solidify the A350X proposal, something we know right now is far from solid.

For example, when Boeing was continuing to improve the performance of the 77W after it was certified and already surpassing promises as it was delivered, it wasn't really Boeing's responsibility to tell anyone of the progress of that effort, only of the result. Keeping it hush-hush as long as possible helped to blind-side Airbus, and made the 346HGW and 346E both less valuable when it was revealed that the 77W would end up with nearly 7900nm range 2 years into service (including a retrofit package for delivered frames) compared to it's launch spec of 7600nm...
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multimark
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 10:11 am

Quoting DrExotica (Reply 2):
Schedule, weight and supplier issues but are being resolved

Saying "Schedule, weight and supplier issues are being resolved" and actually resolving them are different things.
 
jacobin777
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 10:12 am

Quoting Ikramerica (Reply 11):
I mean, if they are meeting their promises but not their own internal goals, by "how much" they are missing internal goals is really not relevant, is it? It's an "industry secret" and nobody's business but Boeing's, not even the investors, if that's the case. Revealing too much at this point would give Airbus more information as they try to solidify the A350X proposal, something we know right now is far from solid.

..word eventually leaks so maybe they felt its better to let it out themselves..after all, it became "common knowledge" as to how heavy the A380 was....
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pygmalion
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 10:39 am

Quoting Multimark (Reply 12):
Quoting DrExotica (Reply 2):
Schedule, weight and supplier issues but are being resolved

Saying "Schedule, weight and supplier issues are being resolved" and actually resolving them are different

And NOT saying "Schedule, weight and supplier issues can't be resolved"

is also different and shouldn't be implied because not saying they can't be resolved does mean that Boeing feels those issues can and will be resolved.
 
metroliner
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 10:41 am

all in all, sounds like good work for boeing!
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Boeing7E7
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 2:20 pm

Quoting Leelaw (Reply 5):
I'm a little surprised that none of the participants in the conference call tried to pin-down Mr. McNerney more on exactly how much the 787 is "overweight" at this juncture.

Hmmm.... Perhaps a non-issue made an issue by a-net goobers.
 
ikramerica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 2:46 pm

Quoting Jacobin777 (Reply 13):
..word eventually leaks so maybe they felt its better to let it out themselves..after all, it became "common knowledge" as to how heavy the A380 was....

Is it? We still don't know the real answer there, only the wild claims on both side by a.netters. I for one don't know exactly how heavy it is nor how overweight it is over what it was supposed to be, since all those numbers have changed so much.
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centrair
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 3:20 pm

I really hope this thread doesn't go the way of the other thread about the 787 "issues".

I am glad that Boeing is on schedule for a first flight in August. (The 26th would be a nice birthday present).

I posted a question in the last thread and it never got answered (too much bitching).

One of the issues that Boeing stated in a Seattle news article posted a month or so ago was about Alenia being behind.

So what is up with Alenia?
Why are/were they behind?
Why did Boeing have to send an small army of engineers to help them catch up?
Has Alenia produced any parts (final or test)?
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WingedMigrator
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RE: Boeing 787 Update From Earnings Conference Cal

Thu Feb 01, 2007 3:25 pm

Quoting NYC777 (Thread starter):

also,

Quote:
McNerney said on Wednesday that half of the eight contingency plans Boeing had prepared last year in case of production problems have now been launched. Last October, he said only one had been launched.

He confirmed recent industry talk that some work on components being flown in from Japan to South Carolina was not complete, and said he was prepared for more.

...

"What we are doing with Mitsubishi and Alenia specifically is adding a lot of our resources to supplement theirs to get them through the knothole," he said. "We're not totally out of the woods yet, but the progress is good."

Nevertheless,

Quoting Pygmalion (Reply 4):
A well managed program. Thats how it's done

 checkmark  it certainly seems like they've got a well-run risk management effort.

I'm curious to see their actual 10-K filing, and if there are any significant updates to the risk descriptions. Does anyone know when it is due to appear?
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 5:56 pm

Quoting WingedMigrator (Reply 19):
I'm curious to see their actual 10-K filing, and if there are any significant updates to the risk descriptions. Does anyone know when it is due to appear?

Shortly after the audited financial statements are completed, last year the 10-K was filed on February 27th.
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leelaw
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RE: Boeing 787 Update From Earnings Conference Cal

Thu Feb 01, 2007 6:16 pm

Quote:
"...I'm feeling pretty comfortable about the progress on that weight reduction program and getting the plane down to where we need to be to meet the commitments to our customers," McNerney said.

He stressed that he is telling analysts "exactly" what Boeing is telling its customers -- that the 787 will be delivered on time.

But some analysts remain skeptical.

"To develop a plane with that sort of technological innovation not even a couple weeks late would be unheard of," Morningstar analyst Chris Lozier said. "I would be extremely, positively surprised if they delivered that plane even in June of next year. I would think when push comes to shove, there will be a couple of late-inning kinks that need to be worked out of the program, as you would expect..."

...McNerney said Boeing has implemented about half of the eight contingency plans that are in place to meet the most risky 787 production challenges...

"...The kinds of things I'm talking about with contingency plans are having standby capability to make some tubes, clips and brackets in the state of Washington in case they don't show up in some of the components that have been stuffed before they get there," McNerney said.

He said the trouble areas, so far, have mostly involved only a few suppliers or partners. They are responsible for the 787 structure, rather than systems, he said..."

http://seattlepi.nwsource.com/business/301982_boeingearns01.html
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ikramerica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 6:24 pm

Well that clears up some things. The weight issue is dependent on how you want to read it. He says they are not worried about meeting their contractual weights, but they have said in the past they are worried about meeting internal targets. But either way, the current jet is heavier than BOTH metrics.

And the problems are not any different than disclosed months ago. They said then that they will have to do some work "in house" that should have been completed by subs, but that they will get that under control as production ramps up to full speed after EIS. This hasn't changed, but some details have been clarified about how they will do it (building some parts in Washington if they don't arrive in time).

Analysts can believe or not believe what they want. They are poisoned by the Airbus problems, but also there is history of most programs being a few weeks late, so they aren't out of line.

It is wise to remember though that analysts are not really very accurate. Throwing a dart at a dartboard or flipping a coin is as effective as listening to stock advice from analysts, taken as a whole...
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jacobin777
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 9:54 pm

Quoting Ikramerica (Reply 17):

Is it? We still don't know the real answer there, only the wild claims on both side by a.netters. I for one don't know exactly how heavy it is nor how overweight it is over what it was supposed to be, since all those numbers have changed so much.

..actually we do...I have an interview with then Airbus A380 program manager Charles Champion discussing the weight issues about the A380....which he stated "its 2.5% overweight but within accepted weight tolerance limits"...

Quoting Ikramerica (Reply 22):
And the problems are not any different than disclosed months ago. They said then that they will have to do some work "in house" that should have been completed by subs, but that they will get that under control as production ramps up to full speed after EIS. This hasn't changed, but some details have been clarified about how they will do it (building some parts in Washington if they don't arrive in time).

....actually Boeing stated a while back they will be solving some of these problems in house...unfortunately I don't have the source of the statement...

Quoting Ikramerica (Reply 22):
Analysts can believe or not believe what they want.

I tend to call them "anal-ists"....just a few years ago, many were clamoring for Boeing to sell their BCA division..I would like a list of them so we can lock 'em up for sheer stupidity......
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TeamAmerica
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RE: Boeing 787 Update From Earnings Conference Call

Thu Feb 01, 2007 11:54 pm

Quoting Ikramerica (Reply 11):

I mean, if they are meeting their promises but not their own internal goals, by "how much" they are missing internal goals is really not relevant, is it? It's an "industry secret" and nobody's business but Boeing's, not even the investors, if that's the case.

I don't agree with whole idea that Boeing is speaking of a secret internal goal. It's pretty clear to me that they are talking about the design weight of the aircraft, which is what customers plug into their modelling software to figure out what the airplane can do. They decide to buy the aircraft based on such data.

The contractual guarantee weight is somewhat higher. It gives Boeing latitude to deliver a heavier aircraft so long as it meets promised performance. Meeting those promises per the contract won't guarantee satisfied customers and future sales. Meeting the design specifications will. The question of "how much" is very relevant to the ultimate success of the 787.

McNerney's statement:"...I'm feeling pretty comfortable about the progress on that weight reduction program and getting the plane down to where we need to be to meet the commitments to our customers"
really doesn't tell me much other than Boeing sees that there is a problem. Meeting guarantees is a minimum, and Boeing knows it.
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OldAeroGuy
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:01 am

Quoting Ikramerica (Reply 17):
Is it? We still don't know the real answer there, only the wild claims on both side by a.netters. I for one don't know exactly how heavy it is nor how overweight it is over what it was supposed to be, since all those numbers have changed so much.



Quoting Jacobin777 (Reply 23):
..actually we do...I have an interview with then Airbus A380 program manager Charles Champion discussing the weight issues about the A380....which he stated "its 2.5% overweight but within accepted weight tolerance limits"...

I think we can infer that the A380 is about 5 tonne over the original empty weight (MEW) specification based on Mr. Champion's comment above and Mr. Clark's (Emirates) statement that the airplane was 5.5 tonne over weight.

This appears to be confirmed by the A380 TCDS.

http://www.easa.eu.int/doc/Certifica...80%20Iss%201%20(12%20Dec%2006).pdf

Note that a 569t MTOW has been certified as well as the original 560t MTOW.
This higher MTOW version increases MZFW and MLW by 5t (366t and 391t respectively) vs the prior values of 361t and 386t.

At the same time, Airbus has not announced that the design range has been increased due to this MTOW increase. It's still at 8000 nm.

http://www.airbus.com/en/aircraftfam...lies/a380/a380/specifications.html

It appears that the MZFW and MLW have been increased to cover Airline payload-range guarantees. The 9t MTOW increase is consistent with the amount of takeoff weight increase required to offset a 5t zero fuel weight increase.

If this wasn't the situation, I would expect that Airbus would be claiming at least a 8200 nm design range due to the higher MTOW.

Incidentally, this also indicates that fuel mileage for the airplane is nominal. If it were better than planned, then the MTOW increase could have been held to less than 9t and/or a design range of even more than 8200 nm could have been claimed.

[Edited 2007-02-01 16:10:00]
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drexotica
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:08 am

Quoting Multimark (Reply 12):
Quoting DrExotica (Reply 2):
Schedule, weight and supplier issues but are being resolved

Saying "Schedule, weight and supplier issues are being resolved" and actually resolving them are different things.

Multimark - you blew the quote. I didn't say that. NYC777 made the statement.

You need to hit the "quote selected text" button on the post that you are quoting, not one below, etc.
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leelaw
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:18 am

Intriguing that Dominic Gates of the Seattle Times who was a participant in yesterday's conference call hasn't filed a news story yet. He might be on the trail of something interesting.
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NYC777
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:36 am

Quoting Leelaw (Reply 33):
Intriguing that Dominic Gates of the Seattle Times who was a participant in yesterday's conference call hasn't filed a news story yet. He might be on the trail of something interesting.

Here's his article:

http://seattletimes.nwsource.com/htm...logy/2003550608_boeingnews010.html
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BoomBoom
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:51 am

Quoting NYC777 (Reply 36):
Here's his article:

http://seattletimes.nwsource.com/htm...logy/2003550608_boeingnews010.html



Quote:
McNerney also firmly reiterated that the new 787 program is on schedule, despite one analyst's report to the contrary last week.

McNerney said Boeing engineers are helping the company's three Japanese suppliers and Alenia of Italy to catch up to the planned production schedule.
Our eyes are open, our eyes are open--wide, wide, wide...
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Cal

Fri Feb 02, 2007 1:27 am

Quoting NYC777 (Reply 36):
Here's his article:

Thanx, weird that it hasn't been posted on the Boeing/Aerospace page yet. Sorry to clutter-up the thread.

Anyway, I found Mr McNerney's response to Mr. Gate's query during the conference call about whether Boeing's "new business model for the 787 may, perhaps, be creating a much more complicated situation than in the past; where if work 'travelled' Boeing would have just done it in Everett," to be the most interesting part of the Seattle Times article you've linked:

Quote:
...Last month, 787 center-fuselage sections built in Japan arrived in Charleston, S.C., without the wiring, hydraulics and many of the fasteners that should have been pre-installed. McNerney said Fuji and Mitsubishi sent people to Charleston "to add some of the innards that didn't get added in Japan."

But he insisted the global supply chain Boeing has created for the 787 doesn't complicate the problem when work "travels" from one supplier to another down the chain. Indeed, he portrayed the parceling out of production as a plus that avoided a single bottleneck in Everett.

"Because the fundamental work is spread out a little bit, because there is an interim step in South Carolina on the way to Seattle, there is a little more flex in the system to handle traveled work, quite frankly," he said. "In the days where everything showed up in Washington ... there was a huge geographically-centered 'Oh, my God,' where the number of people and the amount of work all came together at one time."


<

[Edited 2007-02-01 17:34:45]
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jacobin777
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 1:29 am

OldAeroGuy..thanks for your excellent work  thumbsup .....

...I dont' see any "hidden agendas"....the plane is a bit overweight (according to internal targets) and Boeing has a strategy to deal with it....
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NYC777
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 1:43 am

I think Boeing as early as late last year expected travel work and that the first few airplanes will have traveled work until all the suppliers have ramped up. This was guidance given months ago so it shouldn't be of any surprise. But for the sake of clarity let's go through the "issues" as they are:

Overweight : Yes, Boeing has said late last year that the first 6 planes will be over their internal weight targets (what they are is a secret) and that they are/have applied resources to get the weight down to their internal target. They have allocated resources and they are doing it. The amount of weight to reduce is rumored to be about 5000 lbs. They will be doing by switching to lighter materials for some items or re-engineering overengineered parts.

Supplier/schedule : Issues with the 3 Japanese heavies and Alenia: Boeing has said that they are a bit behind schedule but they have deployed technicians and engineers to help get them back on schedule. This also required the first parts to be shipped with travel work and this will probably continues for the first 4 to 6 (IMO) built 787s. Word is that the troubles at Alenia have been ironed out and that the issues at the Japanese, particularly Mitsubishi are almost there.

In the end will all these hiccups delay EIS - NO!
Will it delays all the other 787s being delivered past ANAs in May 20078 - NO!

Unless there is a major issue in flight testing, Boeing will continue to push 787s out the door past plane #1 while flight testing continues and stockpile them. There maybe some slight mods to them but mostly they'll be close to a deliverable condition.

Lastly, Boeing has been pro-active and tranparent about these issues to not only the customer but also to the media and the industry analyst. They have identified the problems and they are working with the suppliers (as oppose to bullying them) and adding resources to combat these issues as oppose to letting them snowball. This instills confidence in Boeing by the customers. There is a case where a major OEM did a total 180 compared to what Boeing is currently doing and it has come back to haunt them.

I think there are going to be some analyst (UBS, Wachovia) as well as some posters in this forum who will be eating some major crow. The investment community will lose trust in what the Wachovia and UBS analyst have to say about Boeing and many us posters will be deriding certain people here for some of their childish antics and postings.

[Edited 2007-02-01 18:13:51]
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n844aa
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 1:54 am

Quoting NYC777 (Reply 40):
Wrod is that the troubles at Alenia have been ironed out and that the issues at the Japanese, particularly Mitsubishi are almost there.

Man, whoever would have thought Italian engineering would be less problematic than Japanese engineering?
New airplanes, new employees, low fares, all touchy-feely ... all of them are losers. -Gordon Bethune
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 2:08 am

Quoting NYC777 (Reply 40):
I think Boeing as early as late last year expected travel work and that the first few airplanes will have traveled work until all the suppliers have ramped up. This was guidance given months ago so it shouldn't be of any surprise.

I agree. IMO, what's interesting about Mr. McNerney's comments are not they disclosed the fact of "travelling work," but his views about how best to avoid "show stopping" bottlenecks that could result therefrom.
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Rheinbote
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 4:00 am

Quoting TeamAmerica (Reply 10):
Quoting Leelaw (Reply 5):
I'm a little surprised that none of the participants in the conference call tried to pin-down Mr. McNerney more on exactly how much the 787 is "overweight" at this juncture.

Me too. No one is asking the hard questions. As long as the stock is rising, nobody wants to rock the boat...or so it seems.

More so as Boeing's communication obviously was less overt and up-front regarding the wireless IFE issue.

Don't get me wrong though. I'd LOVE to see the 787 stay perfectly on schedule.  wave 
 
NYC777
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 4:17 am

Quoting Rheinbote (Reply 43):
Quoting TeamAmerica (Reply 10):
Quoting Leelaw (Reply 5):
I'm a little surprised that none of the participants in the conference call tried to pin-down Mr. McNerney more on exactly how much the 787 is "overweight" at this juncture.

Me too. No one is asking the hard questions. As long as the stock is rising, nobody wants to rock the boat...or so it seems.

More so as Boeing's communication obviously was less overt and up-front regarding the wireless IFE issue.

Don't get me wrong though. I'd LOVE to see the 787 stay perfectly on schedule.

Boeing has been more forthcoming and open about any and all issues affecting the program. I don't seem to recall Airbus being open and honest about the A380 issues. In fact Boeing is breifing the media and analyst twice a quarter now on the 787 progress. The next one is in early March.

And BTW, the 787 IS ON SCHEDULE. And when the 787 is delivered on schedule the Boeing bashers will try to find something else to bash on. It's a never ending cycle with these people. I suppose they'll try to bash the 787 economics (again to no avail) after the 787 is delivered on time.

[Edited 2007-02-01 20:35:32]
That which does not kill me makes me stronger.
 
Rheinbote
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 4:50 am

Quoting NYC777 (Reply 44):
Boeing has been more forthcoming and open about any and all issues affecting the program. I don't seem to recall Airbus being open and honest about the A380 issues. In fact Boeing is breifing the media and analyst twice a quarter now on the 787 progress. The next one is in early March.

And BTW, the 787 IS ON SCHEDULE.

No need to shout. Didn't you get what I said? I would really appreciate if Boeing could manage to stay on schedule. See, I don't give much on A vs B. I don't care who is more open. No need to fight a crusade for Boeing here, NYC777, not with me.

p.s. can't resist: Someone comes to mind that briefed the audience almost daily, hope you didn't take all of his words for true  Wink
"Delays? There are no delays...the infidels just want to create doubt, but we will stay on schedule..."
 
BoomBoom
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RE: Boeing 787 Update From Earnings Conference Cal

Fri Feb 02, 2007 5:13 am

Quoting Rheinbote (Reply 43):
More so as Boeing's communication obviously was less overt and up-front regarding the wireless IFE issue.



Quote:
Boeing made the decision earlier this month (January) because of performance problems with the technology and the lack of bandwidth spectrum in some parts of the world. The switch was first reported Wednesday (January 24)afternoon on The Wall Street Journal's Web site.

Sinnett said Boeing held onto the wireless system as long as possible, expecting a wired system would add weight.

http://seattletimes.nwsource.com/htm...aerospace/2003540074_boeing25.html

I guess the announcement didn't come soon enough for you?
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BoomBoom
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 5:23 am

Quote:
"It's an 'Oh my god' exercise to build airplanes," said McNerney. "But part of the task is to recognise you have a problem early and to over-resource the issue."

He added that one contingency plan relating to the control data interface had been retyred, because it had made better progress than expected.

"What we are doing with Mitsubishi and Alenia specifically is adding a lot of our resources to supplement theirs to get them through the knothole," he said. "We're not totally out of the woods yet, but the progress is good."

"There's always been ample reason for concern - it's a very aggressive timetable," said Richard Aboulafia, an analyst at aerospace and defence consultants Teal Group. "Boeing has a history of getting it right, but they've never outsourced so much responsibility."

http://news.ninemsn.com.au/article.aspx?id=182811
Our eyes are open, our eyes are open--wide, wide, wide...
 
leelaw
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 6:08 am

"Boeing's good quarter still leaves skeptics on 787 and 777"
By Dominic Gates, Seattle Times aerospace reporter

Quote:
...JPMorgan analyst Joe Nadol and other analysts said it's still too early to tell if the 787 will arrive on schedule. The Dreamliner is to fly for the first time this summer and be delivered to customers in 2008.

"If there's a delay, they're not going to announce it until they're sure they can't get it done," said Nadol.

Some figures among the financial results also made Nadol worry about glitches on an existing program: the 777, one of Boeing's most successful cash cows.

Boeing pushed out to a later accounting period an extra $146 million in 777 costs incurred last quarter, suggesting to Nadol that ongoing changes on that production line are proving expensive...

http://seattletimes.nwsource.com/htm...aerospace/2003550442_boeing01.html
Lex Ancilla Justitiae
 
BoomBoom
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 6:22 am

Quoting Jacobin777 (Reply 23):
I tend to call them "anal-ists"....just a few years ago, many were clamoring for Boeing to sell their BCA division..I would like a list of them so we can lock 'em up for sheer stupidity......

Given that the stock just closed at $91.04, just 6 cents shy of its all time high, I'm glad I didn't go short when Wachovia coughed up its "analysis".

Quote:
"2006 was a very good year," McNerney said. "We achieved new records in revenue, cash flow, and backlog, and overcame some meaningful challenges."

http://businessweek.com/bwdaily/dnfl...news+index_businessweek+exclusives
Our eyes are open, our eyes are open--wide, wide, wide...
 
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 12:23 pm

Quoting NYC777 (Reply 44):
Boeing has been more forthcoming and open about any and all issues affecting the program. I don't seem to recall Airbus being open and honest about the A380 issues.

Nope, the best indicator of the A380's problems was when Noel Forgeard dumped his shares....
Inspiration, move me brightly! Light the song with sense and color.
Hold away despair, more than this I will not ask.
Faced with mysteries dark and vast, statements just seem vain at last.
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ikramerica
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 3:21 pm

Quoting Jacobin777 (Reply 23):
which he stated "its 2.5% overweight but within accepted weight tolerance limits"...

That is exactly what I am talking about. It's nebulous.

Quoting OldAeroGuy (Reply 31):
I think we can infer that the A380 is about 5 tonne over the original empty weight

The fact we have to "think we can infer" anything means that we are now provided with so many variations in the "original" numbers, from changed documents over time and various statements from airbus, not to mention the multiple certified weights. It's very unclear how much the A380 is overweight, and overweight of what?

If it were clear, we would not need to think about it nor infer anything. There'd be two numbers published to easily compare.

Quoting TeamAmerica (Reply 30):
I don't agree with whole idea that Boeing is speaking of a secret internal goal.

Nor do I after reading more information provided right after I posted that. And I said as much right here, before you responded...

Quoting Ikramerica (Reply 22):
He says they are not worried about meeting their contractual weights, but they have said in the past they are worried about meeting internal targets. But either way, the current jet is heavier than BOTH metrics.

The latest statements made clear that they are above contracted weight but not concerned about that for EIS (beyond the first test frames), but are also above internal targets and are concerned about that, because they don't know if they can get weight down to those internal targets.
Of all the things to worry about... the Wookie has no pants.
 
iwok
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 5:05 pm

I though this was telling:

"Some 787 work has travelled from Japan to Charleston, South Carolina where Global Aeronautica, a 50/50 joint venture between Alenia North America and Vought Aircraft, is producing 787 fuselage segments. But McNerney believes this is a positive thing because “the work is spread out a little bit”. "

It must be tough working for Boeing and being behind schedule. I expect the send people in to poke around and see how they can help. Then if things are real late, they pull the plug and move work out! Must make for some sleepless nights..  headache 

The rewards are huge however.

-iwok
 
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SEPilot
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 8:47 pm

Quoting N844AA (Reply 33):
Man, whoever would have thought Italian engineering would be less problematic than Japanese engineering?

Guess what, engineers are human and people are people the world over. Cultural climates and political environments differ, but people remain the same.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
 
sparklehorse12
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 8:57 pm

I have a sneaking suspicion the 787 will be late. There would be zero speculation if there wasn't a concern of some sort. There was a silent cheer when the 380 project managers came clean with the delays....I wonder if it will be the same when the 787 project managers come clean..........
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SEPilot
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 9:29 pm

Quoting Sparklehorse12 (Reply 46):
I have a sneaking suspicion the 787 will be late. There would be zero speculation if there wasn't a concern of some sort. There was a silent cheer when the 380 project managers came clean with the delays....I wonder if it will be the same when the 787 project managers come clean..........

Read the posts about legal consequences for company officials for making knowingly false statements in the US. They are real. No project of this magnitude is without surprises, pitfalls, and unexpected events. Boeing knows this better than anyone, but they have an excellent track record for dealing with them. The key is to face them head on and not hide your head in the sand and hope they'll fix themselves or go away.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
 
 
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RE: Boeing 787 Update From Earnings Conference Call

Fri Feb 02, 2007 9:55 pm

Quoting Trex8 (Reply 48):

Reading the article I am impressed by the fact that Boeing had contingency plans from the outset for delays, and the article states that four out of the eight they had have been implemented. That to me is good news, and indicates that since four have not been used things are not as bad as Boeing envisioned they might be.
The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler

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