Month: July 2021

A question of profitability again hangs over Boeing’s 787

Jon Ostrower·July 27, 2021

Dogged by languid demand for twin-aisle aircraft and a spate of inspections, rework and manufacturing quality issues on already-built 787s, a question of the program’s long-term profitability hangs over Boeing. In its decade of deliveries, Boeing has earned back about half of the more than $28 billion in 787 production costs it has consistently reassured Wall Street it will recover.

TAC Explains: What’s program accounting and how is it used by Boeing?

Jon Ostrower·July 27, 2021

With a method called program accounting, long blessed by both the U.S. Securities and Exchange Commission and its auditor, Deloitte, Boeing spreads its high early costs of jetliner production over a roughly 10-year block of deliveries, enabling it to book future earnings in times of steep cash usage. Ultimately the intent is to balance out the enormous costs of producing a jetliner and recognize the long-term rewards of a successful program.

Making sense of the post-pandemic role of regional aircraft

Courtney Miller·July 22, 2021

Understanding the nuances of regional aircraft -- turboprops and regional jets -- is first and foremost a matter of understanding the role of geography in their success.

Boeing grapples with a ‘Pandora’s box’ on 787

Jon Ostrower·July 15, 2021

Even as Boeing works to explain its detailed statistical analysis to the Federal Aviation Administration of its inspection findings on its fleet of undelivered 787 Dreamliners, the company continues to disclose new issues with its aircraft that further disrupt its path toward resetting its production system and restarting deliveries.

Premium economy’s surprising pandemic rebound

Courtney Miller·July 7, 2021

As the traffic recovery continues, passengers are migrating toward different levels of service as the cabin continues on a path toward even-greater segmentation. There’s no one standard definition of what premium economy is or how it’s deployed, but there is a growing passenger preference emerging. Around the globe, premium economy is outpacing the return of other higher-fare classes

Three Points: Delta’s deals are done, business travel’s green shoots, Alice’s new look

Jon Ostrower·July 6, 2021

Delta's A350 & 737 deals are done, clear signs of business travel's green shoots, Eviation's new look for its all-electric Alice.