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Boeing

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.

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.

United & Delta, head-to-head, chart different paths for fleet additions

Jon Ostrower·June 29, 2021

United unveiled a record deal on Tuesday with Boeing and Airbus for 270 new aircraft, but don’t take your eye off Delta.

As China freezes out Boeing, Airbus ramp grows output imbalance

Jon Ostrower·June 17, 2021

“Boeing is very much relying upon that commercial pressure from the airlines in China, putting political pressure on Beijing...And so far it hasn’t happened yet,” said Air Lease CEO John Plueger.

Amazon’s fleet looks different if it absolutely, positively has to be there overnight

Courtney Miller·June 7, 2021

What Amazon needs to do in the air is driven by the ultimate reach and purpose of the courier on the ground. Amazon has two options for the path ahead. Either way, it needs more aircraft. Competing with FedEx and UPS means diversifying into smaller aircraft, while perfecting its own rapid retail delivery means bigger freighters.

United wagers environmental and technical credibility in supersonic bet

Jon Ostrower·June 3, 2021

United Airlines wants to fly supersonic with Boom's Overture. "We are pushing the boundaries of what we can do here in commercial aviation.”

First Biden budget to accelerate push toward Boeing 737 replacement

Jon Ostrower·May 25, 2021

There are a growing number of recent comments from NASA officials and government notices that point to NASA plans for a piloted experimental X-plane to validate Boeing’s transonic truss-braced wing (TTBW) design as the possible template for a future smaller single-aisle. Boeing hasn’t decided on a path for its own development future, but the Biden budget priorities begin to put the U.S. government’s finger on the scale as a national stakeholder in the plane maker’s success or failure.