Air Canada, Virgin Order More 'Game-Changing' 787s (Boeing kicking some airbust)

Air Canada and Virgin Atlantic last month each placed new orders for Boeing 787 Dreamliners, the midsize aircraft capable of flying transoceanic routes. At last count, Boeing had compiled 567 orders from 44 customers. It said it remains on track to test fly the first 787s this summer and begin deliveries in 2008.

Having opened the order book in April 2004, Boeing called the 787 "the fastest-selling commercial airplane in history." It also has helped Boeing get an edge on Airbus--which has been beset by development problems for its jumbo A380--and position itself as the industry leader at a time when all forecasts point to growing global air traffic.

According to Boeing and its 787 customers, the new jet will allow airlines to serve existing routes more efficiently and open many new ones. It is designed to operate more quietly and burn "20 percent less fuel" than similarly sized airplanes. Inside, passengers should expect higher cabin humidity, improved lighting and air quality, big windows, large stowage spaces and an overall design developed with disabled passengers in mind.

Such features represent "little things that all add up to make your 16 1/2 hours a little more pleasant," said Jim Friedel, Northwest Airlines senior vice president of Pacific and cargo, speaking at the Masters Program in February. "The 787 will be a game-changer especially for us at Northwest, but I believe this will be an industry trend over time."

Northwest has 18 firm orders, with options and purchase rights for another 50. It expects to begin commercial 787 service in October 2008.

Continental Airlines president Jeffrey Smisek, speaking in April at the UATP Airline Distribution 2007 conference, also described the 787 as "a game-changing product." Continental currently has 25 787s on firm order, and Smisek said he expects that the airline "will be taking more than that over the years."

Weyerhaeuser director of travel, meetings, food service, fleet and transportation Suzanne Fletcher, who has been involved with 787 presentations, said she agrees with Boeing that air travelers would begin selecting their flights based on the airplane serving the route, not the carrier. "It is so much more of a passenger-focused than before when planes were carrier-focused," she said. "The comfort built into this aircraft is amazing."

Fletcher, who also serves as president and CEO of the National Business Travel Association, noted that Boeing designed the 787 to fly at lower altitudes. As a result, "Passengers will feel better when they arrive," she said, "and that is important for business travelers."

Other Boeing 787 customers include ANA, Air New Zealand, Japan Airlines, India's Jet Airways, LOT Polish, Qantas and Singapore Airlines.

At Air Canada, the latest order for 23 of the new jets brings its total to 37, with options for another 23. It will start taking deliveries in 2010 to replace the existing B767 fleet, which burns 30 percent more fuel, according to Air Canada.

Virgin Atlantic's 15-plane order from April marked the largest 787 agreement with a European airline. CEO Steve Ridgway tagged the 787 as "our aircraft of the future." Virgin, which also entered an "environmental partnership" with Boeing centered on biofeul development, hyped the new plane as "revolutionary" for its fuel efficiency. The airline said the 787 would enable it to expand into more markets, "possibly" including Bangkok, Melbourne, Rio de Janeiro, Seattle and Vancouver. Virgin will start taking delivery in 2011 and has purchase rights and options for as many as 28 additional 787s.

Boeing is building three 787 variations, with capacities ranging from 210 to 330 passengers, and ranges up to 8,500 nautical miles, which would allow for nonstop flights between London and Perth, for example.

"Now we have the capability to envision nonstop flights from the States to points in Asia that simply were out of reach or economically unattractive because you had to find 400 passengers a day to get there," said Northwest's Friedel. "Using that airplane, we at Northwest can contemplate nonstops from Detroit to Shanghai, Beijing, Xinjiang and Hong Kong. All of those are comfortably within reach and economically viable because it's a 225-seat airplane."

"That will be an important trend for you and your travelers because we airlines frankly struggle with maintaining nonstop services to Asia," Friedel continued. "East Coast to Europe, you can get there with a variety of technology choices today. The Pacific didn't have that before. A machine like this allows us to make more nonstop routes stick."

For example, airlines can avoid suspending certain longer-haul flights because of high fuel prices or modestly lower demand, as Northwest did in September 2005 on its New York JFK-Tokyo route.

The 787 has given Boeing momentum and the company now is poised to reclaim from Airbus the distinction as the world's largest airplane manufacturer (measured by deliveries). The new plane has attracted some intercontinental airlines that have been disappointed by developmental delays for the Airbus A380, which will be the world's largest passenger aircraft when it enters service--now expected in late 2007, nearly two years behind schedule.

Despite some cancellations, Airbus as of March had 156 firm A380 orders from 15 airlines, including Air France, launch customer Emirates (which now has 47 of the jets on order), Lufthansa, Qantas and Singapore airlines. Airbus--which has described the double-deck jumbo A380 as "cleaner, greener, quieter and smarter"--also is developing its A350 line, an extra-wide plane designed for 270 to 350 passengers. As of March, it had collected 104 firm orders.

Boeing and Airbus are developing these new aircraft families--as well as Boeing's 747-800 program now underway--at a time when air traffic is expected to climb steadily. According to the International Air Transport Association, global airline passengers will number more than 2.2 billion this year, up from 1.7 billion in 2000.

Looking out to 2025, Boeing predicted that more than 27,000 new airplanes would be needed, including more than 3,000 in the smaller, twin-aisle aircraft category (which includes the 787). By 2025, it projected 650 deliveries of the largest commercial planes (those with more than 400 seats), including its own 777 and the Airbus A380. An Airbus forecast predicted the world's airlines would need nearly 22,000 aircraft of over 100 seats by 2025 to handle 5 percent annual passenger traffic growth, including more than 1,600 of the largest aircraft.

Flash-Back 2004 Try reading this without LOL. 7E7=(787)

SEATTLE POST-INTELLIGENCER
http://seattlepi.nwsource.com/business/182692_airbus19.html

AIRBUS HAS HARSH WORDS FOR BOEING’S 7E7 ‘HYPE’

Executive calls sales optimism a ‘figment of the imagination’
Monday, July 19, 2004
By JAMES WALLACE
SEATTLE POST-INTELLIGENCER REPORTER

FARNBOROUGH, England — Airbus super-salesman John Leahy has never been shy when it comes to mixing it up in a war of words with The Boeing Co., his longtime rival.
But Leahy, head of Airbus commercial and the executive most often credited with the rise of Airbus as the world’s biggest commercial jet maker, outdid himself during an interview on the eve of the Farnborough Air Show.
He called Boeing’s confident predictions that it could have 200 orders for its 7E7 Dreamliner by the end of this year the stuff of public relations fancy, not reality.
The twin-engine, widebody jet is too small — the base 7E7-8 would carry around 217 passengers in a three-class configuration — and many airlines are telling Airbus they are not interested in ordering it, despite what Boeing says publicly, according to Leahy.
“It’s typical hype,” the American-born Leahy said.
“I’ve never seen an airplane where the market hype from the PR department is less in contact with the reality of the marketplace.”
Boeing has also said airline interest in the 7E7 is so strong that it could have 500 orders by the time of the first flight of the 7E7 in 2007. That would make the 7E7 the best-selling Boeing or Airbus widebody jetliner ever — as measured from product launch to first flight.
Nonsense, Leahy said.
“Those numbers are purely a figment of the imagination of Boeing’s public relations department there in Seattle,” he said.
“We are in contact with the airlines. We talk to them on a daily basis. We know Boeing is going around and making a lot of presentations, but we don’t see anyone about to place orders.”
Why would Boeing executives risk their credibility by making such wild statements if they knew the orders would not materialize?
“Boeing is desperate,” Leahy said, explaining that the Airbus A330-200 has taken more than 80 percent of the market share from Boeing’s 767.
“In a wild attempt to try and keep the total trip costs down, Boeing made their airplane a little too small,” Leahy said. “If the 767-300 was the right size (the 7E7 is about the same size), then our A330-200 would not have 80 percent of the market.”
He acknowledged the better range of the 7E7, but added: “When you do it in a tiny airplane on long-haul flights, you get into the economics of a corporate jet.”

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