NewsBoeing revenues down in Q1 on 787 groundingThe three-month grounding of the Boeing 787 fleet caused Boeing to miss a first quarter revenue target, but improved core operating margins yielded a 5% increase in earnings compared to the same period a year ago. Overall revenues declined 3% year-over-year to $18.9 billion during the quarter despite higher 737 and 777 deliveries as part of planned rate increases. Boeing had intended to deliver 787s at a rate of at least five per month during the first quarter, but delivered only one due to the grounding caused by two unsolved battery incidents in January.
LinkBoeing eyes new rate increase in tandem with 787-10X launch Another production rate increase may be necessary to launch the double-stretch 787-10X later this year, Boeing chief executive Jim McNerney said in a teleconference with analysts on 24 April. As the proposed 320-seat version of the 787-10X nears a formal launch, Cowen & Co. analyst Cai von Rumohr asked McNerney on the earnings call how Boeing could offer delivery slots for a new 787 variant without stepping up the monthly production rate to at least 12 aircraft per month. "You're asking the right question," McNerney replied. "We'll have to sort through that. If it did require taking up [the production] rate, that would add more time to it." Boeing still has 850 unfilled orders combined for the 250-seat 787-8 and 290-seat 787-9. The production rate is scheduled to double to 10 per month by the end of the year. But delivery slots remain sold out even at the higher rate for several years. That means the only way to deliver significant numbers of 787-10s before 2017 would be to increase the rate even higher than 10 per month.
LinkBoeing maps out 787 locations as EASA clears fix European safety authorities have approved the design changes to the Boeing 787's battery system. Clearance by the European Aviation Safety Agency means that Polish carrier LOT, and other European customers, will be able to operate the type once modified. Boeing has detailed the locations of the 50 in-service 787s which will need the new battery, charger and containment system.
LinkDARPA working on sixth-generation fighter study The Pentagon's Defense Advanced Research Projects Agency (DARPA) is studying next-generation fighter concepts under a new air dominance initiative that should yield results for next year's budget cycle. DARPA director Arati Prabhakar says that the air dominance study grew out of conversations she had with Pentagon procurement chief Frank Kendall when she took the helm at DARPA last year. "Out of those conversations came the notion of taking a look at air dominance and asking the question about how we could create this generational shift and how we could extend our air superiority capability," she says. However, Prabhakar adds the caveat that "there really isn't going to be a silver bullet technology that, for example, extends air superiority into the next three or four decades."
LinkIAI signs F-35 wing production deal Israel Aerospace Industries has signed a contract with Lockheed Martin to produce wings for the F-35 Joint Strike Fighter, with the company to begin delivering equipment in 2015. "Both companies recently began assembling an F-35 wing production line, with IAI investing in the required advanced systems and technologies," the Israeli company said on 23 April. It says the contract has an expected duration of 10 to 15 years, and a potential value of up to $2.5 billion.
LinkEthiopian To Be First To Resume 787 FlightsEthiopian Airlines is set to become the first carrier to resume flying Boeing's 787 Dreamliner, with a commercial flight on Saturday to Kenya, two airline sources said. Boeing 787s have been grounded since regulators ordered all 50 planes out of the skies in mid-January after batteries on two of them overheated. US regulators approved a new battery design on Friday, clearing the way for installation. An Air India source told Reuters in New Delhi that commercial operations should start within a week or so, immediately after approval from the local regulator DGCA.
LinkEtihad Confirms Jet Airways InvestmentEtihad Airways confirmed it had taken a 24 percent stake in India's Jet Airways for USD$379 million. The Gulf carrier said in a statement it would subscribe to 27.3 million new shares at 754.74 rupees per share. Jet said in a brief statement to the stock exchange earlier on Wednesday that its board had approved the allotment to Etihad. Etihad, which is on an aggressive expansion drive, will also make a USD$150 million equity investment in Jet's frequent flyer program and spend USD$70 million to buy Jet's three pairs of Heathrow slots through the sale and leaseback agreement announced in February.
LinkEuropean Parliament Rejects Passenger Data SchemeThe European Parliament on Wednesday rejected a plan to create a European system for storing airline passengers' personal details, a move to help fight crime and terrorism. The proposal would require airlines to provide European governments with data including passengers' phone numbers, addresses and credit card details when entering or leaving the 27-country European Union. Such information is already shared with the United States, but not with all other EU states. But the parliament's civil liberties committee voted against the scheme by 30 votes to 25, concluding that an EU passenger data system would breach citizens' fundamental rights.
LinkUS Airways reports $44 million profit for Q1US Airways reported earnings of $44 million for the first quarter, compared with $48 million for the same quarter last year. The carrier boosted capacity by 1.3% for the quarter and increased its load factor to 81.7%. "Despite a sluggish economy and volatile fuel prices, we reported our highest first quarter excluding special items," CFO Derek Kerr said.
LinkDelta Air Lines posts $7M profit in Q1Delta Air Lines reported net income of $7 million for the first quarter, compared with $124 million in the same quarter of the prior year. "While we are seeing some revenue softness, we are also benefitting from lower fuel costs, allowing us to continue our path of margin expansion even in a sluggish economic environment," President Ed Bastian said in a statement.
LinkSouthwest expected to report Q1 profit on ThursdayAnalysts expect Southwest Airlines to report a profit for the first quarter when the company announces its quarterly earnings on Thursday. Analysts surveyed by FactSet predict the carrier will report earnings per share of 2 cents on revenue of $4.07 billion.
LinkJetBlue Launches New Albuquerque-New York ServiceJetBlue Airways announced the launch of daily nonstop service between New York and Albuquerque, New Mexico. Albuquerque is the airline’s first destination in New Mexico. Flights depart from New York’s John F. Kennedy International Airport at 8:25 p.m. and arrive at Albuquerque International Sunport at 11:04 p.m. Flights from Albuquerque to New York depart at 11:55 p.m. and arrive at 5:57 a.m. the next day.
LinkEditorial: Furloughs make FAA "more dysfunctional"In this editorial, the Wall Street Journal decries the Federal Aviation Administration's decision to furlough air traffic controllers. "Flyers directly fund two-thirds of the FAA's budget through 17 airline taxes and fees -- about 20% of the cost of a $300 domestic ticket, up from 7% in the 1970s," the editorial says. "Yet now the White House wants to make this agency that can't deliver what passengers are supposedly paying for even more dysfunctional."
LinkUnited flies Boeing 787 to Texas for battery fixUnited Continental pilots flew the carrier's first Boeing 787 to Texas for installation of a battery fix. Boeing said the update will take approximately five days to complete. United plans to resume domestic flights of the 787 on May 31.
LinkFedEx Shuts Out UPS to Win $10.5 Billion Postal Service DealFedEx Corp. (FDX) won a seven-year contract with the U.S. Postal Service valued at about $10.5 billion to carry mail between U.S. airports, fending off a challenge from United Parcel Service Inc. (UPS). The new accord to fly Express Mail and Priority Mail starts in October once the current deal ends, FedEx said yesterday in a statement. The Memphis, Tennessee-based company didn’t give details beyond the value and length of the agreement.
LinkDelta reports loss for Pa. oil refineryDelta Air Lines reported a $22 million loss in the first quarter for its oil refinery in Trainer, Pa. Delta purchased the refinery in June and reported a $63 million loss in the fourth quarter of last year.
LinkEditorial: Continuing furloughs would be "irresponsible"The Washington Post editorial board says members of Congress should work together to halt the furloughs of air traffic controllers. "If the air-traffic furloughs pose both a big inconvenience and a short-term danger to the U.S. economy -- and they do -- it would be irresponsible to let them go on until an unlikely grand bargain is struck, or even to use them as political leverage to achieve one," the editorial states.
LinkLawmakers criticize FAA-imposed furloughsA bipartisan group of lawmakers is questioning the Federal Aviation Administration's decision to furlough air traffic controllers. "If for some reason the president or FAA don't believe they have the flexibility to address this issue, they should ask Congress for the flexibility they need," said Sen. Mitch McConnell, R-Ky. "Until then, however, they should use the flexibility we all know they do have to ease the burden on passengers."
LinkA4A, RAA ask for suspension of 3-hour tarmac delay ruleAirlines for America and the Regional Airline Association have submitted an application to the Federal Aviation Administration to suspend the three-hour tarmac delay rule due to recent furloughs of air-traffic controllers. "To be clear, A4A and RAA are not proposing that DOT suspend the effectiveness of the tarmac regulations in general," the application said. "On the contrary, our requested exemption is narrowly tailored and would only apply for a temporary period at all U.S. airports."
LinkNTSB continues questioning Boeing over battery issueThe National Transportation Safety Board will continue to question Boeing executives about the approval of the battery aboard the Boeing 787. "We used the state of the art in the industry at the time," said Mike Sinnett, a Boeing vice president and the chief engineer for the 787. Meanwhile, the European Aviation Safety Agency approved Boeing's battery fix for the 787 on Tuesday.
LinkSingle travelers can find dates at airport with websiteSingle travelers can enjoy their downtime during airport layovers with MeetAtTheAirport.com. The dating website matches up travelers at airports and has more than 80,000 members. "Share a drink with an attractive stranger in the totally safe environment of a public airport," the website says.
Link 
