This year I expect Boeing to deliver 147 787s. This is based on the 12/month production rate plus the three 787-10 flight test airplanes that will be delivered in the second of 2018.
Let's take a look at customers who will be taking their first new 787s or a recipients of a new 787 variant.
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Boeing is adding several new 787-9 operators a few through lessors (Air Tahiti Nui, Eva Air and LOT) but there will be 8 new 787 operators in 2018 so spotters will certainly be out at Everett and Charleston to get photos of new 787s in the livery of a new operator.
2018 is going to be exciting in that the newest 787 variant, the 787-10, is expected to be certified and delivered in the 1st quarter most likely towards the end of March. All the -10s will be delivered from Charleston and Boeing is already producing production 787-10 with the first one for Singapore Airlines already siting on the Charleston flightline. The introduction of the 787-10 into the production system last year pulled down the delivery rate for 2017 but now it is fully integrated into Charleston's production process.
Because of the addition of the 787-10 into the Charleston mix, it appears that all 787-8 production will be going to Everett in examining the 787 firing order. Of the 18 787-8s that are planned to be built over the next 2 to 3 years, all of them will be built in Everett. However, the -8 makes up a very small share of the total future 787 deliveries (63 orders left to be fulfilled) as the -9 and -10 take on a larger share of the production mix (and thus more profitable for Boeing). Everett is expected to build a larger share of 787-9s given that they are at a 7/month production rate while Charleston is still at 5/month.
So what will be the mix coming out of Boeing's 2 production sites? The following tables give some insight into this.-->
Everett delivered 87 aircraft in 2017 while Charleston delivered 49 for a total of 136. Because of the introduction of the 787-10 into the production system in 2017 at Charleston some production went to Everett and thus the delivery rate was higher at Everett compared to Charleston. Now that the -10 is fully integrated into Charleston production system and Boeing is aggressively producing the -10 in 2018, Charleston's share of deliveries is increasing by 36% in 2018 while Everett's share decreases by 8% while overall 787 deliveries should climb by 8%. this includes the three 787-10 test airplanes that will be re-worked in 2018 and delivered to Singapore Airlines and United Airlines in the 2nd half of the year.
Last year Charleston delivered 1 787-8 while Everett delivered 25. This year Everett will deliver all 10 787-8 slated for delivery to customers. In 2017 Charleston delivered 48 787-9s while Everett delivered 62. In the coming year Charleston should deliver 51 787-9s (an increase of 6%) and Everett will see an increase of 8 787-9 deliveries from 62 in 2017 (an increase of 13%). Everett should out deliver Charleston mainly because Charleston is still churning out 787s at 5/month. Due to the concurrency in the 787-10 there will be -10s that were built in 2017 but delivered later in 2018 thus increasing the Charleston delivery numbers for certain months.
The 787-9 will lead the way in deliveries given the large outstanding backlog for the aircraft. The 787-8 will barely factor in the monthly delivery totals while the 787-10 will out deliver the -8 in 2018 (and in future years). Over time I do expect that orders for the -10 to rise significantly and may compete with the -9 in terms of monthly deliveries as long as the order book grows. The monthly delivery rates should be pretty stable during 2018 with a couple of months (February due to lower production in December 2017 and August) where deliveries are lower than 11/month.
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Referencing the above tables, Boeing's deliveries to customers appear to be more spread out as there aren't many customers taking more then 10 787s in 2018. AerCap is the only customer taking more than 10 787s as they're projected to receive 12 787-9s during the coming year. Hainan and Norwegian are taking more than 10 during the year as operators.
By the end of 2018, several airlines will have received their full 787 order. These customers include Aeromexico, Air China, Air New Zealand, Air Tanzania, Avianca, Bank of Communication Leasing, British Airways (787-8 and 787-9), QANTAS, Royal Brunei Airlines, Saudi Ministry of Finance (787-9), United Airlines (787-9), Virgin Atlantic Airways and Xiamen Airlines.
Production will continue at the 12/month pacing while Boeing and its supplies start to prepare to break rate in 2019 to 14/month though I don't have information as of yet on when the increase in rate will take place in 2019.
Also expected in the continued decrease in the 787 deferred production costs. since Boeing is now profitable on a production basis, people will be interested on how much Boeing is able to bring those costs down quarter over quarter. What will be carefully looked at is if deferred productions costs decrease looks to be increasing over each successive quarter meaning that Boeing is reducing that total cost by a larger amount each quarter.
Lastly, orders should continue to come in but I expect that many current customers such as QANTAS and American Airlines will start to exercise options that are held as well as new customers (Emirates, and Turkish) firm up MoUs that were announced in 2017. Last year's book-to-bill was under 1 for the 787 but I am cautiously optimistic that 2018 will be different especially if Boeing firms up the order from major customers and get several options converted into firm orders. 2018 will be an interesting year for the 787. Buckle up!
As this is my last post for 2017, Happy New Year to all my readers. I'll see you on the flip side.
787 Spreadsheets
By the end of 2018, several airlines will have received their full 787 order. These customers include Aeromexico, Air China, Air New Zealand, Air Tanzania, Avianca, Bank of Communication Leasing, British Airways (787-8 and 787-9), QANTAS, Royal Brunei Airlines, Saudi Ministry of Finance (787-9), United Airlines (787-9), Virgin Atlantic Airways and Xiamen Airlines.
Production will continue at the 12/month pacing while Boeing and its supplies start to prepare to break rate in 2019 to 14/month though I don't have information as of yet on when the increase in rate will take place in 2019.
Also expected in the continued decrease in the 787 deferred production costs. since Boeing is now profitable on a production basis, people will be interested on how much Boeing is able to bring those costs down quarter over quarter. What will be carefully looked at is if deferred productions costs decrease looks to be increasing over each successive quarter meaning that Boeing is reducing that total cost by a larger amount each quarter.
Lastly, orders should continue to come in but I expect that many current customers such as QANTAS and American Airlines will start to exercise options that are held as well as new customers (Emirates, and Turkish) firm up MoUs that were announced in 2017. Last year's book-to-bill was under 1 for the 787 but I am cautiously optimistic that 2018 will be different especially if Boeing firms up the order from major customers and get several options converted into firm orders. 2018 will be an interesting year for the 787. Buckle up!
As this is my last post for 2017, Happy New Year to all my readers. I'll see you on the flip side.
787 Spreadsheets
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