787 Odds and Ends

As we get closer to the Paris Airshow due to start next Monday, here is a rundown on some news as of late.  Nothing earth shattering or unexpected.

Paris 2013

This show should shape up to be the battle of the widebodies with the A350 vs. the 787 and 777X.  There will be some notable orders but I think this is where Boeing will announce the formal launch of the 787-10 with Singapore Airline's order for 30 aircraft.  The carrier already has selected the engine for their 30 -10s (Trent 1000-TEN), something they wouldn't be doing if launch wasn't imminent.  I also believe that the launch will not only include announcement of the Singapore order but will also announce the order from IAG (British Airways) for 18 -10s.  This is the exercise of the 18 options the carrier held but the 787 model wasn't announced when IAG announced the exercise of the options.  I think that announcement will be made at Paris. There may be other 787-10 order announcement made at Paris.  I don't think Boeing will announce the launch of the 777X at Paris but will heavily talk it up behind the scenes with customers.  Look for the launch announcement on Tuesday, June 18th.

Meanwhile ZA242 (LN 90, VT-ANN) is currently flying to Le Bourget where it will fly demonstrations during the first 3 or 4 days of the show.  ZA465 (LN 99, A7-BCD) will join ZA242 later (probably on Saturday or Sunday) but will be on static display through out the airshow.

787 Production

Production has been continuing and I do believe that ZB001 has moved on to the next line position in 40-24 and should remain there for the next 10-12 days while assembly and testing continue on this aircraft.  I continue to believe that this aircraft should be out on  the flightline in the 3rd or 4th week of July and possibly flying by early to mid September.

787 Flight Testing and Delivery

Production flight testing continues as Boeing is trying to be aggressive in delivering the large backlog of 787s that are sitting on the Everett and Charleston tarmacs.  Interestingly Boeing delivered 7 787s last month but none from Charleston.  I do expect that 3 to 4 787s should be delivered from Charleston this month.  Currently I have 5 787s listed as ready for delivery along with another 10 that have started production flight tests.  I expect at least 2 to 3 787s will have their B-1 flights in the next week in order to be delivered by the end of this month.

Finally a blog note.  I've added a 5th table below which shows the 78s that are currently in production (see 787 Current Production).  I does not show 787s that have been delivered or ones that will not be delivered (like the first 3 test flight aircraft).  Hopefully this will aid in understanding what is going on at Everett and Charleston.
 

Boeing Execs Update on the 787 program through RBC Conference Call

Larry Loftis, VP and General Manager, 787 program and Pat Shanahan, Senior VP and general manager, Airplane Programs at Boeing were hosted on an investor conference call presented by RBC this afternoon.

Here's a synopsis of their comments and what was said on the call:

To date Boeing has delivered 38 787s overall and 35 in 2012 to 8 different customers. Boeing customers have told the company that the aircraft is meeting fuel burn expectations and passengers are also delivering great feedback in terms of comfort of the aircraft.

Started the year at 2.5/month production rate and will end the year at the current rate of 5/month. Boeing is tracking to plan to increase production to 10/month by the end of 2013. 

The next rate increase is to 7/month which is expected in mid 2013, whereupon it will stabilize at that rate before increasing to 10/month.

Boeing is well past the 90% engineering release milestone on the 787-9 and that was completed about 3-4 weeks ahead of schedule. The supply chain is largely the same as the 787-8 but have bought some work back in house. Schedule – the airplane is meeting all engineering milestones.  It is on original schedules with some suppliers ahead of schedule. The major components are currently being assembled by the major (tier 1) suppliers while wing assembly will start later this year into the very early part of 2013.  Boeing will introducing the 787-9 in to final assembly in late spring – late summer of 2013 and flight test in fall 2013 with EIS in early 2014. There will be 3 flight test aircraft with all three currently in production. the wing spars are currently being built at MHI (Mitsubishi Heavy Industries). There is a buffer in the schedule but it is looking like they won’t need it. The 787-9 weight has been stable and has improved by a couple hundred pounds. Boeing is planning for  6 months for flight test, but has been doing flight testing on the 787-8 to gather data to support the 787-9.  We now know why Boeing has been flying ZA005 lately. There is extra flow in the production system that has been allotted to the 787-9 in case there are issues during assembly of that aircraft.
 
Boeing has 3 final assembly lines going for the 787 and allows them a greater degree of flexibility to manage the ramp up of the 787 while introducing the 787-9 into the system.  The current plan is to continue to have the production split between Everett and Charleston at 70%/30%.  Boeing has been very pleased with the improvements in the production system over the last 12 months. The quality of the work and processes improve everyday, and the learning curve is tracking to their expectations. The curve at Charleston has been very good (for a new site, makes your wonder if Boeing had better expectations). Boeing has transferred best practices at Everett to Charleston and information is flowing back and forth very freely.  Boeing's intents is to make sure they have one standard set of best practices for both sites (one production system for 2 sites). 

Boeing has the ability to go beyond the 10/month production rate. The ability to go beyond 10/month will be determined by the market.  There's no constraint on bricks and mortar aspect of increasing the rate. Boeing has an understanding of the capabilities of the suppliers as well as their own capabilities.  The question will be the capacity of the suppliers and the rate to adding capacity.

By the end of the year, Boeing will have 60% of pre-LN 66 airplanes delivered. The remaining aircraft that are awaiting change incorporation will be delivered during 2013 to 2015 (Boeing currently has 23 aircraft undergoing change incorporation or awaiting change incorporation including 3 test airplanes).  The ones that remain are the lower line number and will take longer to complete as the extent of the changes  needed are extensive. There are firm homes for the majority of the planes that have yet to go through change incorporation. there are a couple that still need to find a customer (I'm guessing that these are ZA004 and ZA005).

With regards to delays, Boeing says that there  aren't any systemic delays (which would take weeks or months to resolve) in the production system but one off delays amounting  to a few days delivery of the 787 to customers because they are still learning.  Boeing would not comment on delays to specific customers or countries (China).

On the 787-10, Boeing is not ready to launch yet as they still have some work to do before they are ready to launch the program.  (Note they have said anything about Authority to Offer, ATO). Technically they are confident of the 787-10; operationally and financially they are trying to be more measured with their plans for the aircraft.  They are expecting an EIS at the back end of this decade (2017-2019 timeframe?).  It depends on when Boeing has finished the work they are engaged in with regards to the 787-10.  Boeing expects substitutions between the family of 787 models (go up or down within the different 787 models).

Boeing meets low end 787 delivery target for 2012 deliveries

At the beginning of the year, Boeing laid out its 2012 787/747 target estimate at between 70 and 85 aircraft with the split at 50/50 between the two aircraft.  This meant that Boeing was planning to deliver between 35 and 42 787s this year. Through out the year Boeing maintained that target and on November 20th, Boeing delivered two 787, one each to Qatar Airways and United Airlines, which allowed them to reach 35 787s delivered in 2012, the lower end of their estimate.  This accomplishment reinforces the belief that the 787 production system has recovered and places the company in an excellent position to continue the climb to 10/month on 787 production rate. Word has it that Boeing is asking suppliers about going beyond 10/month and push output to 14/month by late in the decade (around 2018-2019).  It still in the planning phase but this is probably great news for the program overall especially since Boeing is on the verge of a full launch of the 787-10.

Boeing certainly can reach the upper end of their estimate (another 7) with the 787s that are on the flightline preparing for first flight.  ZA289 (LN 55, N45905) for United Airlines made it's first flight on November 21st and I expect ZA462 (LN 62, A7-BCK) to fly around Nov. 23rd and both should deliver next month.  Two other 787s have had engine runs according to Matt Cawby on his photo blog. Both ZA285 (LN 45) and ZA510 (LN 59, JA817A) should fly by the first week of December if not by the end of November.  That is four 787s that I expect to deliver in December in addition to ZA538 (LN 80, CC-BCC) for LAN.

Here are the potential deliveries through Dec. 31st:

ZA285 (LN 45, N26901) - United Airlines
ZA286 (LN 50, N26902) - United Airlines

ZA238 (LN 54, VT-ANJ) - Air India*

ZA289 (LN 55, N45905) - United Airlines

ZA510 (LN 59, JA817A) - ANA

ZA239 (LN 60, VT-ANK) - Air India*

ZA462 (LN 62, A7-BCK) - Qatar Airways

ZA240 (LN 65, VT-ANL) - Air India*

ZA271 (LN 78, SP-LRB) - LOT Polish Airlines**

ZA538 (LN 80, CC-BBC) - LAN Airlines

ZA464 (LN 82, A7-BCC) - Qatar Airways

ZA512 (LN 83, JA818A) - ANA

ZA183 (LN 84, JA829J) - Japan Airlines

*Dependent on Air India obtaining bridge financing to pay for the aircraft

**Supposed to have delivery flight to Poland in early January but may contractually deliver in December

Of these listed 8 I believe are highly probable deliveries  but that does not include any for Air India or the aircraft for LOT Polish Airlines. It is rumored that Air India will take delivery of a 787 by the end of November but that is all dependent on the carriers' finances.

Big week for the 787 program

Boeing saw two 787 customer fly aways this week as mostly positive news about the program reinforced the view that the program is on a solid course to recover and to become profitable. 
First came news (that this blog revealed in an earlier post) that Boeing is producing the 787 at 5/month including one per month from Boeing Charleston.

This further reinforces the view that Boeing is on a solid track to achieve the planned production rate of 7/month in Everett and 3/month in North Charleston. ZA511 (LN 83, JA818A) was rolled out last week and represents the first aircraft built at the 5/month rate.

Boeing's Board of Directors gave a soft ok to Boeing's Commercial Sales staff to begin discussions with customers regarding the 787-10 which is a double stretch of the baseline 787-8.  This aircraft, which will compete head on with Airbus' A330-300 and A350-900 and will be marketed as a 777-200 replacement, has generated a lot of positive feedback.  Qatar Airways' is reportedly in negotiations to convert some of the 30 firm and 30 options that they have on the 787-8 into the 787-10.  Since the 787-10 is not due to be delivered around 2018 or 2019, conversions will allow Boeing to free up short term delivery slots for 787-8 and 787-9 thus helping sales of those versions of the Dreamliner.  Given that the program needs sales of over 1000 787s to achieve breakeven, the 787-10 will certainly help Boeing attain that as it is rumored that Boeing can sell as many as 500 787-10s.  Boeing doesn't have the full ATO (Authority To Offer) but it is widely rumored that this should happen very very shortly, (as soon as this month) which leads me to believe that Boeing will probably have one or two launch customers lined up with an MoU.  These sales won't be posted as firm until next year however.  Other potential customers include British Airways, Singapore Airlines, Ethihad, Air France, Lufthansa, American Airlines, United Airlines, and any carrier with a 777-200 or an A330-300.

The not so good news is that Gulf Air is reducing the number of 787s they have on order.  The order book once had 24 787ss for the Middle Eastern carrier which has been reduced to the current 16 and may go as low as 12.

Boeing had official handovers of 787s this week to Qatar Airways and LOT Polish Airlines.  Both aircraft were contractually delivered earlier so these "deliveries" were ceremonial (read: for the media) in nature as was the fly aways to the airlines' respective home bases.

Looking ahead Boeing will load another 787 tomorrow into position 1 on the surge line.  This will be ZA317 (LN 92, G-TUIA) for Thomson Airways, the British charter airline.  It'll be the first 787 delivered to a British carrier but it certainly won't be the only British carrier to receive the 787 in 2013.  Boeing will push out ZA183 (LN 84, JA829J) for Japan Airlines.  This aircraft should be delivered by the end of December to the Japanese carrier.

In terms of deliveries, there are currently 5 787s that are ready to be delivered but two of them are for Air India and given the precarious state of the bridge financing needed to pay for the deliveries, it is highly unlikely that they will be delivered anytime soon but Boeing has prepared them for delivery.  There are one each for Untied Airlines, Qatar and Ethiopian that are ready.  According to my sources, Qatar should take their third 787 next week, Ethiopian will take their fourth later this week and Untied should follow with their third late next week.  There are several more that are preparing to fly or are in the middle of Boeing/customer test flights.  LAN's third had its B-1 flight which was cut short due to a squawk that developed 20 minutes into the flight. Matt Caby reported that the issue was in the (air conditioning) packs. One 787 each for Qatar and United should be flying very soon though expect their deliveries to occur around December if the B-1 flights are not performed this week.  ANA's 17th aircraft is on the flightline but probably won't fly until the end of this month at the earliest. 

Boeing has the potential to deliver at least 3 more 787s this month in addition to the 2 already delivered but if Air India gets its act together then we can see two more 787s delivered this month for a total of 7.  Right now 5 is more realistic for a delivery number in November.

Aspire Aviation: 787-8 still overweight, 787-9 is not

In a wide ranging article, Aspire Aviation revealed today several newsworthy aspects of the 787s program and the future of the variants of the base 787-8 aircraft.

First off the article addresses the 787-8 status.  While the program is now well into  production and delivery of the base 787-8 model, Boeing is planning to hit the 5/month milestone on November. It is hoped that the ramp up to 7/month will occur in March/April 2013. Assuming that Boeing is producing 5 787 for the first 5 months of 2013 and 7 for the last 7 months (there's a lag between the increased production rate and delivery of those airplanes at the increase rate thus I'm assuming that the 10/rate airplanes won't be delivered until January 2014) Boeing can deliver 84 787s not including 787s from the EMC.

The weight of the787-8 is still an issue with the current production block still at about 4 tonnes overweight according to Aspire's sources.  It was hoped that by the 90th aircraft (LN 90) that the weight would be down to the original spec weight but this appears to have slipped. It is unknown when Boeing will achieve the original spec weight though the culprit seems to be a shortage of parts that are weight optimized for both the 787-9 and the 787-8.

Speaking of the 787-9 this variant looks to be doing extremely well from a weight and development point of view.  The word is that the first 787-9s will achieve weight targets set by Boeing with further production blocks coming in underweight by around 2%.  This is all a result of the testing done on the 787-8 and understanding what was over-engineered.  At some point there will be weight savings that will be put back into the 787-8 but it does appear it will take a while.  ZB001 (LN 126) will be the first 787-9 that is to be assembled and it does look like that this should take place starting around February or March.  What is unclear at this point is how many 787-9s will be part of the testing and certification program. I don't think it will be 6 but perhaps 2-3 airframes. Already Boeing suppliers are producing some of the fuselage sections of the 787-9.

Aspire's report also touched upon the 787-10X which is now rumored to be targeted for an authority to offer by the Boeing Board of Directors as early as this month.  The 2nd stretch variant will build upon the 787-9 using the same wing and able to fit 323 passengers in a 3 class layout.  This model along with the 787-9 can effectively kill the Airbus A330-200 and A330-300 while also severely hurting the sales of the A350-800, A350-900 and even the A350-1000 all of which are under severe schedule pressure as it is.  There are numerous European, Asian and Middle Eastern customers that are salivating at the thought of the 787-10 and I wouldn't be surprised if Boeing has a few surprise orders in hand by the end of the year for this model if it has the authority to offer.  Aspire's speculates that with a launch late this year, Boeing will have a firm configuration by the end of 2nd quarter of 2014. roll out of the test aircraft in 2017 and EIS in 2018/2019 though I would think that with a rollout in 2017 Boeing should have the ability to achieve EIS in 2018 at the latest since it is a straight forward stretch variant. It shouldn't take 2 years to test and certify a simple stretch variant of the 787-9.

787 info from Boeing's 2nd quarter earnings call

                                         Ethiopian's First 787 (ZA262) returning to Everett.
                                         Photo by Bernard Leighton

Today was quite a day for Boeing and the 787. A lot of news today so let's get started

Boeing's Earnings Call

Boeing Earning's came out today and showed quite an improvement.  As far as the 787 is concerned Boeing said a few things that were already known but let's go through the highlights.  Boeing is saying that they're seeing a high level of completion of aircraft coming out the final assembly line at Everett.  It's close to 100% apparently.  They're still tracking to increase production to 5/month by the end of this year and 10/month by the end of 2014.  Boeing is expecting to see higher 2nd half 787deliveries both from aircraft coming off the assembly line as well as those finishing change incorporation.  However Boeing does expect to see an increase in inventory as deferred production balance was recorded at $13.2bn and is expected to grow to about $20bn by the time the production rate hits 10/month after which there should be decline in this balance as airplanes are cleared out of inventory and the production system stabilizes at that rate.  In terms of deliveries Boeing said the deliveries were paced by customer demands and request.  It seems that this may be the reason why there hasn't been too much 787 pre-delivery activity at Everett.  They also said that aft fuselage production is a "hot spot" for Boeing in terms of 787 production and they still have some issues there which they're addressing. It's not a show stopper for the production rate increase. Jim McNerney said that the most important thing is that production is now occurring without the need to send airplanes to the Everett Modification Center (EMC) for change incorporation.  He also said that there is plan to get the aircraft that have to go through the EMC out in an orderly fashion.  He said that the EMC will continue to see work for the next year and half plus (so let's assume for another 18 to 21 months or end of first quarter 2014). Aside from Air India (a deviation from planned deliveries) which is all to well known, Boeing does have a ramp plan for deliveries for the second half of the year.  In terms of the improvement they said that ZA182 (LN70, JA828A) had about 160 open jobs left so they're seeing a lot of improvement in the condition of assembly.  Boeing is also seeing improvement at the EMC in terms of work behind schedule and shortages. They also said that the Trent 1000 gear box issue won't affect deliveries and 4 of 5 of airplanes ANA airplanes have been fixed and it's a very minor issue.  This issue won't affect deliveries of the airplane.  Boeing also gave more indications (there is greater fidelity on the evaluation of the business case) that they will do a 787-10X and that a decision should come later this year or early next year.  McNerney said that it does look like a good airplane which would have a lot of market demand. 

Looking ahead to 787 delivery forecast for the remainder of the year, Boeing said that they still expect to deliver between 35 and 42 787s for all of 2012.  They have already delivered 11.  This means that between 24 and 31 787s will be delivered by the end of this year and this will be split 50/50 between airplanes from EMC and those coming off the final assembly lines in Everett and Charleston.  Thus Boeing is saying that they would deliver between 12 to 15 787 each from EMC and the final assembly lines over the next 5 months starting in August (1 787 already has been delivered from the EMC in July).

Air India

Delivery of Air India's 787s is one step closer as an Indian Government Group of Ministers (GoM) had approved the deal between Boeing and Air India.  The matter now goes to the Indian Cabinet for final approval.  If and when that approval is given the delivery will take place and the fly aways will occur.  It's not known when the Indian CCEA will meet next but it is at his next meeting that the compensation deal will be discussed.

Aeromexico Order

Aeromexico added to the days news with a huge letter of intent (LoI) for 90 737 MAX8 and 737 MAX 9 as well as 10 787-9.  The deal is worth about $11bn.  It is not known if this order is inclusive of options of not but when the deal is finalized the numbers will then be known.  Aeromexico currently has orders for the 787-8 (both purchase and lease) and is expected to start taking deliveries starting in 2013.

Other News

The first 787 fro Ethiopian (see picture above) flew back to Everett this afternoon. ZA262 (LN 49, ET-AOQ) flew back in the Ethiopian scheme after spending close to two weeks in Ft. Worth being painted.  There were other 787s flights today but were test airplanes conducting Boeing test flights out of Boeing Field.  It is not known when the next B-1 flights will occur next but there are still some 787s that need the new gear box fro the Trent 1000 powered airplanes.  The timing of the next 787 test flights is also clouded by the planned closure of Everett's main renway from 4pm on August 2nd to 8AM on August 6th.  It is possible that Boeing can get 1 possibly 2 787s into the air for their B-1 flight before August 2nd but only if they're ready.

787 production improving says Pat Shanahan

Speaking at the Farnborough Air Show, Pat Shanahan  is indicating that the backlog of 787s at Everett will be gone sooner then everyone realizes.  Boeing is making constant progress on the production front to such an extent that the backlog of 787s that are complete and ready to be delivered is growing.  The situation has been likened to people waiting on line at the market waiting to check out with each person waiting their turn on line.  The rate of 787s being released from production however, is exceeding the delivery rate though this should turn around sometime around the fall.  Dominic Gates put together a piece on the 787 production rebound and plans for future production of the 787-9 and the 777X at Everett as well as the future of the EMC and the 787 surge line.  It is expected that the surge line should be activated for production sometime this fall and allowing Boeing to go t o 5/month.  Dominic also confirmed the ZA100 (LN 7, JA803A) should be delivered this month to ANA.  This is the first 787 to enter final assembly back in June 2009.  It has taken three years to deliver this airplane.

Other 787 News

During this pas week, Rolls Royce announced at the Farnborough 2012 air show that they will develop a new version of the Trent 1000 engine called Trent 1000-TEN (for Thrust, Efficiency and New technology).  This engines is to have a 3% improvement in specific fuel consumption over the current package "B" Trent 1000 though I'm not sure how it compares to the the Package "C" engine which is currently undergoing testing in Derby, UK.  The engine is to power the 787-8, 787-9 and the proposed 787-10 aircraft at a thrust of 76,000 lbs but can go as high as 78,0000.  The idea of being able to power all three versions of the 787 is to provide for commonality for customers who order different versions of the aircraft.  It'll be interesting to see if there is commonality across the older versions of the Trent 1000 family.  The engine is expected to enter service in 2016 though a customer has yet to commit to the engine.  Click here to read Rolls Royce's press release.

The Air India saga continues with no delivery date in sight unfortunately.  Final approval could come tonight or it could come when hell freezes over, I'm betting on the later.  Reuters put out an article describing how the Air India 787 order is in the limbo by being caught in the Government of India bureaucracy.  Currently the Ministry of Civil Aviation is waiting for some sign off from some obscure other department and then some such committee can sign off on the compensation deal between Boeing and Air India.  This can really mess with your head. Bottom line is that the 4 airplanes currently sitting on the Charleston flightline aren't going anywhere anytime soon.

GE powered 787 receives FAA type certification

Boeing's 787 powered by the GEnx-1B engines received it's type certification from the FAA today clearing way for deliveries to start to those customers who ordered the GE engine. Japan Airlines is expected to take two 787s powered by this engine at the end of next week. Air India was expected to be the first customer but that has been pushed back due to the compensation issue between AI and Boeing. The government of India now says that Air India will take all the 787s ordered. I anticipate the first one will be delivered in May.

Boeing is planning to deliver one Rolls Royce powered 787 to ANA this month.

Boeing's Press Release:

Boeing Receives Certification for 787 Dreamliner With GE Engines
EVERETT, Wash., March 20, 2012 /PRNewswire/ -- Boeing (NYSE: BA) received an amended type certificate today from the U.S. Federal Aviation Administration (FAA) for the 787-8 Dreamliner equipped with General Electric GEnx engines.

"This is a great day for our customers and for our team who worked tirelessly to ensure the Dreamliner offers breakthrough fuel efficiency, unprecedented performance and new levels of comfort," said Larry Loftis, vice president and general manager of the 787 program. "We are pleased to accept the FAA's confirmation of the safety and reliability of this airplane."

The amended type certificate from the FAA formally recognizes that the 787 with GE engines has demonstrated compliance with rigorous federal regulations. The achievement caps off the most robust flight and ground test program ever conducted in the company's history.

"This milestone completes the certification of the 787-8 airplane, and allows airlines to now operate the GE engine-powered 787 with both the baseline Block 4 engine and the PIP1 engine upgrade," said Mike Sinnett, vice president and chief project engineer for the 787 program. "It also represents the success of a remarkable partnership with the regulatory agencies around the world."

"This is the culmination of extraordinary work by teams from GE and Boeing," said Chuck Nugent, general manager of the GEnx engine program for General Electric. "GE Aviation is honored to power the Boeing 787 Dreamliner with its new GEnx-1B engine, and we look forward to seeing the aircraft-engine combination flying the skies around the world."

Initial type certification of the 787 with Rolls-Royce engines took place in August 2011. Each new combination of an airframe type and engine requires additional certification to validate the integrity of the design.

60 customers around the world have ordered more than 870 Dreamliners.


With the this achievement, Boeing is now complete with the inital flight testing and certification activities for the 787, the Trent-1000 and the GEnx-1B. Boeing will still be conducting further company test flights in support of activities to find additional efficiencies in the aircraft as well as in support of further weight reduction efforts and testing of Trent and GE engine improvements (GE's PIP 2 and RR package "C" improvements). Of course flight testing and certification activities will start a new some time next year for the 787-9 and later in the decade on the proposed 787-10X.

787 and 747-8: Coming to the finish line; delivery set for Aug./Sept. for 787

Boeing has for all intent and purposes declared that the finish line is insight for the 787-8 and 747-8F airplane flight tests and are preparing the gaggle of airplanes sitting at Everett Field for delivery to customers. These announcements came at Boeing Investor's Conference held on May 24th. Boeing program manager's also made revelations regarding the 787-8 and its future variants both in terms of new product development as well as production.

Flight Testing

787

Boeing confirmed that F&R and ETOPS testing will start in early June. Earlier I had reported a June 9th start date and that date looks to be solid. Functionality and reliability testing will test the aircraft as if it is in a commercial airline environment with simulating failures and other problems to see how the 787 will handle it. The test airplanes will be used but critical to this testing will be the use of ZA102, the ninth 787 built and recently re-worked to full production standard with all the necessary change incorporation modifications that were needed. This is the standard that all production 787 in which all will be delivered. So far the Rolls Royce powered 787s have completed 96% of required testing and the GEnx powered 787s are done with 75% of testing.

The FAA must issue an amended type inspection authorization (TIA) before Boeing can start F&R and ETOPs testing but that should happen soon. Thus far, of the 4,200 deliverables that needs to be completed for type certification of the Rolls powered 787, less than 150 remain to be done and of those less than 40 need to be submitted to the FAA directly. ETOPs certification will be accomplished on test points that need to be run and not the number of flight hours. Those test points will be run during the 300 hours needed for F&R testing thus both tasks will be tested concurrently.

As this required testing draws to a close, Boeing will send ZA002 during the week of July 4th to Japan for service ready validation operations (SRVO) where the airplane will be inducted into ANA's operations. This testing is to ensure that the 787 is ready for life as a passenger carrier and not a test airplane. ANA and Boeing will conduct fit checks with maintenance stands and jacks within the hangar, ground servicing operations, refueling and maintenance activities, as well as simulate operations between initial city pairs that ANA will fly the airplane on like Tokyo, Osaka, and Hiroshima. Read Boeing's statement:

Boeing and ANA to Conduct 787 Service Readiness Validation in Japan

-The first time the 787 will fly to Asia and Japan

TOKYO, May 26, 2011 /PRNewswire/ -- Boeing [NYSE: BA] and ANA today announced how the two companies will work together to help prove the 787 Dreamliner's readiness to enter service on a commercial basis. Using the second flight test aircraft, known as ZA002, they will simulate in-service operations across several airports in Japan in a service ready operational validation. The validation is expected to take place the week of July 4. Anticipated city pairs include trips between Haneda Airport in Tokyo and airports in Osaka (Itami and Kansai), Okayama and Hiroshima.
This will be the 787's maiden appearance in Japan. ANA is the launch customer for the aircraft and has 55 Dreamliners on order. The 787, which will be deployed across the ANA route network, is an integral part of ANA's strategy to strengthen its position and support its growth and expansion plans.

"ANA is eager to introduce the innovative 787 Dreamliner to Japan," said Shinichiro Ito, ANA president and chief executive officer. "Giving our employees the opportunity to gain experience with the airplane will help ensure a smoother entry into service later this year."

"We've put the airplane through its paces in a rigorous flight test program," said Scott Fancher, vice president and general manager of the 787 program. "Now, as we get closer to first delivery, we'll prove out its capabilities and reliability in a revenue-like environment."

ANA's maintenance crews also will practice maintenance and servicing of the 787 during the validation. This will include typical ground servicing activities, fit checks of airplane jacks and maintenance hangar stands, towing and refueling the airplane, and other routine maintenance operations. Watch this video to see how Boeing and ANA are planning for the validation.

Similar service ready validations have been conducted with great success on previous Boeing programs, including the 777, 737NG and 757-300.

Boeing plans to deliver the first 787 to ANA in the August to September timeframe.

After SRVO is completed along with ETOPs and F&R , Boeing will submit PSOC (program statement of compliance) which will allows the FAA to rule on type certification for the 787 and allow Boeing to deliver in August/September. My gut feeling is we can see first delivery around mid to late August after ETOPs and F&R testing is completed in mid to late July.

There was no word on testing for the GEnx powered 787 though Boeing is completed with 75% of testing. Boeing still has to announce when F&R and and ETOPs testing will start on ZA005 and ZA006 but I anticipate that Boeing will have to have on production GEnx powered 787 ready to support that testing. It could be ZA177 which is the 23rd 787 built and destined for Japan Airlines. It is currently undergoing rework and change incorporation at Lackland Air Force Base in Texas. Still I would not completely rule out a production plane straight off the assembly line especially if it require very little work to get it ready for flight. Considering that carriers such as JAL, Air India and China Southern have ordered the GEnx-1B, Boeig will be under pressure
to finish up certification activities for the GEnx powered model. I wouldn't expect first delivery to JAL until October at the earliest. GE has received more orders for it's GEnx-1B engines to power the 787 than Rolls Royce has for the Trent 1000 engines.

747

Like the 787, the 747-8F is also nearing the end of its certification tests. It still has to conduct F&R testing and the the start of this testing is dependent on the FAA signing off on part of the Honeywell design flight management software and its readiness to conduct F&R testing. Still according to Guy Norris Boeing expects the start F&R testing around the end of May. To signify how far 747 testing has come, Boeing has sent one 747 test airplanes to Lackland AFB to undergo change incorporation and preparations for delivery. RC503 has been at Lackland AFB since May 13th for the required rework. Flight testing on the 747-8I continues and is currently well over 200 flight test hours between the two flight test aircraft. Boeing has said that the flight test program for the 747-8I will be about 600 flight test hour thus this program is already more than one third of the way through the flight testing hours that is needed.

Production

Boeing also addressed production rates at the conference. Currently, production of the 787 is at two per month. Interestingly, James Bell, Boeing CFO said that Boeing would have built 40 production standard 787s by the time the first one is delivered to ANA. Given that Boeing has just started work on the 35th production standard 787 and at the current pace of 2 per month, Boeing should be at number 40 around August. Boeing is being extremely cautious when it comes to increasing production rates, especially on the 787. They have stated that until they know that they can handle the next production increase without travelled work the rate won't increase. That said they are saying that the 787 production increase to 2.5 per month is expected to start later this summer (August/September in my opinion). Additionally Boeing North Charleston will come one line in July with the first 787 for United Airlines to be loaded in the tooling jig. With all the problems that Boeing has had with the production system, Boeing has indicated t hat they are prepared to move production of the horizontal stabilizer for the 787-9 from Alenia and back in house within Boeing at Seattle. This was in many way not unexpected given Alenia's performance on the HTP for the 787-8. However, Boeing may need to negotiate the move of that work from Italy to Seattle with Alenia as it is Alenia that owns the design though it is unclear if the current agreement between the two firms extended to the 787-9. This tale (pun intended) is not over.

Future 787 Variants

Boeing has always left the option of building variants of the 787 including the larger 787-10 (now known as the 787-10X). During the conference Boeing, while not outright launching the 787-10X has given strong indications that they intend to do so. They plan on a stretch of about 6m which would accommodate an additional 43 passengers over the 787-9 which can carry 290 passengers. This would squarely put it in competition with the A350-900 and can possibly be seen as a replacement for the 777-200 and possibly the 777-200ER. The expected range is going to be less than that of the 787-9 due to keeping the same wing as the -9 variant. James Albaugh, head of BCA said of the -10X, "I believe this will be an airplane we will probably do."