Thursday, November 19, 2015

2016 Look Ahead for the 787 Deliveries

Projected 2016 Deliveries (Operator)Expected Total DeliveriesExpected 787-8 DeliveriesExpected 787-9 Deliveries
Aeroméxico303
Air Austral220
Air Canada10010
Air China707
Air Europa550
Air France101
Air India220
Air New Zealand303
American Airlines844
ANA13112
Avianca330
British Airways11011
Crystal Air110
Ethiopian Airlines440
Etihad Airways505
Hainan Airlines808
Japan Airlines734
KLM - Royal Dutch Airlines606
LAN505
Norwegian Air International Ltd404
Qatar Airways550
Royal Air Maroc330
Royal Jordanian110
Saudi Arabian Airlines303
Scoot Pte Ltd220
Thomson101
United Airlines505
Uzbekistan Airways220
Vietnam Airlines505
Virgin Atlantic Airways404
Xiamen Airlines101
Total14038102

With 2015 winding up, this is a good time to look ahead to production and delivery of the 787 in 2016.

According to sources, Boeing should deliver 140 787s including 7 early build 787s in 2016. Next year will see many changes for the 787 program not the least of which is the break of rate from 10/month to 12/month. Given that 133 787s will be new builds this indicates that the increase in production rate will allow Boeing to deliver 13 more 787s in 2016.  

In 2015 we started seeing the 787-9 deliveries outpacing those of the 787-8.  In 2016 the number 787-9 deliveries should out deliver the 787-8 by a margin of 2.68:1, 102 787-9 should be delivered vs. only 38 787-8s.

Another milestone that should take place by the end of 2016 is the start of 787-10 production.  The first 787-10 test aircraft should load into position 1A in Charleston late in the 4th quarter of 2016.  In order to protect current 787 production from any unforeseen assembly issues, Boeing will reallocate 787-8 and 787-9 production slots from Charleston to Everett.  These slots will include aircraft that will enter final assembly before loading of ZC001 (LN528) as well as after it has started final assembly.  The extra margin will allow Boeing to conduct tests inside the assembly building as well without disrupting production of customer aircraft.  I anticipate that the first 787-10 aircraft should roll out during the 1st quarter 2017.

LocationDeliveriesCharlestonDeliveriesEverettDeliveries
Charleston61787-817787-821
Everett79787-944787-958

Obviously the big deal for the 787 program is the increase in production.  Right now Everett is producing 5-6 aircraft per month while Charleston is between 4-5.  Between the two, Boeing is producing 10/month.  By March 2016 both production facilities will be starting to produce at 6/month with the delivery rate increasing in May 2016 as can be seen in the table above and below. Curiously, August shows only 7 deliveries which may be due to customer readiness to take delivery during that time of the year.  It appears that deliveries in September will make up for the low August delivery count.  The 787 program should end 2016 on a strong delivery note with 34 projected deliveries.

There will be 787 operators who will receive their first 787 in 2016.  They are: Air Austral, Air China, Air Europa, Air France, Crystal Air and Uzbekistan Airways. The operators who will be receiving their 1st 787-9 are Aeromexico, Air China, Air France, American Airlines, Hainan Airlines, Norwegian, Thomson, and Xiamen.

Projected Delivery Monthly Breakout:

MonthTotal787-8787-9CharlestonEverett
January102846
February123957
March123966
April102855
May145968
June1541178
July1221057
August72534
September1441059
October1221066
November124848
December105555

Here are charts based on the table above:







Looking at the first table one can't help but noticing that a few carriers will be getting a large number of deliveries.  Air Canada will be inducting 10 787-9, ANA will take 12 787-9 as well as their last 787-8, British Airways will receive 11 787-9s and American Airlines will take charge of 4 787-8 and 4 787-9s.  Chinese carrier Hainan will also take 8 aircraft, all 787-9s.

As with 2015, I'll be keeping track of the 787 delivery progress through 2016 among other things related to the 787 particularly the 787-10 development.

787 Full Production Table

Saturday, November 14, 2015

787 November 2015 Mid-Month Review



Midway through November and Boeing is on track to deliver 14 787s this month with clear delivery dates for the remaining 787s that have yet to be delivered.

Boeing delivered 7 aircraft (4 787-8 and 3 787-9) to customers including KLM's first 787-9 leased from AerCap. Through November 15th, Boeing has delivered 119 787 year to date and total program deliveries stand at 347 aircraft.  A planned delivery on November 16th will take Boeing to 120 deliveries in 2015 meeting their 787 delivery guidance number for the year of at least 120 787 deliveries.  It appears that Boeing is on track to deliver at least 134 787s this year.

Seven Dreamliners are in line to be delivered in the next 15-16 days.  These include 2 787-9 each for British Airways and United Airlines; 1 787-8 each for Oman Air and Aeromexico (leased from CIT Leasing) and finally a 787-9 for ANA.  Except for the CIT (going to Aeromexico) 787-8 all the other aircraft still have to conduct a C-1 flight most of which should be done by the November 20th.

On the production front, things looks to be proceeding normally as Boeing has rolled out 5 787s and started assembly on 5 others thus maintaining the 10/month production rate.  Later this week Boeing should roll out ZB561 (LN371, C-FNOI) a 787-9 for Air Canada. This is the penultimate 787 that will be assembled on the surge line in 40-24. The last 787, a 787-9 for KLM will be rolled out next month for delivery around late February.

Later this month I'll be posting the annual 787 look ahead for 2016 discussing the production and delivery expectation for the 787 program.

787 Full Production Table

Thursday, November 5, 2015

Boeing posts new 787 order for El Al and a surprise with the Aeroflot 787 order

This morning updated it's weekly net orders and El Al showed up as mentioned in Boeing's press release last week. El Al is in for 3 787-9s and will firm the remaining 6 orders over time.

Also an extremely interesting development with the Aeroflot order. The airline has been on the record as saying they intend to cancel the order for 22 787-8s.  

With the monthly update to the 787 order book now out, it seems that Aeroflot converted 4 787-8 into 787-9!  Not something you'd expect from an airline that so publicly announced their intention to cancel a couple times since the summer.  Seems there's more to this drama than meets the eye.

787 Full Production Table

Wednesday, November 4, 2015

Qatar to exercise 787 options?

Boeing Photo
Boeing delivered two 787-8 Dreamliners to Qatar Airways today in Everett in a ceremony attended by Akbar (U-Turn Al) Al-Baker.  Qatar Airways will have their full complement of 30 787-8s by the end of next year but they also have 30 options still waiting to be exercised.

Al Baker said that Qatar Airways will look to firm the 30 options that they hold for the 787 though no timing was given.

The interesting question is now which model and when will they be delivered.  As some readers may recall, Qatar Airways staff had a tense relationship with Boeing workers at Charleston where Boeing had decided that Qatar's 787-8s would be built. Thus if they selects the 787-10 can Qatar's staff work with the Boeing Charleston staff? Certainly if Qatar firms up the 787-9 they can be built in Everett but at the end of the day Qatar will choose the right mix of 787s regardless of where they're built.

As to when they firm it up, well I had expected that to happen at the Paris Air Show this pat summer.  I also had expectation of an announcement today (I'm sure Boeing and Al-Baker did talk about firming the options behind close doors) but I think it may happen late next month if it is to happen before year end but quite possibly we can see the order at next week's Dubai Air Show.