- Corporate Address
- 100 N. Riverside Plaza
Chicago, IL 60606-1596
Boeing is a leading manufacturer of commercial and military aircraft, rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Headquartered in Chicago, Boeing employs more than 170,000 people across the United States and in 70 countries.
Boeing is organised into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. Supporting these units is Boeing Capital Corporation, the Shared Services Group and Boeing Engineering, Operations & Technology.
Boeing’s main commercial products are the B737, B747, B767 and B777 families of aircraft and the Boeing Business Jet. New product development efforts are focused on the B787 Dreamliner, 737Max, 777X and the B747-8. The company has nearly 12,000 commercial jetliners in service worldwide, which is roughly 75% of the world fleet.
10,046 total articles
314 total articles
Air Canada’s improved positive 1Q2014 outlook is encouraging as it works towards long-term stability
Canada’s largest airline Air Canada has revised its outlook for 1Q2014 to a slightly more favourable performance after its cost and revenue metrics beat initial expectations.
Air Canada’s encouraging revisions to its 1Q2014 projections are against a backdrop of a falling CAD against the USD, which is creating mixed results for the carrier. The outlook of Air Canada’s rival WestJet is markedly different – it expects costs to rise and unit revenues to remain flat or increase slightly during 1Q2014 as it believes currency fluctuations will dampen its results.
The operation of higher density aircraft, protections in place to combat the swings in Canada’s currency and tempered capacity growth helped Air Canada change its outlook for 1Q2014, but the carrier is still expected to report a quarterly loss. After the initial excitement of better-than-expected cost and revenue performance wears off, the loss is what will linger in investors’ minds.
Canada’s WestJet recently celebrated achieving an investment grade rating from Standard and Poor’s, a worthy accomplishment given the short list of carriers that have managed to reach that important milestone.
The endorsement is a reflection of WestJet’s strong performance in several key financial metrics, and its successful management of debt and liquidity levels while it has undertaken substantial changes to its business during the last year which include the launch of its new regional subsidiary Encore.
But in the short-term WestJet is facing some cost pressure, driven in part by its new business initiatives, mainly Encore, that have some time before reaching full maturity. Despite the cost creep the carrier assures that its business fundamentals and the Canadian market place remain strong. The carrier has built a strong foundation to weather the challenges, but ultimately it needs to keep costs in check to fully enjoy its new-found investment-worthy status.
Latin American powerhouse LATAM Airlines Group recorded losses for 4Q2013 and FY2013 driven in part by continuing currency fluctuations in Brazil and other markets in Latin America.
Brazil’s currency devaluation has dogged LATAM for much the past year even as the company has taken steps to minimise its balance sheet exposure to the weak BRL, and by YE2013 it had reduced its risk by half compared to the year prior.
LATAM’s ongoing efforts to minimise risks posed by varying exchange rates and a fleet overhaul are creating some flux for the carrier throughout 2014; but the company assures it is meeting its overall synergy goals estimated by the merger of LAN and TAM, and remains committed to balance sheet improvement.
Avianca’s strength in Colombia and Peru, two of Latin America’s fast growing markets, helped the carrier record strong financial results for 4Q2013 and FY2013.
The company also achieved other significant achievements in 2013 including rebranding all the carriers within the Avianca-TACA group to Avianca and the completion of a listing on the New York Stock Exchange to broaden its reach for funding for expansion.
A continued fleet renewal and long-haul growth is driving Avianca’s planned 8% to 9% capacity growth during 2014 as the carrier readies for the launch of new service from Bogota to London in Jul-2014. Given Avianca’s strong performance during 2013, it should be able to absorb the capacity increase without hurting its profits.
SilkAir 737 MAX fleet to open up network options while boosting Boeing’s narrowbody presence in Asia
While Singapore Airlines regional subsidiary SilkAir is now celebrating delivery of its first of 23 737-800s, it is the second part of its largest ever aircraft acquisition programme that could be a game changer. The Singapore Airlines (SIA) regional subsidiary plans to take the first of at least 31 737 MAX 8s in 2H2017, enabling efficiency improvements and new medium-haul routes.
SilkAir will have the opportunity to use the MAX’s improved range to open new destinations in North Asia, Central Asia and Australia. The improved economics of the aircraft also potentially opens up destinations in India and China which are not viable with current generation narrowbody aircraft.
SilkAir is only one of four Asian carriers that has so far committed to the 737 MAX, along with Thailand’s Nok Air, Virgin Australia and Indonesia’s Lion Air. Nok, which announced its order at the recent 2014 Singapore Airshow, also expects to be one of the first carriers to take the MAX when it enters service in 2H2017.
Singapore Airlines (SIA) regional subsidiary SilkAir began a new chapter on 20-Feb-2014 as its first Boeing 737-800 entered service, taking over from slightly smaller A320s on four short-haul sectors. The carrier has just completed a momentous week as 21-Feb-2014 marked its 25th anniversary while on 17-Feb-2014 it rolled out a new brand campaign emphasising its full-service offering.
SilkAir has been extremely successful over the past decade, with steady profits and growth despite low-cost carriers invading its home market. LCCs now account for one-third of total capacity in Singapore and about half of the short-haul market, compared to virtually zero 10 years ago.
SilkAir, however, faces some of its biggest ever challenges as it begins its 26th year. Singapore’s short-haul market is suffering from overcapacity, impacting yields and load factors across LCCs and full-service carriers. SilkAir is fighting back with product, network and brand improvements but the market will not likely be able to fully absorb the capacity it is adding in 2014 as it places into service eight 737-800s.