Loading

B787 one step closer to service

Analysis

Boeing announced it started function and reliability (F&R) testing and extended operations (ETOPS) demonstrations on the B787 on 26-Jun-2011, another major step in getting the aircraft into service. This is the final phase of flight testing prior to certification of the aircraft.

Summary
  • Boeing begins function and reliability testing on the B787, the final phase before certification.
  • Testing is being conducted on both Rolls-Royce and General Electric engine versions of the B787.
  • Boeing's B747-8 is also undergoing testing, with progress being made on the flight computer configuration.
  • Boeing and Rolls-Royce launch a shared data service to provide better advice to airlines for maximizing aircraft availability.
  • Boeing declares a regular quarterly dividend of USD 0.42 per share.
  • Embraer CEO downplays rumors of a partnership with Boeing, while the appreciation of the Brazilian real puts pressure on Embraer's margins.

In addition to F&R and ETOPS testing for the B787 with Rolls-Royce engines, Boeing continues certification testing on B787s with General Electric engines and will conduct a separate F&R/ETOPS programme for that version.

Boeing is also progressing with the testing of the B747-8 and expects to have a final configuration for the flight computer next week. The company's B787 and B747-8 are in an undeclared race to see which aircraft will enter commercial service first.

Rolls-Royce and Boeing have also launched a new shared data service. It will allow both companies to offer faster, better-informed advice to airlines to maximise aircraft availability. The service, available to airlines with Rolls-Royce Engine Health Monitoring (EHM) and Boeing Airplane Health Management (AHM) data, will initially be available for the Trent 1000/B787 Dreamliner and the Trent 800/B777 combinations. By year end it will also cover RB211-524/B747 and RB211-535/B757 combinations.

Boeing's board has declared a regular quarterly dividend of USD0.42 per share. The dividend is payable 02-Sep-2011, to shareholders of record as of 12-Aug-2011.

Shares in Boeing were up 0.5% on Monday. EADS shares lost 1.9% while Embraer shares dropped 6.8%. Embraer CEO Frederico Fleury Curado played down speculation over the weekend that the company was looking at a partnership with Boeing. Paulo Cesar de Souza e Silva, Embraer Commercial Aviation President forecast that the Brazilian real would continue to appreciate against the US dollar for another 18-24 months, until the economic recovery takes hold more firmly in the US. The appreciation of the real has been placing pressure on Embraer's margins.

Selected aerospace share price movements (% change): 27-Jun-2011

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More