The Boeing Company reported fourth-quarter net income of $1.3 billion, or $1.75 per share, as revenue rose 42 percent to $17.9 billion. Current period results reflect solid performance across core businesses and represent a significant improvement over the year-ago quarter, which included a labor strike and a charge on the 747 program.
Revenue for the full year reached a record $68.3 billion on higher commercial deliveries and growth in Defense, Space & Security. Earnings for the year declined to $1.84 per share due to a combined $3.58 per share impact from previously announced 787 and 747 events in Commercial Airplanes. Earnings for 2008 of $3.67 per share included a combined $2.56 per share impact primarily due to a labor strike and charges on the 747 program.
Stability is the best the aerospace and defense industry can hope for in 2010: a year in which airlines catch their breath for a predicted upturn, commercial aircraft orders should begin to recover, and defense sales could plateau before beginning a threatened decline.
Business aviation had a horrible year, but for most industry sectors 2009 was not as bad as was feared. Commercial aircraft orders plummeted, but deliveries were maintained thanks to years-long backlogs. Military programs were terminated, but war costs kept defense spending at high levels.
Large segments of the industry dodged the brunt of the global economic downturn in 2009 and are positioned to weather whatever 2010 brings, but 2011 could prove a tougher year as the impact of defense cuts takes hold while commercial aerospace is still in the early stages of a recovery.
American intends to furlough up to 175 pilots over the next six months, although it is negotiating with the pilots’ union to reduce the total through various voluntary options.
The carrier is talking with the Allied Pilots Association to “develop possible furlough mitigation.” The carrier is contractually obliged to offer a “stand-in-stead” program where pilots can volunteer to take the place of a furloughed colleague, an airline spokeswoman said. APA said it is “hoping to compel” American to offer voluntary leaves of absence and early retirement incentives to minimize the furlough numbers.
Airbus will decide this year whether to re-engine the A320, with company officials hoping the combination of a new powerplant and already-approved winglet upgrade could improve fuel-burn of the single-aisle aircraft by as much as 15%.
Airbus CEO Tom Enders said he expects a decision this year on whether or not to re-engine, and also what the potential powerplants might be. The goal is to keep the A320 commercially strong in the face of growing competition from the likes of the Bombardier CSeries and Comac C919.
The Boeing Company today delivered the first two Project Wedgetail 737 Airborne Early Warning and Control (AEW&C) aircraft to the Royal Australian Air Force (RAAF).
The aircraft were delivered during a ceremony at RAAF Base Williamtown, the main operating base for the Wedgetail fleet. Attending the ceremony were officials from the RAAF, the Defence Materiel Organisation and Boeing.
