On August 25th, Boeing Co. won an $8.8 billion order from BOC Aviation Pte (“BOC”), the Singapore-based aircraft leasing arm of Bank of China Ltd. The order, consisting of 82 planes including 50 upgraded 737 Max 8s, 30 737-800s, and two wide-body 777-300ERs, is indicative of the company’s efforts to meet surging travel demand throughout Asia.
On August 20th, the U.S. Navy selected five companies to develop and install a new shipboard tactical electronic network on its fleet over the next eight years. The indefinite-delivery / indefinite-quantity contract was valued at $2.53 billion to install the shipboard network known as Consolidated Afloat Networks and Enterprise Services (“CANES”) aboard 180 units by 2022.
The U.S. Army recently selected Textron’s Bell division in partnership with Lockheed Martin and the team of Boeing and Sikorsky in a Joint Multi-Role program to each build a helicopter that could effectively replace hundreds of Black Hawk and Apache models.
Boeing and United Technologies have continued to amass reserves of titanium parts from a Russian producer to hedge against uncertainty surrounding international economic tensions as a result of conflict between Russian-backed separatists and the Ukrainian government.
Boeing recently released its second quarter earnings report, highlighted by a 1% rise in revenue and a 52% rise in net earnings compared to the same period last year. The Company announced earnings per share of $2.42, beating analysts’ estimates of $1.99 by a considerable margin.
This week, Bombardier Inc. unveiled plans to revamp its organizational structure as President and Chief Operating Officer of Bombardier Aerospace since 2008, Guy Hachey, stepped down. Previously organized as two separate divisions, Aerospace and Transportation, Bombardier is attempting to re-define its business with a new structure, which will include four unique business segments: Transportation, Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services.
The biannual Farnborough Air Show was underway this week, drawing major players from the aerospace industry to the historic airfield in Hampshire, England. For manufacturers, the show offers a chance to highlight new product innovations and capabilities, while for airlines, the show is an opportunity to see new designs and place purchase orders.
Boeing released its Current Market Outlook this week for 2014 through 2023, identifying several important trends in the aerospace market over the 20-year forecast period. Most notable among these is a 3.2% growth in global GDP, driving passenger and cargo plane traffic growth 5.0% and 4.7% annually, respectively.