Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s - Jan 25, 2011

SEATTLE, Jan. 25, 2011 /PRNewswire/ -- Boeing (NYSE: BA) and Alaska Airlines today announced an order for 15 Next-Generation 737 airplanes, comprised of 13 737-900ERs (extended range) and two 737-800s. The 737-900ER is a new model for the Alaska Airlines fleet. The contract, which includes exercised options previously placed by Alaska, is valued at $1.3 billion at list prices.

The largest and newest model in the 737 family, the 737-900ER can carry up to 26 more passengers or fly about 500 nautical miles (926 km) farther than the 737-900. The longer range of the 737-900ER will connect distant city pairs across continents, such as Seattle to Orlando, Fla., in a generous two-class configuration. It has substantial economic advantages over competing models, including six percent lower operating costs per trip and four percent lower operating costs per seat mile. Alaska Airlines plans to operate the 737-900ER in a two-class configuration with 178 to 184 seats.

"The reliability and efficiency of our 737 fleet has been a direct contributor to our strong financial performance," said Brad Tilden, president of Alaska Airlines. "The 737-900ER will be a perfect fit for our transcontinental, high traffic west coast and mid-continental markets and will be the most fuel efficient airplane in our fleet. We look forward to adding the same 'Proudly All Boeing' logo to these airplanes that already adorns the rest of our 737 fleet."

The Next-Generation 737s will add capability to Alaska Airlines' fleet of 114 737s currently serving 61 destinations in the United States, Canada and Mexico.

"Alaska Airlines has established a strong record of operational and financial performance by operating a highly efficient and flexible all-Boeing 737 fleet," said Marlin Dailey, vice president of Sales and Marketing for Boeing Commercial Airplanes. "The addition of these Next-Generation 737s demonstrates our hometown partner's strong investment in its future growth. It also speaks to the continuous improvements we are making to the Next-Generation 737 in terms of efficiency, economics, reliability and passenger comfort."

The Next-Generation 737 family is the world's best-selling commercial jetliner. Demand for the Next-Generation 737 has led Boeing to announce two production rate increases, leading to the highest-ever production rates for the airplane in 2013.

Boeing, Alaska Airlines Complete Contract for 15 Next-Generation 737s - Jan 25, 2011

Boeing: Boeing Receives $1.6B Contract for P-8A Poseidon Low-Rate Initial Production

SEATTLE, Jan. 25, 2011 -- Boeing [NYSE: BA] on Jan. 21 received a $1.6 billion contract from the U.S. Navy for low-rate initial production (LRIP) of the P-8A Poseidon aircraft. The LRIP 1 contract is for six P-8A aircraft, spares, logistics and training devices.

The Navy plans to purchase 117 of the Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet. Initial operational capability is planned for 2013.

“Providing these production aircraft to the Navy fleet on schedule is our No. 1 goal,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “This is an exciting day for Boeing and the Navy and a testament to the P-8 team’s hard work and determination.”

"This first production contract represents a significant commitment by the U.S. Navy to recapitalize its force of long-range maritime patrol and reconnaissance aircraft," said Capt. Leon Bacon, P-8A deputy program manager for the Navy. “Ensuring that this capability arrives on schedule and within budget remains our primary objective.”

Boeing will begin final assembly of the first LRIP aircraft at its Renton, Wash., facility this summer. The Poseidon team is using a first-in-industry in-line production process that draws on Boeing’s Next-Generation 737 production system. All P-8A-unique aircraft modifications will be made in sequence during fabrication and assembly.

“The in-line approach we’ve incorporated on this military derivative aircraft is already paying the dividends we expected by helping us improve efficiency and reduce costs,” said John Pricco, Boeing Commercial Airplanes P-8 program manager.

As part of the U.S. Navy System Development and Demonstration contract awarded to Boeing in 2004, the team is building and testing six flight-test and two ground-test aircraft. The first three flight-test planes, T1, T2 and T3, are completing testing at Naval Air Station Patuxent River, Md. The program’s static test plane, S1, recently completed its test program, which began in May 2009; S2, the fatigue test plane, will begin testing later this year.

A derivative of the Next-Generation 737-800, the Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $34 billion business with 68,000 employees worldwide.

Boeing: Boeing Receives $1.6B Contract for P-8A Poseidon Low-Rate Initial Production