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  1. Hope this helps... https://airinsight.com/fuel-burn-numbers-max-vs-neo/ Fuel burn numbers – MAX vs NEO by Addison Schonland | May 28, 2019 | Fuel Burn | 1 comment The US DoT data for 2018 has been published. Analyzing the numbers we generated preliminary data comparing fuel cost numbers for the MAX and NEO. (There may still be some gaps to fill) We stuck to fuel costs to minimize the chance of airline creative accounting. This is not a dig at the airline industry. The DoT advised us as follows when we found some numbers to be odd: “While DOT has followed GAAP (Generally Accepted Accounting Principles) since 1989, there are a number of instances where we don’t. Our Chart of Accounts is pretty rigid. It does not change, to do so would require a Rulemaking. Air carriers will follow FASB pronouncements when reporting to the SEC, but we may instruct them differently. Case in point, FASB ASU No. 2014-09 told air carriers to record all ancillary fees as passenger revenue. We instructed the carriers not to. GAAP tells business entities (air carriers) to show “Other Comprehensive Income” below “Net Income” and specifically states “not to post to Retained Earnings on the balance sheet, but to create a new line item for it”. We do not have new line items and instruct the carriers to record it in Retain Earnings.” Back to the MAX vs NEO numbers. The chart shows the rise in fuel costs as oil prices have risen. We took the fuel costs and air hours from Form 41 table 5.2 and took ASMs divided by mile flown to get average seats from the T-2. The chart is a combination of data points. The interesting item here is clearly the MAX8 curve. In 2017 the A320neo had a lower number and by 2018 they are about the same. Next, we go into the details. In 2018 the MAX8 we see fuel costs per hour per seat over 20% better than the 737-800. The MAX9 shows an improvement in fuel costs of nearly 12% over the 737-900ER. An item worth noting – the 737-900ER numbers look very competitive with those of the A321neo. This is not because the 737-900ER has equally compelling economics – it doesn’t. The Boeing is used more extensively on longer hauls and its fuel numbers benefit from this. The largest A321neo fleet in the US belongs to Alaska (flying them transcon) and it is too small to make a dent, for now. As American and Delta start getting their deliveries, we expect to see the A321neo fuel costs drop considerably compared to the 737-900ER. No data was published allowing for a comparison between the A321neo and MAX9. The A321ceo to A321neo fuel costs decline nearly 12% – which we think underscores the relative “misuse” of the A321neos at present. These aircraft need to have their legs stretched. Next note that the A320ceo to A320neo shows a fuel cost drop of 25.5% in 2018. This is quite a bit better than the MAX improvement over the NG.
  2. https://www.atsb.gov.au/media/news-items/2022/covered-static-ports/ 787’s covered fan cowl static ports highlights importance of clear and unambiguous procedures Key points: Boeing 787 being used for freight operations flew from Melbourne to Los Angeles with tape covering its engine cowl fan static ports; While the flight was uneventful, the covered ports meant redundancy for the engine electronic control system was reduced; Job instruction card for restoring a 787 to service did not link to Boeing’s recommended procedures; Qantas has amended its engineering instructions to properly reference Boeing’s recommended procedures. A Boeing 787 being used for a freight flight flew from Melbourne to Los Angeles with tape over four of its static ports, a new ATSB investigation report details. After the Qantas 787-9 aircraft, registered VH-ZNJ, landed in Los Angeles on the morning of 22 September 2021, a Qantas engineer found tape covering the four static ports on the aircraft’s engine fan cowls. Static ports provide important air pressure data to aircraft systems. Boeing recommends they be covered, to avoid contamination, when the aircraft is parked for periods up to 7 days, and Qantas incorporated this instruction into its ‘normal’ parking procedure. The ATSB investigation details that on the day before the incident flight, an engineer undertook the parking procedure on the aircraft, which included covering the engine cowl static ports with ‘remove before flight’ barricade streamer tape. “Later that day, another engineer was tasked to conduct the ‘restore’ procedure to return the aircraft to flight status,” ATSB Director Transport Safety Stuart Macleod explained. “The tape on the engine fan cowls was not removed by that engineer, as per the manufacturer’s procedures, and this wasn’t identified by flight crew or dispatch during pre-departure checks.” VH-ZNJ subsequently took off with the tape still on its engine fan cowl static ports. “While the flight was uneventful, the covered ports meant redundancy for the engine electronic control system was reduced,” Mr Macleod noted. The ATSB found that while the job instruction card (JIC) developed by Qantas for parking a 787 did link to Boeing’s recommended procedures, the JIC for restoring it back to service did not. “This was a missed opportunity to assist engineers to readily access the current procedures and determine which ports were covered, and also allowed for different interpretations of which ports could be covered,” Mr Macleod said. “When performing safety‑critical tasks like aircraft maintenance, it is very important that procedures are clear and unambiguous to avoid misinterpretation and error such as occurred in this incident.” At interview, the flight crew’s second officer, who conducted an exterior inspection of VH-ZNJ before the flight, reported they were aware of the fan cowl ports, but not that they could be covered by tape. The second officer also reported they were somewhat distracted during the inspection, as they had found a pitot tube cover on the ground, and were trying to hand it off to an engineering staff member at that time. “The second officer also believed Qantas engineering had conducted a pre-flight inspection prior to the flight crew arriving at the aircraft,” Mr Macleod added. Following the occurrence, Qantas distributed memos to engineering, and flight and ramp crew, highlighting the location of the fan cowl static ports and that they may be covered. In addition, the airline amended its ‘park’ and ‘restore’ engineering instructions to both reference Boeing’s procedures. The investigation report also notes the metre-long tail of the ‘remove before flight’ tape covering the static ports was stuck down, to prevent it being torn from the fuselage in strong winds, as per Boeing’s recommended procedure. “This likely reduced the visibility of it covering the fan cowl static port covers,” Mr Macleod said. “Targeted inspection of locations and components, rather than relying on streamers, which can detach, can help to identify when these covers or devices have not been removed.” Read the report: AO-2021-040 Aircraft flight preparation occurrence involving Boeing 787-9, VH‑ZNJ Melbourne Airport, Victoria on 22 September 2021
  3. Taxes aren't the problem. It's greed... https://www.bloomberg.com/opinion/articles/2022-05-09/crude-hovers-at-110-a-barrel-but-the-refinery-margin-makes-us-pay-a-lot-more?sref=5dj0X2VO Sorry, But for You, Oil Trades at $250 a Barrel The culprit is the refinery margin and the consequences are huge for global inflation. By Javier Blas May 9, 2022, 1:48 AM EDT Listen to this article 6:22 Share this article Follow the authors Javier Blas is a Bloomberg Opinion columnist covering energy and commodities. A former reporter for Bloomberg News and commodities editor at the Financial Times, he is coauthor of “The World for Sale: Money, Power and the Traders Who Barter the Earth’s Resources.” @JavierBlas + Get alerts forJavier Blas In this article CL1 WTI Crude 113.23 USD/bbl. +1.02+0.91% XB1 Generic 1st 'XB' Future 383.73 USd/gal. +0.56+0.15% SHEL SHELL PLC 2,336.50 GBp +8.00+0.34% MS MORGAN STANLEY 78.82 USD -1.14-1.43% Open If you are the owner of an oil refinery, then crude is trading happily just a little above $110 a barrel — expensive, but not extortionate. If you aren’t an oil baron, I have bad news: it's as if oil is trading somewhere between $150 and $275 a barrel. The oil market is projecting a false sense of stability when it comes to energy inflation. Instead, the real economy is suffering a much stronger price shock than it appears, because fuel prices are rising much faster than crude, and that matters for monetary policy. Petroleum Shock Refined oil products have risen between 30% and nearly 140% since Russia invaded Ukraine in late February, compared to less than 15% for crude. Source: Bloomberg To understand why, let’s examine the guts of the oil market: the refining industry. Wall Street closely monitors the price of crude, particularly a grade called West Texas Intermediate traded in New York. It’s a benchmark followed by everyone, from bond investors to central bankers. But only oil refiners buy crude — and therefore, are exposed to its price. The rest of us — the real economy — purchase refined petroleum products like gasoline, diesel and jet-fuel that we can use to run cars, trucks and airplanes. It’s those post-refinery prices that matter to us. Typically, the price of crude and the price of refined products go up and down in tandem, almost symmetrically. What’s in between is a refining margin. In normal times, WTI is a handy price shorthand for the entirety of the petroleum market. So when, say, U.S. Federal Reserve Chairman Jerome Powell looks at WTI, he gets a neat picture of the whole energy market. More from BloombergOpinion The SPAC Bust Is Expensive Stagflation Is Sexy. It May Also Be Unlikely. Art Is an Investment to Appreciate Don’t Let Erdogan Slow NATO Enlargement But we aren’t in normal times. Right now, the traditional relationship between crude and refined products is broken. WTI is anchored around $100-$110 a barrel, suggesting that — in barrel terms — gasoline, diesel and jet-fuel prices shouldn’t be much higher, once you add the average refining margin. In reality, they are a lot more expensive. Take jet-fuel: in New York harbor, a key hub, it’s changing hands at the equivalent to $275 per barrel. Diesel isn’t far away, at about $175 a barrel. And gasoline is at about $155 a barrel. Those are wholesale prices, before you add taxes and marketing margins. What’s changed? Refining margins have exploded. And that means energy inflation is far stronger than it appears. Oil refineries are complex machines, capable of processing multiple streams of crude into dozens of different petroleum products. For simplicity’s sake, the industry measures refining margins using a rough calculation called the “3-2-1 crack spread”: for every three barrels of WTI crude oil the refinery processes, it makes two barrels of gasoline and one barrel of distillate fuel like diesel and jet-fuel. Cracking Profits Oil refiners are enjoying the best ever processing margins, lifting the cost of fuels such as gasoline, diesel and jet-fuel well above that of crude Source: Bloomberg Note: WTI 3-2-1 cracking margin From 1985 to 2021, the crack spread averaged about $10.50 a barrel. Even between 2004 and 2008, during the so-called golden age of refining, the crack spread never surpassed $30. It rarely spent more than a few weeks above $20. Last week, however, the margin jumped to a record high of nearly $55. Crack margins for diesel and other petroleum products surged much higher. There are four main reasons behind the explosion in refining margins. First, demand — particularly for diesel — has rebounded strongly, depleting global inventories. In some markets, like the U.S. East Coast, diesel stocks have fallen to a 30-year low. Despite rising prices and fears of an economic slowdown later this year, oil executive say they see strong consumption for now. “Demand is not that easily destroyed,” Shell Plc Chief Executive Officer Ben van Beurden told investors last week. Second, the U.S. and its allies have tapped their strategic petroleum reserves to cap the rally in oil prices. That has provided extra crude, which has put a lid on WTI prices, but it hasn’t addressed the tightness in refined products. Only a small fraction of the emergency release is in the form of refined products, and only in Europe. Third, and perhaps most importantly, refining capacity has declined where it matters for the market now, and the plants that are operating are struggling to process enough crude to satisfy the demand for fuel. Martijn Rats, an oil analyst at Morgan Stanley, estimates that outside China and the Middle East, oil distillation capacity fell by 1.9 million barrels a day from the end of 2019 to today — that’s the largest decline in 30 years. Opinion. Data. More Data. Get the most important Bloomberg Opinion pieces in one email. Email Sign Up Bloomberg may send me offers and promotions. By submitting my information, I agree to the Privacy Policy and Terms of Service. The downward trend started well before the pandemic hit, as old Western refineries struggled to compete, environmental regulations increased costs and the unfounded fear of peak oil demand amid the energy transition prompted some companies to close plants. The fuel-demand collapse triggered by Covid-19 only turbo-charged the trend, resulting in dozens of refinery operations shutting down for good in Europe and the U.S. in 2020 and 2021. New capacity has emerged in China. However, Beijing tightly controls how much fuel its refiners can export so that capacity is effectively out of reach of the global market. “Has the oil market hit the refinery wall?,” Rats asked in a note to clients last week. “Unusually, the answer appears to be yes.” Fourth, are the sanctions and unilateral embargos — also known as self-sanctions — on Russian oil. Before the invasion of Ukraine, Russia was a major exporter not just of crude, but also of diesel and semi-processed oil that Western refiners turned into fuel. Europe, in particular, relied on Russian refineries for a significant chunk of its diesel imports. The flow has now dried. Europe not only needs to find extra crude to produce the diesel and other fuels it’s not buying from Russia, but, crucially, it needs the refining capacity to do so, too. It’s a double blow. Oil traders estimate that Russia has shut down 1.3 million to 1.5 million barrels a day of refining capacity as result of the self-sanctions. Who’s benefiting? The pure-play oil refiners, which are quietly enjoying record-high profit margins. While OPEC and Big Oil get the blame, independent refiners are cashing-in. The sky-high crack margins explains why the share prices of U.S. refining giants Marathon Petroleum Corp. and Valero Energy Corp. have surged to all-time highs. The longer the refiners make super-profits, the harder the energy shock will hit the economy. The only solution is to lower demand. For that, however, a recession will be necessary.
  4. Waddell's Wagon, created to train pilots to taxi in the 747 before prototypes were completed.
  5. Another cool trick with the Iphone is that if you see an aircraft flying over, say 'Hey Siri, planes overhead' and it will give you the information on what flights you are seeing and a sky map of where they are.
  6. Now that's a crop duster!
  7. https://www.cnn.com/2022/05/16/business/ryanair-ceo-boeing-attack/index.html Boeing needs to get its 's*** together,' Ryanair CEO says New York (CNN Business)The CEO of Ryanair let loose a scathing, obscenity-laden attack on Boeing management Monday, saying company executives need either an immediate "reboot, or a boot up the a**." "At the moment we think Boeing management is running around like headless chickens, not able to sell aircraft, and then even the aircraft they deliver, they're not able to deliver them on time," said Michael O'Leary, CEO of Ryanair, Europe's largest discount carrier, which has ordered nearly 400 jets from Boeing since 2010. O'Leary and Boeing had an unusually public dispute last fall about negotiations on a possible order for the next generation of the 737 Max, with Ireland-based Ryanair breaking off talks because of a pricing squabble. The CEO's unusually blunt comments Monday were focused on Boeing's delayed deliveries of planes. O'Leary said Ryanair had to scale back its spring and summer schedules because planes it had expected the aircraft maker to deliver by the end of April probably won't arrive until the end of June. Boeing is losing the plane race. So it packed up and left for Washington He was livid about the delays, especially because Ryanair is purchasing planes known as white tails, which Boeing had built for other airlines. The original purchaser of those planes canceled the order during a prolonged 20-month grounding of the 737 Max that followed two fatal crashes. "I can understand why there may be various challenges manufacturing new aircraft, but aircraft that you built and made two years ago that all you had ... to do was put petrol in them and f***ing fly them to Dublin, really I don't understand why you're taking two to three month delays on that," he said on a conference call with investors about the airline's financial results. "It is redolent of very poor management performance in Seattle." Boeing did not respond to a request for comment on O'Leary's remarks. Criticizing management O'Leary said Boeing makes great planes, but it might be time to change management. "Either the existing management needs to up its game, or they need to change the existing management, would be our view of life," he said. "We're very happy to work with existing management but they need to bloody well improve on what they've been doing delivering to us over the last 12 months. ... We're a willing customer, but we're struggling with slow deliveries and an inability to do a deal on new aircraft despite the number of white tails they have sitting on the f***ing ground in Seattle." Boeing has faced numerous problems in recent years, including the 737 Max crisis that cost it more than $20 billion. The company also was hit with an FAA-ordered halt of deliveries of its 787 Dreamliner last June due to quality control problems. And it faced delays winning approval for its next-generation widebody jet, the 777X, that forced Boeing to push back the first deliveries of the plane by two years to at least 2025. Boeing also took substantial losses in its military and space businesses, including a recent $660 million charge on the two planes it is completing that will be used as the new Air Force Ones. It's also combating delays in building a spacecraft to carry US astronauts to the International Space Station. "If they get their s*** together, we'd be willing to take more aircraft for summer '23 and summer '24," O'Leary said. "There's growth there to be won." He also said the airline is willing to restart negotiations on an order for the new generation of the 737 Max, although he pointed out that has yet to win FAA approval, making it risky to depend upon. So Ryanair is also looking at possibly purchasing 50 jets on the second hand market instead. And he had choice words for Boeing's sales staff. "You wonder what the hell their sales team has done in the last two years," O'Leary said. "Frankly most of them seem to sitting at home in their f***ing jimjams working from home instead of being out there selling planes to customers." O'Leary also criticized Boeing's recently announced plan to move its corporate headquarters from Chicago to Arlington, Virginia, a suburb of Washington. "Moving the headquarters to Virginia from Chicago, while it may be good for the defense side of the business, doesn't fix the fundamental underlying problems on the civilian aircraft side in Seattle," he said. Other customer criticism In addition to O'Leary, several other airlines have complained on recent conference calls — although in far less colorful language — about the problems they face from the 787 or 777X delays. Domhnal Slattery, the CEO of Avolon, one of the world's leading aircraft leasing companies, suggested earlier this month that Boeing needs a change in culture — and maybe leadership. "I think it's fair to say that Boeing has lost its way," Slattery said at the Airfinance Journal conference, in comments first reported by Reuters and confirmed by Avolon. "Boeing has a storied history ... They build great airplanes. But it's said that culture eats strategy for breakfast and that is what has happened at Boeing."
  8. Spotted today, May 4th....
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