Category Archives: Aerospace & Defence

Aviation safety evolution (2018 update)

Yesterday, the Aviation Safety Network released the 2018 airliner accident statistics showing a total of 15 fatal airliner accidents, resulting in 556 fatalities.

Aviation Safety Network is a private initiative from the Flight Safety Foundation which curates an extensive database with aviation incidents, hijackings and accidents, from 1946 to nowadays.

The tweet with which they made the announcement is below:

Which includes the graphic below.

ASN_infographic_2018.

If we take a quick look at the figures (which report commercial aviation flights (passenger and cargo)):

  • Number of accidents: 15, up from 10 in 2017, though still the 3rd safest year in history.
  • Fatalities: 556, up from 44 in 2017, the 9th safest year in history.
  • There were a few accidents with large number of fatalities (details here).

The graphic above from the Aviation Safety Network provides the view of the evolution of accidents. However, in their database they provide some more figures with which I produced some graphics.

Evolution of accidents per million flights

The database provides figures of the evolution of the number of world air departures since 1970, together with the evolution of accidents (above). The database includes a ratio: fatal accidents per million flights, which I have plotted below together with the evolution of flight departures. You can see that the ratio has decreased 16 fold since 1970, from 6.35 to 0.39 last year.

2018_safety_accidents_per_flights

Global air traffic vs fatalities

The database provides no ratio with the figures of fatalities, but they can be related to the amount of passengers carried. In aviation there is the concept of revenue passenger kilometre (RPK) transported, which is compiled year by year and can be found in publications from ICAO, IATA or aircraft manufacturers. I have plotted below both the evolution of traffic growth and fatalities since 1970, together with a 5-year moving average for the fatalities.

2018_safety_RPK_vs_fatalities

Within the evolution of traffic there are two variables that have grown over the years: the number of passengers carried per flight departure and the distance covered. Therefore, together with the decrease in the evolution of fatalities (taking the 5 year average) I have plotted below the evolution of the ratio of fatalities per trillion RPK. You can see that the ratio has decreased 54 fold since 1970, from 3,218 to 59 last year (5-year average).

2018_safety_fatalities_per_RPK

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ACAT aviation rally (rallye aérien) 2018

Last June 23rd, together with my friend Asier, we took part for the first time in an aviation rally (rallye aérien) organised by my aero-club, ACAT.

ACAT_Collage

For starters, an aviation rally, following (more or less closely) the rules of the Aviation French Federation (FFA), is not like the sport cars’ rallies that we may be used to see. It is not about who is the fastest in a given circuit. It is rather about precision, and the purpose of organizing such rallies is to improve as pilots and increase the safety of flight, along with the competition side of it.

The rally in itself included the following parts:

  • A theoretical part.
  • An observation part
  • A navigation part.

In order to rank the teams, a series of penalties are introduced in each of the parts, as described below:

Rally_ACAT_penalties

In order to discover the route of the flights, even if not subject to penalties, the different teams received a questionnaire. By correctly guessing the answers to the questions we would be able to find the route that we had to fly. For this we had a map, a ruler and pens. From that moment the flight preparation started.

We made two flights of about 1h20’ each. In each of the flights, a part of it would be the subject of the competition, defined by a “starting” and “finishing” points that we had to closely over fly. In between those points a few turns had to be made. We had to estimate at what time we would fly over each of the points with a precision of plus or minus 15 seconds. A greater deviation than that was penalized.

To correctly track the route followed and measure the time in which we flew above each of the points, we carried 2 GPS recording devices provided by the organization. With them, the organization was able to print the track of the flights as below.

Rally_ACAT_trajectory

The image above corresponds to the first of the two flights. In the image you can see that we missed the Final Point, in red. But in the table below you can see how we passed the different turning points. We over flew the starting point (10 minutes after take off) 23 seconds behind schedule, which carried a 9 points penalty. The following turning point (PT1) was passed in 6 seconds above schedule…

Rally_ACAT_score

Along each of the flights we had to spot on the ground a series of images (16 per flight). For that we had some papers with small photographs taken in advance by the rally organization. When we saw an image, we had to identify where we had seen it in the map we had been given. The photographs for each of the flights were not in order, so we had to pay attention to see them. The more you saw, the less you were penalized. However, if you placed the landmarks corresponding to the photographs in wrong locations in your map, you were penalized as well.

Rally_ACAT_photos

Before the flights we had to estimate the overall fuel consumption of the aircraft for the two flights. After the flight we refueled to see how good or bad our estimate had been. In our case we had estimated 69 liters and needed 67. Not bad. But those 2 liters of deviation, carried the corresponding penalty.

As part of the theoretical side of the rally, we also completed a multiple choice questionnaire, similar to the PPL exam but shorter.

The experience was great. We had much fun and even if we did not place well in the rally, we learn quite a bit out of it: (1) to select a slower target speed to allow for wind variations and then set your speed to the targeted one instead of compensating at turning points, (2) to better prepare the reaching of the Starting Point of the circuit, (3) the lower fuel consumption to be employed when flying in with a lighter take-off weight.

I guess we will take part in more aviation rallies in the future.

Rally_ACAT_selfie

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Flight excursion to Menorca and Mallorca

Last weekend, with Luca and our children, we took one of the aeroclub’s DR-400 to make a flight excursion from Toulouse (France) to the islands of Menorca and Mallorca, in Spain. The excursion was part of a “Fly out” organised by the Aviation Society of the Airbus Staff Council in which 5 aircraft would make the same trip.

The main purpose of the flight was to visit Menorca, and we flew to Mallorca to refuel before coming back. It is an excursion that in the Society we had been trying to make since 2015 but we have had to cancel it due to bad or uncertain meteorological conditions several times. The flight includes a leap over the sea of about 1 hour from the East of Bagur (in Gerona) to the North of Menorca and, as there are no safe landing spots in that area, you want to have more or less certain good weather along the route both the day of the departure and return flights.

22. a Formentor, Alcudia, Cap Farrutx

Cape Formentor, Alcudia & Cape Farrutx.

We made 4 flights.

Toulouse Lasbordes (LFCL) – Perpignan (LFMP)

Flight duration: 1h11’.

Flight_route_LFCL_LFMP

We included this first stop over Perpignan just to refuel the aircraft to the maximum before flying over the sea all the way through Menorca, so in case of bad weather or any other problem at the destination we could make a comeback to France or somewhere else in the Spanish coast. We selected Perpignan instead of other viable options such as Ampuriabrava for various reasons, among them lower cost of fuel and landing fees.

In the way to Perpignan the sky was overcast (OVC) at a low level around Carcassonne, and, as I did not want to fly on top for that leg, this forced us to fly just at 1000 ft above ground and to follow the highway to Narbonne rather than taking a more direct route to Perpignan over the mountains. You can see the route we followed above.

It was the first time I landed at Perpignan, but finding the field from the way points NL (in the coast) and NF was trivial. Once in the vicinity we integrated directly into the circuit for runway 31, closer to the fuel pump. There, we had a quick lunch and prepared for the following flight.

Perpignan_chart

Find the Garmin record of the flight here.

Perpignan (LFMP) – San Luis (LESL)

Flight duration: 1h56’.

Flight_route_LFMP_LESL

Just after the take-off from Perpignan we took a right turn towards the East and reached the coast South of waypoint EA. From then on we started climbing up to 5500 ft, the altitude selected for the flight over the sea (the highest, the better). In order to keep a high altitude you need to avoid the TMA from Barcelona, otherwise they may ask you to descend below 3000 ft. Thus, we went to the capes of Bear, then Creus and from then on South East heading to pass about 10 nm East of the VOR at Bagur. From then on we followed a series of IFR waypoints (NEMUM – AGENA – VERSO – TOSNU – SARGO).

TMA_BCN

Flying above the sea is not particularly eventful. You mainly need to maintain the altitude and attitude and the heading stable, as it is very easy to loose references with the difficulty to distinguish the horizon.

As far as radio communications are concerned: we were first transferred with the Gerona traffic control and then to the one of Barcelona. The communications were held in Spanish. Easy, as long as you have a flight plan and follow the announced route. Those frequencies were mainly used by commercial flights going to/from Barcelona or Palma, mainly Vueling flights. Also good to know is that as you fly away from Barcelona at some points you may not be heard by the control; no worries, keep going and sending the messages.

About an hour later we had in sight the North of the island of Menorca, the cape of Cavalleria. But before that, approaching the way point of SARGO (about 25 nm or 14 minutes from the shore) you need to descend down to below 2500 ft, though the control will ask to go down to 1000 ft AMSL as that is the limit of the air space class A around the main airport in Menorca, Mahon.

Cavalleria

Cape of Cavalleria.

Once in sight of the shore we requested to follow the coastal line to the East down to the East Corridor for Mahon in order to reach San Luis from the East (the control had however proposed to surround the island around the West and South).

San Luis_chart

Following that route we took the opportunity to take some nice pictures of the coast, the lighthouses and the fortress of Isabel II at La Mola.

San Luis is a non-controlled aerodrome without radio. Therefore, you must stay connected to the frequency of Mahon and land at your discretion, with a circuit to the East of the runway (02/20). The aerodrome is managed by the Aero-club of Menorca. In their site you may find contacts and charts (old ones being in use). There are not official fees but a contribution is expected; 10 euros for landing, 5 for parking. These are paid at the restaurant by the apron, which serves very decent menus and where the staff will be happy to help you calling for  taxi.

We spent the remaining of Friday afternoon and all Saturday enjoying the beach and the hotel’s pools, including a beer on Saturday night with the colleagues from the Society at a bar by the beach, Es Corb Mari (in Son Bou).

Find the Garmin record of the flight here.

San Luis (LESL) – Son Bonet (LESB)

Flight duration: 1h10’.

Flight_route_LESL_LESB

As the aerodrome of San Luis doesn’t have a fuel pump we could refuel at the main airport of Mahon, but as it requires to contract handling (with expensive fees) we preferred to fly down to Son Bonet (in Mallorca island), which landing fee is less than 7 euros, no handling contracting is required and there is free parking for a stay below 2 hours.

We filed the flight plan on the phone with Menorca airport (at this time the number for flight plans being: +34971157138). On ground, we were already connected to the frequency of Menorca and right after take-off we were cleared to turn West and cross the axis of the airport in our way to the West corridor which took us to the South coast of the island up to the cape and lighthouse of Artrutx.

From Artrutx we flew over the sea towards the bay of Pollensa (making use of its VOR), in Mallorca, and then we flew within the inner side of the island following the road from Alcudia to Mallorca by way of Inca. When leaving Inca we passed with the frequency of Son Bonet (123.5) around which English is mainly spoken as there are quite a few helicopters flying in and out. Finding the aerodrome coming from the road was trivial and we easily integrated into the circuit for runway 23.

At Son Bonet we paid the landing fees (~ 7 euro) and filed the flight plan at the small office by the parking. We refuelled (~3.05 euros per litre of Avgas 100LL) and had some lunch before the long  flight to Toulouse.

Find the Garmin record of the flight here.

Son Bonet (LESB) – Toulouse Lasbordes (LFCL)

Flight duration: 3h04’.

Flight_route_LESB_LFCL

Once we were ready at Son Bonet, we got on board and departed from runway 23 again, took a right turn to the West during the climb to fly North of Son Moix on the way to Esporles to reach the coast of Tramuntana in order to fly along it up to the cape of Formentor.

Flight_route_LESB_LFCL_2

In the past, we had visited several spots along the way of this coast on the ground. The landscapes are remarkable. This time we wanted to get a view of them from the plane, which was breath-taking.

Once we reached Formentor we took a heading to the North and followed another series of IFR waypoints (KENAS – SULID – AGENA – NEMUM) to reach the East of the above mentioned VOR of Bagur, cape of Creus and enter back into French air space. This time, as the weather was clearer than during the first flight of the excursion, we maintained 5500 ft altitude until we had exited the TMA of Carcassonne.

Find the Garmin record of the flight here.

Some general remarks:

All the navigation logs were again prepared using the tool Mach 7, and during the flight we used the help of the AirNav Pro on the mobile phone (no tablet, though it would be easier). For Spain we had 1/1.000.000 chart from AIR MILLION (Editerra) and the 1/500.000 from Rogers Data. Neither of them has the IFR waypoints marked on them, so you need to write them down yourself in advance.

VFR aerodrome charts in Spain are retrieved from the site of ENAIRE, which in my opinion is less user friendly than the French equivalent. The charts themselves are comprised of too many different documents to handle; it is better to have a simple single PDF of 2-8 pages s in the French case for VFR. On top of that, not all small aerodromes have the information in ENAIRE, try googling about them or contact the local club.

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Review of Boeing Current Market Outlook 2018

Two weeks ago, on the second day of Farnborough air show, Boeing Commercial published its yearly update of the Current Market Outlook (CMO) for the next 20 years of commercial aircraft market (2018-2037).

I have just compared the figures for passenger aircraft of the last two years’ CMOs:

CMO 2018 vs 2017 comparison

CMO 2018 vs. 2017 comparison.

Some comments to it:

  • You can see that the total number of new aircraft delivered has slightly increased from 40,110 to 41,750, a 4.1%, which is consistent with the 4.7% traffic increase (1) that Boeing predicts (2).
  • The volume (Bn$) increases by a higher percentage, 4.8% (280 Bn$) up to 6.07 Trn$. This is due to the increase in the single-aisle aircraft expected sales in volume (9%, +300 Bn$) and aircraft (6.2%, +1,830), as the other segments see both a forecast decrease in terms of volume and aircraft.
  • For years, Boeing has been dowplaying in its CMO the demand for the segment of the large aircraft (seen as mainly 747, A380 and some other high capacity aircraft, depending on the manufacturer). Last year, Boeing stopped to consider them a category by themselves and merged that category with the “intermediate twin-aisle” (i.e. 777, A350…). This year, Boeing has further reduced the detail provided in the wide-body category by merging large aircraft with the small wide-body (i.e. 787, A330…) segments and now provides a single forecast for wide-body.

This year presentation did not include slides showing the accuracy of Boeing’s CMO of 20 years ago in predicting today’s fleet. They used to include such a slide in previous years’ presentations. I will come back to that in a following post.

Find below a slide from the excutive summary [PDF, 263 kB] that provides a good snapshot of the forecast that the guys from Boeing have put up together:

BoeingCMOinfographic2018.png

As always, I recommend going through the CMO, as you can learn a lot about the business: from global numbers, to growth, traffic figures, fleet distributions, forecasts, etc… You may find the presentation [PDF, 5.1 MB], a file [XLS, 0.6 MB] with all the data or the full CMO report [PDF, 11 MB].

(1) Traffic increased measured in RPKS (revenue passenger kilometers) in trillions.

(2) These two ratios, 4.1% fleet demand and 4.7% traffic growth, point to an implicit increase in the average size of the aircraft in fleet and / or a higher utilization of the aircraft (higher availability).

(3) Find the reviews I wrote comparing 2017 CMO with 2016 CMO2016 CMO with 2015 CMO2015 CMO with 2014 CMO2014 CMO with 2013 CMO and 2013 CMO with 2012 CMO.

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Flight excursion to the Flying Legends airshow at Duxford.

Two weeks ago, Albert, a work colleague, and I took one of the aeroclub’s DR-400 airplanes to make a flight excursion from Toulouse to Northampton Sywell, Old Warden and Duxford (England) as part of a “Fly out” organised by the Aviation Society of the Airbus Staff Council, in which 6 aircraft would make the trip.

The main purpose of the flight was twofold:

  • Visit the Shuttleworth collection and their evening flight display on Saturday 14th July.
  • Visit the Flying Legends airshow at Duxford, hosted at the Imperial War Museum, on Sunday 15th July.
Mont Saint 34_Michel

Mont Saint Michel.

During the trip we were to make 6 flights: Toulouse Lasbordes (LFCL) – Cherbourg (LFRC), Cherbourg – Sywell (EGBK), Sywell – Old Warden (EGTH), Old Warden – Fowlmere (EGMA), Fowlmere – Laval (LFOV), Laval – Toulouse Lasbordes. In all about 14 hours of flight time, which we split among the two of us, together with sharing the navigation and radio communications workload.

Flights_picture

We prepared the flights using Mach 7 online tool, with which we generated the flight logs and routes for GPS, which could only be charged onto Albert’s smartphone, I replicated them in my Air Navigator app on my phone as well, however we did most of the navigation by way of following the paper charts.

Chart

Having to fly most of France from South to North, we decided to overfly some castles of the Loire Valley (Chenonceau, Cheverny and Chambord), the racing circuit of Le Mans and Omaha beach in Normandy (which we couldn’t see well due to the presence of clouds at the time we passed). See below some of the pictures we took of those places (with the smartphone, no pro cameras on board).

1_Chenonceau

Château de Chenonceau.

2_Cheverny

Château de Cheverny.

3_Chambord

Château de Chambord.

4_Le Mans

Racing circuit of Le Mans.

We then made a stop, refuelled the airplane, ate some energy bars and departed for England. The weather seemed uncertain and there were several air traffic restrictions due to the Royal International Air Tattoo going on at Fairford, preparations for Farnborough air show, and the visit of Donald Trump, staying at Buckinghamshire. However, our colleague found a corridor through which we could fly smoothly past 15 h local time. We over flew the English Channel (La Manche) and approached the islands by first flying over the Isle of Wight (where I stayed one month during the summer of 1999 working at Camp Beaumont in Bembridge, at the eastern corner of the island, pictured below), the Hayling island leaving Portsmouth to our left, then up North by way of Winchester, Reading, Oxford and then Northampton. But as you can imagine, as there are not sign posts in the sky we were flying following the instruments and different navigation references close to those places. We took the opportunity to over fly Silverstone racing circuit.

5_Isle of Wight

Isle of Wight.

6_Silverstone

Silverstone racing circuit.

We then landed at Sywell, where we stayed for a night at the Aviators hotel, by the aerodrome, an ideal place to make an overnight stop.

 

The following morning we made a short flight to Old Warden, a small grass aerodrome where the Shuttleworth collection is based.

I found about the Shuttleworth collection some years ago in Twitter and started following their account (@Shuttleworth_OW). They happen to have arguably the largest collection of flying aircraft from the 1910s and 1920s. They do have the oldest flying machine in airworthy condition, a Bleriot XI from 1909. Rather than introducing the collection with a few paragraphs, I share here this video from their site:

For me, visiting the collection was a dream come true, moreover on a day in which they would fly most of their airplanes. See below a few pictures.

10_Bleriot XI

1909 Bleriot XI. The original oldest airplane in airworthy condition.

11_Triplanes

1920s biplanes (DX60X Moth, Southern Martlet).

12_Bristol Boxkite

Bristol Boxkite 1910 replica flying.

9_Avro Triplane

Avro Triplane 1910 replica.

I wanted to share a short video I took of the Bristol Boxkite 1910 replica flying just after taking off (a replica built in 1965). It took its time to gain some altitude, always at quite low speeds. It never went much higher than 50 ft. It was wonderful to see it flying.

We stayed the night over at the camping by the aerodrome and in the morning we departed for Fowlmere, another grass aerodrome a few miles from Duxford. The taxiway at Fowlmere was fully packed of small airplanes (including the Antonov An-2 coming from Germany that you can see below) and tents of pilots that had been camping the previous night or would camp the following one, as we did.

 

We got a faboulous breakfast at the airfield and then drove to Duxford to attend the Flying Legends air show and visit the Imperial War Museum.

Flying-Legends-2018Our Fly out was organised by a fellow British colleague, Derek. He recalled how being brought to Flying Legends as a child by his father had been a marking moment. He only came again decades later. The air show is one of the biggest and best classic aviation events in the world. If you have the chance to visit it once, do not hesitate, go.

This year the show commemorated the 100th anniversary of the Royal Air Force and the 50th anniversary of the filming of Battle of Britain which had Duxford as one of the locations and some of those very airplanes as main characters of the movie. Other locations of the filming were the Tablada airfield in Seville (where Airbus Defence has facilities), the coast in Huelva passed as Dunkirk or San Sebastian as if it was Berlin.

There are plenty of aircraft to see up close, from the flight line, many exhibitors come with  books, models, clothing, memorabilia, etc., you’ve got the museum in itself (!) to visit, you have literally dozens of WWII birds flying, among them: Supermarine Spitfire (we saw a formation of 11 of them flying), Hawker Hurricane, North American P-51 Mustang and resident Boeing B-17 Flying Fortress Sally B (only B-17 in flight in Europe)… By the end of the day you will be more than overwhelmed, exhausted, but with that smile of wonder when watching those jewels fly up in the air while you hear the engines roaring, the music and the explanations from the commentator of the show.

21_Flying Fortress

Boeing B-17 Flying Fortress Sally B.

20_Flying Fortress

Boeing B-17 Flying Fortress Sally B.

 

See this short video of the Balbo formation flight at the end of the display with 25 single engine WWII birds flying…

After the show we headed back to Fowlmere where we had dinner with three other colleagues (French and German) before walking to the airfield to camp by our airplane, which felt as the aviation of the beginning of the XX century.

22_camping

Fowlmere_4

Monday 16th July, feeling exhausted and overwhelmed, was the day to come back to Toulouse. The weather seemed good in England and to cross the channel but not so in France, so we took it with calm. We flew through the East of London, crossed the channel and then overflew all the coast of Normandy down to Omaha beach, then we headed South West to the Mont Saint Michel and then to the airport of Laval. There we rested for a couple of hours, ate more energy bars, studied the meteorological conditions to go further South and finally departed back to Toulouse Lasbordes.

24_London

London skyline.

25_Qeen E II bridge & Littlebrook Power Station

Queen Elizabeth II bridge and Littlebrook Power Station.

26_Thames

Thames river estuary.

27_Cliffs d'Etretat

Cliffs of Étretat, Normandy (France).

28_Le Havre Pont de Normandie

Le Havre. Pont de Normandie.

29_Oil tankers

Oil tanker ships departing from Le Havre.

30_Sword beach

Sword beach (British). Normandy Landing.

31_Arromanches

Remainings of Arromanches mulberry bridge.

32_American cemetery Omaha

American cemetery at Omaha beach.

33_Omaha beach

Omaha beach.

Mont Saint 34_Michel

Mont Saint Michel.

Main takeaways and afterthoughts:

  • The airshows and visits were totally worth it. Dreams come true.
  • Over flying those castles, circuits, beaches, historical landscapes… you can imagine, breathtaking.
  • Radio communications: much easier than expected, in England as well (even if the there were lots of radio frequency changes to be made around London). French in France, English in England.
  • We made ourselves follow in each air space. It forces you to interact more with the control but it adds to the safety of flight (traffic information overflying Saint Michel or the castles is advice-able).
  • Flight plans: in France they are not required for the long flights we did South-North flying spaces E and G. But we filed them. It allows the control to better follow you. They know your plans, they give clearances for D spaces without hesitation.
  • All the terrains we visited in England required PPRs (a colleague took care of this).
  • To fly into England a GAR report must be submitted in advance.
  • We didn’t touch a single sterling pound in the four days, credit cards almost did the trick for everything. A colleague had to pay for a taxi and a meal. We could have avoided that by selecting alternatives which accepted credit card payment.
  • We had to divert due to the meteorological conditions when arriving to one of the destinations. Clouds and fog were closing our visibility. We found ourselves with no more than 3-4 km of visibility and flying very low, so we turned back. The two diversion aerodromes we had initially selected would not do the trick (in the middle of the cloud region). We had to look for a third one in flight. That was stressful. Luckily we were two pilots on board: one keeping the airplane on air, the other navigating, looking for a suitable aerodrome and downloading the aerodrome chart (we carried about 30 on board, but not the one we finally needed). Lessons learnt: never spare charts, you may need them; ensure you’ve got batteries and chargers on board (you may need them in the worst situation), if you are the only pilot on board, but have passengers with you, try to get one of them briefed in advance of what can he or she do if something happens.

After this excursion I have completed just above 120 flight hours, and I am quite happy with the flight training provided by the aeroclub and system in France. Before the excursion we had some uncertainties about some aspects of the flight. In the end all of it was much easier than expected.

 

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Boeing vs. Airbus: CEO compensation (2017)

For the last 4 years I have been writting a small series of posts comparing the compensation of Airbus and Boeing CEOs (1). This series started out of conversation with colleagues and I keep it updated to have a record of the evolution and for quick reference in other conversations (2). Thus, this post is just the update with the information for the 2017 fiscal year.

As both Boeing and Airbus are public companies, the information about their CEOs compensation is public and can be found in the annual report and proxy statement from each one. I just share the information and sources below for comparison and future reference.

Airbus CEO, Tom Enders’ 2017 compensation (financial statements here, PDF, 4.0 MB, page 58):

Enders_2017

Airbus CEO Tom Enders 2017 compensation.

Enders saw his base salary frozen in relation to 2016 at 1.5 M€. Variable pay decreased in 7.3%, post-employment benefit costs increased, etc. The main change in last year’s remuneration was the line “Termination benefits”, which in the notes it is explaiend as stipulated in 1.5 times the “Total Target Remuneration (defined as Base Salary and target Annual Variable Remuneration)”, as Enders announced that he will retire from the post when his current term expires in 2019. Thus, the overall compensation (9.1 M€increased.

Boeing CEO, Dennis Muilenburg’s 2017 compensation (2018 proxy statement here, PDF, 6.7 MB, page 30):

muilenburg_2017.png

Boeing’s CEO Dennis Muilenburg 2017 compensation.

Dennis Muilenburg saw his base salary increased in 50 k$. And with that all other incentive and other compensation concepts. The total compensation (18.45 M$) increased in relation to 2016 and has now raised above the 2014 levels (17.8 M$).

Comparison. It is interesting to note that while the base salary is nearly the same, 1.5 m€ vs 1.69 m$ (more so taking into account average exchange rates in 2017 (~ 1.13 USD/EUR)), the incentive schemes at Boeing end up with a total remuneration for the CEO about the double (x1.8) of that in Airbus.


(1) See the previous comparisons for the years 20132014, 2015 and 2016.

(2) From what I see in the stats of the visits to this blog, other people are having similar conversations as these posts with the compensation comparison have ranked among the top 10 most read ones the last years.

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Boeing commercial aircraft discounts (update for 2017)

A couple of weeks ago I published a post with “My forecast of Boeing Commercial Airplanes 2017 revenues“. In that post I built a forecast of Boeing Commercial revenues based on its 2017 airplanes deliveries, orders, list prices and my estimate of the discounts Boeing applies as a relation to what it reports in the revenues vs. what it publishes as list prices.

“I’ll try to guess the figure of revenues for the Boeing Commercial Airplanes division, not so much trying to be accurate in itself, but to point in advance to the increasing of the discounts as we will see below.” (excerpt from the referred post)

My forecast for Boeing Commercial revenues was 57.0 bn$. A few days later, on January 31st, Boeing announced its 2017 results. Boeing Commercial revenues were 56.7 bn$.

Boeing Commercial Airplanes revenues full 2017

As I already anticipated,

“[…] I see that their discounts have been greatly increased in the last 2017. […]

The implied discount of my revenues forecast would be in the ~ 50% range.”(excerpt from the referred post)

With those 56,729 bn$, the 2017 Boeing list prices, its 763 airplane deliveries and 912 net orders I come to an estimated average discount for Boeing commercial aircraft of 50.4%.

Discount evolution_2017

Boeing Average Discount Evolution, through 2017.

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