United Airlines to launch nonstop flight between Singapore and San Francisco

United Airlines will introduce daily nonstop flights between Singapore’s Changi Airport and its San Francisco International Airport hub, it announced on Friday (Jan 29).

This will be the first nonstop service between Singapore and San Francisco and the only one to the US from Singapore. The Boeing 787-9 aircraft will be used for this nonstop service, it added.

Flying times will be approximately 15 hours, 30 minutes eastbound and 16 hours, 20 minutes westbound, saving customers up to four hours' journey time each way from previously available flights, the airline said.

Eastbound flights, which will start on Jun 3 subject to government approval, will depart Changi Airport at 8.45am daily, arriving at San Francisco International Airport at 9.15am the same day.

The westbound return flight will depart San Francisco at 11.25pm daily, arriving in Singapore at 6.45am two days later.

Vice President of Atlantic and Pacific Sales Marcel Fuchs said the new service will offer "unique benefits to customers travelling from Singapore not only to San Francisco but also to dozens of other cities across the Americas via our San Francisco hub".

The airline has timed the new flights to connect with destinations throughout the US, Canada and Latin America at San Francisco, providing a one-stop service between Singapore and more than 40 US cities. These 40 cities include more than 25 that do not currently have one-stop services from Singapore, it said.

With the launch of the nonstop Singapore-San Francisco service, United will terminate services between Singapore and Tokyo's Narita Airport from Jun 2. However, it will maintain its daily service between Singapore and Hong Kong.

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Boeing cuts 747-8 production as air freight slows

Boeing said on Thursday (Jan 21) it would cut back production of its freight workhorse 747-8 aircraft by half as the air cargo industry slows.

Boeing said it could move from completing one 747-8 per month to one every two months from September.

The company said data in November showed air freight had contracted by 1.2 per cent over a year, even as air passenger volumes grew 5.9 per cent.

"We are closely monitoring the air cargo market as we work to win additional orders to support ongoing future production," said Boeing chief financial officer Greg Smith.

Boeing will take a US$569 million charge against after-tax earnings for the fourth quarter of 2015 for the production cut. Earnings will be reported on Jan 27.

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The jumbo jet faces a make or break year at Boeing, Airbus

The jumbo jet, for many years the workhorse of modern air travel, could be close to running out of runway.

Last year, there were zero orders placed by commercial airlines for new Boeing 747s or Airbus A380s, reflecting a fundamental shift in the industry toward smaller, twin-engine planes. Smaller planes cost less to fly than the stately, four-engine jumbos, which can carry as many as 525 passengers.

The slump in sales of the jets has raised questions over how long manufacturers can sustain production. It has also fueled internal debate in both companies over the future of the planes, sources said.

The outcome of those discussions will affect the value of existing fleets and thousands of production jobs at the plane makers and their many parts suppliers.

Sales forces at Airbus Group NV and Boeing Co are fighting for potential orders plane by plane as they seek to keep production going beyond the end of the decade, said other aviation market sources. The aircraft makers are offering discounts of at least 50 percent from catalog prices of around US$400 million for a jumbo jet, those sources said. Airbus has said it is also considering a revamp to make its 'superjumbo' more attractive to buyers.

Boeing in September plans to slow the pace of production of its latest 747-8 model to an average of 1.3 planes a month from 1.5 currently. At that rate the orders it already has in hand will only keep the production line going for 2 1/2 years.

The crunch, though, will come earlier because it can take up to two years from ordering the first part to finishing a jet, and no one wants to start the process if it is unclear whether the plane will be completed and delivered to a customer.

"I can see demand for the 747-8 in small numbers, but you have got to ask if they can keep the production line open if they don't get some new orders," said Tony Whitty, chief executive of UK-based aircraft re-marketing firm Cabot Aviation, which trades, manages and leases jets. "You also wonder at what price they are selling."



LONG DESCENT
Use of the 747 has dropped steadily over the last two decades, reflecting the rise of two-engine jets that have come close to matching its range. Over the same period production of large twin-engined jets like the Boeing 777 has risen seven-fold. Last year, Boeing booked 283 new orders for the 777 and now has a backlog of 547 orders.

Airbus is more upbeat than Boeing about the prospects for jumbo jets but both now agree it has become a niche category. Airlines still need jumbo jets but only for certain polar flights - where a two-engine jet may be less safe than a four-engine jumbo because of the lack of places for an emergency landing - and busy routes where landing slots are scarce.

The risk is most visible for Boeing, where investors could face a US$1 billion accounting charge if 747 production is shut down, according to company disclosures.

Boeing recently received a high-profile boost with a provisional order for two new jets to serve as Air Force One for the U.S. President but the 747's future depends a lot more on sales of the much-less glamorous windowless freight model. That has a unique hinged nose and can carry very large equipment, such as oil drilling rigs.

So far this year, Boeing has sold three. Atlas Air Worldwide recently said it plans to order more for its cargo fleet, but wouldn't say when or how many. The world's biggest 747 freight customer, Cargolux , also says it likes the plane, but has a pending order for only three.

A sustained upturn in air freight traffic could secure the 747 a longer future. International freight traffic rose 4.8 percent last year, but volume has only just recovered from a collapse in 2009 during the financial crisis.



CARGO HAULER
Boeing reckons some 143 older freighters will need to be replaced, stretching demand for the 747 through the 2020s, the program vice president, Bruce Dickinson, said in an interview.

"We know there is a long-term market for this airplane and some of the unique things it can do," Dickinson said from his office overlooking the 747 production line at the giant Everett plant near Seattle.

But Boeing’s effort to sell new 747s is overshadowed by the many older 747s available for lease, which have suddenly been made more attractive because of a big slide in fuel prices since the middle of last year. Leasing companies say there is scant interest in new 747-8s when 82 freighters are baking in desert parking lots.

The older planes can be leased for as little as US$400,000 a month, compared with up to US$1.4 million in monthly lease payments for a new 747-8 freighter, experts say.

"That's a pretty big difference," said Gueric Dechavanne, vice president at Collateral Verifications, a Connecticut-based aircraft appraisal firm.

Some companies have extended 747 leases for three to four years, said Aengus Kelly, chief executive of leasing company AerCap .

"It's a challenge to lease a freighter," Kelly told Reuters. "It's definitely a challenge to sell them."

Airbus’s A380 is a newer plane – its first flight was almost exactly 10 years ago - and has become a mainstay of Middle East carriers that offer opulent suites to first class passengers. But the drop in demand is prompting Airbus to weigh whether to revamp the plane with new engines, or carry on with the existing model.

Airbus has 161 orders for the planes in hand, or more than five years of production. But it acknowledges that not all of those jets will be delivered, leaving it with barely three years of guaranteed output. Given the long lead times, Airbus must bring in more orders soon to avoid having to taper production.

“We are always looking at product improvements, but there is so much untapped potential in the existing aircraft,” said Airbus marketing head Chris Emerson.

Airbus could announce an A380 revamp as early as the Dubai Airshow in November, but must first find a way to assure investors it can recover several billion dollars of development costs, sources said. Analysts say on option could be to apply for more European government loans, though that risk

s exacerbating trade tensions with the United States.

Top customer Emirates is offering to double its planned purchase of 140 A380s if Airbus carries out the improvements, which the Dubai carrier’s Chief Executive Tim Clark tells Reuters will be "extremely good for the (airline’s) bottom line."

But Airbus’s board is unlikely to back a new A380 model for just one customer.

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Scoot collects its first Boeing 787 Dreamliner from Seattle

Budget carrier Scoot marked a new chapter in its history, after it collected the first of its Boeing 787 jets on Sunday.

Scoot's chief executive Campbell Wilson and crew received the "keys" to the new Dreamliner from planemaker Boeing under foggy skies at its Everett factory north of Seattle.

At the Boeing delivery centre, close to 80 guests, including journalists and suppliers, were treated to a 10-minute light-and-sound show in a ceremony to unveil the aircraft that gleamed in Scoot's trademark yellow.

The Dreamliner will leave Seattle for its 18-hour flight across the Pacific Sea, making a stop at Osaka before arriving in Singapore on Monday morning at 9.45am.

The plane's first "passengers" will be Mr Campbell, journalists and 38 others, including Scoot staff who scored coveted seats on the delivery flight through a contest.

Scoot's 787s, which will have up to 375 seats in two classes, promise to be more roomy and comfortable. Passengers in all classes can look outside through larger windows and entertain themselves by surfing the internet with Wifi onboard or streaming movies on their tablets and smartphones.

Sunday's delivery of the first Dreamliner comes more than two years after Scoot first announced that it will acquire the 787s. The Dreamliners, which are primarily made of carbon-fibre composite material, are lighter and use a fifth less fuel than the current fleet does.

Scoot, a Singapore Airlines subsidiary, has ordered 20 Dreamliners. As more B787s start coming onboard by August, the carrier expects to phase out six of its ageing, hand-me-down B777 aircraft from SIA. That will mark Scoot's transition to operating an all-Dreamliner fleet, which will be made up of the 787-8s and longer-range 787-9 variants.

Mr Campbell told The Straits Times that the eventual cost savings "improves our bottomline and gives us more scope to offer even better airfares".

It took more than 30 computerised mock-ups over the last two-plus years to finalise the look and feel of Scoot's Boeing 787 cabins. Scoot's Dreamliner fleet will be made up of the 787-8 and longer-range 787-9 variants.

They will each have up to 375 seats in two classes that promise to be roomier and more comfortable. Those onboard will:

- enjoy better seat pitch of between 31 inches (economy) to 38 inches (ScootBiz) and more legroom;

- get better views when they look outside through larger windows;

- charge their laptops and mobile devices with AC power, surf the internet with onboard Wifi connection or stream movies on their tablets and smartphones, although economy passengers will have to pay for these services;

- suffer fewer headaches, dry eyes and nausea, that are typically caused by the lack of oxygen, because the humidity level in the 787 cabin will be higher.

The Dreamliners, which are primarily made of carbon-fibre composite material, are lighter and use a fifth less fuel than the current fleet does. Scoot is among 58 airlines that have either ordered or received 1071 Dreamliners. Among them, 30 have received 231 787 jets.

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Boeing profits up on higher commercial deliveries

US aerospace giant Boeing on Wednesday (Oct 22) reported higher quarterly earnings and raised its full-year profit forecast for the second quarter in a row on increased commercial aircraft deliveries. Earnings for the third quarter came in at US$1.36 billion, up 17.6 per cent from the year-ago period.

Key drivers included a jump to 186 commercial aircraft deliveries, up from 170 in the 2013 period. Boeing booked 501 net orders during the quarter, with Irish carrier Ryanair signing a deal for 100 Boeing 737 airplanes.

In its government-oriented defence, space and security segment, Boeing scored higher profits in its military aircraft unit, in part due to increased deliveries of the P-8 vehicle developed for the US Navy. But revenues fell in the government satellite and global services businesses.

Boeing raised its full-year profit forecast to US$8.10-US$8.30 per share "core" earnings from the prior range of US$7.90-US$8.10.

"With three solid quarters behind us and confidence in our ongoing performance, we are increasing our earnings per share outlook for 2014," said chief executive Jim McNerney.

The third-quarter results translated core profits of US$2.14 per share, much above the US$1.98 forecast by analysts. Revenues rose 7.5 per cent to US$23.78 billion, more than the US$23.02 billion projected by analysts. Boeing shares dipped 0.1 per cent to US$127 in pre-market trade.

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Boeing and Chinese firm to turn 'gutter oil' into jet fuel

US aircraft maker Boeing has set up a facility with a Chinese firm to transform waste cooking oil - the source of repeated food safety scandals - into jet fuel, it said on Wednesday (Oct 22).

Boeing and the Commercial Aircraft Corp of China (COMAC) have set up a plant in the eastern city of Hangzhou to convert "gutter oil", a Chinese term for used cooking oil, according to a statement.

A series of scandals involving "gutter oil" being re-used for human consumption has featured in Chinese media. The two companies estimate that waste oil in China could yield 1.8 billion litres (500 million gallons) of biofuel annually. "Sustainably produced biofuel ... is expected to play a key role in supporting aviation's growth while meeting environmental goals," the statement said.

China is a key market for Boeing, which estimates China will need 6,020 new airplanes valued at US$870 billion through 2033. COMAC is the country's main commercial aircraft company, and could eventually compete with the US firm. It is building a regional jet and narrow body airliner, the C919.

Boeing rival Airbus and Chinese energy giant Sinopec said in 2012 that they would also develop renewable aviation fuel production for regular commercial use in China.

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Indonesia's Garuda makes US$5b plane order: Boeing

Indonesian flag carrier Garuda has placed an order for 50 planes worth almost US$5 billion, US plane giant Boeing said, as competition heats up for passengers in Asia's increasingly crowded skies.

Garuda ordered 46 of Boeing's new 737 MAX 8 jets and is converting existing orders for four 737-800s to 737 MAX 8s, the plane manufacturer said. The purchase is worth US$4.9 billion at current list prices, although airlines typically receive large discounts for big orders. "This order helps continue our commitment to offer the people of Indonesia and Southeast Asia the most comfortable, most efficient air travel in the region," said Emirsyah Satar, Garuda chief executive officer.

The aviation sector in Indonesia, the world's fourth most populous country with 250 million people, has grown rapidly in recent years as an economic boom creates a new class of consumers. Garuda, a state-owned, full-service airline, is facing stiff competition from budget carriers in the region, such as fellow Indonesian outfit Lion Air - which has expanded rapidly - and Malaysia's Air Asia.

The announcement marks the latest phase in an impressive turnaround for the airline. In the 1990s and early 2000s the airline was plagued by problems, including heavy debts and a poor safety record, but Satar has successfully turned it around since his appointment in 2005. It was the first Indonesian firm to be allowed back into European Union airspace in 2009 after a ban was imposed across the country's airline industry.

The 737 MAX family of aircraft are single-aisle jets that carry around 200 passengers. Boeing says they are the most fuel-efficient 737s to date, a key selling point as airlines struggle with high fuel prices. Garuda currently operates 77 Boeing 737s, Boeing said in a statement announcing the purchases on Sunday. It did not say when Garuda would start to take delivery.

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Air Berlin cancels Boeing aircraft orders valued at US$5b

Air Berlin, Germany's second-biggest airline, said on Friday (Sep 26) it had cancelled orders with Boeing for 33 aircraft with a list price of about US$5 billion (S$6.4 billion).

The airline, which last month reported a return to profit in the second quarter, said in a statement that the cancellation would "significantly reduce the future capital expenditure" of the company. It said that under the cancellation agreement with Boeing, it would not have to pay compensation to the US company.

The two firms agreed that the "orders relating to the 18 B737 and 15 B787 aircraft not yet delivered shall be cancelled", it said. "The cancellation agreement does not provide for any obligation of the Air Berlin group to make any compensation payments to Boeing", it added.

The German group will "adapt" its existing fleet by the "acquisition or leasing of suitable aircraft", although a lower number of aircraft than first planned, it said.

Boeing, confirming the cancellation in a separate statement, said its customers "operate in a dynamic environment and their overall fleet needs evolve and change".

"It is our objective to support their needs and to adapt as necessary," it said. "Air Berlin is a long standing and valued Boeing customer and operator of a large fleet of Boeing Next-Generation 737 airplanes."

Air Berlin is due to unveil full details of a restructuring programme this month.

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Ryanair orders 100 Boeing 737 planes for US$11b

Irish budget airline Ryanair agreed to buy 100 aircraft from Boeing for US$11 billion, with an option to purchase another 100 planes from the aerospace giant, the companies announced on Monday (Sep 8).

The order covers the 737 Boeing MAX 200, which Boeing touts as a fuel-efficient vehicle for the important single-aisle civilian market. The planes will accommodate up to 200 seats, up from the 160 in other single-aisle planes.

Ryanair said the giant order will enable it to meet its growth targets, which calls for it to expand from 82 million customers in 2014 to more than 150 million in 2024, which marks the end of the delivery stream of the planes under Monday's order.

"It's going to change the game for low-fare air travel," Ryanair chief executive Michael O'Leary said at a news conference. "It's also going to change the game in Europe."

O'Leary said Ryanair plans to use the jets to enter new markets in Europe and challenge incumbent carriers. "I hope it will hasten a new era of price wars in Europe over the next 10 years," he said.

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Boeing announces orders for 23 planes

Boeing on Thursday (Sep 4) announced contracts for the sale of 23 aircraft, increasing its lead over Airbus in total orders for 2014.

All of the latest orders were for the Boeing 737, a smaller civilian plane that Boeing has touted for its fuel efficiency.

The US aerospace giant reached a deal to sell two planes to Panamanian company Copa Airlines. The identities of customers for the other planes were not disclosed, according to Boeing's website.

With the latest round of contracts, Boeing has reached agreements in 2014 to sell 941 planes. Earlier on Thursday, European rival Airbus disclosed that it has garnered orders for 722 planes in 2014 so far.

Boeing sells its 737s for between US$78.3 and US$113.3 million, depending on the model. Based on those figures, the orders disclosed on Thursday are worth US$1.8-US$2.6 billion.

The 737 has been Boeing's best-selling plane in 2014, accounting for 663 of the 941 aircraft sold since the start of the year. Dow member Boeing finished 0.4 percent lower at US$125.46.

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China needs 6,000 new planes by 2033: Boeing

China will need more than 6,000 new aircraft over the next 20 years, US manufacturer Boeing forecast on Thursday - an increase of almost 500 on its equivalent prediction last year. Flight demand in the world's most populous country and second-largest economy is increasing and diversifying, Boeing said in its new Current Market Outlook for the country.

Chinese new aircraft demand will reach 6,020 planes worth US$870 billion (S$1,089 billion) during the 2014-2033 period, it said, compared to last year's 20-year demand forecast of 5,580 planes. Underscoring the dramatic increase in passenger demand, Boeing said that a total of 6,930 passenger aircraft will be plying China's skies in 2033, three times the current 2,310.

"China's domestic market has been strong and resilient for many years, and continues to be strong," Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, told reporters in Beijing. During the 20-year period Chinese carriers will take delivery of 16 per cent of the world's airplane production, the company said.

Boeing, maker of the 737 MAX and 787 Dreamliner, competes with Europe's Airbus for global dominance in the aircraft market. The US firm says it made more than half the current Chinese commercial fleet, while Airbus says it has an almost-50 per cent share.

"The market is changing, evolving," Tinseth told reporters in Beijing, saying demand for more direct flights to more destinations was being driven by factors including low-cost carriers. "It's good for passengers, and ultimately it will be good for the aviation market here."

Only 1,400 of China's new aircraft in the next 20 years will replace existing airplanes, Boeing said, while 4,620, or 77 per cent, will be additions to the fleet.

In July, Boeing raised its forecast for global aircraft demand by 4.2 per cent from last year's projection, saying it expected 36,770 planes to be delivered over the next two decades in deals worth US$5.2 trillion.

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China's BOC orders 82 Boeing planes worth US$8.8b

Aircraft leasing firm BOC Aviation said Monday it has ordered 80 Boeing 737 planes and two B777-300ERs worth a total $8.8 billion at list prices, to meet expanding client needs as travel booms in Asia.

The Singapore-based company, owned by the Bank of China, said the bulk of the orders was for 50 B737 MAX 8 planes and 30 next-generation B737-800s. The 80 planes have a value of US$8.14 billion based on 2014 catalogue prices published on Boeing's website. The orders will allow BOC Aviation to build on its fleet for the next seven years, the company said in a statement.

The firm said it has also ordered two B777-300ER aircraft, worth a total US$660 million at catalogue prices. Both planes have already been placed with an existing customer, it added. US aircraft maker Boeing said in a separate statement that the order is the "largest in BOC Aviation's 20-year history" and is part of the leasing firm's effort "to grow its portfolio of fuel-efficient airplanes".

Robert Martin, BOC Aviation's managing director and chief executive, said the fresh B737 orders followed a similar purchase made in 2006 for 50 B737 next-generation aircraft. "This is a continuation of our commitment to be responsive to airline customers which are expanding or replacing older fleets," he said. "The 737 is known for its operational and fuel efficiency, and BOC Aviation expects healthy demand for the next generation 737 and 737 MAX in the next seven years."

As of Jun 30, BOC Aviation said its fleet of 251 delivered aircraft included 118 Boeing aircraft operated by 27 airlines. At the Farnborough airshow in July, BOC Aviation also ordered 43 Airbus single-aisle A320 passenger jets worth US$4.4 billion at list prices.

Boeing has projected a travel boom in the Asia Pacific region over the next 20 years from 2013, fuelled by a rising middle class and strong regional economic growth. "As income levels rise, Asia Pacific is set to become the largest air travel market in the world. In 2033, approximately 48 per cent of global traffic will be to, from, or within the region," Boeing said in its latest regional forecast.

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Boeing launches plan to turn tobacco into jet fuel

 US aerospace giant Boeing said on Wednesday (Aug 6) it was working with South African Airways and a Dutch biofuel company to make jet fuel from tobacco seeds. The Dutch firm, SkyNRG, is boosting its production in South Africa of a hybrid, nicotine-free, tobacco crop called Solaris with "biofuel production expected ... in the next few years," the three companies said in a statement.

"Initially, oil from the plant's seeds will be converted into jet fuel. In coming years, Boeing expects emerging technologies to increase South Africa's aviation biofuel production from the rest of the plant," added the firms.

Aviation biofuel, made from renewable resources such as plants, can reduce carbon emissions by 50 to 80 per cent. Airlines have flown more than 1,500 flights powered by biofuel globally since it was approved in 2011.

Earlier this year, Boeing and research partners in the Middle East said they would start field trials after recording progress in making biofuel from desert plants fed with seawater.

Critics of biofuels say they are often manufactured from food crops, or compete for land and water with food crops, driving up food prices.

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Saudi jetliner veers off Philippine airport runway

A Saudi Arabian Airlines jetliner veered off the runway at the Philippines' main international airport on Tuesday (Aug 5), causing a delay in at least 11 flights, airport officials said.

None of the 298 passengers on the Boeing 747-400 plane were hurt after the landing gear got stuck in mud near the runway, but fire and rescue teams had to lift it out and tow it away, said airport spokeswoman Jen Franco.

The plane was making a turn on the runway, preparing to take off for Riyadh when the mishap occurred. Airport officials were blaming the incident on "technical problems," she said.

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Boeing boosts 2014 profit forecast after strong Q2

US aerospace giant Boeing on Wednesday raised its full-year profit forecast after earnings soared 52 per cent in the second quarter, lifted by increased jetliner deliveries.

Boeing posted net profit of US$1.65 billion for the April-June quarter, up from US$1.09 billion in the year-ago quarter.

Core earnings per share rose 45 per cent to US$2.42, widely topping the US$2.01 expected by analysts.

The company delivered 181 commercial aircraft in the second quarter, a solid 7.1 per cent increase from 169 planes a year earlier amid robust demand from airlines.

Boeing raised its 2014 full-year forecast to core earnings per share between US$7.90 and US$8.10, from US$7.15 to US$7.35, citing in part its "positive market outlook."

The improved earnings outlook, with a midpoint of US$8.00, beat market estimates of US$7.67. The Chicago-based company had also raised its profit forecast at the end of the first quarter.

"Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow," Boeing's chairman and chief executive Jim McNerney said in a statement.

"With 783 new commercial airplane orders to date this year and significant contracts in the quarter for military aircraft and satellites, our backlog remains large and diverse."

The second-quarter results included a total of US$524 million in tax benefits.

They also included an unexpected US$272 million after-tax charge to reflect additional work on the huge KC-46A Tanker programme for the US Air Force.

Boeing explained the charge was due to higher spending to resolve engineering and systems installation issues on its tanker test aircraft to keep the programme on schedule.

McNerney said "the issues are well understood" and the company remains on track to begin flight testing fully provisioned tankers in the first part of next year.

In 2011, Boeing won the US$30 billion contract to supply 18 tankers by 2017, beating a bid by European rival Airbus, and plans to deliver the first tanker in early 2016.

Boeing expects to build 179 tankers by 2027 if the US Air Force exercises all options under the contract.

Despite beating profit expectations, shares in Dow component Boeing tumbled 2.3 per cent to US$126.71 as the tanker charge raised concerns.

"It is worrying that Boeing is booking a charge of this magnitude at a relatively early stage in this long-term programme, particularly given recent assurances from management that everything was going to plan," said Robert Stallard, an analyst at RBC Capital Markets.

During the second quarter, Boeing's commercial aircraft division booked 264 net orders, bringing the orders backlog to 5,200 airplanes, valued at a record US$377 billion.

Boeing had a net 499 new orders for the first half of the year, outpacing European rival Airbus's 290 orders. Boeing also was ahead in deliveries, at 342, compared with 303 for Airbus.

Leading Boeing's second-quarter deliveries was the best-selling single-aisle 737 aircraft, with 124 deliveries. Next were 30 deliveries of the new 787 Dreamliner, the high-tech plane that was grounded globally for more than three months last year due to lithium-ion battery problems.

Boeing reiterated that it expected to deliver between 715 and 725 jetliners this year, after a record 648 deliveries in 2013.

Boeing, in early July, raised its 20-year forecast for global jetliner demand by 12.5 per cent, to US$4.5 trillion, assuming that airline traffic would grow by five percent each year.

During the month Emirates Airline and Qatar Airways finalised orders totalling 200 777X airplanes, and British low-cost carrier Monarch Airlines committed to buy 30 737 MAX planes.

Second-quarter revenues at the world's largest aerospace company rose one per cent to US$22.05 billion, missing estimates of US$22.23 billion.

The commercial aircraft division scored a 5.0 per cent rise in revenues, to US$14.30 billion.

Revenues at the smaller defence, space and security division fell 5.4 per cent to US$7.75 billion, reflecting lower US defence spending in the wake of budget cuts.

Boeing said it repurchased 11.4 million shares for US$1.5 billion during the second quarter and raised its dividend payments by about 50 percent.

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Malaysian jet with 298 on board crashes in Ukraine

A Malaysian airliner carrying 298 people from Amsterdam to Kuala Lumpur crashed on Thursday in strife-torn east Ukraine, with US officials saying it was shot down by a surface-to-air missile.

Ukraine's government said the jet was shot down in a "terrorist act", while comments attributed to a pro-Russia rebel chief suggested his men may have downed Malaysia Airlines flight MH17 by mistake, believing it was a Ukrainian army transport plane.

Russian President Vladimir Putin meanwhile said Kiev bore responsibility for the crash, which came as Ukrainian forces battle pro-Moscow insurgents in the east of the country.

As Malaysian investigators headed to the scene, the UN Security Council called an emergency session on Friday to discuss the disaster -- the second to strike the airline in just four months.

Shocked world leaders called for an international inquiry to determine the causes of a disaster with potentially far-reaching political implications, with Britain demanding a UN-led probe.

There was no sign of survivors at the crash site, where an AFP reporter saw horrific scenes, with dozens of mutilated corpses and body parts strewn through the smouldering wreck of the Boeing 777.

Charred debris stinking of kerosene stretched for kilometres across the rebel-controlled zone in the Donetsk region. A top rebel leader said his forces were prepared to agree to a short ceasefire to allow for the recovery operation.

Shell-shocked locals said the impact felt "like an earthquake" in their village of Grabove, near the Russian border.

"Those poor people," said Natalia, 36. "Do you think they understood a thing about this war in Ukraine -- even we don't understand it."

At Amsterdam's Schiphol airport, from where the ill-fated jet took off, an AFP reporter saw family members in tears, while Dutch television broadcast harrowing images of passports found in the wreck, including those of children.

Europe's flight safety body Eurocontrol said Ukrainian authorities had closed the airspace over the east of the country, after a string of countries advised their carriers to stay away.

In Amsterdam, Malaysia Airlines vice president Huib Gorter said 283 passengers and 15 crew were aboard the plane. That total included 154 Dutch nationals, 27 Australians and 23 Malaysians.

The airline said on Twitter that Ukrainian air traffic controllers lost contact with the plane at 1415 GMT, about four hours into its flight, some 50 kilometres (30 miles) from the Russia-Ukraine border.

The disaster comes just months after Malaysia's Flight MH370 disappeared on March 8 with 239 on board. That plane diverted from its Kuala Lumpur to Beijing flight path and its fate remains a mystery despite a massive multinational aerial and underwater search.

Malaysia's Prime Minister Najib Razak said on Twitter he was "shocked by reports that an MH plane crashed" and announced an "immediate investigation."

Najib later told reporters a team of investigators had been dispatched to Kiev, along with a disaster assistance team.

Europe and US stock markets were sent tumbling by the crash, which escalated tensions fuelled by broadened US and EU sanctions aimed at pressuring Russia to force the rebels in Ukraine's east to end their three-month insurgency that has claimed more than 600 lives.

US President Barack Obama offered assistance to "help determine what happened and why".

Boeing also said it was ready to assist in any way.

The Kremlin said Putin and Obama -- at loggerheads over the new wave of sanctions -- had discussed the crash. Obama later called Ukrainian President Petro Poroshenko and Najib.

Two US officials told AFP that intelligence analysts were reviewing the data to see whether the missile used to down the aircraft was launched by pro-Moscow separatists, Russian troops across the border or Ukrainian government forces.

"We are working through all the analysis," said one official.

But that there was little doubt that the plane was struck by a surface-to-air missile, the official said.

"That's what we strongly believe."

In Detroit, US Vice President Joe Biden said the plane was "apparently... and I say apparently because we don't have all the details yet... shot down. Not an accident. Blown out of the sky."

There were conflicting claims of responsibility after the shocking new development in crisis-torn Ukraine, where fighting between separatists and the Western-backed government has claimed over 600 lives.

Poroshenko's spokesman said he believed pro-Russian insurgents downed the jet.

"This incident is not a catastrophe. It is a terrorist act," the spokesman, Svyatoslav Tsegolko, said on Twitter.

The Ukrainian leader said Kiev's armed forces "did not fire at any targets in the sky" and vowed "those behind this tragedy will be brought to justice".

Rebels in the self-proclaimed Lugansk People's Republic claimed the airline split in two after being shot down by a Ukrainian jet -- which was then shot down in turn.

But a social media site attributed to the top military commander of the Donetsk People's Republic, Igor Strelkov, said the insurgents shot down an army transporter at the exact site of the Malaysia Airlines crash.

The comments suggested separatists targeted the jet in the mistaken belief it was an An-26 Ukrainian army transport plane.

"We just downed an An-26 near Torez. It is down near the Progress mine," said the VK page attributed to Strelkov.

"And here is a video confirming that a 'bird fell'," said the post, providing a link identical to that published by Ukrainian media in reports about the Malaysia Airlines jet.

Alexander Borodai, prime minister of the self-proclaimed "Donetsk People's Republic", meanwhile told AFP that separatist forces would be ready to commit to a truce for several days to allow full access to the site.

The crash came with tensions already soaring after Kiev accused Russia of downing a Ukrainian military plane on a mission over the east of the country on Wednesday, the first direct claim of a Russian attack on Ukrainian forces.

Russia's defence ministry -- which NATO claims has massed some 12,000 troops along Ukraine's porous border -- dismissed the claim as "absurd", news agencies reported.

The dramatic developments on the ground came alongside the already serious fallout from fresh US and EU sanctions slapped on Russia.

Moscow condemned the measures as "blackmail" and warned of retaliatory action against Washington, which targeted major players in Russia's finance, military and energy sectors in the sanctions.

In eastern Ukraine, fierce fighting has intensified in recent days with some 55 civilians killed since the weekend, as efforts to revive talks on a ceasefire between Kiev and the rebels falter.

Ukrainian forces made a string of major gains after Poroshenko tore up an unsuccessful truce earlier this month, but progress has slowed since rebels retreated into two major regional centres where they have pledged to fight to the end.

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Airbus tails Boeing thanks to "best" Farnborough orders

Airbus has enjoyed its best ever Farnborough show in terms of orders, the head of the European planemaker said on Thursday, helping it close the gap on US rival Boeing.

Airbus said it had won commitments and firm orders for 496 planes worth more than $75 billion (55 billion euros) at the key industry sales event that alternates annually with the Paris airshow.

Boeing said it had clinched deals for 201 aircraft worth more than $40 billion.

"This is the best Farnborough airshow in Airbus history and this is the third biggest if we include the Paris airshow," chief executive Fabrice Bregier told a press conference at the event near London, which opens its doors to the public over the weekend for flypasts.

The latest deals confirmed on Thursday saw leasing company Hong Kong Aviation Capital sign a firm order for 70 single-aisle A320neo passenger planes from Airbus.

The fuel-efficient jets are valued at $7.72 billion at list prices but customers tend to receive significant discounts on such purchases.

"The green credentials of the neo is one of the key factors for us to choose the aircraft," said HKAC chief executive Donal Boylan.

Transaero, Russia's second-biggest airline, meanwhile said it is committed to buy 20 A330 aircraft, including a dozen new fuel-efficient neos, worth $5.3 billion.

"The clear winner of the show was Airbus," noted Deutsche bank analyst Myles Walton.

Airbus had dominated the start of the week-long Farnborough event, securing a host of commitments for its new long-haul A330neo passenger plane -- from air leasing companies and the airline AirAsia X -- but no firm orders.

- Boeing orders top $40b -

Boeing's big moment at Farnborough came on Wednesday, when it concluded a deal with Qatar Airways for 50 of its revamped long-haul passenger jets along with a potential order for 50 more.

"Customers demonstrated their strong confidence in the family of Boeing commercial products, announcing orders and commitments for 201 Boeing airplanes valued at more than $40.2 billion at list prices," the group said in a statement on Thursday.

Ahead of the show, Airbus had lagged Boeing with 290 net plane orders versus 499 for the US group since the start of the year, when deliveries and cancellations were also taken into account.

The gap now stands at 648 versus 783 in favour of Boeing.

Launched at Farnborough on Monday, the Airbus A330neo airliner is a revamped version of the A330, sporting latest generation Rolls-Royce Trent 7000 engines to provide more economical long-haul travel.

Airbus said it had secured 121 commitments for the A330neo at Farnborough.

Bregier on Thursday said Airbus had no plans in the short term to upgrade the engines on the A380 superjumbo, on display at Farnborough but which won no new orders.

Boeing is meanwhile changing the engines on its long-haul 777 model, helping it to secure new sales as economic recovery picks up around the globe.

Production of the 777X is set to begin in 2017, with the first delivery targeted for 2020.

First deliveries of the Airbus 330neo are scheduled for the end of 2017.

Brazilian group Embraer, the world's third-largest commercial planemaker, also won orders worth billions of dollars for its regional jets at Farnborough, including its new single-aisle E195-E2 jet.

- Furtive F-35 -

Missing from the show however was a much-anticipated appearance of the F-35 fighter jet.

The US military said on Tuesday that it would not send the plane to Farnborough after an engine fire grounded the entire fleet, in another embarrassing setback for the Pentagon's most expensive programme ever.

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Hainan Airlines commits to 50 Boeing 737 MAX jets

China's Hainan Airlines is finalising a deal to buy 50 fuel-efficient 737 MAX passenger planes from US aircraft maker Boeing, the two companies announced on Wednesday.

The commitment for the single-aisle 737 MAX 8s, worth a total of more than $5.1 billion at catalogue prices, is subject to approval by the Chinese government, the companies said at the Farnborough airshow.

"The new 737 MAX will help our airline grow, become more efficient and offer five-star service for our passengers," said Hainan Group chairman Adam Tan.

Boeing said Hainan was "finalising terms and working toward a purchase agreement for 50 737 MAX 8s".

"The commitment, valued at more than $5.1 billion at current list prices, will be subject to the approval of the Chinese government," a statement added.

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Qatar Airways confirms Boeing 777 jets order for US$18.9b

Qatar Airways has finalised a deal to buy 50 new generation 777-9X planes from US aircraft maker Boeing worth $18.9 billion (14 billion euros), the two firms announced on Wednesday.

The order was first announced as a commitment at the Dubai airshow in 2013.

Qatar added on Wednesday that it had agreed a commitment for 50 more of the long-haul fuel-efficient passenger jets, which if exercised would bring the total order value to $37.7 billion at list prices, the airline announced at the Farnborough airshow.

As well as buying up to 100 passenger jets, Qatar said it intended to purchase four 777 freighter planes with an option for four more.

In total, the 777 package is worth about $40 billion to Boeing.

"The Boeing 777 is the backbone of our fleet and is highly amenable to the standards Qatar Airways upholds. We look forward to building on our legacy with the next-generation 777-9X," said the airline's chief executive Akbar Al Baker.

Production of the 777X is set to begin in 2017, with first delivery targeted for 2020. Boeing has so far won 300 orders and commitments from six customers for the 777X.

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Boeing wins plane orders from US leasing groups

US aircraft maker Boeing said on Tuesday that it had won a number of orders for its passenger planes from American leasing companies potentially worth a total of about $10.0 billion.

Air Lease Corporation has ordered 26 Boeing jets in a deal valued at $3.9 billion (2.9 billion euros), the companies announced on the second day of the Farnborough airshow near London.

Air Lease is buying six long-haul 777-300ER jets and has confirmed an order for 20 single-aisle 737 MAX 8 planes.

"Additional 777-300ER and 737 MAX airplanes in our portfolio provide the economics and passenger-pleasing experiences our airline customers require," said Air Lease chief executive Steven Udvar-Hazy.

"The 777 has maintained a broad customer base and will continue to do so well into the future. The 737 MAX represents game changing efficiencies and improvements for the environment in the single-aisle market," he added.

Boeing added that US lessor CIT had ordered 10 787-9 Dreamliners, valued at $2.5 billion at current list prices.

"These aircraft will add to our growing fleet of fuel efficient aircraft that remain in high demand from our airline customers, who also seek state-of-the-art aircraft that provide increased comfort and convenience for the travelling public," said Jeff Knittel, president of CIT Transportation & International Finance.

Intrepid Aviation meanwhile ordered six 777-300ERs and has an option to buy four more in a deal totalling about $3.2 billion, Boeing said on Tuesday.

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