With large OEMs reducing their inventory over the past 2 years we are expecting a large demand for aircraft fasteners (particularly nutplates) in the 3rd and 4th quarter of 2010.  With Sales of aircraft hardware lagging for the past year industry wide we expect aircraft fasteners manufacturers and distributors to see a strong uptick in earnings revealed in 4th quarter 2010 and 1st quarter 2011.

While other airlines are choosing to cancel orders with Boeing and Airbus, Nippon Airways is talking with banks about financing additional orders of the dreamliner aircraft.  It appears to us that someone  is taking advantage of price reductions with Boeing.  We will know in 5-10 years if this was a shrewd business move or a death blow to the company

Paris Air Show Update -  What we see as the biggest news coming out of this years Paris Air show is Boeing comments regarding future business prospects.  Boeing announced they see a slight upturn in commercial aviation orders in the coming 2-3 years however a significant decline in military purchases.

UPS chose to move forward with 4 used Boeing 747-400’s after Airbus told UPS they could not meet the scheduled delivery.  When asked by UPS didn’t go with the Boeing 777 they explained they were surprised with sticker shock.  The four 747-400’s will provide a temporary solution to their fleet until they decide to refresh the fleet in 2015.

Reading Aviation Week & Space Technology it appears the demand for aircraft fasteners by contract manufacturers and OEM’s is set to slump as orders are being canceled and previously long lead time deliveries for aircraft are brought in.  Publicly traded companies are skirting the public eye by delaying the delivery or all together canceling orders for private jets directly impacting the demand for aircraft fasteners.

Hi-Lok and Hi-Tique (HL and HLT part numbers) remain some of the highest demand parts in this environment.  We continue to see lead times exceed 80 weeks delivery on these aircraft fasteners.

If you enjoy following the Boeing delays on the Dreamliner here is one explanation put forward by Financial Times ‘LEX’.

“On Thursday the Seattle-based group announced the fourth delay to the Dreamliner’s schedule. Its first flight has now been postponed by up to six months into the second quarter of 2009. This is in part due to a strike and also a problem with fasteners.

There are perhaps 4m parts on the modern airliner. A problem with one can halt construction, while the solution can then impact on other parts. The Nimrod military aircraft developed by BAE Systems is one example of an initially small problem resulting in great delays and catastrophic cost overruns.

Even brief delays are expensive, both for Boeing and members of its long supply chain. For instance, the estimate for the number of jets Airbus has to deliver to break even on its A380 programme has risen from 250 to about 400 thanks to delays. As staffing makes up the vast bulk of expenses, time equates to higher costs that must then be spread over eventual sales.

Meanwhile, delivering late allows customers to impose a financial penalty. The worst case scenario for Boeing would be a failure to get production up to speed in time – 10 aircraft a month is targeted by 2012 – and then not catch up with the delivery schedule for the 910 on order.”

The financial times offers great following of Boeing’s progress.  A definite must read.

Demand for aircraft fasteners is increasing significantly with Boeing back to work.  Boeing is accelerating  deliveries for all aircraft fasteners and aircraft hardware.

IAM strike at Boeing remains at an impasse as machinists stand firm against outsourcing, delaying production of the 787 even further thus leading Delta to consider 777s as replacements for its 787 order.

We continue to receive aircraft fasteners and aircraft hardware on an earlier than quoted basis as the Boeing strike continues.