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Introduction
Dec. 16, 2014: There have been record aircraft orders year after year, swelling the backlogs of Airbus and Boeing to seven years on some product lines, Bombardier’s CSeries is sold out through 2016, Embraer has a good backlog and the engine makers are swamped with new development programs.
So it is with some irony that several Original Equipment Manufacturers (OEMs) are warning of cash flow squeezes in the coming years.
Summary
Posted on December 16, 2014 by Scott Hamilton
Airbus, Boeing, Bombardier, CFM, CSeries, Embraer, GE Aviation, Irkut, Mitsubishi, MTU, Premium, Rolls-Royce
787-10, A320NEO, A330neo, A350, A380, A380-900, A380neo, A400M, air force tanker, Airbus, Boeing, Bombardier, C-17, CFM, Comac, E-Jet E2, Embraer, GE Aviation, GE9X, GTF, Irkut, KC-390, KC-46A, LEAP, Mitsubishi, MTU, Pratt & Whitney, Rolls-Royce
The new chief executive officer of United Technologies Corp., Gregory Hayes, threw cold water on hopes and dreams of Pratt & Whitney, a subsidiary, that the successful small- and medium-sized Geared Turbo Fan will grow into the wide-body market.
Aviation Week just published an article in which all three engine OEMs were reported to be looking at a 40,000 lb engine that would be needed to power a replacement in the category of the Boeing 757 and small 767. Hayes did not specifically rule out a 40,000 lb engine, leaving PW’s potential to compete for this business unclear.
Hayes has been CEO for two weeks. He was previously CFO. He made his remarks in a UTC investors event last night. The Hartford Courant has this report.
Hayes’ remarks were in response to a question from an analyst about research and development expenses. Here is his reply, from a transcript of the event:
Posted on December 12, 2014 by Scott Hamilton
Boeing, Bombardier, CFM, Comac, CSeries, Embraer, Irkut, Mitsubishi, Pratt & Whitney, Rolls-Royce
737 MAX, 757, 757 replacement, 767, 767 replacement, A320NEO, Alain M. Bellemare, Bombardier, C919, CFM, Comac, CSeries, E-Jet E2, Embraer, GE Aviation, Gregory Hayes, GTF, Irkut, MC-21, Mitsubishi, MRJ, Pratt & Whitney, United Technologies
Figure 1. Technical milestones have been passed on PW GTF programs for the applications on Bombardier, Airbus, Mitsubishi and Irkut airplanes and are approaching for Embraer. Source: MTU Investors Day. Click to enlarge.
Nov. 30, 2014: MTU Investors Day: MTU is a major participant in engine development and supplies, participating on the GEnx, GTF and GEnx program. It’s also a member of the joint venture in International Aero Engines and it’s a major player in the aftermarket Maintenance, Repair and Overhaul (MRO) sector, providing a serious competitive alternative to the aftermarket contracts offered by the engine OEMs. Its held an investors day conference Nov. 25. Highlights included:
Posted on November 30, 2014 by Scott Hamilton
Nov. 26, 2014:Storm Warnings: We’ve made references in recent posts about airlines on our “Storm Warning Flag” list.
Our 2013 Top Customers and Storm Warning Flag list for wide-body airplanes. The Red are Middle Eastern airlines, blue from Asia and black from the US and Europe. Only one airline for wide-body orders was on our Storm Warning Flag list: AirAsiaX. Expansion and ordering we considered too rapid landed the carrier on the list. Sources: Airbus, Boeing. Click to enlarge.
In 2013, we compiled the Top Customers for Single-Aisle and Twin-Aisle Airplanes for Airbus and Boeing. Here’s our 2013 Storm Warning Flag list. The name comes from the flag, which signals Storm Warnings. This list was compiled before the 777X orders announced at Dubai were firmed up, so the yellow boxes show what the Top 10 Boeing rankings would be had they been. We considered the quantity of orders, the current operations, financial status and other factors in placing a carrier on our Storm Warning Flag list. The Wide-body list also illustrates the growing importance of the Middle Eastern airlines (consider that this was a year ago). The wide-body list is pretty stable.
Posted on November 25, 2014 by Scott Hamilton
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By Bjorn Fehrm and Scott Hamilton
Introduction
Nov. 24, 2014: Bombardier CSeries flight testing has now passed 500 flight hours, and with the addition of Flight Test Vehicle 5 to the test fleet soon, the head of the program believes BBD can hit its entry-into-service target of 2H2015.
Robert Dewar, VP and GM of CSeries, declined to affirm, or even confirm, a report that EIS now has an internal target of October 2015.
In a wide-ranging interview November 24 with Leeham News and Comment, Dewar talked about the flight test program; the repairs to the composite wing of FTV1 following an engine failure that showered the wing with debris; the Fly By Wire software that’s been nettlesome; and other issues.
Summary
Posted on November 24, 2014 by Scott Hamilton
It’s one of the bitterest rivalries in the industrialized world: Airbus vs Boeing.
Despite being world-class companies, executives at each often snipe at each other’s airplanes, claiming superiority in economics and passenger appeal. Like lawyers arguing a court case, data is typically selectively used to advance the claims.
One of the most hotly debated issues between the two companies is which is the best single-aisle airplane, the ones that fly the most routes in the world and which carry more passengers than any other type: the Airbus A320 or Boeing 737 families.
Boeing’s marketing and communications team has done a superb job of claiming its 737 is the best selling jetliner of all time and with 12,257 firm orders since the first program, the 737-100/200, was launched in 1964. The 737 edges out the A320 family’s 11,021 orders. (These figures exclude options and MOUs.)
But the A320 was launched in 1984, 20 years after the 737. A even-up comparison should begin in March 1984 comparing the A320 family with the 737 Classic from then to the end of the Classic’s production run; and with the 737 Next Generation from its program launch in November 1993; followed by the A320neo and the 737 MAX.
The Zhuhai Air Show begins next Tuesday and a visit by President Obama to Beijing for a regional summit starts on the last day of the show, Nov. 16. Accordingly, we expect at least some orders to be announced during the show by Airbus, Boeing and perhaps the other airframe OEMs, including the home-grown COMAC, developer of the C919 and parent of AVIC, the developer of the ARJ21.
The Zhuhai Air Show has evolved into China’s premier show. While not on the international reputation and prestige of the long-established Farnborough, Paris and Singapore air shows, it’s become an important must-attend for OEMs and others wanting to do business in China.
Here is our forecast for next weeks’ event.
Posted on November 4, 2014 by Scott Hamilton
Republic Airways Holdings, a launch customer for the Bombardier CSeries with 40 orders and 40 options for the CS300–the order that prompted Airbus to proceed with the A320neo program, which itself forced Boeing into the 737 MAX–once again raised doubts about the future of its order.
In its 3Q2014 earnings call Oct. 29, on the eve of Bombardier’s own 3Q call on Oct. 30, Republic CEO Bryan Bedford said two carrier certificates would be needed for Republic to operate the CSeries. Republic is moving toward one certificate from multiple certificates to cut costs and simplify operations.
In a transcript of the earnings call prepared by Seeking Alpha, Bedford addressed the CSeries in response to an analyst question:
Posted on October 30, 2014 by Scott Hamilton
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By Bjorn Fehrm
Part 3 of 3
Introduction
In Part 2 of our three-part 757 Replacement analysis, we took a close look at Airbus’ new 97 tonne take-off weight A321neo, revealed in a world exclusive by Leeham News and Comment October 21. We analyzed the A321neoLR’s capabilities and limitations when compared to Boeing 757-200W and we saw that it could do the international flights that the 757-200 does with about 25% better efficiency. In this final Part 3, we will now compare the 757 and A321neoLR against what can be Boeing’s reaction, a clean sheet New Single Aisle, NSA, or New Light Twin Aisle, (NLT). First the conclusions from Part 2:
Summary
For Part 3 we can summarize:
Posted on October 28, 2014 by Bjorn Fehrm
Odds and Ends: 787 donation; Alenia sues Bombardier over CSeries; 2016 777 delivery slots opening up
787 donation: The Boeing Co. handed over 787 test airplane #3 (ZA003) to the Museum of Flight Saturday in an elaborate ceremony marking an unprecedented donation of a modern airliner to an aviation museum.
Boeing 787 ZA003, which went on a world sales tour, was donated to Seattle’s Museum of Flight Nov. 8, 2014. The logos of customers bracket the #2 door. Photo by Leeham News and Comment. click to enlage.
To be sure, the donation was made possible by the fact that ZA003 (and 002 and 001) can’t be sold due to the massive rework necessary, and these three airplanes have been written off for more than $2bn. But this doesn’t make the event any less significant.
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Posted on November 9, 2014 by Scott Hamilton
Alaska Airlines, American Airlines, Boeing, Bombardier, CSeries, Douglas Aircraft Co, GE Aviation, Leeham News and Comment, Rolls-Royce
707, 727, 737, 747, 787, Air Force One, Air India. 777, Alenia, Boeing, Boeing 40A, Bombardier, Concorde, CSeries, DC-3, Douglas, GE Aviation, GEnx, Lockheed Constellation, Museum of Flight, Rolls-Royce, Shen, Trent 1000, ZA001, ZA002, ZA003