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By Vincent Valery
Introduction
Jan. 13, 2020, © Leeham News: It is no exaggeration to say that 2020 is a pivotal year for Embraer. Whether the tie-up with Boeing materializes will determine its future.
As crunch time approaches for the creation of Boeing Brasil, LNA thought it relevant to study the company’s financial records since 1999. This is another in a series of financial analysis of leading aerospace companies and airlines.
From humble beginnings, the company achieved a dominant position in the regional market with the E-Jet family. After a slump in defense and security business revenues in the early 2000s, the company undertook significant programs. It also entered the business jet market to diversify its revenue streams.
So far, E2 E-Jet sales have been tepid. After years of significant development spending, the Commercial aircraft division is just above red ink, the Defense and Security division isn’t profitable and the Business jets are not adding anything to the bottom line.
Regardless of whether the tie-up with Boeing materializes, Embraer will have to take major strategic decisions, especially in the Commercial Aviation division.
Posted on January 13, 2020 by Vincent Valery
Bombardier, E-Jet, Embraer, Premium
Bombardier, CRJ, E-Jet, E-Jet E2, E175, E175 E2, Emrbaer, ERJ, KC-390, WTO dispute
Jan. 6, 2020, © Leeham News: This may be the year that Airbus is hit with the negative consequences of the Boeing 737 MAX crisis.
Most observers see Airbus benefitting with greater A320 family sales while the MAX remains grounded.
In LNA’s 2020 Outlook last week, we pointed out that the long-running trade war between the US and European Union could be coming to a head this year. Airbus and the EU are waiting for the World Trade Organization’s authorization to impose tariffs on US products. This decision is expected in May or June. Boeing is expected to be the first target. The Trump Administration last year imposed a 10% tariff on Airbus aircraft.
The MAX crisis could ratchet up tariffs on Airbus aircraft.
Posted on January 6, 2020 by Scott Hamilton
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By the Leeham News team.
Jan. 2, 2020, © Leeham News: This will be a pivotal year for Boeing.
It will be a year of challenges for Airbus.
Embraer Commercial Aviation should disappear.
Mitsubishi Heavy Industries faces final decisions for the SpaceJet.
Overhanging international trade is the US presidential election.
These are just some of the headlines to look for in 2020.
Leeham News and Analysis provides its annual outlook as the new year, and the new decade, begins.
Posted on January 2, 2020 by Scott Hamilton
Airbus, ATR, Boeing, Comac, de Havilland Canada, Embraer, Irkut, Mitsubishi, Premium, Sukhoi
737 MAX, 747-8, 767, 777, 787, A220, A320NEO, A330neo, A350, A380, A400M, ARJ21, ATR 42, ATR-72, AVIC, C919, CRJ, DHC 8-400, E-Jet E2, Embraer turboprop, FSA, Future Small Airplane, KC-390, M90, MC-21, New Mid-Market Airplane, NMA, Q400, SpaceJet, SSJ100
Dec. 23, 2019, © Leeham News: The Boeing 737 MAX crisis clearly dominated the news this year.
It’s felt like the aviation stories have been all-MAX, all-the-time.
Believe it or not, there was aviation news other than the MAX.
Posted on December 23, 2019 by Scott Hamilton
By Bjorn Fehrm
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November 14, 2019, © Leeham News: The US mainline airlines have large fleets of 50-seater regional jets that are getting old. The present Scope Clause limits on the number of aircraft with seating over 50 seats stop the mainlines from replacing these aircraft with larger aircraft. So there is a real need for an efficient 50 seater regional aircraft for the US market.
As there are no 50 seater jets in production, United is converting its 70 seater CRJ700s to 50 seaters to fill the gap and calls them the CRJ550. This is where de Havilland Canada sees a change for an adapted DHC 8-400 turboprop. It’s more efficient than a CRJ550 while offering the same comfort, says de Havilland. We check if this is correct and what chances a DHC 8-“550” have in this market.
Posted on November 14, 2019 by Bjorn Fehrm
Oct. 28, 2019, © Leeham News: Gary Kelly, the chairman of Southwest Airlines, told CNBC Thursday that next year, the company will review whether to source airplanes from another manufacturer besides Boeing.
This, of course, means Airbus.
The prolonged grounding of the Boeing 737 MAX is the reason. Southwest says the grounding already has cost nearly $500m in lost revenues.
Kelly said the analysis won’t be for “smaller” airplanes, but he didn’t specify to CNBC what this means.
Southwest has 500 Boeing 737-700s seating 143 passengers at 30-31 inch pitch.
The Airbus A220-300 seats 145 at 32 inches in the Air Baltic one-class configuration.
The Embraer E195-E2 seats 146 passengers, but in a 28-inch pitch. At Southwest’s preferred 31-32 inch pitch, the E-Jet seats 132 passengers.
Since the context was the 737-8 MAX, did Kelly mean, not smaller than the -8? This isn’t known.
Posted on October 28, 2019 by Scott Hamilton
By Bjorn Fehrm
October 9, 2018, ©. Leeham News, Antibes France: The European Airlines Association, ERA, gathered 44 of its 51 member airlines in Antibes France, today for the first day of its 2019 General Assembly meeting.
LNA participated in the event for the first time and we found an impressive gathering of airline and airport representatives, aircraft OEMs and support businesses discussing the challenges facing the European regional air transport market.
Posted on October 9, 2019 by Bjorn Fehrm
By Bjorn Fehrm
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October 3, 2019, ©. Leeham News: We have the last two weeks analyzed what aircraft to choose for the segment 120 to 150 seats, comparing Embraer’s E195-E2 with Airbus’ A220-300.
The first week we looked at fundamental data and last week we compared the drag data and by it the fuel consumption of the aircraft. Now, we analyze the other operational costs for the aircraft.
Summary:
Posted on October 3, 2019 by Bjorn Fehrm
Sept. 30, 2019, © Leeham News: Boeing’s announcement last week that it’s establish a permanent Board level safety committee, realigning some functions and creating new lines of reporting is a good and necessary step.
It’s not only good and necessary for the 737 MAX return to service, it’s good and necessary for Boeing and for the industry.
It’s also just a first step in restoring confidence in the MAX and the Boeing brands.
Posted on September 30, 2019 by Scott Hamilton
September 27, 2019, ©. Leeham News: In our series about classical flight controls (“fly by steel wire”) and Fly-By-Wire (FBW or “fly by electrical wire”) we started a discussion about the need for stability augmentation systems last week and how these are implemented.
We handled yaw augmentation and began the discussion on pitch augmentation. Now we dig deeper into the trickier form of pitch augmentation, the one needed because of regions of lower stability in pitch at higher Angles of Attack (AoA).
Posted on September 27, 2019 by Bjorn Fehrm