The 737-700, which has been out of favor with customers for years, now lists for $85.8m. The MAX 7, which has yet to find traction in the market, lists for $96m.
By Bjorn Fehrm
January 18, 2018, © Leeham Co.: In the first article about the Chinese/Russian widebody, the CR929, we described the route to a joint program company and the launch of the project.
We now analyze the aircraft, based on available information. With the information, it’s possible to model the aircraft in our performance model and get the first understanding of performance and efficiency.
Jan. 23, 2018, © Leeham Co.: Airbus announced a list price hike Monday of just under 2%.
Such price hikes are common. Boeing hasn’t announced whether it will raise the list prices this year, but in the past, it’s typically done so.
Airbus continues to list the A318 and A350-800 in its price list. There hasn’t been a commercial sale of the A318 in years and Airbus skipped creating a neo version of this double-shrink airplane.
Ostensibly, Airbus continues to offer the aircraft as an Airbus Corporate Jet (ACJ), but sales of this are few and far between.
Airbus also continues to list the A330-800 despite having only one customer with a small order for the airplane.
By Bjorn Fehrm
January 15, 2018, ©. Leeham Co: Airbus announced record 2017 airliner deliveries of 718 aircraft today. It was the 15th consecutive year of increased production, this time with 30 aircraft over 2016. Fabrice Bregier, the Chief Operating Officer of Airbus, predicted Airbus would pass Boeing in deliveries by 2020.
The company also booked its third best year in orders, with 1,109 aircraft giving a Book-to-Bill of 1.5. The backlog is at a record 7,256 aircraft (Figure 1).
Jan. 20, 2018, © Leeham Co.: The US aircraft manufacturer claims the foreign company is unfairly subsidized, undercutting pricing in US sales and threatening its future. A trade complaint is filed.
A prominent politician lines up on behalf of its constituent industries, claiming unfair competition. He calls for a trade investigation.
No, it’s not Boeing vs. Airbus.
It’s not even Boeing vs. Bombardier.
The complaints were against Embraer, twice.
Once in 1982 and again in 2010. In both cases, the US International Trade Commission was involved.
The rhetoric is remarkably consistent with the Boeing-Bombardier trade case.
In both Embraer cases, the ITC dismissed the complaints.
Its decision in the Bombardier case will take a preliminary vote next week, absent a schedule change, and a final decision will be issued Feb. 9.
By Bjorn Fehrm
January 15, 2018, © Leeham Co.: The Chinese and Russian Widebody program started in earnest over the last year. After signing a joint venture agreement in 2016, the project now has a joint management company, CRAIC, formed 22nd of May 2017, and standing for China-Russia Commercial Aircraft International Corporation.
The company will have final assembly and management located in Shanghai. The aircraft has also got its final name, CR929-600. It will hold 280 passengers in a three-class cabin with a range of 6,500nm, Figure 1.
John Leahy has been with Airbus 33 years, holding his current position as COO-Customers for more than 20 of these. He retires this month. Jan. 15’s 2017 year-end Orders and Deliveries press conference will be his last. LNC interviewed Leahy about his tenure at Airbus. Parts 1, 2 and 3 appear here, here and here. Today is Part 4. LNC’s Scott Hamilton has known Leahy for nearly 30 of these 33 years.
Jan. 12, 2018, © Leeham Co.: “I want to unwind, get healthy, eat right and not be in a constant state of jet lag. At 44, 45, I didn’t mind it. Right now, the thought of
doing trips to Australia, I’d be jet lagged for three days.”
These are John Leahy’s plans for the first year after he retires in a matter of days after 33 years at Airbus.
When he was younger—that age 45 he referenced above—he thought nothing of working in Toulouse, Airbus headquarters, on Monday, getting on a plane to fly to Southeast Asia and Australia and be back in Toulouse to put in a full day on Friday—working the clock to make the long, long round trip.
“It was sort of fun,” he recalls. “I did a lot.” But not now.
January 12, 2018, ©. Leeham Co: In the last Corner, we described how the theory for the boundary layer was proposed by Ludwig Prandtl, and how this led to an understanding of the source of Friction drag for an aircraft.
We will now continue with describing how the role of Friction drag was researched and how aircraft designers learned how to reduce it.
Jan. 11, 2018, © Leeham Co.: The decision last week by Southwest Airlines to defer for four years delivery of 23 of 30 Boeing 737-7 MAXes does not bode well for this sub-type.
Concurrently, Southwest exercised options for 40 of the larger 737-8.
One of only four identified customers for the 7 MAX, with the largest order of 30, LNC considers it highly likely that a good portion of the 23 remaining orders will be
converted to the 8 MAX.
With only 63 identified 7 MAX orders, the aircraft risks becoming a narrowly purchased niche aircraft.
Jan. 10, 2018, © Leeham Co.: Canada upped the ante in the Boeing-Bombardier C Series trade complaint today by filing one of its own against the US with the World Trade Organization.
This filing comes on the eve of the US International Trade Commission (ITC) staff report, due Friday, on whether Boeing was “harmed” by Bombardier’s near-miss in selling the CS100 to United Airlines and an order in 2016 by Delta Air Lines for 75+50 CS100s, with an option to covert some of the orders to the larger CS300.
The US Commerce Department concluded Canada, the province of Quebec and the United Kingdom illegally subsidized the C Series program. Commerce also concluded BBD “dumped” the C Series in the US with the Delta order and attempted to do so with the United competition.
Commerce levied tariffs of about 292% for any C Series imported from Canada.
The Canadian complaint with the WTO challenges the DOC’s action and the pending decision, due next month, by the ITC. The move was expected, but generally thought would occur after the ITC ruled. ITC is expected to support Commerce’s conclusions.