Oct. 18, 2017, © Leeham Co.: It was the annual media day in 2010 that Airbus declared war on the Bombardier CSeries.
Lufthansa Group in 2009 was the launch customer of the CSeries with an order for 30 CS100s and options for 30 more.
Bombardier had won a major order from Republic Airways Holdings, which then owned Frontier Airlines, an exclusive A319/320 operator. Republic ordered 40 CS300s and optioned 40 more. It was this order that spurred Airbus’ wrath. It was this order that would push Airbus into launching the re-engined A320neo family.
John Leahy, Airbus COO-customers, and Tom Williams, then EVP of programs, declared to the assembled international media that Airbus would aggressively compete against Bombardier.
Now, seven years later, Airbus and Bombardier are partners.
By Bjorn Fehrm
October 18, 2017, ©. Leeham Co: Bombardier and Airbus changed the airliner landscape yesterday. Analysts say it’s the largest industry change since Boeing bought McDonnell Douglas in 1997.
So, what has Airbus bought for no money? A me-too, or a world-beater?
The analysis focused on the US is natural, given the Boeing trade complaint involving the CSeries sale to Delta Air Lines.
But it’s important to step back to see what this means for CSeries.
Oct. 16, 2017, © Leeham Co.: The stunning Airbus-Bombardier partnership for the CSeries program guarantees the future of the new airplane, kills off the A319 and thrusts a big stick up Boeing’s tailpipe.
Boeing won big victories in its trade complaint filed with the US government, winning 300% tariffs on every CSeries imported into the US, throwing into doubt a big deal with Delta Air Lines for up to 125 aircraft.
Airbus and Bombardier Announce C Series Partnership
Airbus to acquire majority stake in the C Series Aircraft Limited Partnership
Partnership brings together two complementary product lines, with 100-150 seat
market segment expected to represent more than 6,000 new aircraft over the next 20
Combination of Airbus’ global reach and scale with Bombardier’s newest aircraft family
to create significant value for customers, suppliers, employees and shareholders
Significant C Series production costs savings anticipated by leveraging Airbus’ supply
Commitment to Québec: C Series Aircraft Limited Partnership headquarters and
primary assembly to remain in Québec, with the support of both companies’ global
Airbus’ global industrial footprint expands with the C Series Final Assembly Line in
Canada, resulting in a positive impact on operations in Québec and across the country
Growing market for C Series results in second Final Assembly Line in Mobile,
Alabama, serving U.S. customers.
Oct. 16, 2017, © Leeham Co.: President Donald Trump announced Friday he will decertify the Iran nuclear deal, throwing into doubt a host of related commercial deals, including huge aircraft orders.
Trump hasn’t gone so far as to withdraw from the pact, but he still threatens to do so unless Congress makes changes he wants.
Here in the US, focus is, of course, on the commitment by Iran for Boeing aircraft—none of which are firm contracts, but “commitments” to order.
Of less focus here, if any, is on the outstanding orders placed by Iran for Airbus and ATR aircraft, which are subject to US licensing.
October 06, 2017, ©. Leeham Co: In the last several Corners, we wrote about research around laminar flow for aircraft. It’s research to lower the aircraft’s drag. Why is this important? How large are the different drag types and what can be done about them?
To find out, we will spend some Corners looking into the drag of an aircraft and what is done to optimize the drag for different aircraft types.
Oct. 12, 2017, © Leeham Co.: Boeing’s brash and controversial move to file the trade complaint with the US Department of Commerce is a bold gamble designed to kill the Bombardier CSeries entirely, not just block it from the US market, people familiar with the strategy tell LNC.
The threat Boeing fears from the CSeries is not really about the 737-700 or 7 MAX, they say, but truly about the future of the 737-800 and 8 MAX.
While Boeing as clear in its filings with the US International Trade Commission (ITC) and Department of Commerce (DOC) about the alleged threats, some insight to Boeing’s thinking explained by people familiar with the situation was provided.
By Bjorn Fehrm
October 11, 2016, ©. Leeham Co: Alitalia, Air Berlin and now Monarch have all filed for insolvency since the start of 2017. These are all airlines with an emphasis on low cost flying, with an important leisure part. Alitalia and Air Berlin had histories as network carriers, which hasn’t helped.