Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Start-up hybrid plane OEM MAEVE teams with MHIRJ for sales, more December 5, 2024
- Production increase delays hurt Airbus costs December 2, 2024
- Books to consider for Christmas November 29, 2024
- Slow, methodical process to restore Boeing’s trust, efficiencies November 28, 2024
- Engineering, Innovation is our DNA: Embraer November 25, 2024
Farnborough, Day 1: Orders, Price Calculator and other stuff
McNerney rejects “price war.” A quote from a Financial Times story (see below).
He rejected suggestions that a price war had broken out between Airbus and Boeing over the A320 Neo and 737 Max but confirmed the US manufacturer would woo some airline customers of its European rival.
Courtesy of Aspire Aviation, here is a summary of orders through Day 1:
Airbus
|
Date |
Customer |
Quantity |
Model |
Remarks |
|
9th July |
Arkia Israel Airlines |
4 |
A321neo |
Agreement |
Boeing
|
Date |
Customer |
Quantity |
Model |
Remarks |
|
9th July |
Air Lease Corp (ALC) |
60 |
737 MAX 8 |
Reconfirmation rights for 25 more |
|
9th July |
Air Lease Corp (ALC) |
15 |
737 MAX 9 |
|
Pratt & Whitney
|
Date |
Customer |
Quantity |
Model |
Remarks |
|
9th July |
IndiGo |
300 |
PW1100G-JM |
|
|
9th July |
CIT |
60 |
PW1100G-JM |
|
|
9th July |
Cebu Pacific |
60 |
PW1100G-JM |
For 30 firm A321neos |
|
9th July |
Norwegian Air Shuttle (NAS) |
100 |
PW1100G-JM |
MoU |
CFM
|
Date |
Customer |
Quantity |
Model |
Remarks |
|
9th July |
Air Lease Corp (ALC) |
150 |
CFM Leap-1B |
|
Embraer
|
Date |
Customer |
Quantity |
Model |
Remarks |
|
9th July |
Hebei Airlines |
5 |
E-190s |
Booked in Q2 backlog |
Reuters put together a handy-dandy thing to calculate airplane prices easily. These are list prices, of course.
Some stories of note:
United to announce big MAX order July 12
AirInsight is posting daily news and videos.
The Financial Times of London has a piece with Boeing’s Jim McNerney. (Free but limited registration required.) Here’s a relevant quote.
Boeing announced the 737 Max in August last year and Mr McNerney said that “in retrospect” the US manufacturer should have made its decision to proceed with a revamped version of its narrow-body workhorse, rather than a brand new aircraft, “six to nine months” earlier.
This show has started off with a bang, with the ALC order for 75 B-737MAXs, and a UA commitment for 100 B-737MAX and NG models and 100 options. I understand the UA order will be firmed up on Thursday, 7/12/12 in Chicago, where both Boeing and UA have their HQs.
I am hoping for a B-747-8I order from TK
interesting to note that both Jim McNerney and Ray Connor both “reject” a price war -atleast from the Boeing side. many of us did not get the same impression from Jim Albaugh.
Second , now JM says ,in retrospect, they should have launched Max 6-9 months early. Does it mean that it was Jim A who held on to the NSA view -which was responsible for this “dealy” in Max launch.
Any way , we all know that it was not exactly great product planning on the part of B- in response to A’s 320 Neo. Elementary mistake,hope it is not too costly for Boeing in the outcome on share ;any thing less than 50% , not a good for B.
Hopefully with a new core and not much commonality with 1A , Boeing/CFM will optimize the engine for Max- and get that 14% reduction in fuel consumption . A would do well not to underestimate B here ,based only on diameter led heuristics re fuel burn. 1B would be much lighter and with some tradeoffs could still be solid in terms of performance for B.
Daily account of Farnborough orders and some: http://avtr.co/MeiaFd
Oh no, Conner said the familiar words.
““We’re looking at everything at this moment,” Conner said of the 777X. “We’re very comfortable with the process. We’re comfortable where we are. When we get it figured out, then that’s when we’ll go ”
http://www.businessweek.com/news/2012-07-08/boeing-defers-wide-body-strategy-choices-to-seek-airlines-views
When Boeing executives used these phrases in recent years, they were no longer in the driver seat shortly after..
Mr. Conner may have adjusted his seat and taken a look into the rear view mirror
of the Boeing Bus.
He hasn’t started the engine yet so to speak.
I have the feeling some airlines Boeing feels will wait for them, just won’t. That they start actually believing Randy’s line the A350-1000 is an open question themselves, that airlines don’t like it etc. To be woken up one morning learning the market / friendly airlines think & act differently.
Boeing has to talk to BA, ANA, UA, DL, AF now, instead of saying they are looking around and feel comfortable with were they are. Behind their backs Leahy offers them early low risk A333 slots in 2014 and A350-900 /-1000s later on, and it works.
The Dreamliner campaign has smashed vast amounts of porcelain.
Tall stories are seen with a much more critical eye these days.
26 A350-1000 for CX, looks like its starting to turn the tide 🙂 Even if it means waiting for it until 2018 CX still want it.