Paris Air Show wrap; and other Odds and Ends

It’s over and here are the Airbus and Boeing press releases, followed by some Odds and Ends:

Airbus books almost US$70 billion at Paris Air Show 2013

·        466 Airbus aircraft orders & commitments across all product families;

·        A320neo Family retains 60 percent market share;

·        A350 XWB, A330 and A380 all continue to outsell the competition.

At the 2013 Paris Air Show, Airbus won US$68.7 billion worth of business for a total of 466 aircraft, which shows the resilience of the commercial aviation industry. The deals comprise Memoranda of Understanding (MoU) for 225 aircraft worth US$29.4 billion and firm purchase orders for 241 aircraft worth US$39.3 billion.

The A320 Family, spearheaded by the A320neo, continues its trailblazing success in the single-aisle market with 371 orders and commitments from six customers announced at the show, worth approximately $37.8 billion. Of these, 88 were for the A320ceo – showing that today’s in-production aircraft is still the most sought-after industry workhorse. A stand-out commitment during the show for the A320 Family was the announcement from easyJet for 100 A320neos plus 35 A320ceos – the winning result of a very intense competition. Another major endorsement for the A320 Family came from Lufthansa with the firming-up of 100 more aircraft. Additional A320 Family orders and commitments came from: Hong Kong Aviation Capital for 60; ILFC for 50; Spirit for 20; and Tunisia’s Syphax Airlines for three – significantly the first A320neo commitment from Africa.

Another star at Paris was the A350 XWB which flew for the first time on Friday 14th June 2013 and successfully completed its second flight on Wednesday 19th June. At the show this aircraft gained 69 more orders & commitments worth $21.4 billion from four customers on different continents. Air France-KLM placed a firm order for 25 A350-900s. Meanwhile, Singapore Airlines, already a large customer for the type, returned to order 30 more A350-900s; United Airlines also placed an additional A350 order for 10 A350-1000s — not only bringing its total A350 orders to 35, but also upgrading its previous order for 25 A350-900s to the larger A350-1000 model to replace its Boeing 777s. In addition, Sri Lankan signed a commitment for four A350-900s to complement an order for six A330-300s at the show.

At the top end of the product range, the flagship A380 received a commitment for 20 aircraft from the world’s third largest wide-body lessor, Doric Lease Corp, in a deal worth more than $8 billion. The contract with Doric is significant as it opens up a new, additional route to market for the A380, which is now available to airlines who wish to acquire the aircraft under the flexibility of an operating lease agreement.

John Leahy, Airbus’s Chief Operating Officer, Customers said: “The dramatic rainfall and thunder storms at Le Bourget this year didn’t dampen our order intake.” He added: “Our A350 XWB has been out-selling the 787 by better than 2- to-1 over the last five years. In addition our A320neo Family retains a 60 percent market share lead. That’s a ‘corner’ I want to stay boxed into.”

Boeing Launches New Commercial Airplane; Highlights Innovation, Efficiency and Partnerships at 2013 Paris Air Show

 

LE BOURGET, France, June 20, 2013 –Boeing (NYSE:BA) enjoyed a strong and productive Paris Air Show launching its newest model, the 787-10 Dreamliner, announcing important commercial airplane orders and strengthening alliances and relationships with customers and partners around the world.

“The 50th Paris Air Show has been important for Boeing with a number of historic milestones,” said Charlie Miller, Vice President of International Communications. “Our airline customers have strongly endorsed Boeing’s innovative family of commercial airplanes with outstanding orders and the launch of our latest 787 Dreamliner model.” 

“The excitement and enthusiasm among customers, partners and suppliers for the products and technologies Boeing showcased across the commercial and defense businesses validated our commitment to innovation and customer focus,” said Miller.  

            Boeing highlighted its family of efficient commercial airplanes in both the single and twin-aisle market segments. The 787-10 Dreamliner was launched with 102 orders and commitments from five customers, including Air Lease Corporation (30), GE Capital Aviation Services (10), International Airlines Group / British Airways (12), Singapore Airlines (30) and United Airlines (20).

The new 787-10 covers more than 90 percent of the world’s twin-aisle routes with seating for 300-330 passengers. Design of the 787-10 has already started at Boeing and international partners will be involved in detailed design in the months ahead, with first delivery targeted for 2018.

The innovative 787-8 Dreamliner in Air India livery flew for the first time at the Paris Air Show, and the Qatar Airways 787 on static display attracted hundreds of customers, partners, government officials and news media. The ScanEagle unmanned aircraft system, produced by Boeing subsidiary Insitu, was part of the U.S. Corral display throughout the show.

Over the past week, customers have demonstrated their strong confidence in the full family of Boeing commercial products – the Next-Generation 737, 737 MAX, 787, 777 and 747-8, announcing orders and commitments for 442 Boeing airplanes, valued at more than $66 billion. Additional orders for 20 Next-Generation 737s and 20 737 MAX airplanes from unidentified customer(s) were posted on the Orders & Deliveries website today. The number of Boeing net orders for 2013 currently stands at 692.

Boeing announced during the show key partnerships with Embraer on the sales and marketing of Embraer’s KC-390 medium-size transport, and with Sikorsky on a joint venture to compete for sustainment services in support of the Kingdom of Saudi Arabia’ s rotorcraft fleet.  The U.S. Marine Corps V-22 Program Manager reported that operational success of the Bell-Boeing tilt-rotor played a key role in the recent award of a $6.5 billion multi-year contract for 99 aircraft. Boeing also announced that work has begun at Le Bourget on a $354 million Mid-Life Upgrade contract with Air France Industries to upgrade four French E-3F Airborne Warning and Control System (AWACS) aircraft.

 

Customer announcements this week

(Note that Boeing is including a May 31 announcement from TUI in this tally–Editor)

Customer

Quantity and Model

Approx. List Price Value

Status

TUI Travel PLC *

(60) 737 MAX

$6.1 billion

Commitment

Skymark Airlines

(4) 737 MAX

$400 million

Commitment

GE Capital Aviation Services (GECAS)

(10) 787-10

$2.9 billion

Commitment

Qatar Airways

(2) 777-300ER

(7) 777-300ER

$2.8 billion

Firm order (2)

Commitment (7)

Air Lease Corporation

(30) 787-10

(3) 787-9

$9.4 billion

Commitment

IAG / British Airways

(12) 787-10

$3.5 billion

Commitment

Singapore Airlines

(30) 787-10

$8.7 billion

Firm order

United Airlines

(20) 787-10

$5.8 billion

Firm order

Korean Air

(5) 747-8 Intercontinental

(6) 777-300ER

$3.6 billion

Commitment

CIT Aerospace

(30) 737 MAX 8

$3.0 billion

Firm order

Ryanair

(175) 737-800

$15.6 billion

Firm order

Oman Air

(5) 737-900ER

$473 million

Firm order

Travel Service

(3) 737 MAX 8

$301 million

Commitment

Unidentified Customer(s)

(20) 737

(20) 737 MAX

$3.8 billion

Firm order

 * First announced by customer on May 31

Odds and Ends

Embarer has good show: Embraer launched its E-Jet E2 with 375 orders and commitments, most for the E-175-E2 75 seat model.

Aerodynamics of the goose in flight: The video is a hoot (or should we say honk); you will enjoy this a lot.

By your finger tips: If you thought the video was a hoot, get a “load” of this story.

787-9F: Boeing plans to make a freighter, some day, of the 787-9.

46 Comments on “Paris Air Show wrap; and other Odds and Ends

  1. I think Boeings best news during this show is the launch orders from 3 highly rated carriers / XWB customers, SQ, BA and UA for the 787-10.

    For Airbus the continued dominance, despite being sold out for yrs, of the NEO and UA’s commitment for the A350-1000 are a strong endorsement.

  2. So Scott, you point out that Boeing included TUI in their counts, apparently you think that’s bogus, so I’ll expect that you point out that Airbus included Syphax’s MOU and SriLankan’s MOU both of which were announced prior to the show as well. Just to be fair.

    • TUI was announced May 31, not at the Air Show. I don’t care about MOU, LOI or WT (Wishful Thinking). I care about dates. TUI should not have been included in an “air show” tally. Your point is well taken. Airbus is famous for announcing an “order” two or three times.

      I’ll point out though that Sri Lankan was a contract signed at the show. The Syphax’ A320 order as far as I can tell, was associated with the air show and appears to be separate from the January order, if that’s what you are referring to.

      • According to Air Finance Journal the SriLankan deal was not a “contract” but an MOU. The same number as was announced long before the air show. Syphax mou the same. They were both re-announcements. Or maybe they MoU’ed the MoU? That would be “a contract”, maybe… sortta… but still MoUs.

        • And then there is Qatar’s “order” for two 777s that were actually booked by Boeing previously under Undisclosed (and therefore only revealed at PAS) and the Singapore announcement for 787-10s in advance of the air show. Everyone plays games and “holds” orders for the air show, Boeing’s oft-disdainful disclaimer to the contrary.

      • Revealing a customer at an air show is rather common, that’s the customers call. and the order WAS booked previously. Airbus announced the Syphax MoU in January, the SriLankan MoU in May. Both Sypahx and SriLankan were unusual because they were reannouncements of MoUs, not actual no kidding orders. All I’m saying is if you are going to whine about one, whine about the other one when he pulls the same thing or something even more boneheaded, like reannouncing an MoU.

  3. Wait so some poor sap(United) still fell for Airbus’ lies and ordered those damn awful A350-1000s? *sigh*

  4. Not long ago I remember Boeing made a point that they do not hold announcements until the airshow, do not need to perform flying displays, as this does not sell aircraft, and do not announce commitments but only firm orders… How times have changed, it must be because they are falling into industry standard, as one contributor here suggested not long ago…

  5. The Sri Lankan order (just like the Kuwait one which has not surfaced at the airshow, along with the Mexican one) has been trailed in the press but not mentioned by Airbus prior to the show (as far as I’ve seen) – so they can’t really be accused of announcing it twice.

    I for one was surprised at the info about Airbus sales that was coming out in the run up to the show – normally there seems to be almost total silence for weeks, if not months, before big shows.

    • Then that rule also applies to Boeing orders from IAG, Singapore, Qatar, etc. since they weren’t press releases by the company either. If you apply one set of “rules” to this game, which is a specious argument to begin with, you need to do it equally to both sides.

  6. So, if we throw out all the MoUs, LoIs, and commitments, we come up with:

    Airbus = 225 firm orders across all product lines

    Boeing = 302 firm commercial airplane orders, not including the V-22 order of 99, nor the FAF order to upgrade their E-3Fs.

    • And of the firm orders what is the percentage breakdown of narrow/widebody Boeing or Airbus

      • Well, of the Boeing 302 firm orders, 250 were for the NB B-737NG or B-737MAX. So, about 81% of the Boeing firm orders were for NBs.

        Airbus is a little more difficult to determine.

        “The A320 Family, spearheaded by the A320neo, continues its trailblazing success in the single-aisle market with 371 orders and commitments from six customers announced at the show, worth approximately $37.8 billion. Of these, 88 were for the A320ceo – showing that today’s in-production aircraft is still the most sought-after industry workhorse. A stand-out commitment during the show for the A320 Family was the announcement from easyJet for 100 A320neos plus 35 A320ceos – the winning result of a very intense competition. Another major endorsement for the A320 Family came from Lufthansa with the firming-up of 100 more aircraft. Additional A320 Family orders and commitments came from: Hong Kong Aviation Capital for 60; ILFC for 50; Spirit for 20; and Tunisia’s Syphax Airlines for three – significantly the first A320neo commitment from Africa.”

        Easy Jet = 135 A-320NEO/CEOs – COMMITMENT

        Lufthansa = 100 A-320 (Family) – FIRM ORDER

        Hong Kong Aviation Capital = 60 A-320 (Family) – FIRM? COMMITMENT? – Probably Firm

        IFLC = 50 A-320 (Family) – FIRM? COMMITMENT? – Probably Form

        Sprite = 20 A-320 – FIRM? COMMITMENT? – Unknown

        Syphax = 3 A-320NEO – COMMITMENT

        Out of these, 210 are, or could be firm orders.

        BTW, according to this list, the total A-320 orders and commitments comes out to 368, not the 371 mentioned in the paragraph. So we are missing 4 A-320s somewhere.

        So, the estimated Airbus firm order (of total 368 sales/MoUs) percentage is about 57%.

    • I think the 175 x 737-800s from Ryanair probably won’t be very profitable, if at all, but still it is a good deal because it fills up the supply chain until the conversion to 737 max is made.

      • Yeah keesje, perhaps you are right. The Ryanair order could be minimal profit for Boeing, if any. Just like the Easy Jet order for the A-320 family is for Airbus.

      • KCT yes, but those are mostly NEO’s (100 of 135) for which apparently strong demand.

  7. kc135topboom :
    So, if we throw out all the MoUs, LoIs, and commitments, we come up with:
    Airbus = 225 firm orders across all product lines
    Boeing = 302 firm commercial airplane orders, not including the V-22 order of 99, nor the FAF order to upgrade their E-3Fs.

    Interesting – from the table at http://www.pdxlight.com/pas13.htm I make it 251 firm for Airbus, 287 for Boeing! Still a win for Boeing, but not much in it.

  8. So Boeing came to Paris and won the orders race? How come their PR are not Tweeting and spinning that line? I would have done if it was the truth!

    • It sure seems that Boeing ‘won’ at the PAS, based on number of firm orders, and in the NB race, too. I might add that it also appears Boeing ‘won’ the VLA race with 5 firm orders, Airbus got a commitment for 20.

      This was all done in Airbus’s backyard.

      Boeing really shouldn’t crow to loudly about it, they have the orders on the books. There is another big air show later this year, in Dubai. Then there is the FAS next year.

  9. Is it just me, or does Ray Conner and John Leahy look alike? I took a look at the pictures of the -10 announcement and thought I my eyes were playing tricks on me!!

    The up buying of the A350-1000 that UA did. They canceled the A350-900s and took 25 plus 10 new. SUH said at his -10 signing the -900 could live side by side with the -10. UA said no and went to the -1000? Why would UA say no and then order 10 more, and allow Airbus to announce the order in Paris? Maybe Airbus gave them a deal they could not refuse if they did not cancel the order outright? The order for the A350-900s fit the UA model and the -900s were to replace the 747-400s, now the -1000s will do the same thing? Has the modeling economics changed now to show the -1000 is a better replacement than the -900? How could that be, when UA has never purchased a -300ER which is available today and the -400s are nothing but a nightmare for maintenance right now? Did not make sense to me? I guess waiting until 2018 fit with their plan better than an -300ER today? By the way I thought the -900/1000 line was sold out, so how did UA get a chance to get some of the first frames off the line? Maybe the additional 10 on the last day of Paris had something to do with it?

    Did the much anticipated China A330s get announced? Where was the big DL order for 30 A330s? What happened to the QR deal for A330s? Where are the big announcements for ANA and JAL? Man I thought there was going to be some huge announcements for wide bodies from Airbus. All we get are a sale already announced for SQ, AF/KL closing in on a deal done last year, and that other stuff that was either a sale or a MOU. Oh yeah and that MOU thing that was done with Doric on the A380s, which are now considered sales in 2013 for the JL forecast?

    5 747-8Is is more than a MOU for sales that may or may not happen right?

    My point all along was wait for the market to speak on both companies offerings. People here have killed everything Boeing has done and then claimed major sales well before they take place. Let’s watch the market until the next air show in the ME and see who really makes sales. All of the above might happen but keep your eye on how many -900 orders move to -1000s as announcements are made about -9s, and -10s. We might be seeing a shift, and we’ll know it when the real -10 buys hit the wire.

    Anybody know why GE bought -10s and made such a big splash about it? They were the folks who said the A350 was the best a/c and there was no way a 787 would ever be purchased by them. And now they have their own day to say they are a launch customer? My how times change.

    • Wait for the next bigger leak in US internal diplomatic communications.
      My impression is that there is very heavy “leaning on friends” going
      on at the moment to achieve US political goals.
      Boeing will have got it’s fair share of advantages from that in the process.

      • Your rabid anti-Americanism is just so pervasive you can’t even let it go for a day can you?

    • “The order for the A350-900s fit the UA model and the -900s were to replace the 747-400s, now the -1000s will do the same thing? Has the modeling economics changed now to show the -1000 is a better replacement than the -900? ”

      Maybe capacity has something to do with it, dunno..

      “5 747-8Is is more than a MOU for sales that may or may not happen right?”

      I have no idea. It could also be a move to keep friends with an old ally before ordering a different product. A bit like BA, SQ, UA and QR.
      http://m.foxbusiness.com/quickPage.html?page=19453&content=52191176&pageNum=-1

      “All of the above might happen but keep your eye on how many -900 orders move to -1000s as announcements are made about -9s, and -10s. ”

      The 787-10 is suitable for medium long flights and the A350-900 for longer flights. Its alway been like that. UA and BA even said it. I don’t understand why it won’t sink in with guys here telling each other 787-10 will do 7000NM flights. It won’t.

    • Considering UA had always wanted the A350 to replace their 747s, does it not make sense that they’d shift to the A350-1000 once it got defined more as it’d be an even better replacement? But no, the only obvious reason they could have converted to the A350-1000 and added 10 more was because Airbus gave them a good deal not to cancel *rme*

  10. UA converted some of the A-359 slots to A-3510s, that is how they kept earlier deliveries. The A-3510 flys about 350 nm further than the A-359, according to wiki, and seats nearly what a B-744 seats, which is about 50+ more seats than the -900. So the A-3510 is actually a better replacement airplane for the B-744 than the A-359 is.

    Why UA isn’t ordering the B-77W is anyone’s guess.

    The A-330 orders have yet to materialize yet, and I just don’t believe DL will order them, even though they appear to like them. I am not even sure the rumored NH and JL order for the A-350 is even true.

    As for future order of the B-787 and A-350, don’t forget Boeing has the capability to build more airplanes in SC, and maybe, just maybe have the capability for a second B-787 line there. Airbus is going to have to make some changes to add a second A-350 line.

    Why would GE crow about the A-350? It doesn’t have GE engines even as an option.

  11. I’m confusing of the definitions of commitments and MoU, what are the differences between them? Thank you~

    • The MoU, LoI, or commitment are all the same thing. None of them are current firm orders and usually have an expiration date. It costs an airline or leasing company nothing to do this, but can be used to secure production dates in the future.

      • No, there is a difference between an Letter of Intent,LoI, and an Memorandum of Understanding, an MoU. Here’s a brief over view.

        LoIs are just a written letter saying “we want/intend to buy something”, there is no money attached, no scheduled deliveries, no guarantees signed. An MoU has some of those, and there is money attached to it. The details of the contract aren’t worked out yet, but are much further along than an LoI stage. Typically there are guarantees signed off on, there may be some notional schedules, etc.

        Bombardier with the launch of the CSeries created something new. The Letter of INTEREST. This new beastie is completely unknown. It seems even less firm than an Letter of Intent.

        LoIs can be broken by a simple phone call.
        MoUs come with contractual obligations, and are harder to break, but its not unheard of.

        Finally there is the Firm Order. This is a signed contract between the OEM and the buyer. It spells out specific terms, conditions, rights, and responsibilities of each party. It has firm and fast guarantees, definitive schedules, and payments.

        Does that help?

  12. keesje :
    I think the 175 x 737-800s from Ryanair probably won’t be very profitable, if at all, but still it is a good deal because it fills up the supply chain until the conversion to 737 max is made.

    Even as we are not talking about the MAX, Boeing was the only option for Ryanair and they knew that. Airbus refused to play ball and O’Leary’s flirtation with the C919 was price reduction tactic that is unlikely to have paid off. Overall it was a mutually beneficial deal for both, probably not at the same level of discount as in 2002.

    • Advertising again, keesje?

      Seems Airbus has ignored your A-320+, A-320.5 concept for years. I doubt they will consult about building it.

    • My view is that the A320+ is a given. Like the 787-10, it is too obvious to ignore. Like you say, low hanging fruit. A win for Airbus, airlines, and passengers. The win for airlines will be the much higher resale value it commands versus an A320 or the B738. The win for the passengers, more legroom.

      • How far out would you expect EIS for a A320.5 ?

        With NEO orders potentially straddling that gap at the moment
        demand will have moved solidly onto the A321 when the
        A320.5 could have its EIS.

      • Since the point is to upgrade many A320 orders and pressure the 738, 2018 would be a good target for EIS.

      • Pressuring Boeing any more and in a more direct way than today
        would not be productive. Airbus isn’t really short on orders.
        Cornered animals are dangerous.
        Then again EIS of an intermediate type would be 2018 at the earliest?
        A plane fighting for the 739MAX demand slot when core demand will
        be in the A321 shoe size.

      • Uwe that crossed my mind too. An early launch of the NSA could be the result of an A320 plus or 220+ seat longer range variants. While Airbus seems to be in a comfortable dominant position this decade..

        Boeing will soon be ready with most 787 work and the 747-8. The 777x is still unclear IMO.

  13. What does the airshow say for the trajectory of the A330? Production of 100 through 2015, then how many in 2016 or 2017 and beyond?

    • I think I heard some conservative estimations from Airbus. They probably won’t go to 11 a month and a gradual downscaling of producion while more 787s and A350s become available. Also used A330s will become available in the marketplace..

  14. Another guy asking for 200 seats. It has to do with flight safety minimum required crew rates; 1 on 50 passengers.

    Mr. O’Leary also expressed hope that Boeing would revamp its 737 Max aircraft in the future to accommodate 199 passengers, rather than the current 189.

    Such a redesign may take a year or two because it would require Federal Aviation Authority approval, he said. But with 10 extra seats, he predicted, “they’ll wipe the floor” in competing against rival plane manufacturer Airbus.

    http://online.wsj.com/article/SB10001424127887323683504578566343194555624.html

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