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Leeham News and Analysis
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Airlines need OEM choices: Air Canada
Special to Leeham News
By Olivier Bonnassies
Airfinance Journal
April 16, 2018, (c) Airfinance Journal, Montreal: The commercial aircraft manufacturing industry could head into a scenario with two major alliances: Airbus/Bombardier rivaling Boeing/Embraer, but for Air Canada, airlines need to have choices.
Calin Rovinescu, president of Air Canada. Photo via Google images.
“This is a terrific double-edge sword. Airlines definitively need to have choice,” said Calin Ravinescu, Air Canada president and chief executive officer at the Innovation Aerospace Forum in Montreal.
Ravinescu says the idea of a single source supply is not acceptable for maintenance prospective and from a customer service prospective.
“I am totally against any notion of single sourcing, or any component in any aircraft in any circumstances. Just like our customers, airlines expect competition is the aerospace and the aircraft space.
Support required
“That said we have also seen many examples in the past where aircraft were launched and ended as orphan aircraft, being incapable to have support in the aftermarket. This is despite the most unbelievable and successful technological aircraft, which is fine and good on paper but when it comes to support the aircraft, it is a totally different categorization.”
Ravinescu says that having a dynamic where some of the smaller aircraft companies are supported by some of the larger aircraft companies, can actually be a good thing, provided that there is still competition and it continues to push the scale of operations and innovate.
“We have seen in some cases that a duopoly gets too cozy and act against innovation. “We like the fact that the CSeries is disruptive in a market where we have not seen tremendous amount of innovation over the past three decades.
Air Canada signed an agreement for 45 firm CS300s in June 2016 with options for another 30 aircraft. Deliveries are scheduled between late 2019 and extend to 2022.
“I am totally against any notion of single sourcing, or any competent in any aircraft in any circumstances. …”
Did he actually say “competent” or was that a transcription error for “component?”
Fixed, thanks Rick
It seems he is not taking the Russians, Chinese and Japanese seriously. Seeing as he works in the Canadian market and is more than acquainted with Bombardier, that is interesting.
When AC emerged from bankruptcy, they were bailed out and immediately bought an expensive 787/777 fleet. Boeing offered to market the (some undelivered) A330s/A340s fleets as part of the deal and AC hasn’t ordered Airbus WB’s since then. AC are one of the few airlines committing to the 737-9. Via the backdoor they have silently been adding A321s (used, Rouge). But for the rest it seems a strong 15 yr relationship with Boeing & little room for a second source.
Think AC are having second thoughts, the 321 and 359 could have been good choices for them with 339 being a dark horse in the mix.
See they have 13 options and 10 purchase rights on 789’s. Also of interest are the the 18 options and 30 purchase rights on 737-8/9’s. Another note, CA operates 8xA333’s with 4 still on order.
With AB investing in the CS program there could be changes in AC fleet decision? BA didn’t do them great favors in Canada with the trade complaint against BBD?