Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Teamsters, Boeing have a new contract April 29, 2025
- Boeing wants to remarket China’s airplanes. It’s costly and time consuming. April 28, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 19. April 25, 2025
- How good is the C929? Part 2. April 24, 2025
- Boeing First Quarter Results Update: China is 10% of the backlog, with 500 in “Unidentified” April 24, 2025
Assessing the Airbus-Bombardier deal
Oct. 17, 2017, © Leeham Co.: The Airbus-Bombardier transaction announced yesterday has implications well beyond the United States, which has been much of the focus of analysis post-announcement.
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.
Airbus-Bombardier CSeries deal means no tariffs on US-assembled aircraft, says CEO
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 buys majority stake in CSeries–details to come
Press Release
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
years
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
chain expertise
Commitment to Québec: C Series Aircraft Limited Partnership headquarters and
primary assembly to remain in Québec, with the support of both companies’ global
supply chains
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.
Trump decertifies Iran nuke deal, throws Airbus, Boeing orders in doubt
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Introduction
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.
Iran Air Airbus A330. Photo via Google.
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.
Summary
- 30 Boeing 777s, including 15 Classics are at stake.
- 50 Boeing 737 MAXes to Iran Air and 30 to Iran Asesman are also at stake.
- ATR has 11 aircraft scheduled for delivery in 2018.
- Airbus sold 114 A320s/321s, A330s and A350s to Iran Air. A few white tails already have been delivered.
Bjorn’s Corner: Aircraft drag reduction
By Bjorn Fehrm
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.
Figure 1. The “Blade” equipped A340-300, researching into lower drag for an airliner. Source: Airbus.
Boeing’s Bold Ambition, Part 2
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Introduction
Oct. 9, 2017, © Leeham Co.: When Boeing launched the 787 program in 2003, an after-market maintenance program called Gold Care followed.
It wasn’t successful. Few customers signed up for it.
Stan Deal, CEO of Boeing Global Services.
But the lessons learned are important for Boeing’s drive to vastly expand its presence in the global commercial airplane after-market business.
Boeing Commercial Airplanes and Boeing Defense, Space & Security (and the latter’s predecessor, Integrated Defense Systems) provided services to the airlines, lessors and government customers, but now there is a dedicated business unit.
Boeing Global Services was announced nearly one year ago, on Nov. 21. When Boeing reports its third quarter earnings at the end of this month, for the first time revenues and profits for BGS and its predecessors will be a line-item in the earnings statements.
Stan Deal, the CEO of BGS, acknowledged the poor start of Gold Care in an interview with LNC. But from this unhappy experience, Boeing learned what officials hope lays the foundation of a new, robust business.
Summary
- 787 Gold Care didn’t start out well.
- Gold Care is rejigged and rebranded.
- BGS services Airbus aircraft, too.
Bjorn’s Corner: Laminar flow aircraft, Part 2.
October 06, 2017, ©. Leeham Co: We introduced the Airbus “Blade” laminar flow research program in the last Corner. Now we continue to look into what this research is all about.
We will explain the difference between laminar and turbulent flow (really, laminar and turbulent “boundary layer” flow) and discuss some of the work that has been done with laminar flow structures.
Figure 1. The “Blade” equipped A340-300. Source: Airbus.
Read more
Airbus preparing to hike A350 production rate
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Introduction
Oct. 5, 2017, © Leeham Co.: Airbus is gearing up to increase the production rate of the A350 from 2018’s planned 10/mo to 13/mo, perhaps as early as the following
year, LNC has learned.
The move follows Boeing’s announcement in September that it will increase the production of the 787 from the current 12/mo to 14/mo in 2019.
Airbus is producing the A330 at a rate of 6/mo.
Next shoe in Bombardier trade complaint to drop tomorrow
Oct. 3, 2017, © Leeham Co.: The other shoe in the Boeing-Bombardier trade complaint is to drop Wednesday when the US Department of Commerce makes its decision whether Boeing suffered harm, or there is a threat of harm, in the CS100 order by Delta Air Lines.
Bombardier CS100 ordered by Delta Air Lines.
The DOC last week determined that Bombardier received illegal subsidies dating to the 2008 program launch of the CSeries, through the 2016 equity investments by the provincial government of Quebec and the federal government of Canada. Certain tax breaks were also deemed illegal subsidies by the DOC.
The determination was expected, even by Bombardier. But the DOC shocked the global aviation community by levying a 220% tariff. The rate is preliminary and won’t be finalized until next year, but absent some extraordinary event, it’s expected to be confirmed—followed by lengthy appeals.
The decision Wednesday relates to harm, or anti-dumping in legal terms. Here’s where the aviation community and observers, except for one who is prominent and who receives funding from Boeing, universally believe there is no case.