Naming games

March 31, 2017 (c) Leeham Co.: With the likelihood appearing greater and great Boeing will launch a new, middle of the market sector airplane, what’s the name

Is “A360” a name for the next Airbus aircraft? Or would it be the butt of jokes? Rendering via Google images.

going to be?

Steven Udvar-Hazy, chairman of Air Lease Corp, already calls it the 797. We agree, though until this is a done deal, we’re calling it the 7M7 while in development.

If Airbus responds with a stretched A321neo–anything but a certain prospect–the working title among the press has long been A322. Airbus officials have occasionally called it the A321 Plus-Plus, a name that will hardly roll off the tongue.

If Airbus were to respond with a new twin-aisle, either smaller than the A330-200/800 (which aren’t selling these days) or about the same size, what would this be called? Skipping to A400 doesn’t work: the name is taken by the A400M, which in any event is a snake-bitten name.

Then, what will the replacements for the Boeing 737 and Airbus A320 be called.

It’s already assumed “797” is the name of the widely expected Boeing middle of the market airplane. Rendering via Google images.

For Boeing, the “797” runs out the string of 7 Series choices. For Airbus, folklore says it rejected the name “A360” because of the jokes that would be made about the airplane flying in circles if an issue required a return from its takeoff point. According to the same folklore, “A370” was rejected because the “7” harks to Boeing’s 7 Series.

So: just for fun, let’s have some naming contests.

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Bjorn’s Corner: Aircraft engine maintenance, Part 5

By Bjorn Fehrm

March 31, 2017, ©. Leeham Co: In the last Corner, we showed flight hour graphs for wide-body engines. Now we will deduce the market for engine overhauls from these graphs.

It will show which engines are still in engine manufacturer care, in their main maintenance cycle and in the sun-set phase.

Figure 1. Principal picture of a three shaft turbofan. Source: GasTurb.

The phase the engine is in and its future flight hour development will decide the attractiveness of the engine for overhaul organizations. Read more

New ATR CEO favors clean-sheet design turboprop

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  • Part 1; Bombardier will appear next week.
Introduction

March 30, 2017, © Leeham Co.: Economics simply don’t support development of a new turboprop any time soon, an analysis shows.

Low utilization by turboprop operators, the cost of development and the price to customers drive decision-making more than fuel prices.

LNC interviewed ATR and Bombardier officials for their views on development of a new turboprop. We also interviewed a key executive who knows the sector intimately. Their views diverge.

Summary
  • It will cost upwards of $5bn to develop a new turboprop.
  • The 20-year demand is limited, 2,000-2,500 depending on the forecaster.
  • The top-end price point is at best in the low-to-mid-$20m. Any more than this, and the price encroaches on small jets.
  • At least 90 seats are needed.
  • Fuel burn reduction of at least 30% is needed—a difficult target.

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Wizz Air, the LCC of Central and Eastern Europe

By Bjorn Fehrm

March 29, 2017, ©. Leeham Co: Wizz Air was formed in Hungary 2003 but its largest market is in Poland since operations began. Today, the airline is Europe’s fifth largest LCC, flying to 125 destinations spanning 39 countries.

The airline was established as a private company in Budapest with main investor, Indigo Partners, from USA.  Operations started in Poland 2004. Wizz Air, financially registered in Jersey, lost money at first. Gradually, traffic and load factors improved and the airline has posted profits since 2012.

Annual average growth of traffic and revenue in recent years has been around 20%. Wizz Air is listed on the London stock exchange since March 2015. Read more

Bjorn’s Corner: Aircraft engine maintenance, Part 4

 

By Bjorn Fehrm

March 24, 2017, ©. Leeham Co: After covering the maintenance market for single-aisle engines, time has come for the engines used on wide-body aircraft. The engine maintenance for a wide-body engine is a bit different to the single-aisle engine. The difference is caused by the longer flight times for the wide-bodies. This makes the flight time wear a more dominant maintenance driver than it is for the single-aisle engines.

The changes in overhaul work caused by the difference in flight profiles and the lower number of engines in the market (compared to the single aisles) will affect how the overhaul market is structured and who are the dominant players.

Figure 1. Principal picture of a tri-shaft turbofan for the wide-body market. Source: GasTurb.

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Could an NMA be made good enough?

By Bjorn Fehrm

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Introduction

March 23, 2017, © Leeham Co.: After showing there exists an NMA (New Midrange Aircraft) gap, the next question follows: Can an aircraft be made for the segment that can carve out a big enough slice to make it a worthwhile effort?

It’s a tough question. Any new aircraft will cost at least $10bn to develop for the airframe alone. To this one shall add the engine development. There exists no suitable engine for such an aircraft. To motivate the investments, the aircraft has to bring a substantial performance improvement compared to existing aircraft. Can it?

Figure 1. The NMA takes more and more the shape of a 767 replacement (A United 767-200). Source: United

We go through the key areas that can bring improvements and check if enough progress can is made until an NMA entry into service in 2024 or 2025.

Summary:

  • Existing aircraft are either too little or too much aircraft to fill an NMA role.
  • By careful design choices, especially for the fuselage, a new aircraft can achieve the required performance.

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easyJet, the Ryanair follower

By Bjorn Fehrm

-March 22, 2017, ©. Leeham Co: easyJet started 10 years after Ryanair, using the same Southwest Airlines derived Low Cost Carrier (LCC) business model.

easyJet has been expanding at the pace of Ryanair over the years, trailing the European LCC pioneer by around 20% to 30% of passengers carried each year.

For the last fiscal year ending 30 September 2016, easyJet carried 73 million passengers between 30 countries, flying 820 different routes.

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Is there an NMA gap?

By Bjorn Fehrm

March 21, 2017, ©. Leeham Co: The NMA (New Mid-range Aircraft), or, as it’s called more and more, the Boeing 797, is hot. The potential buyers at the recent ISTAT meeting in San Diego urged Boeing to take the decision and get it done.

At the same meeting Airbus responds, “Any NMA gap is covered. Our A321neo and A330-800 is available and and no new aircraft is needed.”

Time to look at who’s right. Is there an NMA gap or not? Is there a difference in how Airbus’ and Boeing’s product lineups cover the market? Read more

Major fleet decisions may not be positive for Airbus, Boeing

Pontifications is off this week.

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Introduction

March 20, 2017, © Leeham Co.: There are some major fleet decisions that will probably come down the pike this year at American, Delta and United airlines. Not all of them are going to be viewed positively by Airbus and Boeing.

There is also a serious warning sign emerging from the Middle East that could have serious, negative impacts on Airbus and Boeing.

Summary
  • American Airlines doesn’t want its Airbus A350-900s any more. Consolidation with US Airways appears to have made these surplus.
  • Delta Air Lines, which so far eschewed any orders for the Airbus A320neos and Boeing 737 MAXes, is understood to be readying a Request for Proposals to be issued this year.
  • United Airlines doesn’t want its Airbus A350-1000s any more. Picking up cheap Boeing 777-300ERs appear to have made these surplus.
  • Emirates Airlines, reacting to Brexit and Donald Trump’s travel bans, is undertaking a full business review in response to a sharp drop in bookings.

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CDB Leasing aims for 500-600 aircraft portfolio

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Introduction

March 16, 2017, © Leeham Co.: China’s evolving commercial aerospace and aviation industry has high-profile companies such as AVIC and COMAC, and its expanding supplier based, combined with joint ventures with Western companies is well known.

Less well known is the growth in the aircraft leasing business. Increasingly, Chinese lessors are showing up on the order lists of the Big Four aircraft manufacturers. Still, there remains a bit of a mystery about the lessors and dynamics within China.

LNC spoke with the newly appointed CEO of CDB Leasing during the ISTAT conference last week in San Diego.

Peter Chang has been in the Western leasing business for decades, employed in key positions with Aviation Capital Group, ILFC and Aircastle—usually with responsibility for China.

He was named CEO of CDB in December, a move that was announced during the January Dublin conferences of Airlines Economics and Airfinance Journal. More key personnel announcements were made during ISTAT.

In an exclusive interview, LNC asked Chang about the origins of CDB, other Chinese lessors, the current policy of restricting flow of Chinese cash outside the country, the Boeing 737-10 and the Bombardier CSeries.

Here is this interview.

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