Airbus Archives - Page 160 of 298 - Leeham News and Analysis

Airbus A350-900ULR enables Singapore Airlines to reopen Singapore-New York

By Scott Hamilton and Bjorn Fehrm

Oct. 13 2015, ©. Leeham Co: Airbus and Singapore Airlines have launched the A350-900 ultra long range, the specifications for which we estimated in July beginning with the first of four articles.

The A350-900ULR enables Singapore Airlines to reopen the Singapore-New York “SQ flight 21” that was closed 23 November 2013. It was the world’s longest flight, using an Airbus A340-500 until SQ discontinued it during the more recent high fuel prices that rendered the flight uneconomic.

Update: Singapore has now released this picture through twitter:

It will also enable Singapore to restart direct flights to the US West Coast, something that the main competition, such as Cathay Pacific Airways, has been able to offer because of a better geographical position. The A350-900ULR now closes that competitive gap for Singapore Airlines.

Singapore has converted seven of its A350-900s to the -900ULR version, deliveries will start in 2018. The ULR will be in a custom premium configuration of 170 seats, about 60 more than used on the A340-500.

69 Comments

Posted on October 13, 2015 by Scott Hamilton

Airbus, Airlines, Leeham News and Comment

A340-500, A350-900, A350ULR, Airbus, Cathay Pacific Airways, Singapore Airlines

CSeries dilemma: a saga of missed opportunities, bad decisions, stiff competition

By Scott Hamilton

Oct. 12, 2015, © Leeham Co.: The news agencies, stock markets and aerospace analysts last week went wild when Reuters reported there were talks going on between Bombardier and Airbus whereby the latter would take a majority stake in the CSeries program.

Within hours, both companies said talks had ended. As could be expected, the stock went into another tailspin.

Then United Airlines said it wants pilots to approve a contract, and is dangling a 100-seat airplane order for mainline operations as an incentive. The CS100 fits into this category, as does the Embraer E195 E2.

It is worth recapturing reasons BBD finds itself in its current predicament.

78 Comments

Posted on October 12, 2015 by Scott Hamilton

Airbus, Boeing, Bombardier, CSeries, Paris Air Show, Pontifications

Airbus, Boeing, Bombardier, C110, C130, CRJ, CS100, CS300, CSeries, DC-9, Delta Air Lines, Douglas, Northwest Airlines, Q400

Analysis: Airbus A350 production and accounting strategy

By Bjorn Fehrm

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Introduction

Oct. 12 2015, ©. Leeham Co: Airbus is ramping up the A350 program at a rather slow pace. For the first year of production, 2015, it plans 15 deliveries and “a little more than double that” for 2016. Airbus is also introducing “contract accounting” for the first A350 deliveries.

As initial costs for producing a new aircraft model can be 400%-500% higher than the ultimate run-in production cost, Airbus introduces this novel accounting principle to maintain 2015 and 2016 profits “at about the same level.”

We use our aircraft model to understand why Airbus is ramping the A350 as it is and why it uses “contract accounting.” We also show what would be the effects on Airbus profits should A350 not ramp slowly and Airbus use special accounting to keep group quarterly results from surprises.

Summary:

The ramp of production of a new aircraft type is extremely expensive. Initial costs exceed what the customer pays for the aircraft with 400%-500%. This can generate company losses if no special actions are taken.
We use our aircraft model to show what has been done for the A350 program and why.
The wish to have a steady quarterly profit has forced Airbus to use the same accounting practices that is Boeing’s way to keep profits looking good, but with a shorter duration.
We explain how this accounting works and what it will mean for Airbus profits.

1 Comment

Posted on October 12, 2015 by Bjorn Fehrm

Airbus, Boeing, EADS, Premium

787, A350, Airbus, Boeing

Bjorn’s Corner: Engine rubbing

09 October 2015, ©. Leeham Co: Last week an Airbus A320neo prototype with Pratt & Whitney’s (PW) GTF had a problem while testing hot and high conditions at Al-Ain airport in Abu Dhabi. The engine suffered a rubbing problem and PW and Airbus decided to replace the engine before returning the A320neo to Toulouse.

I had the opportunity to discuss what happened with PW people at ISTAT this week and decided it makes for a good follow up to our two other engine Corners to write about what happened and how serious it was.

The problem was compressor blades rubbing against the compressors stator wall. PW knew that this engine individual could have that problem. They saw when assembling the engine it was a bit tight in the compressor area. PW said they told Airbus there was a risk with this particular unit, and sure enough, there was rubbing to be seen when they boroscope checked the engine after the test.

Here what it was all about and what to do about it. Read more

17 Comments

Posted on October 9, 2015 by Bjorn Fehrm

Airbus, Bjorn's Corner, Bombardier, Pratt & Whitney, Rolls-Royce

A320NEO, Airbus, Boeing, Pratt & Whitney, Rolls-Royce

Airbus and Boeing swing it out at ISTAT Europe 2015

By Bjorn Fehrm

07 October 2015, ©. Leeham Co: This year’s ISTAT Europe conference had been characterized by a “Steady as you go” ambiance until the traditional match between Airbus and Boeing on “Large aircraft segment” panel got going. This is normally when things can get a bit more exiting and this year’s version did not disappoint.

Airbus’ Mark Perman-Wright, Head corporate and Investor marketing, kicked off the jabbing during his coverage of all the usual segments, claiming that Boeing got to know that Airbus held the upper hand in just about all airliner segments.

Randy Tinseth, Vice President Marketing for Boeing, immediately responded that this was all wrong and that indeed Boeing was the market leader in all imaginable measurement dimensions.

The audience of 1.200 financiers, lessors, airlines, consultants, etc., could see that a drastically lower fuel price had changed nothing. Airbus’ and Boeing’s fight over the market dominance, both real and verbal, is as fierce as ever. As we could get a hold of Boeing’s presentation and both OEMs followed the same route through their product programs we will use Tinseth’s slides as a base for our ringside review. Read more

45 Comments

Posted on October 7, 2015 by Bjorn Fehrm

Airbus, Boeing

737, 737 MAX, 737NG, 747-8, 777-300ER, 777X, 787, 787-10, A320, A320NEO, A330, A330neo, A350, A350-1000, A380, Airbus, Boeing

Goldman Sachs predicts rate 5 for 777 in 2017

Oct. 6, 2015: As Boeing prepares to discuss its third quarter October 28, a major Wall Street investment bank predicts Boeing will have to reduce production rates of the 777 to five per month in 2017, the year before production begins on the 777X.

Separately, an appraisal company sees values and lease rates of the 777 Classic declining, characterizing the airplane as “struggling” as airplanes come off lease and troubled airlines prematurely dispose of 777s.

In a note published Oct. 4, Goldman Sachs writes that the 777 leasing market has been overlooked by many observers for its impact on new airplane sales Boeing needs to bridge the production gap to the 777X.

“Boeing has a backlog coverage and product transition challenge on the 777,” Goldman writes. “The market appears focused on the total bridge period; but we are more concerned with the large amount of slots that need to be filled for the next 24 months, as well as several existing aircraft coming back in to the market near-term.

17 Comments

Posted on October 6, 2015 by Scott Hamilton

Airbus, Boeing

767-300ER, 777 Classic, 777X, A330-200, Airbus, Boeing, Goldman Sachs

Airbus gearing toward 63 A320s per month; Boeing sure to follow

By Scott Hamilton

Oct. 5, 2015, © Leeham Co. Airbus appears to be closing in on a decision to boost the production rate of the A320 family to 63/mo by the end of the decade, a new report from Bernstein Research Group says.

Boeing is sure to follow with rate boosts for the 737, Bernstein writes in an Oct. 1 note.

Leeham Co. has been predicting these moves all year, and in LNC’s interview with Airbus Group CEO Tom Enders last month at the opening of the A320 Final Assembly Line (FAL) in Mobile (AL), Enders indicated the decision to boost rates would be made by the end of the year.

49 Comments

Posted on October 5, 2015 by Scott Hamilton

Airbus, Boeing, China, Leeham Co., Pontifications

737, A320, Airbus, Bernstein Research, Boeing, Tom Enders

Evaluating airliner performance, Part 4

By Bjorn Fehrm

Subscription required.

Introduction

Oct. 05 2015, ©. Leeham Co: In the final part of our series about comparing and evaluating economic and operational performance of airliners, we will combine the different Cash Operating Costs (COC) with the capital and insurance costs to form the Direct Operating Costs (DOC).

We will also look at typical values for the different costs that make up the DOC for a single aisle Boeing 737 or Airbus A320 aircraft and a typical dual aisle Boeing 787 or Airbus A330neo aircraft.

Summary:

We describe the cost that form an aircraft’s capital costs and how these differ between an ownership or a lease model.
When forming the Direct Operating Cost (DOC). The low fuel price of $1.50 per US Gallon has lowered the fuel’s part of DOC to around 20% for single aircraft and 30% for dual aisle aircraft on their typical mission types.
This means that other costs types in the DOC gets a more dominant role. We show which are the costs to look out for.
Finally we give the typical CASM (Cost per Available Seat Mile) values for single and dual aircraft in the market.

Read more

Bjorn’s Corner: Engine ratings

By Bjorn Fehrm

02 October 2015, ©. Leeham Co: After the article about the role of bypass ratio on a turbofan’s efficiency, we now look at other aspects of civil turbofan engines that are worth some light. It’s about how the engine OEMs create different versions of the same engine to cater for different aircraft variants.

The aircraft OEMs create different size variants from the same base model of aircraft by means of stretches. There is no better example of that than the Boeing 737. Over the years it has had more than 10 major versions. For the present in-service series, 737NG, there is three official variants, from the -700 to the -900ER. Originally it also had a smaller -600 variant.

These require engines from 20klbf to 27klbf. How this is achieved and what it means for engine characteristics and reliability is the focus of today’s Corner. We will also compare it to a typical long range engine, the Rolls-Royce Trent 1000/7000, which powers the Boeing 787 and Airbus A330neo.

42 Comments

Posted on October 2, 2015 by Bjorn Fehrm

Airbus, Bjorn's Corner, Boeing, CFM, Rolls-Royce

737, 737NG, 787, Airbus, Boeing, CFM, Rolls-Royce

Assessing the China market

Subscription required.

Introduction

Sept. 30, 2015, (c) Leeham Co.: The Boeing deals announced last week with China put the country into the spotlight about its commercial aviation ambitions.

For many, the various deals announced by Boeing raise alarm bells. For most, that fire horse already left the fire station. The smoke has been billowing out of China (or maybe that’s smog) for a long, long time.

Summary

Boeing announces 300 orders and commitments for China, though the company was vague about the details. We try to dissect what’s real and what’s smoke.
Additional deals announced by Boeing are driven by China’s pay-to-play approach to business.
Other OEMs, suppliers also have to pay-to-play.
China’s deals with Airbus and Boeing are only two elements of a national goal for commercial aerospace.
IP theft and technology transfer big concerns.

Leeham News and Analysis

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Leeham News and Analysis

Airbus A350-900ULR enables Singapore Airlines to reopen Singapore-New York

CSeries dilemma: a saga of missed opportunities, bad decisions, stiff competition

Analysis: Airbus A350 production and accounting strategy

Bjorn’s Corner: Engine rubbing

Airbus and Boeing swing it out at ISTAT Europe 2015

Goldman Sachs predicts rate 5 for 777 in 2017

Airbus gearing toward 63 A320s per month; Boeing sure to follow

Evaluating airliner performance, Part 4

Bjorn’s Corner: Engine ratings

Assessing the China market

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