EMB, BBD split American order: Embraer took the lion’s share of the long-awaited order from American Airlines for regional jets. EMB won 60 firm orders and 90 options for the E-175 and Bombardier won 30+40 CRJ-900s. Flight Global points out that none seem to be going to American Eagle.
The order is welcome by both OEMs, which had gaps in their respective production lines.
WTO on Airbus subsidies: Bloomberg News reports that the World Trade Organization won’t rule until the end of next year on a US complaint that Airbus failed to comply with WTO findings that it received illegal subsidies. (No link available).
Bloomberg writes, The EU says it had secured repayment of some $2.3 billion in launch-aid loans and terminated the launch-aid loan agreements in question, while also addressing subsidies given in the form of capital contributions, infrastructure support and regional aid.(Emphasis added.)
The U.S. counters that the largest launch-aid subsidies—for the A380, Airbus’s super jumbo jet—remain in place and that the actions the EU claims to have taken with respect to earlier subsidies “appear to do nothing to withdraw them, or to remove their adverse effects.”
As we’ve written, Boeing is now requesting essentially the same thing in its Request for Proposals for the 777X site selection.
IAM, Boeing bargaining: It’s a relief to see Boeing and the International Association of Machinists District 751 bargaining for a new contract amendment for the 777X site selection, but no deal is imminent. The Seattle Times reports things could move quickly, however.
First KC-46A airframe, wings joined: Aviation Week has this story about the progress of Boeing’s KC-46A tanker program.
Posted on December 12, 2013 by Scott Hamilton
How did Boeing win the Air Canada mainline 150-200 seat jet order when only a couple of weeks ago Flight Global reported the Airbus won the deal?
We, too, heard that Airbus seemed to be the favorite, but the information was soft. We’re not rapping Flight Global—undoubtedly it was confident in its sourcing, but this just shows that a situation can change dramatically and quickly.
We’ve been following the competition for months, behind the scenes, and here are factors we understood that were involved.
Posted on December 11, 2013 by Scott Hamilton
Air Canada snubbed Airbus with its mainline jet fleet renewal and ordered up to 109 Boeing 737 MAXes. The initial order is for the 8 and 8 MAX, with the ability to swap for the 7 MAX. The deal includes the provision for Boeing to purchase up to 20 Embraer E-190s, which would be replaced by the 7 MAX, apparently.
But Air Canada is keeping open the prospect of replacing the other 25 E-190s with a new jet or to keep operating them. Bombardier hopes to win this segment of the order.
This is a big win for Boeing and one of the rare times Boeing has displaced Airbus in the MAX v NEO competition of an incumbent Airbus operator.
The Air Canada press release is below the jump.
Posted on December 11, 2013 by Scott Hamilton
From EADS’ Investors Day 1: Airbus parent EADS is having two days worth of briefings for aerospace analysts. Here’s initial news coverage from Day 1:
Reuters: EADS strategy stresses Airbus
Reuters: EADS IDs new dividend policy, A350 target
Illinois and 777X: Add the Prairie State to those submitting bids to Boeing for the 777X assembly site. Illinois was previously not included in any list that we saw.
Air Canada: The airline’s Board of Directors meets today to ratify staff recommendations to replace the Airbus A319/320/321 fleet. Airbus and Boeing are competing with their A320neo and 737 MAX families. This competition is said to be only for the 150-200 seat sector. A separate decision for the 100-149 seat sector is expected to come next year. Bombardier hopes to win that part of the deal.
Update, 10:30 PST: The Wall Street Journal says Air Canada and Boeing are negotiating a deal for 50 737 MAXes.
Update, 11:15am PST:
LOT gets $33m from Boeing: Reuters reports that LOT Polish Airlines will receive $33m from Boeing for the 787 problems. Payments will be in cash, the news agency says.
Posted on December 11, 2013 by Scott Hamilton
Airbus’ 5th quarter: John Leahy, COO-Customers of Airbus, is so well known for announcing a whole bunch of orders at the company’s annual review press conference (January 13 this time) that Boeing dubbed it the “5th quarter,” and the quip has stuck. Aeroturbopower has a wrap up of how many orders could be announced at the 5th quarter.
Boeing, IAM Meet: Dominic Gates of The Seattle Times reports that Boeing and the IAM met for the first time since the 2-1 vote rejection November 13 of the contract offer in connection with the 777X site selection.
777X responses to RFP: The following news articles try to detail some of the responses by states to Boeing’s 777X site selection RFP:
California and another California
Missouri: The county votes to add $1.8bn in tax breaks to the State’s $1.7bn.
Washington: The State adds Spokane to the list of alternative sites, according to Glenn Farley at KING5 (NBC, Seattle). (No link available.)
New York Times: Losing 777X would start a death spiral for WA State.
On Tuesday, the day the RFPs were due to Boeing, the Washington Congressional delegation released a letter to Boeing CEO Jim McNerney urging that the 777X be assembled in the state. The letter is below the jump.
This follows an Open Letter to Boeing on December 6 from Snohomish County officials (Everett is in this county), published in The Everett Herald.
Posted on December 10, 2013 by Scott Hamilton
There are some key events to follow today through Thursday:
December 10: The Requests for Proposals for the site selection of the 777X are due into Boeing today. Media will be trying to find details, but Boeing certainly won’t be talking. Nor do we expect states to be doing much talking, either.
Boeing says there will be a decision early next year; we are hearing the end of January, but this information is very soft.
December 11: EADS, parent of Airbus, begins two days of its Global Investors Day briefings.
Air Canada’s Board of Directors is to meet to decide on replacing its large, aging fleet of Airbus A320/321s. Airbus and Boeing are bidding. Flight Global earlier reported staff had selected the Airbus, but Air Canada denied a decision had been made. But, as with all denials, this could be carefully crafted: the Board hadn’t approved a deal, so no “decision” had been made.
We understand, but are not 100% certain, that the fleet renewal for the 100-149 seat sector remains open. This means Bombardier and its CSeries could still win a deal–or Air Canada may decide to retain its Embraer E-190 fleet.
December 12: EADS’ investors day continues, with guidance and information about the next 12 months and beyond for Airbus.
Doug Harned of Bernstein Research issued a note Monday listing a series of questions for EADS’ officials; we couldn’t sum it up better:
Posted on December 10, 2013 by Scott Hamilton
Airbus, Boeing, Bombardier, CSeries, Embraer
737 MAX, A320NEO, A330, A350, A380, Air Canada, Airbus, Bernstein Research, Bombardier, CSeries, E-190, EADS, Embraer
We received an email from a Reader, who works for Boeing, about the details that emerged last week of Boeing’s Request for Proposals for the site location for the 777X:
I went to your site today to see what you had on the leaked RFI, and I have to say the whining by your crowd of Airbus fanboys is just astounding. Given all of the support given to Airbus for the A380, with Hamburg filling in a protected wildlife sanctuary, giving billions of euros of infrastructure. Changing laws so they could snatch land for Airbus. The hypocrisy just makes me puke. Not one of your posters, nor you, even bother to look at what the over guys got. Nope, just bad, evil Boeing. You could do better, you know.
We replied to this Reader that shortly after the details emerged and we posted links to the newspapers that had them, our power went down for the next 16 hours. When it was restored, we had moved on to other things. The email prompted us to go back, look at the comments and ponder the Reader’s premise. Here is what we came up with:
Posted on December 9, 2013 by Scott Hamilton
Airbus held a summit December 4 for stakeholders in the A340 to explain how there continues to be life after production ended and despite being a four-engined airplane in a two-engine world.
Key to the future of this out-of-production airliner is increasing the capacity of the A340-600 to an exit-limited 475 seats and for Rolls-Royce to alter its Total Care engine maintenance Power-by-the-Hour terms and conditions to reduce costs.
Airlines, financiers, appraisers and the engine makers were invited by John Leahy, chief operating officer-Customers of Airbus. Engine providers CFM International, Rolls-Royce, Lufthansa Airlines and Hi Fly, a small European airline, made presentations in addition to Airbus.
Airbus produced 246 A340-200/300s and 131 A340-500/600s; 227 and 131 respectively are in operation or parked.
Status |
A340-200 |
A340-300 |
A340-500 |
A340-600 |
In Service |
19 |
175 |
20 |
90 |
Stored |
6 |
27 |
14 |
7 |
Airbus guaranteed the residual value on an unknown number, and has strong motivation to see these airplanes continue in service, according to one person familiar with the situation.
Posted on December 8, 2013 by Scott Hamilton
Alaska strikes back: Alaska Airlines has finally struck back at Delta Air Lines, which has been announcing loads of new service into Alaska’s Seattle hub. Alaska announced this morning:
Alaska Airlines will begin daily nonstop service between Salt Lake City and Portland, Ore., Los Angeles, San Diego and San Jose, Calif., starting June 9, and will add a third nonstop flight to its existing service between Salt Lake City and Seattle. Sale fares on the new flights will be available for booking Tuesday, Dec. 10.
Salt Lake City is a major Delta hub.
Boost for Q400: Bombardier inked a Letter of Intent for 30 firm orders for the Q400 turbo-props with Nantong Tongzhou Bay Aviation Industry Co., Ltd. Nantong plans to launch commercial airline service in China through a new carrier called Sutong Airlines.
Airbus CEO speaks: Arabian Business has a long interview with Airbus CEO Fabrice Bregier. Once you get past the fluff, there is some interesting information.
Groveling: This story via ABC has nothing new but we love the headline. Add Georgia to the list of grovelers.
This article discusses the prospects of Huntsville (AL) in the competition for Boeing’s 777X assembly site.
The IAM 837 union head at Boeing’s plant in St. Louis has reversed course (and declared a news blackout). More goofiness from the International Association of Machinists.
Posted on December 6, 2013 by Scott Hamilton
Could Boeing face a new complaint with the National Labor Relations Board, this time over where the 777X assembly site will be placed? A Cornell University labor professor thinks it possible.
The union-backed publication In These Times wrote on November 25 that Boeing’s shopping the assembly site around following the rejection of a contract offer by IAM 751 November 13 is reminiscent of the 2009 decision to locate the second 787 assembly line in South Carolina in the aftermath of a 57-day751 strike in 2008. The 751 District filed a complaint with the NLRB that that decision was an illegal retaliation and the staff agreed, filing a formal complaint against Boeing and demanding that the assembly line be relocated to Everett (WA). The complaint was dismissed in 2011 when 751 and Boeing agreed to locate the 737 MAX line in Renton (WA) in exchange for a four year extension of the 2008 contract. The secret negotiations took place a year before the 2008 contract was to expire.
Posted on December 5, 2013 by Scott Hamilton