Norwegian Air splits order with Airbus, Boeing

In a surprise, Norwegian Air Shuttle split a large order between Airbus and Boeing for A320 and 737 families. The Airbus order is only for the NEO and 737 order is a mix of MAX and NGs.

We expected only the 737 order; we had previously reported NAS was one of the “commitments” for the MAX.

This represents the third all-Boeing customer Airbus has won for its NEO.

NEO deliveries will begin in 2016, equipped with the PW GTF. Engine selection for later deliveries remains open. The GTF enters service on NEO in 2015 and the NEO CFM Leap engine enters service a year later.

Airbus, ATR big losers in Kingfisher turmoil

This is an expanded version of a story we did for Flight Global.

Airbus will be hit hard if Kingfisher Airlines of India fails. ATR has already lopped its entire order of turbo-props from its books due to Kingfisher’s financial travails.

Airbus is a wholly owned subsidiary of EADS and EADS owns half of ATR.

DVB Aviation Finance is planning to repossess two Airbus A320 family aircraft, if it hasn’t already, and some lessors are also taking back aircraft.

According to the Ascend data base, Kingfisher operates 31 A320 family with V2500 engines and 25 ATR-72-500s. It has 68 A320s and 38 ATR-72-600s on order. Kingfisher also has A330s, A350s and A380s on order and holds options for a variety of aircraft.

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Understanding appraisers in aircraft values

There has been an active discussion in the comment section on the “Rate 35” post and the relative merits of appraisals and appraisers with respect to the Airbus A320 and Boeing 737NG.

We’ve been involved in the airline business since 1979 and from 1990, when we co-owned Commercial Aviation Report (CAR), have followed the appraisal business. Given the discussion in “comments,” we think a dedicated post is worthwhile.

CAR created the industry’s first commercial appraisal conference in 1990. ISTAT–the International Society of Transport Aircraft Traders–at that time was still largely a small, professional organization, far difference than what it is today.

CAR’s first conference brought together nearly every appraisal company then in existence in the US to compare and discuss appraisals of what was called Enhanced Equipment Trust Certificates (EETCs) and appraisals published by the firms.

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Punching through the hysteria about closing Boeing Wichita

Mike Mecham of Aviation Week has a thorough analysis of what’s behind the decision to close Boeing Wichita.

Contrast Mike’s story with this ridiculous analysis. It’s very, very rare that we call out someone else but this one is so far off the wall that we can’t help ourselves. (It should be noted Loren Thompson was paid by Boeing to do a report about the Airbus subsidies and the tanker competition.)

George Talbot of The Mobile Press-Register weighed in with this story.

Odds and Ends: Air India’s cost of 787s

Air India: FlightGlobal has this article that details the cost of Boeing’s 787s to Air India.

British Airways: Two pilots on a flight from London Heathrow nearly passed out

Kansas: Gov. Sam Brownback unveiled incentives today (Jan. 9) for Bombardier to bring jobs to Wichita, which politicians will view as very positive in the wake of Boeing’s decision to close its defense operations there. Considering Brownback’s stance on Boeing and the air force tanker competition, he continues to diversify Kansas from just Boeing. Wichita is the self-proclaimed “Air Capital of the World,” with presence from Bombardier, Hawker Beechcraft and Airbus. Boeing, of course, was the anchor, having been in Kansas 80 years.

More on tankers: Flightglobal has an interesting piece that 10 years ago, Embraer was prepared to join Airbus Military in the development of the A400M.

 

 

Fallout from Boeing’s Wichita move continues

Wichita (KS) politicians continue to grouse about the decision by Boeing to close the defense operations there and move jobs to Oklahoma City, San Antonio and Puget Sound (Seattle).

The Seattle Times has this article, quoting the Wichita mayor and other officials. The portion of the article that caught our eye is this:

“We thought we had a marriage,” said Wichita Mayor Carl Brewer, who until his 2007 election was a business manager at Spirit AeroSystems, the airplane-manufacturing operation sold off by Boeing two years earlier.

“It’s taken a lot of work for us to control our outrage,” he said. “So don’t ask me… are you outraged, because the answer will be yes, with probably another four-letter word attached to it.”

Kansas politicians feel particularly “angry and disappointed and dismayed,” as one county commissioner put it, because they led the Republican flank of the decadelong congressional push to secure the $35 billion Air Force tanker contract for Boeing.

In return they were told the company and its suppliers would generate 7,500 direct and indirect jobs after Boeing clinched the contract last February.

“We as a community demonstrated our loyalty to the Boeing Company when they asked us to stand behind them and to go fight for them,” Brewer said.

Now he’s singing a different tune. “Don’t think for one second that we are not exploring our opportunities to go out and recruit Airbus… We are making those phone calls.”

Well, that’s going to be a tough sell. During the tanker competition, Kansas politicians, notably then-Sen. Sam Brownback (now governor) and ex-Congressman Todd Tiahrt (a former Boeing employee as well) couldn’t say enough bad things about Airbus is their campaign for Boeing’s tanker. Tiahrt was particularly vitriolic, though Brownback was no shrinking violet, either.

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Odds and Ends: Bombardier, Boeing and Mountain Dew

Bombardier: Jon Ostrower reports that Bombardier will deliver 10 CSeries per month from 2016 in this report. This is a pretty modest rampy up rate, in our view, on the way to a projected maximum of 20 per month. Ostrower also has this piece about the activation of BBD’s CIASTA “iron bird” designed to test systems on the ground, well before the first flight, in a bid to iron out any problems before getting too far into assembly.

Even at the maximum rate, this pales compared with the 42 per month announced by Boeing for the 737 and 44 per month announced by Airbus for the A320. Both companies are considering even higher rates, to as many as 60 per month.

This also is one reason why BBD isn’t striving for some mega-order that some observers and analysts want as indicative a vast market acceptance of the CSeries. BBD simply couldn’t fill such an order without one customer dominating its production line. BBD wants to establish a broad customer base by entry-into-service.

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Damaged Qantas A380 to return to service

The Qantas Airbus A380 damaged last year in an uncontained engined failure will return to service by the end of the year, reports Aviation Week. This is in keeping with QF never having an airframe loss.

What caught our eye in the article is the repair bill: US$140m. This is widely reported to be the pricing for the launch customers when the A380 program was launched (though we have no idea if this is QF’s early-bird pricing). Wow.

C919 gains but loses advantages

Here is an article we did for FlightGlobal Pro.

After a slow and disappointing start compared with expectations that had been set in advance of the Zhuhai Air Show in November 2010, Commercial Aircraft Corporation of China’s (Comac) C919 has picked up steam.

Prior to Zhuhai, Chinese authorities forecast “hundreds” of orders would be announced for China’s first indigenously built mainline jet since the reverse-engineered Boeing 707 copy that never entered commercial service. Instead, a disappointing 55 firm orders and 50 options were announced.

Since then, there are about 250 orders and options now on the books. According to Flightglobal’s Ascend Online database, 160 of these are firm orders from nine Chinese customers, including four lessors. China’s “big three” airlines, Air China, China Eastern and China Southern, ordered a disappointing five aircraft each. Hainan ordered 20. Some of the announced orders have yet to be firmed up as contracts.

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PNAA conference in Seattle Feb. 6-8

The Pacific Northwest Aerospace Alliance is hosting two conferences in the Seattle area in February and March.

PNAA’s 11th annual conference is Feb. 6-7-8 at the Lynnwood (WA) Convention Center, north of Seattle and south of Everett. Information may be found here. This 2 1/2 day conference is comprised of a Defense Focus Day on the afternoon of Feb. 6; a day-and-a-half of commercial aviation presentations and a Suppliers’ Fair on the afternoon of the 8th.

Airbus, Boeing, Bombardier, CFM, Pratt & Whitney, the Teal Group’s Richard Aboulafia, G2 Global Solutions’ Michel Merluzeau, Alcoa and Electroimpact are among the presenters on the commercial side.

Tayloe Washburn of Project Pegasus and the Washington Aerospace Partnership will discuss the issues surrounding the assembly site of the 737 MAX.

Boeing’s Insitu  EADS North America and Lockheed Martin are among the defense industry presenters.

More than 300 people attended the 2011 conference, which is now the largest in the Pacific Northwest and one of the largest on the West Coast. PNAA serves Washington, Oregon, Idaho, Montana, Alberta and British Columbia. It has arranged trade missions from Europe, Asia and Latin America visiting here to meet with Washington State suppliers. PNAA was also asked by the White House and the US Commerce Department to arrange a meeting of key CEOs in Seattle to discuss economic issues affecting aerospace.

The March event PNAA is organizing is a Suppliers Forecasting Symposium. This one day event on March 12 precedes the first USA-based Aerospace & Defense Supplier Summit organized by BCI Aerospace.

The Symposium is the first of its kind: a day-long event focused on forecasting the requirements in the supply chain that services Boeing, other OEMs and the Tier 1 suppliers. Boeing Commercial Airplanes and Boeing Defense, Space & Security will be presenters as well as two noted aerospace analysts from Wall Street, David Strauss of UBS and Robert Spingarn of Credit Suisse. They follow Boeing and the supply chain and have their views on forecasting the needs of the suppliers.

These are two important events sponsored by PNAA and the A&DSS summit by BCI Aerospace is equally important to the Washington aerospace supply chain. PNAA members get a discount to the A&DSS event.