Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Boeing’s 737 North Line and the Everett factory: in transition now June 9, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 25. June 6, 2025
- New RISE powerplant benefits from decades of GE research and development June 5, 2025
- Engine makers emphasizing durability, reliability June 4, 2025
- Boeing CEO: Lessons learned are key to certification of 737-7/10 and 777X June 2, 2025
Faury looks to transform Airbus
- Guillaume Faury has been the chief executive officer of Airbus Group since April 1. In this exclusive interview, he looks back on his first six months and ahead for the future of the company. This is part 1 of two parts. Part 2 will appear soon.
Guillaume Faury
Oct. 30, 2019, © Leeham News: Guillaume Faury assumed his office as chief executive officer of the Airbus Group at a time when the company was trying to emerge from years-long scandals over bribery and corruption probes and the industry was only beginning to reel from the grounding of the Boeing 737 MAX.
Now, he’s focused on guiding Airbus in the future through a series of transformations to put the scandals behind the company, change production for the future and prepare for new airplanes that inevitably must be designed.
Becoming CEO
Faury’s been with Airbus for 20 years, surrounding a four-year stint with Peugeot from 2009-2013 as EVPO of Research and Development. He was named president of Airbus Commercial in February 2018. He previously was president and CEO of Airbus Helicopters from 2013-2018.
He succeeded CEO Tom Enders, who was not going to be given another term as part of the fallout of the numerous government investigations into past practices at Airbus involving third parties for aircraft sales, bribery and corruption allegations.
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Although Enders and CFO Harald Wilhelm initiated the probes and reported the problems to the governments, they along with many others had to go as Airbus tried to limit the damage.
Boeing’s 777X problem: Shifting market, lagging economics, softening order book
By Judson Rollins
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Introduction
Oct. 28, 2019, © Leeham News: The Boeing 777X’s lackluster sales to date put it in a similar light as the soon-to-end A380 program. Is the era of the 400+ seat aircraft turning onto final approach?
There are only 344 777Xs on firm order at present. As many as 59 of these orders are soft. The aircraft has been available for sale since May 2013, during a period of near-record global airline profitability. This calls into question the market viability of the 777X – and whether Boeing will ever break even on the program.
Summary
- VLA demand is limited; Airbus’s forecast seems overly optimistic.
- 777X order book is concentrated on just a handful of customers.
- Middle East carriers account for two-thirds of 777X orders.
- Inferior economics limit the 777-8 to a narrow niche like the 777-200LR.
- 777-9 economics outweighed by trip cost risk, lower yield of marginal seats.
Pontifications: Southwest to evaluate splitting airplane supplier next year
Oct. 28, 2019, © Leeham News: Gary Kelly, the chairman of Southwest Airlines, told CNBC Thursday that next year, the company will review whether to source airplanes from another manufacturer besides Boeing.
This, of course, means Airbus.
The prolonged grounding of the Boeing 737 MAX is the reason. Southwest says the grounding already has cost nearly $500m in lost revenues.
Kelly said the analysis won’t be for “smaller” airplanes, but he didn’t specify to CNBC what this means.
Southwest has 500 Boeing 737-700s seating 143 passengers at 30-31 inch pitch.
The Airbus A220-300 seats 145 at 32 inches in the Air Baltic one-class configuration.
The Embraer E195-E2 seats 146 passengers, but in a 28-inch pitch. At Southwest’s preferred 31-32 inch pitch, the E-Jet seats 132 passengers.
Since the context was the 737-8 MAX, did Kelly mean, not smaller than the -8? This isn’t known.
Preferred 737 MAX return to service timeline for Airlines
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By Vincent Valery
Introduction
Oct. 21, 2019, © Leeham News: As Boeing sorts out final requirements with regulators for the 737 MAX return to service, preparations to resume deliveries are in full steam.
The company is hiring scores of temporary workers to return grounded and built but not yet delivered airframes. A note from Alliance Bernstein estimates that Boeing will be able to hand over 25 aircraft per month on top of those that come off the assembly line.
After taking hefty losses and having lost its most robust cash flow source for almost a year, Boeing will want to hand over as many aircraft to airlines as fast as possible.
Do all 737 MAX customers, likewise, want their aircraft back in service as soon as possible?
Summary
- National regulators will drive return to service timeline;
- Passenger demand variations;
- 737 MAX exposure by region;
- Demand peaks might dictate who flies first;
- Maintenance, compensation, and other considerations.
The new focus in aircraft development, the production
By Bjorn Fehrm
October 17, 2019, ©. Leeham News: Over the last decades the focus for new airliner projects has been technological advancements in aerodynamics, structures, engines, and avionics. This has offered 15% efficiency gains for the new airliners over the aircraft they replace. While still important, the next airliner projects have an additional focus which has moved to the top of the list. The production phase and how to improve its many parts.
The parts include development for automation, efficient partnering/sourcing and how to reduce the expensive learning phase of the production. We will cover this change in a series of articles around the 9th Aviation Forum, an up-and-coming Munich conference that focuses on these themes.
Is re-engining the Boeing 767 a good idea?
By Bjorn Fehrm
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Introduction
October 17, 2019, © Leeham News: FlightGlobal writes Boeing is investigating re-engining the 767-400ER with GE GEnx engines to produce a new freighter and perhaps a passenger aircraft as a replacement for the NMA project. Development costs would be lower and it would be easier to get a business plan which closes for the upgraded 767 than for the NMA.
We commented on the idea earlier in the week and here follows a technical analysis of what re-engining the 767 would bring.
Summary:
- The 767 is 40 years old in its base design. We look at the fundamentals to understand the trades involved in extending its life with new engines.
- We also compare the 767 technologies with those for the NMA to understand the compromises of an updated 767RE compared with a clean sheet NMA.
Embraer’s E195-E2 or Airbus A220-300 under 150 seats? Part 4
By Bjorn Fehrm
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Introduction
October 10, 2019, ©. Leeham News: We have over the last weeks analyzed what aircraft to choose for the segment 120 to 150 seats, comparing Embraer’s E195-E2 with Airbus A220-300.
After looking at fundamental data, drag data and fuel consumption and other costs for the aircraft, it’s now time to summarize the series by looking at what route networks the aircraft are suitable for.
Summary:
- The E195-E2 and A220-300 address the segment market segment under 150 seats.
- They have similarities but also differences.
- These differences have made an early adopter operate both types over different types of networks.
Europe’s Regional airlines meet in Antibes, Cotes d’Azur.
By Bjorn Fehrm
October 9, 2018, ©. Leeham News, Antibes France: The European Airlines Association, ERA, gathered 44 of its 51 member airlines in Antibes France, today for the first day of its 2019 General Assembly meeting.
LNA participated in the event for the first time and we found an impressive gathering of airline and airport representatives, aircraft OEMs and support businesses discussing the challenges facing the European regional air transport market.
Norway’s Wideroe, the launch customer for Embraer’s E-Jet E2 is one of the airlines present.
Embraer’s E195-E2 or Airbus A220-300 under 150 seats? Part 3
By Bjorn Fehrm
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Introduction
October 3, 2019, ©. Leeham News: We have the last two weeks analyzed what aircraft to choose for the segment 120 to 150 seats, comparing Embraer’s E195-E2 with Airbus’ A220-300.
The first week we looked at fundamental data and last week we compared the drag data and by it the fuel consumption of the aircraft. Now, we analyze the other operational costs for the aircraft.
Summary:
- The fuel costs between the E195-E2 and A220-300 are close.
- We now analyze the other operational costs; Crew, Maintenance and Airway/Airport costs to see how these differ.
EU can retaliate against Boeing immediately; old WTO win outstanding
Sept. 30, 2019, © Leeham News: An obscure and largely forgotten European win in a previous illegal subsidies case against Boeing and the United States before the World Trade
Organization (WTO) opens the door for immediate retaliation against Boeing if the Trump Administration levies tariffs against Airbus.
LNA yesterday revealed the European Union may retaliate immediately against US tariffs on Airbus or EU goods. The US will be free to do so as early as October.